Why Give? An Exploratory Study Into Customer Loyalty Point Donations

Hsueh Fang Hu

Student thesis: Master thesis

Abstract

Customer loyalty programs continue to be used by companies as a tool for customer relationship management as shown by the growing numbers of enrollments. However, they need to be developed and adapted in order to keep customers engaged. One of these ways is offering customers an opportunity to donate their loyalty points- this allows the company and customer to contribute to the social good and for charities to receive points they can use well.
Purpose: This exploratory study attempts to identify the antecedents underlying attitudes and behaviors that would lead to an individual’s intent to donate points.
Methodology: An online survey was created and distributed among a sample of 125 responses from the United States SurveyMonkey Audience pool. Structural equation modeling was used to propose a model and assess the hypothesized relationships between defined constructs and the intent to donate loyalty points.
Findings: The results showed that awareness of loyalty programs had a positive relationship with perceived ease of use (to donate). Altruism, ease of use (to donate), and efficacy were shown to have a positive relationship with company image. Efficacy and company image were shown to have a positive relationship with intent to donate loyalty points. The mechanisms of solicitation, psychological benefits, reputation, and values, which have been widely viewed as determinants to giving behavior, did not have a significant effect on loyalty point donation intent
Practical Implications: The research provides a better understanding into what would motivate individuals to make point donations. Several recommendations based on the findings are provided. The insights made also suggest the potential to apply the framework used for future philanthropic research topics.

EducationsMSocSc in Service Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2016
Number of pages97
SupervisorsKai Hockerts