Chanho Song, Min Chung Han, Sung-Hee Wendy Paik, Michael Y. Hu
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Credit card reward donation with scarcity messages
Purpose
The purpose of this paper is to investigate the effect of reward redemption programs on donation amount, donation percentage and donation intention in the context of a bank credit card.
Design/methodology/approach
A 2 × 2 × 3 experiment is implemented with 1,070 consumers accessing a national US-based sample with a small compensation. The authors use general linear model to test the proposed hypotheses.
Findings
The findings show the main effects of reward types, limited-time message and value of reward redemptions on the percentage of donations and overall donation intention to charity. The type of reward (cash/points) is found to interact with the limited-time message and with the value of reward redemptions.
Originality/value
No prior studies have addressed the relationship between credit card redemption rewards and scarcity messages in the donation context. The study contributes to the understanding of the effectiveness of credit card redemption rewards with scarcity message in improving a consumer’s donation intention.
期刊介绍：
International Journal of Bank Marketing (IJBM) aims to publish papers that relate to the marketing challenges of financial services providers around the globe.
Preference is given to empirically-based research papers that expand on existing theories (or develop new ones) on customer behaviour in financial services settings.
In addition, the journal is interested in helping academicians and practitioners in the field to better understand the discipline of financial services marketing, and as a result review papers and thought pieces are invited for submission.
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