Specific to loyalty programs (and the wider field of marketing), the digital age has made it easier to observe what others are doing, at scale and over vast...
Loyalty Psychology
Loyalty Psychology Series: Framing of Attribute Information Bias
The framing of attribute information bias (Levin and Gaeth, 1988)193 states people will react to a particular choice in different ways depending on whether it is...
Loyalty Psychology Series: Sunk cost effect
Why are we likely to continue something we've invested time, money or effort in, even if it would be rational to give it up? Because of the sunk cost effect, which is...
Loyalty psychology: consumers hate losing more than they love winning.
This article is an excerpt from 'Loyalty Programs: The Complete Guide'. Buy it now on Amazon at at all leading book stores. Loss aversion suggests that the pain of...
Mecca Beauty Loop Launch New Tier (and the crowd goes wild)
I am a shameless Mecca Beauty Loop fan girl and blogging enthusiast. For background, my article The Beauty Behind Mecca Beauty Loop explains all the reasons I love the...
Loyalty Psychology Series: Behavioural and Attitudinal Commitment Theory
Behavioural commitment (the intention to stay) and attitudinal commitment (the preference for a company) are important concepts within the loyalty program context....
Loyalty Psychology Series: Cognitive Dissonance Theory
An area of consumer behaviour that needs particular attention is understanding ‘Why customers return products?’, especially given the costs associated with such a...
100 loyalty points sounds like a lot more than $1. Why? Loyalty psychology tells us.
Influencing consumer behaviour Loyalty programs aim to influence consumer behaviour. Therefore, understanding how consumers make decisions and the factors that...
Loyalty Psychology Series: Social Identity Theory
Psychology has demonstrated that consumers do not just feel emotional connections to preferred brands, but they adopt them as part of their identity. Tajfel (1978) [1]...
Loyalty Psychology Series: The Law of Effect & Exercise
The Law of Effect and Exercise, what is it and how does it relate to business? It sounds like a type of workout. Many may not know that there are psychological...