ABOUT BOOK

In most retailer loyalty schemes, cardholders obtain ‘points’ based on their purchases. These points may be redeemed for rewards. This paper uses individual cardholder transaction records from a leading UK retailer and a related qualitative study to investigate this redemption behaviour. It provides a description and taxonomy of reward redemption behaviour, including non-redemption. Amongst those that do redeem points, different types of redemption behaviour are found. Cluster analysis produced a three cluster solution. Explanations of this behaviour and the taxonomy are developed through the qualitative research. Implications for loyalty scheme management and research into loyalty schemes are identified