The Paradox of Points

1. Front Matter

   Pages I-XIX

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2. A Introduction

   • Sören Köcher

   Pages 1-4

3. B Conceptual Basis and Literature Review

   • Sören Köcher

   Pages 5-43

4. C Theoretical Background and Hypotheses Development

   • Sören Köcher

   Pages 45-73

5. D Empirical Examination of Medium Magnitude Effects

   • Sören Köcher

   Pages 75-130

6. E Conclusions

   • Sören Köcher

   Pages 131-140

7. Back Matter

   Pages 141-163

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In his research, Sören Köcher provides valuable insights on the paradoxical effects of the magnitude of a loyalty program medium—i.e. the sheer number of points, miles, or stamps credited for every purchase and required for reward redemption—on the central consumer decisions in loyalty program memberships. In sum, the results of twelve empirical studies reveal that high magnitude currencies improve the attractiveness of medium collection but entail reluctant medium spending behavior. These findings provide important implications for a more efficient usage of loyalty programs in business practices. In addition, this dissertation discovers a violation of one of the most fundamental assumptions of rational choice theory and thus contributes to a better understanding of when and why people deviate from rational decision-making.

• Consumer choice behavior
• Experimental research
• Loyalty program memberships
• Theories of choice
• Violations of rational choice theory

• TU Dortmund University, Dortmund, Germany

  Sören Köcher

Dr. Sören Köcher received his doctorate at the Department of Marketing, TU Dortmund University under the guidance of Prof. Dr. Hartmut H. Holzmüller.

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