How cashback strategies yield financial benefits for retailers: The mediating role of consumers’ program loyalty

dc.contributor.author Vieira, Valter A.
dc.contributor.author Agnihotri, Raj Shekhar
dc.contributor.author Severo de Almeida, Marcos I.
dc.contributor.author Lopes, Evandro L.
dc.contributor.department Marketing
dc.contributor.other Marketing
dc.date.accessioned 2022-01-19T20:47:02Z
dc.date.available 2022-01-19T20:47:02Z
dc.date.issued 2022-03-01
dc.description.abstract As consumers heavily rely on price to make purchases, cashback rewards apps are termed as a strategy in the retail context. Accordingly, retailers are increasingly using price strategies based on providing cashback back to develop loyalty programs. However, retailers have little insight into how different cashback price strategies, such as cashback generation and cashback redemption, yield loyalty and financial benefits for them. Using a conceptual framework, the authors link cashback price strategies to consumers' loyalty towards the program, which in turn boosts consumers' average purchase amount and retailers' revenues. The analysis uses time-series data from a cashback program merged with retailers' revenues and consumer average purchase amount. Results demonstrate that cashback generation and retention increase consumer's loyalty towards the cashback. Second, program loyalty is a strong driver of customer average purchase and retailing revenues. Third, retailers can use cashback generation and retention for increasing firm’ performance by evoking consumer program loyalty.
dc.description.comments Valter Afonso Vieira, Raj Agnihotri, Marcos Inácio Severo de Almeida, Evandro Luiz Lopes, How cashback strategies yield financial benefits for retailers: The mediating role of consumers’ program loyalty, Journal of Business Research, 141(2022);200-212; https://doi.org/10.1016/j.jbusres.2021.11.072. Posted with permission.
dc.identifier.issn 0148-2963
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/GvqXJVZw
dc.language.iso en
dc.publisher © 2021 Elsevier Inc. All rights reserved.
dc.source.uri https://doi.org/10.1016/j.jbusres.2021.11.072 *
dc.subject Cashback generation
dc.subject Cashback redemption
dc.subject Retailing
dc.subject Consumer
dc.subject Loyalty
dc.subject Revenues
dc.subject.disciplines DegreeDisciplines::Business::Marketing
dc.subject.disciplines DegreeDisciplines::Business::Sales and Merchandising
dc.subject.disciplines DegreeDisciplines::Social and Behavioral Sciences::Economics::Finance
dc.title How cashback strategies yield financial benefits for retailers: The mediating role of consumers’ program loyalty
dc.type Article
dspace.entity.type Publication
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relation.isOrgUnitOfPublication 23a1a1c4-febe-4b31-bc8d-aa1e018aead9
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