Loyalty cards, credit options and economic market development
Purpose: This paper analyses three strategies in customers’ use to afford consumption in a developed and an emerging market for different product groups. The strategies are: (1) usage of loyalty cards, (2) usage of credit cards and (3) usage of long-term credits. Design/methodology/approach: Mall intercept surveys conducted in Poland (emerging market) and Germany (developed market) provide data for testing a set of hypotheses using ANOVAs. Findings: Results show that customers in emerging markets show no differences in the usage of loyalty cards for product categories with high shopping frequency (groceries) compared to developed markets, while in all other product categories loyalty card usage is stronger. Results show further that in low price categories, customers in emerging markets use credit card payments more often compared to customers in developed markets. In high price categories, they use credit cards less often, but long-term credits more often. Research limitations/implications: Results have implications for the design of loyalty programs and payment options in different markets. Results have also implications for public policy regarding concerns about increasing private debt in emerging countries. Originality/value: This paper suggests a cost-benefit framework where customers in emerging countries perceive benefits of loyalty cards and credit options higher, while they are willing to bear higher costs. As a result, effects of product category characteristics on usage that are observable in developed markets do not exist in emerging markets.
Year of publication: |
2020
|
---|---|
Authors: | Zielke, Stephan ; Komor, Marcin |
Published in: |
International Journal of Retail & Distribution Management. - Emerald, ISSN 0959-0552, ZDB-ID 2032071-1. - Vol. 48.2020, 6 (08.05.), p. 591-607
|
Publisher: |
Emerald |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Cross-national differences in price-role orientation and their impact on retail markets
Zielke, Stephan, (2015)
-
Zielke, Stephan, (2023)
-
The influence of customer characteristics on frontline employees’ customer need knowledge
Hüttel, Björn A., (2019)
- More ...