Paper Type

Complete

Paper Number

1737

Description

In an era dominated by rapid technological advancements and dynamic social environments, including the COVID-19 pandemic, it is crucial to understand shifts in customer spending habits and engagement with loyalty programs in e-commerce during crises. This study utilizes the transaction data from a Food & Beverage (F&B) company, and employs binary logit model and panel regression to uncover changes in customer point usage behavior post-pandemic. The findings indicate that after the pandemic, both low and high-usage customers decreased spending amount, transaction frequency, and point accumulation. Interestingly, low-usage customers showed a significant increase in the likelihood of using points for purchases, along with higher redemption frequency and average points used per transaction. Conversely, high-usage level customers exhibited significant declines in these metrics. These findings highlight the need for adapting loyalty programs to evolving customer behaviors, particularly in e-commerce, offering valuable insights for managerial strategies.

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E-Business

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Jul 2nd, 12:00 AM

Crises and E-loyalty Programs:Adaptive Point Usage Behavior during Crises

In an era dominated by rapid technological advancements and dynamic social environments, including the COVID-19 pandemic, it is crucial to understand shifts in customer spending habits and engagement with loyalty programs in e-commerce during crises. This study utilizes the transaction data from a Food & Beverage (F&B) company, and employs binary logit model and panel regression to uncover changes in customer point usage behavior post-pandemic. The findings indicate that after the pandemic, both low and high-usage customers decreased spending amount, transaction frequency, and point accumulation. Interestingly, low-usage customers showed a significant increase in the likelihood of using points for purchases, along with higher redemption frequency and average points used per transaction. Conversely, high-usage level customers exhibited significant declines in these metrics. These findings highlight the need for adapting loyalty programs to evolving customer behaviors, particularly in e-commerce, offering valuable insights for managerial strategies.

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