What can monitoring our bank account cash flows say about our loyalty cards?

ABSTRACT

The present research postulates customers do not necessarily use loyalty cards to gain their rewards. Applying a logit regression on a sample of 1,500 households from the Understanding Society Innovation Panel, this investigation shows that insecure customers about their bank account cash flows are more likely to own a loyalty card. Checking their cash flows frequently acts as a framing effect; thus, Prospect theory will be explored here if it is relevant in the loyalty card context. Drawing from thirteen different loyalty cards and firms, this work verifies the aforementioned insight and whether loyalty card ownership is gender-sensitive.

Acknowledgments

I would like to thank three anonymous referees for their valuable comments and suggestions. Their support was immense to polish a final version of this work.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

¹ Capitalisation-weighted index consisting of listed retailer companies in UK.

² Capitalisation-weighted index consisting of listed retailer companies outside in UK.

³ Possibly due to internet banking adoption (Giovanis et al., 2012).

⁴ Somebody may have a source of income, but equally a rising outstanding amount getting bigger as way of living remains, e.g. fixed costs from utility bills, rents, substance costs, loans.

⁵ Notice that a household can have many members, and this is translated in up to 2227 observations reported for the variables (see Table A1).

⁶ Stata statistical software is used for applying the statistical methodology and generating results.

⁷ Reports coefficients over odds.

⁸ Meaning that higher values of the frequency of checking the bank balance variable is reported as low for higher values.

⁹ Such as loyalty cards and the underpinnings of the mechanism for enhancing brand loyalty.