Fierce competition among retailers has drawn attention to strategies that generate sales growth as well as improve the management of customer relationships, reinforce customer loyalty, and generate predictable revenue for sustainable marketing and continuous business improvement. This study explores the perceived value of membership programs that build the consumer base as a reliable marketing tool to trigger unplanned purchases which increases sales. The study uses a one-time pre-set membership threshold condition where consumers consider the value of membership programs and face situations whether to make additional purchases to meet the threshold. The utility of membership programs and the amount already spent are determinants of perceived value of the membership program and affect unplanned purchases. In addition, the price of the product and brand preferences moderate the relationship between the perceived value of the membership program and unplanned purchases. Research material and measurements are designed based on the current market situation and relevant literature. Data were collected online. The findings of this study support that perceived value of membership programs can trigger unplanned purchases. First, consumers with larger purchase amounts (closer to the membership threshold) and have a positive feeling toward the expected utility of the membership program tend to have a significantly higher perceived value of the membership program. These increased perceptions of value lead to additional purchases that were not planned and satisfy the needs created by membership. Second, the unplanned purchase intention can be affected by brand preference and the price of product.

Authors:
Mengkuan Lai, National Cheng Kung University, Taiwan
Jung-Chen Yang Yang, National Cheng Kung University, Taiwan

About the Presenter(s)
Professor Mengkuan Lai is a University Associate Professor/Senior Lecturer at National Cheng Kung University in Taiwan

See this presentation on the full schedule – Thursday Schedule

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