Loyalty Scheme Enrolment and Privacy Issues: Influences on Consumer Enrolment in Loyalty Schemes and the Impact of Privacy Concerns in Enrolment

The use of loyalty schemes by businesses has become widespread today and this popularity has been accompanied by considerable enrolment in loyalty schemes by consumers. Though the assumption that economic rewards are the foremost influence on enrolment in schemes may be true, it is imperative to investigate from a broad perspective the influences on loyalty scheme enrolment. While some influences may drive enrolment in schemes, the danger of potential loss of privacy associated with loyalty schemes could also have a negative influence on enrolment. This study investigates from a consumer perspective, drivers of enrolment in loyalty schemes and the impact of the danger of privacy loss in enrolment decisions. This study observes that aside economic rewards, scheme design features and self-selection are two other factors that have significant influence in scheme enrolment. Moreover, contrary to assertions in the literature, the perceived risk of loss of privacy appears to have minor impact on enrolment decisions.