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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
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The Factors Affecting the Redemption of Credit Card Reward Points in Indonesia

Author(s): Sulistyawati Toelle

Citation: Sulistyawati Toelle, (2011) "The Factors Affecting the Redemption of Credit Card Reward Points in Indonesia" Vol. 5, Iss. 5, pp. 110 - 120

Article Type: Research paper

Publisher: North American Business Press


Reward point is a form of customer loyalty program used by many credit card issuers in many countries,
including Indonesia. This paper presents the result of a descriptive study that was conducted in an
attempt to assess the Indonesian credit cards users’ level of awareness about the reward-point programs,
and identify the factors affecting the redemption of reward points. The respondents of the study are the
credit card users in two major cities in Indonesia in 2009. Snowball sampling technique is used to collect
data from the users using questionnaire as a measurement tool. Of the 500 questionnaires distributed for
this study, 276 usable questionnaires were returned giving a response rate of 55%, which was considered
satisfactory for subsequent analysis. The Chi-Square and logit regression analysis are used to analyze the
data. Results show that 82.20% of the sample reported being either completely or partially aware of their
credit cards’ point-reward program. Regarding the factors affecting the redemption of reward points, the
study found that redemption rate is related to the awareness about reward point program, duration of
credit card usage, average usage of credit cards, and the customers’ attitude toward incentives of reward
point program.