Kivetz & Zheng (2006): The goal-gradient hypothesis resurrected: purchase acceleration, illusionary goal progress, and customer retention Flashcards
the goal-gradient hypothesis:
animals expend more effort as they approach a reward
How did they measure effort acceleration in purchasing behavior?
2
temporal operationalization: inter-purchase or inter-visit times > more frequent
quantity operationalization: purchase quantities
Study 1: cafe RP
, as members accumulated more stamps on their cards, the average length of time before their next coffee purchase decreased
this acceleration is driven by goal motivation rather than time-trend effects, or habituation, because with no reward, people didn’t accelerate their purchases
Study 2: Illusionary goal progress
purchase acceleration is not based on absolute distance, but relative distance to the reward
10-stamp or 12-stamp (with 2 preexisting stamps) coffee card
Study 3: the Jaboom music-rating incentive program
rating 51 songs on the website earns you a $24 Amazon card
supported the goal-gradient hypothesis
post reward resetting
just after read attainment, customers exhibited a drop in activity (post reward resetting) and were also most likely to defect