Purpose

This paper aims to examine the moderating role of customers’ regulatory focus on the relationship between progress level of goal pursuit and customers’ consumption behaviors in a retail setting.

Design/methodology/approach

Data were collected from a loyalty program organized by a retail store selling cosmetic and skincare products. Loyalty program participants were given member cards endowed with different progress levels, and their consumption behaviors during the program period were tracked. Regulatory focus of program participants was also assessed.

Findings

Regression results show that prevention-focused customers are inclined to spend more money, accumulate more stamps and achieve more additional rewards when progress level is high rather than low. This pattern is reversed for promotion-focused customers.

Research limitations/implications

Future research may investigate the underlying mechanism by testing potential mediators. Researchers may also test the model in non-retail settings such as service industries.

Practical implications

The findings provide insights to firms regarding when and how to motivate customers with different regulatory orientations in loyalty programs.

Originality/value

This study examines the joint effect of regulatory focus and progress level on people’s consumption behaviors. The model was tested using actual consumption data collected in a retail setting.