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Loyalty programs may limit competition, and they could be pushing prices up for everyone

<p><em><a href="https://theconversation.com/profiles/alexandru-nichifor-1342216">Alexandru Nichifor</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> and <a href="https://theconversation.com/profiles/scott-duke-kominers-1494057">Scott Duke Kominers</a>, <a href="https://theconversation.com/institutions/harvard-university-1306">Harvard University</a></em></p> <p>Loyalty programs enable firms to offer significantly lower prices to some of their customers. You’d think this would encourage strong competition.</p> <p>But that isn’t always what actually happens. <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4377561">New research</a> shows that paradoxically, by changing the way companies target customers, loyalty programs can sometimes reduce price competition. The research also points to solutions.</p> <h2>A win-win proposition?</h2> <p>Joining a loyalty program is supposed to be a win-win. You – the customer – get to enjoy perks and discounts, while the company gains useful commercial insights and builds brand allegiance.</p> <p>For example, a hotel chain loyalty program might reward travellers for frequent stays, with points redeemable for future bookings, upgrades or other benefits. The hotel chain, in turn, records and analyses how you spend money and encourages you to stay with them again.</p> <p>Such programs are commonplace across many industries – appearing everywhere from travel and accommodation to supermarket or petrol retailing. But they are increasingly coming under scrutiny.</p> <p>In 2019, the Australian Competition and Consumer Commission (ACCC) <a href="https://www.accc.gov.au/about-us/publications/customer-loyalty-schemes-final-report">cautioned</a> consumers about the sheer volume of personal data collected when participating in a loyalty program, and what companies can do with it.</p> <p>Hidden costs – such as having to pay a redemption fee on rewards or losing benefits when points expire – are another way these schemes can harm consumers.</p> <p>But a larger question – how loyalty programs impact consumers overall – remains difficult to settle, because their effect on competitiveness is unclear. As the ACCC’s <a href="https://www.accc.gov.au/about-us/publications/customer-loyalty-schemes-final-report">final report</a> notes, on the one hand: "Loyalty schemes can have pro-competitive effects and intensify competition between rivals leading to competing loyalty discounts and lower prices for consumers."</p> <p>But on the other hand: "Loyalty schemes can also reduce the flexibility of consumers’ buying patterns and responsiveness to competing offers, which may reduce competition."</p> <h2>How a two-speed price system can hurt everyone</h2> <p>A new economic theory research <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4377561">working paper</a>, coauthored by one of us (Kominers), suggests that on competitive grounds alone, loyalty programs can sometimes harm <em>all</em> consumers – both ordinary shoppers and the program’s own members.</p> <p>It’s easy to see how the ordinary shopper can be worse off. Since a firm’s loyalty program enables it to offer discounted prices to its members, the firm can raise the base prices it offers to everyone else. Those not participating in the program pay more than they otherwise would have, and the firm can respond by saying “join our program!” instead of having to lower its price.</p> <p>But sometimes, even the program’s own members can end up worse off.</p> <p>When a given customer’s loyalty status is not visible to a firm’s competitors – as is the case in many loyalty programs today – it’s hard for those competitors to identify them and entice them to switch.</p> <p>The main way to compete for those customers becomes to lower the base price for everyone, but this means missing out on the high base margins achieved through the existence of your own loyalty program – remember, having a loyalty program means you can charge non-members more.</p> <p>It’s often more profitable for firms to just maintain high base prices. This, in turn, reduces overall price competition for loyal customers, so firms can raise prices for them, too.</p> <h2>What’s the solution?</h2> <p>Despite these effects on competition, loyalty programs still offer benefits for consumers and an opportunity for brands to form closer relationships with them.</p> <p>So, how do we preserve these benefits while enabling price competition? The research suggests an answer: making a customer’s loyalty status verifiable, transparent and portable across firms. This would make it possible for firms to tailor offers for their competitors’ loyal customers.</p> <p>This is already happening in the market for retail electricity. While there aren’t loyalty programs there per se, a consumer’s energy consumption profile, which could be used by a competitor to calibrate a personalised offer, is known only to their current electricity supplier.</p> <p>To address this, in 2015, the Victorian government launched a <a href="https://compare.energy.vic.gov.au">program</a> encouraging households to compare energy offers. This process involved first revealing a customer’s energy consumption profile to the market, and then asking retailers to compete via personalised offers.</p> <p>By opening information that might have otherwise been hidden to the broader market, this approach enabled firms to compete for each other’s top customers, in a way that could be emulated for loyalty programs.</p> <p>Such systems in the private sector could build upon “<a href="https://thepointsguy.com/guide/airline-status-matches-challenges/">status match</a>” policies at airlines. These allow direct transfer of loyalty status, but currently rely on a lengthy, individual-level verification process.</p> <p>For example, a design paradigm known as “<a href="https://hbr.org/2022/05/what-is-web3">Web3</a>” – where customer transactions and loyalty statuses are recorded on public, shared blockchain ledgers – offers a way to make loyalty transparent across the market.</p> <p>This would enable an enhanced, decentralised version of status match: a firm could use blockchain records to verifiably identify who its competitors’ loyal customers are, and directly incentivise them to switch.</p> <p>Both startups and established firms have experimented with building such systems.</p> <h2>What next?</h2> <p>New academic research helps us model and better understand when loyalty programs could be weakening supply side competition and undermining consumer welfare.</p> <p>A neat universal solution may prove elusive. But targeted government or industry interventions – centred on increasing the transparency of a customer’s loyalty status and letting them move it between firms – could help level the playing field between firms and consumers.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/220669/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/alexandru-nichifor-1342216"><em>Alexandru Nichifor</em></a><em>, Associate Professor, Faculty of Business and Economics, University of Melbourne, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> and <a href="https://theconversation.com/profiles/scott-duke-kominers-1494057">Scott Duke Kominers</a>, Sarofim-Rock Professor of Business Administration, <a href="https://theconversation.com/institutions/harvard-university-1306">Harvard University</a></em></p> <p><em>Image credits: Getty Images </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/loyalty-programs-may-limit-competition-and-they-could-be-pushing-prices-up-for-everyone-220669">original article</a>.</em></p>

Money & Banking

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The price of loyalty: Are you losing hundreds by sticking to one energy supplier?

<p><em>In some cases, it pays to be loyal. When it comes to energy suppliers, not so much.</em></p> <p><strong><span>Compare today and discover what you could save</span></strong></p> <p>When was the last time you compared energy plans? If your answer is “a year ago”, or longer, you could be paying too much. In fact, <strong>an average energy user who stays loyal to the most expensive supplier will end up paying $1,500 more every year than someone who’s with the cheapest supplier*</strong></p> <p>Ouch. That’s why it’s so important to shop around. Remember that <strong>what worked for you last year may not benefit you again this year.</strong></p> <p>We get it—it’s difficult to monitor the energy market on your own, as new deals come about on a regular basis. How do you know which plans are offering the best value right now?</p> <p>At <span><a href="https://electricityandgas.com.au/over-sixty/?utm_source=over60&amp;utm_medium=sponsoredarticle&amp;utm_campaign=eng-january&amp;utm_content=price-of-loyalty&amp;utm_term=in-text">ElectricityandGas.com.au</a></span>, we make it easy to understand the options that are available in your area, from a panel that includes suppliers both big and small. Our goal is to make home energy affordable for all Australians, through tools that make bargain shopping for energy quick, simple and effective.</p> <p>Use our tool below to <span><a href="https://electricityandgas.com.au/over-sixty/?utm_source=over60&amp;utm_medium=sponsoredarticle&amp;utm_campaign=eng-january&amp;utm_content=price-of-loyalty&amp;utm_term=in-text">ensure you’re on the best possible deal</a></span> right now.</p> <p><strong><span>Compare Now:</span></strong></p> <p><strong>Step 1:</strong> <strong>Select your State below</strong>.</p> <p><strong>Step 2:</strong> After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.</p> <p><a rel="noopener" href="https://electricityandgas.com.au/over-sixty-2/?utm_source=over60&amp;utm_medium=sponsoredarticle&amp;utm_campaign=eng-january&amp;utm_content=price-of-loyalty&amp;utm_term=widget" target="_blank"><img style="width: 0px; height: 0px;" src="https://oversixtydev.blob.core.windows.net/media/7833565/hearing-aids-1-1280x326.jpg" alt="" data-udi="umb://media/4f47196b7f204bc48983bb31deeb5460" /></a></p> <p><strong>Over the last decade, power bills in Australia have gone up a staggering 44%**.</strong> While this is partly due to increased network costs, retail costs from energy companies have risen so high that they can now represent up to 40% of the total cost of your bill^.</p> <p>Because energy companies determine these costs themselves, your choice of supplier is what determines whether or not you pay more than you have to.</p> <p>The harsh reality is, when Aussies stay loyal to their supplier, the only winner is the energy companies.</p> <p>“Market deregulation was supposed to reduce costs and make energy more affordable for everyday Aussies,” says an <span><a href="https://electricityandgas.com.au/over-sixty/?utm_source=over60&amp;utm_medium=sponsoredarticle&amp;utm_campaign=eng-january&amp;utm_content=price-of-loyalty&amp;utm_term=in-text">ElectricityandGas.com.au</a></span> spokesperson. “But the reality we have seen is incredible deals for some contrasted with complete rip-offs for others. It’s just not fair for the people stuck with the raw end of the deal.”</p> <p>“That’s why we started <span><a href="https://electricityandgas.com.au/over-sixty/?utm_source=over60&amp;utm_medium=sponsoredarticle&amp;utm_campaign=eng-january&amp;utm_content=price-of-loyalty&amp;utm_term=in-text">ElectricityandGas.com.au</a></span>, because, with prices on the rise, we think all Aussies deserve the chance to find a better deal. How can you benefit from market competition if you don’t have an easy way to shop around?”</p> <p>When you use <span><a href="https://electricityandgas.com.au/over-sixty/?utm_source=over60&amp;utm_medium=sponsoredarticle&amp;utm_campaign=eng-january&amp;utm_content=price-of-loyalty&amp;utm_term=in-text">ElectricityandGas.com.au</a></span>, you’ll gain access to our large-scale bargaining power alongside no-markup policies from energy providers across Australia, making it easy to find the best deals in your area. <strong>This service makes comparison shopping for energy easy, and best of all it’s totally cost and obligation free.</strong></p> <p>So, are you interested to see just how much you could save on your next energy bill?</p> <p>The answer is just a few clicks away.</p> <p><strong><span>Get Started Now:</span></strong></p> <p>Step 1: Select your <strong>state below</strong>.</p> <p>Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.</p> <p><a href="https://electricityandgas.com.au/over-sixty/?utm_source=over60&amp;utm_medium=sponsoredarticle&amp;utm_campaign=eng-january&amp;utm_content=price-of-loyalty&amp;utm_term=in-text"><img style="width: 0px; height: 0px;" src="https://oversixtydev.blob.core.windows.net/media/7833581/hearing-aids-au-map.jpg" alt="" data-udi="umb://media/922a933e4d4a498f91cdab2247b8176e" /></a></p> <p><em>This article is opinion only and should not be taken as financial advice.</em></p> <p><em>* Figure from the Australian Energy Market Commission for South Australians switching from the worst to the best available offer</em></p> <p><em>**Figure adjusted for inflation</em></p> <p><em>^Price Shock: Is the retail electricity market failing consumers’ Report, The Grattan Institute. Figure for Victorian electricity bills.</em></p>

Money & Banking

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“Corporate hypocrites”: Harsh words from Alan Jones backfires as shoppers pledge loyalty to Coles

<p><span>Controversial 2GB radio host Alan Jones has called for his listeners to boycott Coles after they’ve pulled advertising from his radio show.</span></p> <p><span>His harsh words were hoping to put a dent in Coles sales, but it appears that might have backfired.</span></p> <p><span>Jones said that Coles should look at its own “value system” before passing judgement. He then proceeded to call the company “corporate hypocrites” and accuse them of ripping off dairy farmers.</span></p> <p><span>“So I can tell my listeners to give Coles supermarkets, and their petrol stations a very wide berth .... We can both play the same game,” he said.</span></p> <p>“And good luck to you by the time I am finished,” he cautioned Coles.</p> <p>However, numerous critics of Jones have taken to social media to announce that they are shopping at Coles simply due to the opposition to Jones.</p> <p>“Sorry Woolworths but I can ONLY shop at Coles now. Nothing to do with you per se but it's my personal policy to ALWAYS do the exact opposite of anything Alan Jones suggests,” one man posted on Twitter.</p> <p>“Well I’ll now got out of my way to shop Coles since hearing this! Who does this old friggin’ dinosaur Alan Jones think he is?” someone quipped.</p> <p>“I will happily drive straight past my local Woolies and go an additional 5kms just to shop with you following your decision to withdraw from Alan Jones,” another Twitter user posted on Thursday.</p> <p>Many have followed suit, saying that they hope Coles holds its ground against Jones and his controversial comments. Despite Jones apologising for his remarks about New Zealand Prime Minister Jacinda Ardern, more than 80 advertisers pulled their money from the morning show.</p> <p>“I will shop at Coles while they do not advertise with 2GB. If they renege, there are many other options! I like to feel that the massive female workplace in Coles group are supported,” another person wrote.</p> <p>“I also will switch to Coles from now on even though it is a little out of my way to do so. Stay strong Coles,” a Twitter user added.</p>

Domestic Travel

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What is open banking and what does it mean for you come July 1?

<p><span style="font-weight: 400;">Mark July 1 in your calendar, as it’s looking to be a big day in terms of changes to your finances.</span></p> <p><span style="font-weight: 400;">Australians are going to have greater control of their personal finance data, which allows customers the ability to switch lenders and get a better deal on your loans.</span></p> <p><span style="font-weight: 400;">As it’s currently difficult to access your own information and shop around for better deals, the new banking laws aim to make it easier to shop around.</span></p> <p><span style="font-weight: 400;">The current difficulty is due to banks not sharing your data with rival lenders. Open banking is the new proposed solution to this, which gives borrowers more information to make a better decision if they opt into the system.</span></p> <p><span style="font-weight: 400;">Customers will also have more power at the negotiating table when applying for a loan, according to UNSW competition law specialist Professor Deborah Healey. She told </span><a href="https://www.news.com.au/finance/business/banking/open-banking-is-coming-on-july-1-but-what-does-it-mean-for-you/news-story/1f891c80e8a9de3ebf9fe9ed0df3f253"><span style="font-weight: 400;">news.com.au</span></a><span style="font-weight: 400;">:</span></p> <p><span style="font-weight: 400;">“Banks and lenders will have more accurate data on which to assess risk in relation to borrowing by that particular consumer,” Prof Healey explained. </span></p> <p><span style="font-weight: 400;">“Because the system will become more competitive, many consumers should be able to negotiate a better deal involving options more suited to them in particular, because the information will show that they are a good or reasonable financial risk.”</span></p> <p><span style="font-weight: 400;">With Australians being loyal to their financial providers, the revelations of misconduct within the banking sector due to the banking royal commission has eroded trust.</span></p> <p><a href="https://www.finder.com.au/"><span style="font-weight: 400;">Finder</span></a><span style="font-weight: 400;"> chief executive Fred Schebesta has explained that due to 40 per cent of adults still being with the same bank they had as a child, the result is seven million Australians aren’t chasing the opportunity to explore better rates on bank accounts, credit cards and loans.</span></p> <p><span style="font-weight: 400;">“If you opt in to share your data, businesses may gain a deeper insight into your transaction behaviour which may help you save money on your credit card or transaction account,” Mr Schebesta said.</span></p> <p><span style="font-weight: 400;">“If you do share your data, make sure the business is reputable and one that you trust, and make sure you take note of the expiry date of your consent as you may need to regularly opt in for consent under the proposed guidelines.”</span></p> <p><span style="font-weight: 400;">However, there are concerns that open banking will lead to benefiting those who are financially privileged while those are in financial hardship will be vulnerable to payday lenders.</span></p> <p><span style="font-weight: 400;">The Financial Rights Legal Centre explained their point of view to the Senate Economics Legislation Committee warning about open banking and the increase in economic inequality.</span></p> <p><span style="font-weight: 400;">“People who are experiencing financial hardship are very valuable to a lot of fringe lenders and other services who may take advantage of the fact that they are desperate to get anything,” the centre’s open banking expert Drew Macrae told </span><span style="font-weight: 400;">news.com.au</span><span style="font-weight: 400;">.</span></p> <p><span style="font-weight: 400;">“Access to data and continuous monitoring are likely to lead to predatory practices, for example by payday lenders.”</span></p> <p><span style="font-weight: 400;">Professor Healey agrees.</span></p> <p><span style="font-weight: 400;">“There is a possibility that vulnerable consumers may pay more for loans because their financial circumstances may be judged on the basis of their current financial circumstances,” she said.</span></p>

Money & Banking

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Outrage over McDonald’s major change to loyalty card

<p>Australia’s leading fast food chain has come under fire for “technology discrimination" after ditching its paper loyalty coffee cards.</p> <p>Over the last few years, McDonald’s had been gradually phasing out paper coffee cards but the cut was made permanent throughout Australia for the past six weeks. Now, if a customer wants to cash in and save money, they must first download the MyMacca’s app to access the “buy five, get one free” deal.</p> <p>Customers are unhappy with the change, some going as far as reporting glitches resulting in “stamps” lost. Others are enraged by how unfairly they believe it impacts older customers.</p> <p>McDonald’s is Australia’s largest fast-food chain and most popular go-to spot for coffee with over 800 locations nationwide. The restaurant sells around a quarter of a million cups of coffee a day.</p> <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/6BE-dzBa4A/?utm_source=ig_embed&amp;utm_medium=loading" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <p style="margin: 8px 0 0 0; padding: 0 4px;"><a style="color: #000; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none; word-wrap: break-word;" rel="noopener" href="https://www.instagram.com/p/6BE-dzBa4A/?utm_source=ig_embed&amp;utm_medium=loading" target="_blank">The perfect morning starts with a view, and the fresh aroma of a barista made coffee from McCafé.</a></p> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;">A post shared by <a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px;" rel="noopener" href="https://www.instagram.com/mcdonaldsau/?utm_source=ig_embed&amp;utm_medium=loading" target="_blank"> McDonald's Australia</a> (@mcdonaldsau) on Aug 5, 2015 at 2:30pm PDT</p> </div> </blockquote> <p>Customers have even flocked to social media to complain about the change.</p> <p>“My mum… nearly 80… does not have a smart phone, does not use the app and uses your coffee cards constantly… So now she misses out?” Dearne Carroll wrote on the McDonald’s Facebook page.</p> <p>"I have multiple cards in multiple places all with multiple stamps on them. If they will not be honoured, I am not going to be impressed.”</p> <p>One disgruntled customer told <a href="https://www.news.com.au/finance/business/retail/mcdonalds-ditches-paper-coffee-cards/news-story/28e7734576bb37fdfa88866febe71dac">news.com.au</a> his phone is unable to run the latest app as he carries an 8-year-old HTC Desire phone.</p> <p>“That cuts me out from the loyalty system immediately,” he explained.</p> <p>“Then I thought of the many people that just use a flip phone — they’ll be left out too. And also, the many older folk that don’t bother with mobile phones. This is ‘technology discrimination’.”</p> <p>Cornel Brophy also expressed his dissatisfaction with the new system.</p> <p>“My usual 3 min drive thru experience turned into 10 to download the stupid app then at the window the code wasn’t processing, cars banking up behind me peeved I’m taking so long.</p> <p>“What a stupid decision McDonalds have made!” he wrote.<br /><br /></p> <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/8SNe1PBa_q/?utm_source=ig_embed&amp;utm_medium=loading" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <p style="margin: 8px 0 0 0; padding: 0 4px;"><a style="color: #000; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none; word-wrap: break-word;" rel="noopener" href="https://www.instagram.com/p/8SNe1PBa_q/?utm_source=ig_embed&amp;utm_medium=loading" target="_blank">We hope you took some time to enjoy a McCafé moment today #InternationalCoffeeDay</a></p> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;">A post shared by <a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px;" rel="noopener" href="https://www.instagram.com/mcdonaldsau/?utm_source=ig_embed&amp;utm_medium=loading" target="_blank"> McDonald's Australia</a> (@mcdonaldsau) on Sep 30, 2015 at 11:14pm PDT</p> </div> </blockquote> <p>A spokeswoman for the fast food restaurant told news.com.au McDonald’s had received “great feedback from customers on the app and more people than ever before are taking advantage of our coffee loyalty program”.</p> <p>“We’re proud to always offer our customers great value regardless of whether they are dining in our restaurants, using our MyMacca’s app, or ordering McDelivery through UberEats,” she said.</p> <p>“Customers with a seniors card continue to be able to take advantage of offers which entitle them to a free coffee, juice or soft drink with a purchase in our participating restaurants.”</p> <p>Are you happy about McDonald's changing its paper loyalty cards to a digital app you need to access on a mobile phone? Let us know in the comments below. </p>

News

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Is it better to be loyal or honest in your relationship?

<p><strong><em>Susan Krauss Whitbourne is a professor of Psychology and Brain Sciences at the University of Massachusetts Amherst. She writes the Fulfilment at Any Age blog for Psychology Today.</em></strong></p> <p>An old friend is in town on a trip that you’ve known about for months. Back when you made a date to get together for the evening, it seemed like a great idea. You definitely want to see this person, or at least you did at the time. Now that it’s getting closer to the actual event, you’re starting to regret having made those plans. Things have gotten hectic at work, and you’d like to take the evening to sit around in your sweats and binge watch that new program which just became available for streaming. </p> <p>Perhaps it’s not an evening out, but a lunch date on a weekday close by to where you work. The weather forecast is predicting a messy, rainy, day and you don’t think you’ll want to venture out any more than is necessary to get from home to the office. These situations present you with a classic dilemma: Do you tell the truth to your friend but risk the relationship or preserve the relationship by making up a legitimate-sounding excuse?</p> <p>Testing the values of loyalty vs. honesty in moral judgments, Cornell University’s John Angus D. Hildreth and University of California Berkeley’s Cameron Anderson (2018) asked “Does loyalty <span><a href="https://www.psychologytoday.com/au/basics/president-donald-trump">trump</a></span> honesty?” As they note, “Groups often demand loyalty, but all too often, loyalty can corrupt individuals to engage in deceit."</p> <p>Among the list of possible deceptions that loyalty to organisations or causes can prompt is pretending to believe in something you don’t or overlooking bad behaviour by people who are a part of your group. A politician might downplay a fellow office-holder’s illicit activity, or a sales manager might turn a blind eye to the shoddy products that the company is putting out on the market. You might lie to help your <span><a href="https://www.psychologytoday.com/au/basics/teamwork">team</a></span> win in a competitive match. The deceptions involved in these instances have more serious consequences than those associated with <span><a href="https://www.psychologytoday.com/au/basics/deception">lying</a></span> to a friend to preserve the relationship, but the same underlying dynamic is at play in that honesty and loyalty operate at cross-purposes.</p> <p>As the Cornell-Berkeley researchers go on to observe, most people view lying as unethical but may be more accepting when a lie is the result of a prosocial motive. In fact, they cite evidence that you’ll gain more trust from the people who know you if you have a reputation as a prosocial liar. A friend may overhear you saying to a mutual acquaintance that her new hairstyle looks great when, clearly, the cut and colour are all wrong. Your coming out with this slight untruth shows how much you value other people’s feelings. Such lies are preferable to lies that are intended to give you an advantage over other people in order to get ahead. When you tell someone she looks nice so that you can get her to do a favour for you, this is no longer a prosocial lie because you’re doing this to increase the odds of getting something you want.</p> <p>However, when a lie isn’t just prosocial but a “loyal lie,” other people are likely to view you far more negatively. A lie that is intended to protect shady operations by a group of which you are a part comes closer to a self-serving lie than one that is <span><a href="https://www.psychologytoday.com/au/basics/altruism">altruistic</a></span>, even though “loyal” implies some sort of higher purpose. There is a philosophical reason for this notion as well. Philosophers such as Jeremy Bentham and John Stuart Mills regard loyalty as “immoral” due to its “inherent partiality”. Because loyal lies benefit one’s group as well as oneself over others, they should be perceived as immoral by those who observe the lie being told. The liar, by contrast, sees no such problem and, in fact, feels “a moral imperative to act in the best interests of the group.” By not lying, the individual runs the risk of “negative social judgment, ostracism and social exclusion."</p> <p>Putting these ideas to the test, Hildreth and Anderson conducted a series of four studies involving nearly 1400 participants involving both online surveys and laboratory experiments. In the online version of the test of the study’s hypotheses (later replicated with college students), participants read scenarios varying in the behaviour described by an individual who either lied or did not lie either to benefit their group in its <span><a href="https://www.psychologytoday.com/au/basics/sport-and-competition">competition</a></span> with another group. The question was whether participants would regard deceit as unethical and immoral. In the condition involving loyalty and intergroup competition, participants perceived deceit as being relatively less unethical than in other conditions. However, participants rated loyal deceit (lying to benefit their group) as more unethical than disloyal honesty (being honest at the expense of one’s own group).</p> <p>The research team placed college student participants in the experimental study similarly in conditions involving either intergroup competition or no competition. Here the question was whether or not they would lie when their loyalty was triggered. Rather than judging the <span><a href="https://www.psychologytoday.com/au/basics/ethics-and-morality">morality</a></span> and ethicality of others, then, participants judged their own behaviour.</p> <p>As shown in prior studies, participants were more likely to lie when they thought it would help their own group. In general, they judged their own behaviour as less ethical when they lied compared to when they were honest. However, there was an important exception – when they lied to benefit their group, the participants did not see any ethical problem in their own behaviour. In fact, they actually saw their behaviour as slightly more ethical when they lied compared to when they told the truth.</p> <p>As the authors concluded, “These individuals seemed to ground their self-perceptions in a morally pluralistic framework, focusing on loyalty above and beyond truthfulness as a critical moral dimension in this context” (p. 90). In other words, liars can compartmentalise enough to be able to justify their lying if it serves a purpose of protecting their group.</p> <p>The final study in the series randomly assigned participants in the laboratory simulation to actor or observer role. As in the prior studies, loyal lies received the harshest judgments by observers, but not by the actors themselves.</p> <p><strong>To sum up</strong>, in answer to the article’s title, loyalty really does trump honesty in the view of the person committing the lie. Loyal liars don’t just rationalise their lying after the fact; instead, they have different standards for loyal lying than they do for honesty. Returning to the quandary you find yourself in when you feel you need to lie to get out of a prior obligation, the Cornell-Berkeley study suggests that it’s all too easy to slip into a mode where you see your lying as needed to protect your relationship. This may be fine on an occasional or extreme basis, but it’s quite likely that you can easily slip down that slope into habitual lying.</p> <p>Rather than lie to protect your relationship, then, a dose of honesty may be needed even if it seems difficult at the time. Alternatively, perhaps you shouldn’t lie at all. If you’ve made a social commitment that now seems inconvenient, consider following through on it. You may have a much better time than you realised you would, and the loyalty you show toward those in your life might just provide the basis for more fulfilling <span><a href="https://www.psychologytoday.com/au/basics/relationships">relationships</a></span>.</p> <p><em>Written by Susan Krauss Whitbourne. Republished with permission of <a href="http://www.psychologytoday.com"><span style="text-decoration: underline;"><strong>Psychology Today.</strong> </span></a></em></p>

Relationships

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Flybuys loyalty card set for shakeup

<p>Australia’s most popular loyalty program Flybuys has announced a game-changing partnership with ebay.com.au.</p> <p>From today, consumers can collect and redeem flybuys points with 40,000 Australian retailers on ebay. You can collect 1 point for every $2 spent on eligible items across ebay.com.au.</p> <p>Consumers will also be able to redeem their flybuys points for eBay vouchers ($10 vouchers for every 2,000 points collected) which can be used to purchase items from the millions of items available on ebay.</p> <p>There will also be regular bonus offers, allowing shoppers to collect more points.</p> <p>The announcement marks the first move into loyalty rewards for ebay.com.au.</p> <p>“We know Aussies love rewards points, and at eBay innovation is the focus for our connected community,” said Julie Nestor, Chief Marketing Officer at ebay.com.au.</p> <p>“It was a no-brainer to partner with flybuys to achieve this, as we continue to evolve our own platform in order to stay the number one online retail choice in Australia.”</p> <p>Ms Nestor added: “Already we have 80 of the top 100 largest Australian retailers on the platform with everyone from The Good Guys to Peter’s of Kensington. This new partnership with flybuys will give shoppers the chance to collect points at stores they already love, with new ways to pay for their online shopping.</p> <p>“By simply linking your eBay and flybuys accounts, you can instantly start collecting points at the click of a button. There’s never been an easier way to collect and redeem loyalty rewards points from so many retailers via a single rewards program.”</p> <p>For flybuys, this move is the biggest expansion of the program since they added Velocity frequent flyer as a partner in 2016. Flybys currently has more than 20 partners where shoppers can redeem points.</p> <p>“We are always looking for new and innovative ways to help our members collect and use more flybuys points and ensure they are rewarded in a meaningful and exciting way,” said Alex Chruszcz, General Manager of flybuys.</p> <p>“We are delighted that eBay shoppers can now be rewarded with flybuys points and our members can benefit from the addition of another fantastic partner to the program. We want to continue to work with the best brands in Australia to ensure we are offering the most rewarding experience to our members.”</p>

Money & Banking

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5 good reasons to join a hotel loyalty program

<p>There are lots of good reasons to get with the program.</p> <p><strong>1. Earn loyalty points</strong></p> <p>Just like airline frequent flyer points, hotel loyalty programs give you points every time you make a booking. These add up and can be used to book hotel nights at any property in the group or you can spend them on extras within the hotel, like the restaurant or spa. You’ll actually find that hotel loyalty points are much easier to accrue and redeem than airline points, so you can take advantage of them straight away.</p> <p><strong>2. Get extra discounts</strong></p> <p>Everyone loves saving money! Members will be offered exclusive discounts or special rates that aren’t available to the general public. These could be sent out in a members-only email or there might be a special members’ area you can access on their website when booking direct. Never pay full price again.</p> <p><strong>3. Enjoy exclusive freebies</strong></p> <p>Even if you are just paying the standard room rate, that loyalty card still has value. Most hotels will offer members things like free Wi-Fi access, welcome drinks, breakfast, lounge access and more. These are the little extras that can quickly add up during a hotel stay, so it pays to be a member and get them at no extra charge.</p> <p><strong>4. Take advantage of the perks</strong></p> <p>Hotels want you to stay loyal to them, so they will sometimes offer members special perks when they stay with them. That could be room upgrades, a bottle of champagne in the room, free breakfast or even things like spa treatments if you are one of their top frequent sleepers.</p> <p><strong>5. Get the royal treatment</strong></p> <p>Every time you book, the fact that you are a member of the loyalty program will be noted in the system. Hotels want to keep their members happy (and keep them coming back), so they will go out of their way to make sure you have a pleasant stay.</p> <p>Are you part of a hotel loyalty program? Do you think it’s worth it? Let us know in the comments below. </p>

Travel Tips

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The downside to loyalty schemes

<p>Loyalty schemes are everywhere – petrol stations, supermarkets, clothing stores, online shopping, airlines – all offering customers discounts and rewards in return for sticking with their brand.</p> <p>But the relationship may not be so clear cut. Big business don't just join loyalty schemes to make you loyal, they collect information on what, when, and how, you make specific purchases.</p> <p>Massey University business analytics professor Leo Pass said data gives businesses an overview of your entire purchase history.</p> <p>"Not only at your company but at other companies, and that way you get a more complete picture of the person you're dealing with," he said.</p> <p>But the potential for what companies could do with purchase data is huge.</p> <p>"Many companies have these tremendously large data sets on consumers' transactions. And there's so much more they could do with our data, but they can't analyse it, you need highly statistically knowledgeable people to do this," he said.</p> <p>Companies are gathering more information on their customers' buying habits, but may barely be making use of it.</p> <p>Companies increasingly felt it they had to join loyalty schemes to attract customers.</p> <p>"There's a lot of possibilities. One is advertising directed towards the right person and predicting what people would be worth in the future," Pass said.</p> <p>"One area is lending money - banks can know whether people are going to pay off the loan, or if someone is an insurance risk."</p> <p>Do you join loyalty schemes? Or are you concerned it’s an invasion of privacy? Share your opinion in the comments below.</p> <p><em>Written by Rachel Clayton. First appeared on <a href="http://www.stuff.co.nz/" target="_blank"><strong><span style="text-decoration: underline;">Stuff.co.nz</span></strong></a>.</em></p>

Money & Banking

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Revealed: the best airline alliance for Aussie travellers

<p>Aussies often draw the short straw when it comes to air fares, but joining an airline loyalty program could save you big on your next holiday. When you join a frequent flyer program, you become part of that airline’s alliance. Now that Australians have a much wider selection of airlines to choose from, the major players are getting together to help deliver the best deals to travellers. But which will get you the most bang for your buck?</p> <p><strong>Value Alliance</strong></p> <p>This year saw the introduction of a new alliance between budget carriers, aiming to deliver exactly what it says – value. So far, Scoot and TigerAir Australia have signed up, and alliance members will also get benefits from airlines Cebu Pacific, Jeju Air, Nok Air, NokScott, TigerAir Singapore and Vanilla Air.</p> <p><strong>Star Alliance</strong></p> <p>The original airline alliance, Star Alliance boasts a huge range of leading carriers, including Singapore Airlines, Swiss International, Air New Zealand, Lufthansa, Air Canada, United Airways and Thai Airways. This is a good option for Aussies who love to travel in Asia and the Pacific.</p> <p><strong>SkyTeam Alliance</strong></p> <p>SkyTeam’s member list boasts European, American and Asian airlines Aeroflot, Aerolineas Argentinas, Air France, Alitalia, several Chinese airlines, Garuda, KLM, Korean Air and Delta Air Lines. While this is a great alliance for travellers based in Europe and the Americas, it doesn’t offer as much value for Australian travellers.</p> <p><strong>Oneworld Alliance</strong></p> <p>This is our top pick for Aussie travellers, as it includes many major airlines covering Europe, Asia, the Americas and Australia. These airlines include Qantas, Cathay Pacific, Qatar Airways, Japan Airlines, LATAM, British Airways and American Airlines. Plus, given that our very own Qantas is a part of this airline, there are more opportunities to earn points on a day-to-day basis.</p> <p>Are you part of any of these alliances? Which do you think is the best? Tell us your thoughts in the comments below.</p> <p><em>Source: <a href="http://www.traveller.com.au/tigerair-australia--and-other-budget-airlines-form-worlds-largest-lowcost-carrier-alliance-gowpz7" target="_blank"><strong><span>Traveller.com.au</span></strong></a></em></p> <p><strong>Related links:</strong></p> <p><a href="/travel/international-travel/2016/06/11-year-old-sneaks-past-security-to-board-russian-flight/"><span style="text-decoration: underline;"><em><strong>11-year-old sneaks past security to board Russian flight</strong></em></span></a></p> <p><a href="/travel/international-travel/2016/06/lie-flat-seats-coming-to-economy/"><span style="text-decoration: underline;"><em><strong>Lie-flat seats are finally coming to economy class</strong></em></span></a></p> <p><a href="/travel/travel-tips/2016/05/airline-complaints-rise-even-as-more-planes-arrive-on-time/"><span style="text-decoration: underline;"><em><strong>Airline complaints rise even as more planes arrive on time</strong></em></span></a></p>

International Travel

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Ranking the supermarket loyalty card schemes

<p>There’s been a lot of fanfare about Woolworth’s new loyalty card and how it stacks up against that of its counterpart Coles. But which card works out as the better deal, and where should you spend your money? We take a brief look at both loyalty card schemes and figure out which one works out better for you the consumer and which loyalty card system is worth your time and money.</p> <p>A <a href="https://www.choice.com.au/shopping/everyday-shopping/supermarkets/articles/cheapest-groceries-australia#survey" target="_blank"><span style="text-decoration: underline;">survey from Choice released this year </span></a>has shown that the price gap between Australia’s two biggest supermarkets is smaller than ever with mere cents separating the two rival supermarkets in many cases. For this reason, a lot of emphasis has been placed on marketing, promotion and the use of reward schemes to attract customers to show loyalty to a particular brand.</p> <p>This year Woolworths announced a <a href="https://www.everydayrewards.com.au/edr/static/rewards/anon/home/index.html" target="_blank"><span style="text-decoration: underline;">revamped rewards policy</span></a>, abandoning their previous rewards card system which was a joint venture with Qantas’ rewards program, for a points based system that is designed to deliver more tangible rewards. Coles has retained its FlyBuys program, recently announcing that it would be <a href="https://www.flybuys.com.au/partners/etihad" target="_blank"><span style="text-decoration: underline;">creating a partnership with Etihad airways</span></a>.</p> <p>So, which program represents the most bang for your buck? Well, the folks at Monash University have been looking at that, and <a href="http://business.monash.edu/__data/assets/pdf_file/0003/356556/ACRS-Review-of-Woolworths-Rewards-program.pdf" target="_blank"><span style="text-decoration: underline;">released their findings in a document</span></a> published this year. The document found that for an average weekly spend (considered to be $108):</p> <ul> <li>The new Woolworths Rewards scheme is worth about $1.35 for each $108 spent.</li> <li>Coles FlyBuys scheme is estimated to the worth about 54¢ for $108 of spend</li> <li>The old Woolies scheme was worth 45¢ in Qantas frequent-flyer points for $108 of spend.</li> </ul> <p>So on the surface, the Woolworths Rewards scheme looks as though it comes out on top, but you have to remember every individual circumstance is different. For example, someone booking frequent flights through Qantas is probably bemoaning the retailer’s decision to remove the frequent flyer points from their rewards cards. On the other hand though, Woolworths is making a bet that the new scheme will be able to deliver more tangible rewards for customers.</p> <p>So, is the new scheme really worth it?</p> <p>Well, it really depends on your shopping habits but on the surface you seem to be able to save around $70 over the course of the year with the Woolworths rewards scheme. As <a href="https://www.choice.com.au/shopping/everyday-shopping/supermarkets/articles/cheapest-groceries-australia#survey" target="_blank"><span style="text-decoration: underline;">Choice mentions in their research</span></a> released earlier this year, the prices between the major supermarkets are not that different, so it may even be worth considering ALDI as an option as there are big discounts there.</p> <p><strong>Related links:</strong></p> <p><em><span style="text-decoration: underline;"><strong><a href="/finance/money-banking/2015/11/make-money-online-in-retirement/">6 ways to make money online in retirement</a></strong></span></em></p> <p><em><span style="text-decoration: underline;"><strong><a href="/finance/money-banking/2015/11/everyday-tips-to-reduce-bills/">5 ways to reduce everyday bills</a></strong></span></em></p> <p><em><span style="text-decoration: underline;"><strong><a href="/finance/money-banking/2015/11/is-australia-becoming-cashless/%20%20%20">Will Australia become a cashless society?</a></strong></span></em> </p>

Money & Banking

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There’s a festival in Nepal thanking dogs for their friendship and loyalty

<p>Every year in Nepal, there is an entire day dedicated to thanking dogs for their loyalty and friendship. The second day of Tihar, a five-day Hindu festival, is solely reserved for man’s best friend. Special garlands, coloured powder and delicious treats are given to dogs as a sign of respect for their connection with humans, as well as thanks for always being loyal and loving friends.</p> <p><img width="528" height="358" src="http://images.viralnova.com/000/086/748/desktop-1414179998.jpg" alt="Special garlands and delicious treats are given to dogs as a sign of respect for their loyalty and connection with humans." class="articleimg"/></p> <p><img width="527" height="357" src="http://images.viralnova.com/000/086/750/desktop-1414180001.jpg" alt="Known as Kukur Puja, the colorful festival also include vibrant powdered paint." class="articleimg"/></p> <p><img width="530" height="358" src="http://images.viralnova.com/000/086/751/desktop-1414180003.jpg" alt="Participants also go door to door singing and dancing and light up the night with candles each evening." class="articleimg"/></p> <p><img width="530" height="353" src="http://ak-hdl.buzzfed.com/static/2014-10/24/15/enhanced/webdr01/enhanced-buzz-12205-1414177667-11.jpg" alt="And obviously get tons of treats!" class="bf_dom"/></p> <p><img width="534" height="359" src="http://ak-hdl.buzzfed.com/static/2014-10/24/15/enhanced/webdr10/enhanced-buzz-19334-1414177625-20.jpg" alt="Look at these cuties!" class="bf_dom"/></p> <p><strong>Related links: </strong></p> <p><span style="text-decoration: underline;"><em><strong><a href="/news/news/2015/06/shibani-the-handsome-gorilla/">This gorilla is so handsome, hordes of women are flocking to see him in the zoo</a></strong></em></span></p> <p><span style="text-decoration: underline;"><em><strong><a href="/news/news/2015/06/dachshunds-racing-miniature-horses/">Watch this group of miniature Dachshunds racing a horse</a></strong></em></span></p> <p><span style="text-decoration: underline;"><em><strong><a href="/news/news/2015/06/four-seniors-at-bonnaroo/">What happens when a group of 70-somethings go to their first ever music festival?</a></strong></em></span></p>

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