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Customer–company identification and the effectiveness of loyalty programs

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  • Kang, Jun
  • Alejandro, Thomas Brashear
  • Groza, Mark D.

Abstract

Customer loyalty programs constitute an important customer relationship management tool, adopted by multiple industries. This study investigates how customers perceive benefits from a loyalty program that enhance their loyalty to that program directly, as well as to the company indirectly through program loyalty. Our findings show that program loyalty and customer–company identification enhance customer loyalty toward the company. The development of customer–company identification can transform program loyalty into company loyalty, and reduce the company's latent financial risk.

Suggested Citation

  • Kang, Jun & Alejandro, Thomas Brashear & Groza, Mark D., 2015. "Customer–company identification and the effectiveness of loyalty programs," Journal of Business Research, Elsevier, vol. 68(2), pages 464-471.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:2:p:464-471
    DOI: 10.1016/j.jbusres.2014.06.002
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    Cited by:

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    2. Septianto, Felix & An, Jake & Chiew, Tung Moi & Paramita, Widya & Tanudharma, Istiharini, 2019. "The similar versus divergent effects of pride and happiness on the effectiveness of loyalty programs," Journal of Business Research, Elsevier, vol. 99(C), pages 12-22.
    3. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    4. Rui Ma & Jacob Cherian & Wen-Hsien Tsai & Muhammad Safdar Sial & Li Hou & Susana Álvarez-Otero, 2021. "The Relationship of Corporate Social Responsibility on Digital Platforms, Electronic Word-of-Mouth, and Consumer-Company Identification: An Application of Social Identity Theory," Sustainability, MDPI, vol. 13(9), pages 1-17, April.
    5. Amir Gandomi & Amirhossein Bazargan & Saeed Zolfaghari, 2019. "Designing competitive loyalty programs: a stochastic game-theoretic model to guide the choice of reward structure," Annals of Operations Research, Springer, vol. 280(1), pages 267-298, September.
    6. Achmad Mulyana & Sugeng Prayetno, 2018. "Determinants of Customer Satisfaction And it’s Implication on Customer Loyalty of Budget Hotel in DKI Jakarta," International Review of Management and Marketing, Econjournals, vol. 8(6), pages 1-7.
    7. Müller-Stewens, Jessica, 2017. "Wenn der Flow überspringt - Produktnahe Spiele als Umsatzlieferant," Marketing Review St.Gallen, Universität St.Gallen, Institut für Marketing und Customer Insight, vol. 34(4), pages 128-134.
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    9. Fadhil Muhammad & Fatkhur Rozi & Achmad Sani Supriyanto, 2021. "The influence of membership program on customer loyalty mediated by customer satisfaction," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 34-41, September.
    10. Blanca I. Hernández-Ortega & Michael A. Stanko & Rishika Rishika & Francisco-Jose Molina-Castillo & José Franco, 2022. "Brand-generated social media content and its differential impact on loyalty program members," Journal of the Academy of Marketing Science, Springer, vol. 50(5), pages 1071-1090, September.
    11. Ioannis ANTONIADIS & Stamatis KONTSAS & Konstantinos SPINTHIROPOULOS, 2019. "Blockchain and Brand Loyalty Programs: A Short Review of Applications and Challenges," International Conference on Economic Sciences and Business Administration, Spiru Haret University, vol. 5(1), pages 8-16, November.
    12. Steinhoff, Lena & Zondag, Marcellis M., 2021. "Loyalty programs as travel companions: Complementary service features across customer journey stages," Journal of Business Research, Elsevier, vol. 129(C), pages 70-82.
    13. Brashear-Alejandro, Thomas & Kang, Jun & Groza, Mark D., 2016. "Leveraging loyalty programs to build customer–company identification," Journal of Business Research, Elsevier, vol. 69(3), pages 1190-1198.
    14. Vilches-Montero, Sonia & Pandit, Ameet & Bravo-Olavarria, Renzo & Chao, Chih-Wei (Fred), 2018. "What loyal women (and men) want: The role of gender and loyalty program characteristics in driving store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 64-70.
    15. Utkarsh, & Gupta, Roopak Kumar, 2022. "Effects of confidence and social benefits on consumers’ extra-role and in-role behaviors: A social identity and social exchange perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    16. Gandomi, Amir & Zolfaghari, Saeed, 2018. "To tier or not to tier: An analysis of multitier loyalty programs׳ optimality conditions," Omega, Elsevier, vol. 74(C), pages 20-36.
    17. Nur Afifah, 2017. "Antecedent and Consequence of Customer Company Identification toward Relationship Marketing at PDAM Tirta Khatulistiwa Pontianak, West Kalimantan Indonesia," GATR Journals jmmr137, Global Academy of Training and Research (GATR) Enterprise.
    18. Ali Asghar Rashid & Ali Hamidizade & Mohhamad Rahim Esfidani & Hasan Zaree Matin, 2016. "The effect of cause-related marketing on the consumer purchase intention: focusing on the meditating variables (studied on clients of Ghalamchi educational services)," International Journal of Business Forecasting and Marketing Intelligence, Inderscience Enterprises Ltd, vol. 2(3), pages 233-247.
    19. Salihah Khairawati, 2020. "Effect of customer loyalty program on customer satisfaction and its impact on customer loyalty," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(1), pages 15-23, January.
    20. Hsin Hsin Chang & Kit Hong Wong, 2018. "Consumer psychological reactance to coalition loyalty program: price-consciousness as a moderator," Service Business, Springer;Pan-Pacific Business Association, vol. 12(2), pages 379-402, June.
    21. Farium Kautsiro & Prof. Olawumi D Awolusi, 2020. "Loyalty programs for the passenger transportation industry: a study of Zimbabwean Companies," Journal of Education and Vocational Research, AMH International, vol. 11(1), pages 5-22.
    22. Els Breugelmans & Yuping Liu-Thompkins, 2017. "The effect of loyalty program expiration policy on consumer behavior," Marketing Letters, Springer, vol. 28(4), pages 537-550, December.
    23. Atul Purohit & Urjita Thakar, 2019. "Role of information and communication technology in improving loyalty program effectiveness: a comprehensive approach and future research agenda," Information Technology & Tourism, Springer, vol. 21(2), pages 259-280, June.
    24. Stathopoulou, Anastasia & Balabanis, George, 2016. "The effects of loyalty programs on customer satisfaction, trust, and loyalty toward high- and low-end fashion retailers," Journal of Business Research, Elsevier, vol. 69(12), pages 5801-5808.
    25. Cachón Rodríguez, Gabriel & Prado Román, Camilo, 2020. "The identification-loyalty relationship in a university context of crisis: the moderating role of students and graduates," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).

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