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Effects of loyalty program rewards on store loyalty

Author

Listed:
  • Lars Meyer-Waarden

    (marketing - CRM - Centre de Recherche en Management - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - IAE - Institut d'Administration des Entreprises - Toulouse - CNRS - Centre National de la Recherche Scientifique)

Abstract

This investigation examines consumers' preferred loyalty program (LP) designs across two retail contexts, grocery retailing and perfumery, with varying degrees of personal involvement. The research employs in-store full profile conjoint analysis by using the following attributes: timing of the reward, reward compatibility with the store's image, and tangibility. Our research reveals that the underlying effects of reward types on preferences and intended store loyalty differ depending on the level of consumers' personal involvement. In sectors with high personal involvement, compatibility with the store's image and intangible rewards increase LP preference and loyalty intentions. The time required to obtain the reward (immediate/delayed) has no impact. In sectors with low personal involvement, immediate and tangible rewards increase LP preference and loyalty intentions. Compatibility with the store image has no impact.

Suggested Citation

  • Lars Meyer-Waarden, 2015. "Effects of loyalty program rewards on store loyalty," Post-Print halshs-01260493, HAL.
    • Handle: RePEc:hal:journl:halshs-01260493
    DOI: 10.1016/j.jretconser.2015.01.001
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    Citations

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    Cited by:

    1. Nishio, Kazuki & Hoshino, Takahiro, 2022. "Joint modeling of effects of customer tier program on customer purchase duration and purchase amount," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    2. 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.
    3. Francioni, Barbara & Savelli, Elisabetta & Cioppi, Marco, 2018. "Store satisfaction and store loyalty: The moderating role of store atmosphere," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 333-341.
    4. Tsai, Pei-Hsuan & Tang, Jia-Wei, 2023. "Consumers' switching intention towards E-commerce platforms’ store-to-store pickup services: The application of the extended PPM model," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    5. Pandit, Ameet & Vilches-Montero, Sonia, 2016. "Are reward cards just a business deal? The role of calculative versus emotional card commitment in driving store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 355-360.
    6. 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.
    7. Madani, Fatima & Seenivasan, Satheesh & Ma, Junzhao, 2021. "Determinants of store patronage: The roles of political ideology, consumer and market characteristics," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    8. Wang, Qian & Chen, Hang, 2022. "Better or Worse? Effects of online promotion habits on customer value: An empirical study," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    9. Tiphaine Gorlier & Géraldine Michel, 2020. "How special rewards in loyalty programs enrich consumer–brand relationships: The role of self‐expansion," Post-Print hal-02494605, HAL.
    10. Hu, Xin & He, Liuyi & Liu, Junjun, 2022. "Status reinforcing: Unintended rating bias on online shopping platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    11. Lin, Chen & Bowman, Douglas, 2022. "The impact of introducing a customer loyalty program on category sales and profitability," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    12. Gabel, Sebastian & Guhl, Daniel, 2022. "Comparing the effectiveness of rewards and individually targeted coupons in loyalty programs," Journal of Retailing, Elsevier, vol. 98(3), pages 395-411.
    13. Sonja Fourie & Michael Goldman & Michael McCall, 2023. "Designing for loyalty programme effectiveness in the financial services industry," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 502-525, September.
    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. Gokhan Aydin, 2022. "Mobile Multi-Brand Loyalty Programs: Elaborating Customer Value and Satisfaction," International Journal of E-Business Research (IJEBR), IGI Global, vol. 18(1), pages 1-25, January.
    16. Mark Legg & Murat Hancer, 2020. "How patrons value casino promotional offers: A conjoint study," Tourism Economics, , vol. 26(4), pages 640-657, June.
    17. Azeem, Muhammad Masood & Baker, Derek & Villano, Renato A. & Mounter, Stuart & Griffith, Garry, 2018. "Food shoppers’ share of wallet: A small city case in a changing competitive environment," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 119-130.
    18. Wu, Hanjun & Tsui, Kan Wai Hong, 2020. "Does a reward program affect customers’ behavioural intention of visiting the airport? A case study of Singapore Changi Airport," Journal of Air Transport Management, Elsevier, vol. 82(C).
    19. Coelho do Vale, Rita & Verga Matos, Pedro & Caiado, Jorge, 2016. "The impact of private labels on consumer store loyalty: An integrative perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 179-188.
    20. Mimouni Chaabane, Aida & Pez, Virginie, 2017. "“Make me feel special†: Are hierarchical loyalty programs a panacea for all brands? The role of brand concept," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 108-117.

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