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Perceived benefits of loyalty programs: Scale development and implications for relational strategies

  • Mimouni-Chaabane, Aîda
  • Volle, Pierre
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    Positive outcomes of loyalty programs are clear for firms, yet little research examines customer perceptions. To address this gap, this article investigates various perceived benefits of loyalty programs using a multi-benefit framework based on utilitarian, hedonic, and relationship literature. Two quantitative studies, involving 658 French members of loyalty programs, provide a 16-item scale that measures five types of perceived benefits: monetary savings, exploration, entertainment, recognition, and social benefits. The five dimensions have different impacts on satisfaction with the program, loyalty to the program, and perceived relationship investment of the firm. This article offers a discussion of the theoretical and managerial implications of these findings for relationship marketing strategies.

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    File URL: http://www.sciencedirect.com/science/article/B6V7S-4VPKPY0-3/2/66a3aa10b50de4c15a0bfe7890c6fc93
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    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 63 (2010)
    Issue (Month): 1 (January)
    Pages: 32-37

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    Handle: RePEc:eee:jbrese:v:63:y:2010:i:1:p:32-37
    Contact details of provider: Web page: http://www.elsevier.com/locate/jbusres

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    1. Sheth, Jagdish N. & Newman, Bruce I. & Gross, Barbara L., 1991. "Why we buy what we buy: A theory of consumption values," Journal of Business Research, Elsevier, vol. 22(2), pages 159-170, March.
    2. Muniz, Albert M, Jr & O'Guinn, Thomas C, 2001. " Brand Community," Journal of Consumer Research, University of Chicago Press, vol. 27(4), pages 412-32, March.
    3. Liebermann, Yehoshua, 1999. "Membership Clubs as a Tool for Enhancing Buyers' Patronage," Journal of Business Research, Elsevier, vol. 45(3), pages 291-297, July.
    4. Jones, Michael A. & Reynolds, Kristy E. & Arnold, Mark J., 2006. "Hedonic and utilitarian shopping value: Investigating differential effects on retail outcomes," Journal of Business Research, Elsevier, vol. 59(9), pages 974-981, September.
    5. Babin, Barry J. & Attaway, Jill S., 2000. "Atmospheric Affect as a Tool for Creating Value and Gaining Share of Customer," Journal of Business Research, Elsevier, vol. 49(2), pages 91-99, August.
    6. Babin, Barry J & Darden, William R & Griffin, Mitch, 1994. " Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value," Journal of Consumer Research, University of Chicago Press, vol. 20(4), pages 644-56, March.
    7. O'Malley, Lisa & Prothero, Andrea, 2004. "Beyond the frills of relationship marketing," Journal of Business Research, Elsevier, vol. 57(11), pages 1286-1294, November.
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