IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v69y2016i12p5801-5808.html

The effects of loyalty programs on customer satisfaction, trust, and loyalty toward high- and low-end fashion retailers

Author

Listed:
  • Stathopoulou, Anastasia
  • Balabanis, George

Abstract

This study examines the differential effects of the benefits customers receive from a loyalty program (LP) on satisfaction with the LP, trust in the LP, and store loyalty for high- and low-end fashion retailers. With survey data from U.S. LP subscribers, the study tests the relationships using multiple regressions and analysis of covariance. The results show that symbolic benefits are more important for high-end fashion store consumers' satisfaction with the LP; conversely, utilitarian benefits increase consumers' satisfaction with the LP more in low-end fashion retailing, whereas hedonic benefits increase consumers' satisfaction with the LP in both types of retailers. All benefits in both types of retailers affect trust in the LP. Finally, satisfaction with and trust in the LP are important drivers of loyalty to the retailer. The findings have important implications on how managers of high- and low-end fashion retailing can effectively design their LP rewards to maximize loyalty.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:12:p:5801-5808
    DOI: 10.1016/j.jbusres.2016.04.177
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296316304283
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2016.04.177?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Nadine Hennigs & Klaus-Peter Wiedmann & Christiane Klarmann & Suzane Strehlau & Bruno Godey & Daniele Pederzoli & Agnes Neulinger & Kartik Dave & Gaetano Aiello & Raffaele Donvito & Koyama Taro & Jank, 2012. "What is the value of luxury? A cross-cultural consumer perspective," Post-Print hal-00779336, HAL.
    3. Kim, Kyung Hoon & Ko, Eunju & Xu, Bing & Han, Yoosun, 2012. "Increasing customer equity of luxury fashion brands through nurturing consumer attitude," Journal of Business Research, Elsevier, vol. 65(10), pages 1495-1499.
    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. repec:dau:papers:123456789/1603 is not listed on IDEAS
    6. Mimouni-Chaabane, Aîda & Volle, Pierre, 2010. "Perceived benefits of loyalty programs: Scale development and implications for relational strategies," Journal of Business Research, Elsevier, vol. 63(1), pages 32-37, January.
    7. Lars Meyer-Waarden & Christophe Benavent, 2009. "Grocery retail loyalty program effects: self-selection or purchase behavior change?," Post-Print hal-01913030, HAL.
    8. Kastanakis, Minas N. & Balabanis, George, 2012. "Between the mass and the class: Antecedents of the “bandwagon” luxury consumption behavior," Journal of Business Research, Elsevier, vol. 65(10), pages 1399-1407.
    9. N. Demoulin & P. Zidda, 2008. "On the impact of loyalty cards on store loyalty:does the customers' satisfaction with the reward scheme matter?," Post-Print hal-00285809, HAL.
    10. Smith, Scott M. & Roster, Catherine A. & Golden, Linda L. & Albaum, Gerald S., 2016. "A multi-group analysis of online survey respondent data quality: Comparing a regular USA consumer panel to MTurk samples," Journal of Business Research, Elsevier, vol. 69(8), pages 3139-3148.
    11. Lee, Chung Hun & Cranage, David A., 2011. "Personalisation–privacy paradox: The effects of personalisation and privacy assurance on customer responses to travel Web sites," Tourism Management, Elsevier, vol. 32(5), pages 987-994.
    12. Demoulin, Nathalie T.M. & Zidda, Pietro, 2008. "On the impact of loyalty cards on store loyalty: Does the customers’ satisfaction with the reward scheme matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 15(5), pages 386-398.
    13. Eugene W. Anderson & Mary W. Sullivan, 1993. "The Antecedents and Consequences of Customer Satisfaction for Firms," Marketing Science, INFORMS, vol. 12(2), pages 125-143.
    14. Naresh K. Malhotra & Sung S. Kim & James Agarwal, 2004. "Internet Users' Information Privacy Concerns (IUIPC): The Construct, the Scale, and a Causal Model," Information Systems Research, INFORMS, vol. 15(4), pages 336-355, December.
    15. Shukla, Paurav & Purani, Keyoor, 2012. "Comparing the importance of luxury value perceptions in cross-national contexts," Journal of Business Research, Elsevier, vol. 65(10), pages 1417-1424.
    16. 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.
    17. Aîda Mimouni-Chaabane & Pierre Volle, 2010. "Perceived Benefits of Loyalty Programs: Scale Development and Implications for Relational Strategies," Post-Print halshs-00638594, HAL.
    18. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Alex Belli & Anne-Maree O’Rourke & François A. Carrillat & Ljubomir Pupovac & Valentyna Melnyk & Ekaterina Napolova, 2022. "40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 147-173, January.
    4. 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.
    5. 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.
    6. Filipe, Sandra & Marques, Susana Henriques & Salgueiro, Maria de Fátima, 2017. "Customers' relationship with their grocery store: Direct and moderating effects from store format and loyalty programs," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 78-88.
    7. 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.
    8. Hu, Li & Ma, Hoi-Lam & Wang, Li & Liu, Yang, 2023. "Hiding or disclosing? Information discrimination in member-only discounts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    9. Stathopoulou, Anastasia & Balabanis, George, 2019. "The effect of cultural value orientation on consumers' perceptions of luxury value and proclivity for luxury consumption," Journal of Business Research, Elsevier, vol. 102(C), pages 298-312.
    10. Bruneau, Virginie & Swaen, Valérie & Zidda, Pietro, 2018. "Are loyalty program members really engaged? Measuring customer engagement with loyalty programs," Journal of Business Research, Elsevier, vol. 91(C), pages 144-158.
    11. Malika Chaudhuri & Clay M. Voorhees & Jonathan M. Beck, 2019. "The effects of loyalty program introduction and design on short- and long-term sales and gross profits," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 640-658, July.
    12. Roux, Elyette & Tafani, Eric & Vigneron, Franck, 2017. "Values associated with luxury brand consumption and the role of gender," Journal of Business Research, Elsevier, vol. 71(C), pages 102-113.
    13. Sharma, Amalesh & Soni, Mauli & Borah, Sourav Bikash & Saboo, Alok R., 2020. "Identifying the drivers of luxury brand sales in emerging markets: An exploratory study," Journal of Business Research, Elsevier, vol. 111(C), pages 25-40.
    14. Ko, Eunju & Megehee, Carol M., 2012. "Fashion marketing of luxury brands: Recent research issues and contributions," Journal of Business Research, Elsevier, vol. 65(10), pages 1395-1398.
    15. Bazargan, Amirhossein & Karray, Salma & Zolfaghari, Saeed, 2017. "Modeling reward expiry for loyalty programs in a competitive market," International Journal of Production Economics, Elsevier, vol. 193(C), pages 352-364.
    16. 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.
    17. Isabelle Collin-Lachaud & Mbaye Fall Diallo, 2021. "Smartphone use during shopping and store loyalty: The role of social influence," Post-Print hal-03156195, HAL.
    18. 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.
    19. Shukla, Paurav & Rosendo-Rios, Veronica, 2021. "Intra and inter-country comparative effects of symbolic motivations on luxury purchase intentions in emerging markets," International Business Review, Elsevier, vol. 30(1).
    20. Shukla, Paurav & Banerjee, Madhumita & Singh, Jaywant, 2016. "Customer commitment to luxury brands: Antecedents and consequences," Journal of Business Research, Elsevier, vol. 69(1), pages 323-331.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:69:y:2016:i:12:p:5801-5808. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.