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The similar versus divergent effects of pride and happiness on the effectiveness of loyalty programs

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  • Septianto, Felix
  • An, Jake
  • Chiew, Tung Moi
  • Paramita, Widya
  • Tanudharma, Istiharini

Abstract

Firms typically utilize loyalty programs to encourage repeat purchases. In particular, frequency reward programs and customer tier programs are the two predominant loyalty program structures. However, there is little insight on the conditions under which these loyalty program structures can be more effective. This research investigates how different, discrete positive emotions such as pride and happiness can leverage the effectiveness of these loyalty program structures. Findings from four studies show that while pride and happiness can similarly increase repurchase intentions following a frequency reward program, only pride (vs. happiness) differentially increases repurchase intentions following a customer tier program. Further, the effects of these emotions are mediated by two distinct paths: the intensity of positive affect (for frequency reward programs) and signaling motives (for customer tier programs). These findings have beneficial implications for marketers and firms in employing appropriate positive emotion appeals to promote their loyalty programs.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:99:y:2019:i:c:p:12-22
    DOI: 10.1016/j.jbusres.2019.02.021
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    Cited by:

    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. Felix Septianto & Yuri Seo & Amy Christine Errmann, 2021. "Distinct Effects of Pride and Gratitude Appeals on Sustainable Luxury Brands," Journal of Business Ethics, Springer, vol. 169(2), pages 211-224, March.
    3. Paramita, Widya & Septianto, Felix & Tjiptono, Fandy, 2020. "The distinct effects of gratitude and pride on donation choice and amount," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    4. Faramarzi, Ashkan & Bhattacharya, Abhi, 2021. "The economic worth of loyalty programs: An event study analysis," Journal of Business Research, Elsevier, vol. 123(C), pages 313-323.
    5. Septianto, Felix & Ye, Sheng & Northey, Gavin, 2021. "The effectiveness of advertising images in promoting experiential offerings: An emotional response approach," Journal of Business Research, Elsevier, vol. 122(C), pages 344-352.
    6. Chan, Eugene Y. & Septianto, Felix, 2022. "Disgust predicts charitable giving: The role of empathy," Journal of Business Research, Elsevier, vol. 142(C), pages 946-956.
    7. Septianto, Felix & Paramita, Widya, 2021. "Cute brand logo enhances favorable brand attitude: The moderating role of hope," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    8. Li, Chen & Swaminathan, Srinivasan & Kim, Junhee, 2021. "The role of marketing channels in consumers’ promotional point redemption decisions," Journal of Business Research, Elsevier, vol. 125(C), pages 314-323.
    9. Kumar, Ajay & Paul, Justin & StarÄ ević, SlaÄ‘ana, 2021. "Do brands make consumers happy?- A masstige theory perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    10. Gaston-Breton, Charlotte & Sørensen, Elin Brandi & Thomsen, Thyra Uth, 2020. "“I want to break free!” How experiences of freedom foster consumer happiness," Journal of Business Research, Elsevier, vol. 121(C), pages 22-32.
    11. Septianto, Felix & Kemper, Joya A. & Chiew, Tung Moi, 2020. "The interactive effects of emotions and numerical information in increasing consumer support to conservation efforts," Journal of Business Research, Elsevier, vol. 110(C), pages 445-455.
    12. Felix Septianto & Joya A. Kemper & Fandy Tjiptono & Widya Paramita, 2021. "The Role of Authentic (vs. Hubristic) Pride in Leveraging the Effectiveness of Cost Transparency," Journal of Business Ethics, Springer, vol. 174(2), pages 423-439, November.
    13. Septianto, Felix, 2021. "Every ending is a new beginning: Poignancy increases consumer preferences for self-made products," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 732-748.
    14. Septianto, Felix & Northey, Gavin & Chiew, Tung Moi & Ngo, Liem Viet, 2020. "Hubristic pride & prejudice: The effects of hubristic pride on negative word-of-mouth," International Journal of Research in Marketing, Elsevier, vol. 37(3), pages 621-643.
    15. Kim, Minseong, 2021. "Does playing a video game really result in improvements in psychological well-being in the era of COVID-19?," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).

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