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Are reward cards just a business deal? The role of calculative versus emotional card commitment in driving store loyalty

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  • Pandit, Ameet
  • Vilches-Montero, Sonia

Abstract

Recent research has challenged the wide-spread use of reward cards in the retail/service sector by arguing that in many cases, they offer rewards that fail to add value and increase loyalty to the store (Leenheer et al., 2007; Meyer-Waarden, 2015). Consequently, researchers have examined a variety of loyalty programs in order to determine which specific designs have a greater impact on the program's performance (Bruegelmans et al., 2015; Meyer-Waarden, 2015). The underlying assumption of this view is that consumers will favour those programs which offer the “best deal†, potentially excluding the role of consumers’ affects in forming loyalty. In contrast to this view, this research draws on attachment theory to develop and test a more integrative model which concurrently assesses how consumers’ emotional, normative and calculative commitment to the card impacts store loyalty. We demonstrate that it is not calculative but emotional commitment that drives store loyalty in the long term. We conclude by discussing the theoretical and managerial implications of our findings, which collectively call managers to rethink current CRM practices that emphasizes rewards as a driver of customer loyalty.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:joreco:v:31:y:2016:i:c:p:355-360
    DOI: 10.1016/j.jretconser.2016.05.001
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    References listed on IDEAS

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    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. 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.
    3. Ree Chan Ho & Muslim Amin, 2023. "Exploring the role of commitment in potential absorptive capacity and its impact on new financial product knowledge: a social media banking perspective," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 585-598, September.
    4. 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).
    5. 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.
    6. Vilches-Montero, Sonia & Nik Hashim, Nik Mohd Hazrul & Pandit, Ameet & Bravo-Olavarria, Renzo, 2018. "Using the senses to evaluate aesthetic products at the point of sale: The moderating role of consumers’ goals," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 82-90.
    7. Khan, Imran & Hollebeek, Linda D. & Fatma, Mobin & Islam, Jamid Ul & Riivits-Arkonsuo, Iivi, 2020. "Customer experience and commitment in retailing: Does customer age matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).

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