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Designing loyalty programs that matter to customers

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  • Sejin Ha
  • Leslie Stoel

Abstract

This study explores a model proposing a customer loyalty program as an identity marketing tool that evokes customer's identity salience (one's perception that a loyalty program membership is important to his/her identity). The results of a Web-based experiment indicate that identity salience is heightened by (1) the uniqueness and exclusiveness of a loyalty program (distinctiveness), and (2) by the fit between the function of the program's rewards and the customer's identity goal (identity congruence). The heightened identity salience, in turn, positively influences the customer's attitude toward the retailer, satisfaction with the loyalty program and the perceived quality of his/her relationship with the retailer.

Suggested Citation

  • Sejin Ha & Leslie Stoel, 2014. "Designing loyalty programs that matter to customers," The Service Industries Journal, Taylor & Francis Journals, vol. 34(6), pages 495-514, April.
    • Handle: RePEc:taf:servic:v:34:y:2014:i:6:p:495-514
    DOI: 10.1080/02642069.2014.871531
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    Cited by:

    1. 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.
    2. Che Nawi Noorshella & Al Mamun Abdullah & Ahmad Raston Nursalihah, 2015. "Examining the Key Factors Affecting e-Service Quality of Small Online Apparel Businesses in Malaysia," SAGE Open, , vol. 5(2), pages 21582440155, April.
    3. Merrill, Becca & Cohen-Vogel, Lora & Little, Michael & Sadler, James & Lee, Kenya, 2020. "“Quality” assurance features in state-funded early childhood education: A policy brief," Children and Youth Services Review, Elsevier, vol. 113(C).

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