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Effects of loyalty program rewards on store loyalty

Author

Listed:
  • Lars Meyer-Waarden

    (marketing - CRM - Centre de Recherche en Management - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - IAE - Institut d'Administration des Entreprises - Toulouse - CNRS - Centre National de la Recherche Scientifique)

Abstract

This investigation examines consumers' preferred loyalty program (LP) designs across two retail contexts, grocery retailing and perfumery, with varying degrees of personal involvement. The research employs in-store full profile conjoint analysis by using the following attributes: timing of the reward, reward compatibility with the store's image, and tangibility. Our research reveals that the underlying effects of reward types on preferences and intended store loyalty differ depending on the level of consumers' personal involvement. In sectors with high personal involvement, compatibility with the store's image and intangible rewards increase LP preference and loyalty intentions. The time required to obtain the reward (immediate/delayed) has no impact. In sectors with low personal involvement, immediate and tangible rewards increase LP preference and loyalty intentions. Compatibility with the store image has no impact.

Suggested Citation

  • Lars Meyer-Waarden, 2015. "Effects of loyalty program rewards on store loyalty," Post-Print halshs-01260493, HAL.
    • Handle: RePEc:hal:journl:halshs-01260493
    DOI: 10.1016/j.jretconser.2015.01.001
    as

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