No abstract

A review of the extant literature reveals that the theoretical underpinnings of the majority of loyalty program research rest on psychological mechanisms from three specific domains-status, habit, and relational. We propose that to understand how loyalty programs actually work, a broader, more holistic research perspective is needed to account for the simultaneous effects across these three theoretical domains as well as both cross-customer and temporal effects. The contribution of this approach is a fresh research agenda advanced in 15 research propositions.

F irms with a customer-centric structure-an organizational design that aligns each business unit with a distinct customer group-are expected to exhibit superior performance compared to firms that are internally structured. Top executives invoke these customer-centric beliefs when initiating corporate reorganizations. However, a lack of empirical evidence linking these customer-centric structures to better long-term financial performance raises doubts if corporate structure can truly foster customer centricity and better position a firm to satisfy customers and hence exhibit superior performance. The current research addresses this question by using longitudinal data (1998-2010) that links Fortune 500 firms' corporate-level structure to performance. Utilizing a dueling mediator model with allowance for endogeneity in a firm's organizational structure choice, the study reveals that a corporate-level customer-centric structure translates to greater customer satisfaction, but simultaneously adds coordinating costs. Further explaining customer-centric structure's record of mixed success, the benefits of increased customer satisfaction diminish (1) as competitors have already adopted customer-centric structures, (2) in fragmented markets where competitors leave few unique customer needs unaddressed, and (3) in less profitable industries. Ultimately, we show that aligning corporate structure around customers pays off only in specific competitive environments.

Brand sponsorship connects brands with large, passionate audiences. The sponsorship literature emphasizes the importance of brand sponsor–team congruence; however, prior research has largely focused on the relevance of the brand to the sport or geographic area. This article offers the first real-world empirical investigation of the effects of visual congruence through color matching on sponsorship performance. A wide-scale study of 703 Major League Baseball fans’ evaluations of their team’s sponsors, merged with real stadium signage data, offers evidence of the benefits of visual congruence. Two experiments in the contexts of product packaging and online advertising provide converging evidence of the positive effects of created visual congruence on attitudes toward the sponsorship, brand attitudes, and intentions. Brands without an inherent match to a team can enjoy enhanced sponsorship benefits with little additional costs simply by adopting the team’s colors in visual displays. However, the viewer’s motivation (fan status), opportunity (fan exposure), and ability (lack of color blindness) to process visual congruence moderates its effectiveness. By using the proposed framework, managers can maximize the value of their sponsorship rights.

No abstract