Effects of Loyalty Programs on Value Perception, Program Loyalty, and Brand Loyalty

Abstract

The authors investigate how reward schemes of a loyalty program influence perceived value of the program and how value perception of the loyalty program affects customer loyalty. The results show that involvement moderates the effects of loyalty programs on customer loyalty. In high-involvement situations, direct rewards are preferable to indirect rewards. In low-involvement situations, immediate rewards are more effective in building a program's value than delayed rewards. Under high-involvement conditions, value perception of the loyalty program influences brand loyalty both directly and indirectly through program loyalty. Under low-involvement conditions, there is no direct effect of value perception on brand loyalty.

Impact of customer loyalty and service operations on customer behaviour and firm performance: empirical evidence from UK retail sector

“…The loyalty program is a marketing program that is designed to build customer loyalty by providing incentives to profitable customers (Yi and Jeon 2003). Richard and Zhang (2012) discussed inter-relationships and impact of corporate image, satisfaction and commitment on customer loyalty in tourism industry.…”

“…Richard and Zhang (2012) discussed inter-relationships and impact of corporate image, satisfaction and commitment on customer loyalty in tourism industry. The goal of a loyalty program is to establish a higher level of customer retention in profitable segments by providing more satisfaction and value to certain customers (Bolton et al 2000).There are various views about the effectiveness of loyalty programs (Yi and Jeon 2003). This is because the three determinants of retail loyalty have been recognised as individual characteristics, merchandise characteristics and service/interaction characteristics (Straughan and Albers-Miller 2001).…”

The Effects of Trust, Commitment and Satisfaction on Customer Loyalty in the Distribution Sector

“…According to the authors in [31] because of the confidence consumers are willing to participate in loyalty programs.…”

Loyalty programmes as a direct sales platform: a cardholder segmentation based on air flight redemptions

“…Dado que el incentivo favorece la participación y la satisfacción con el programa (Meyer-Waarden y Benavent, 2006), el mismo ha de estar en la escala más alta de valoración por parte del titular. El valor emocional del premio ha de servir igualmente a la empresa para conseguir diferenciación con el programa respecto a sus competidores (Yi y Jeon, 2003): encontrar los premios más adecuados incide sobre la participación en el programa (Roehm y otros, 2002).…”

“…La decisión de implementar un Programa de Fidelización surge de una empresa, o grupo de empresas (en el caso de los programas Multisponsor), que se plantea como objetivo incluir a sus clientes, o a un selecto grupo de ellos, en una plataforma de interacción (en términos de intercambio económico y comunicativo) en la que serán identificados y gratificados por su participación (Yi y Jeon, 2003). Se considera que los programas de fidelización, adecuadamente gestionados, permiten acciones estructuradas y operativas para la gestión, selección, relación y control del comportamiento de compra de los clientes (Michels y Bowen 2004;Banasiewicz, 2005;Carlsson y Löfgren, 2006).…”