Are reward cards just a business deal? The role of calculative versus emotional card commitment in driving store loyalty |
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| Institution: | 1. Old Dominion University, Strome College of Business, Department of Marketing, 2040 Constant Hall, Norfolk, VA 23529, United States;2. Old Dominion University, Strome College of Business, Department of Marketing, 2032 Constant Hall, Norfolk, VA 23529, United States;3. Old Dominion University, Strome College of Business, Department of Marketing, 2146 Constant Hall, Norfolk, VA 23529, United States;1. Brunel University, UK;2. Newcastle Business School, University of Newcastle, NSW, Australia;3. Leicester University, UK;4. Newcastle Business School, Northumbria University, UK;1. Faculty of Business & Law, Swinburne University of Technology, Hawthorn, Victoria, 3122, Australia;2. School of Business & Law, Edith Cowan University, Perth 6027, Australia;3. Sripatum International College, Sripatum University, Bangkok 10900, Thailand |
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| 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 (Breugelmans 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. |
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