When do loyalty programs work? The moderating role of design,retailer-strategy,and country characteristics

Many grocery retailers carry a loyalty program (LP). However, little is known under what conditions these programs are more or less effective. We provide a contingency framework that considers various design, retailer, and country characteristics that can moderate an LP's impact on a retailer's sales productivity. We test the framework across a large sample of 358 grocery banners from a broad cross-section of 27 western and eastern European countries. We find a positive effect of the more basic LP variant that offers direct and immediate rewards. This positive effect, however, disappears when retailers operate a more complex progressive-reward system and when they are part of a multivendor program. An LP's impact also differs between retailers and countries: it is lower when operated by discounters, and higher in countries that are more individualistic and long-term oriented, and where fewer competitors also carry a loyalty program.     

The earliness of exporting and creeping sclerosis? The moderating effects of firm age,size and centralization

By using a sample of 644 manufacturing firms in four EU countries and five regions, we investigate the earliness/exporting relationship. Firstly, we examine the firm’s ability to retain LAN over time as it gets older and bigger. Secondly, we examine the role played by the firm’s decision-making structure. Our results reveal that exporting sclerosis does set in, as age and size of the firm significantly and negatively affect the earliness/exporting relationship. In addition, however, we find that centralization plays a role in the sclerotic effects of size (though only weakly for age), exacerbating their moderating effects on the earliness/exporting relationship. Our study claims to contribute to internationalization research by advancing the idea that LAN is not path-dependent but subject to liabilities. Beyond age and size, we add the more nuanced “liability of centralization” to boundary conditions for retaining LAN. Theoretical and managerial implications emerge.     

Entrepreneurial networking: a blessing or a curse? Differential effects for low,medium and high performing franchisees

Recent studies have called for a better understanding of the link between networking and entrepreneurial performance. We provide such understanding in three ways: by focusing on a specific entrepreneurial context (franchise systems), by developing a multi-faceted theoretical framework and by highlighting a contingency that may affect the networking-performance link. We combine knowledge and learning perspectives with a networking perspective to develop and test a multi-faceted framework on the effects of franchisee networking with peers within a franchise system (‘peer networking’) on franchisee unit performance. In particular, we argue that the performance benefits that franchisees draw from networking with their peers vary between low, medium and high performing franchisees. We use ordinary least squares (OLS) and Quantile Regression analyses to test our hypotheses with empirical data from a Dutch franchise system. Our results confirm that structural, resource and relational facets of franchisee peer networking affect unit performance, and that they benefit and harm low, medium, and high performing franchisees differently.     

“Make me feel special”: Are hierarchical loyalty programs a panacea for all brands? The role of brand concept

Despite extant literature, the most effective structure of loyalty programs is still heavily questioned among researchers. Building on the congruence principle, we examine the moderating role of brand concept. Our findings reveal that for symbolic brand concepts, customers perceive hierarchical loyalty program structures (which classify customers into tiers according to spending levels or other purchase activities) to be more congruent; this perception increases firm loyalty intentions. However, for functional brand concepts, customers perceive hierarchical and linear loyalty programs structures as equally congruent. Also for symbolic brand concepts, program structure appears as the most important feature in ensuring perceived congruence between a program and a brand, ahead of program benefits. These findings have important theoretical and managerial implications.     

CEOs’ regulatory focus and firm internationalization: The moderating effects of CEO overconfidence,narcissism and career horizon

While the international business literature has mainly focused on the firm- or industry-level antecedents of internationalization strategies, scholars have recently advocated a greater focus on the microfoundations of firms’ strategic decisions. Building on the regulatory focus theory, this study focuses on how CEO promotion and prevention foci impact firm internationalization. Looking into dispositional and situational attributions, this study also theorizes how these factors moderate the relationship between a CEO’s psychological motivations and firm internationalization. Using data from publicly traded US firms listed in the Fortune 500, the findings of this study show that a CEO’s promotion focus is positively associated with the extent of a firm’s internationalization, whereas a CEO’s strong prevention focus limits the extent of a firm’s internationalization. The findings also reveal that the relationship between a CEO’s regulatory focus and the extent of a firm’s internationalization is moderated by a CEO’s overconfidence, narcissism, and career horizon. These findings have important research and managerial implications for firms engaged in international business.     

Reward me,charity, or both? The impact of fees and benefits in loyalty programs

This research examines the effects of loyalty program annual fees (no fee vs. $10 fee in Study 1, and no fee vs. $10 vs. $25 fee in Study 2) and benefit structures (self benefit, altruistic benefit, and combination self/altruistic benefit in both Studies 1 and 2) on intentions to join a loyalty program (LP) and future spending if one is willing to join the LP. Using random assignment in a between-subjects research designs and general linear modeling analyses in two different studies, this research finds that an annual fee does decrease consumers’ intentions to join an LP but may also increase the future spending intentions of customers who join a fee-based LP. Furthermore, a benefit structure that shares the reward with both the customer and a charity of his or her choice is found to be an appealing option. Thus, offering a fee-based LP that provides benefits to both the user and a charity could increase a retailer’s profitability and competitiveness through additional revenues, differentiation, and image enhancement.     

The effects of 2-tier store brands’ perceived quality,perceived value,brand knowledge,and attitude on store loyalty

This paper divides store brands into generic ones versus individual ones. Accordingly, two types of store brand loyalty are discussed, namely general versus individual brand loyalty. It also analyzes perceptions of 2-tier store brands in terms of perceived quality and value, and explores the respective effects of consumer knowledge and brand attitude on store loyalty. Results show that both low-priced and medium-priced store brands are able to build individual store brand loyalty and store loyalty among customers. Managerial implications are also provided.     

Are reward cards just a business deal? The role of calculative versus emotional card commitment in driving store loyalty

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.     

Is competence set expansion in the information service industry a planned behavior? The moderating effects of action control style

Technological advancement has brought dramatic changes to most industries. As a result, the pressure to compete has intensified tremendously. This is especially evident in the information service (IS) industry where the need of companies to expand their employees' competence set (CS) becomes critical. This study investigated whether CS expansion in the IS industry is a planned behavior moderated by individual style of action control. A mail survey was carried out to collect data from the IS companies in Taiwan. A total of 190 valid samples were obtained. The results of analyses showed that our proposed model provided a good fit to the data. Attitude tendency (AT), subjective norms (SN), and computer/information technology (IT) self-efficacy positively affected employees' intentions of expanding the CS. Moreover, we found that the action control style moderated the effects of AT, SN, and computer/IT self-efficacy on behavioral intention. The implications of this study as well as its limitations are discussed.     

A double-edged sword? The moderating effects of control on firm capabilities and institutional distance in explaining foreign affiliate performance

By drawing from the internalisation and institutional theories, as well as the organisational capability perspective, the paper analyses the moderating effects of parent control over foreign affiliates in relation to firm capabilities and institutional distance and their performance effects. These relationships are explored in the context of new MNEs from Poland as a mid-range emerging economy, for which ownership choices constitute critical decisions given their early stage of internationalisation. Our findings show that while firm capabilities drive foreign affiliate performance, the increase of parent control limits this beneficial effect, suggesting the potential occurrence of organisational inertia and reduction of learning in foreign markets. On the contrary, we also find partial evidence that the increase of parent control reduces the negative effect of institutional distance computed based on the Mahalanobis formula. Accordingly, the study suggests a certain ambiguity of parent control in affecting affiliate performance.     

How long does celebrity meaning transfer last? Delayed effects and the moderating roles of brand experience,celebrity liking,and age

Extending previous research on celebrity endorsements, the study investigates whether the meaning of celebrities is transferred to endorsed brands and how transfer effects develop over time. Additionally, the moderating roles of brand experience, celebrity liking, and consumers’ age are investigated. The hypothesized effects are modeled using a propositional learning approach with an experimental repeated-measures design (panel data). Results confirm the assumed meaning transfer effect. In addition, the effects appear to be substantially stronger after about a week indicating some type of sleeper effect. Furthermore, the effects increase with increasing brand experience and celebrity liking. Adolescent consumers are not differently affected when compared to adults and controlled for the differing levels of brand experience. Results are discussed in light of propositional learning theory. Future areas of research are proposed.     

Does the importance of value,brand and relationship equity for customer loyalty differ between Eastern and Western cultures?

The use of the customer equity framework as a focal marketing strategy to increase customer loyalty has emerged as an important topic. Despite a growing number of investigations, previous studies are limited by their strong U.S. and European orientations. Research into Western consumers cannot necessarily predict the behaviour of Eastern consumers though. Therefore, this study investigates whether the link between customer equity drivers (value equity, brand equity and relationship equity) and loyalty intentions is sensitive to the cultural environment. A sample of 1553 Chinese and 1085 Dutch consumers in the banking and supermarket industries reveals that all three customer equity drivers exert a greater impact in Western than in Eastern cultures. This study also shows that Eastern consumers in general have higher loyalty intentions than Western consumers.     

Are pharmaceutical ads affording consumers a greater say in their health care? The evaluation and self-empowerment effects of different ad appeals in Brazil

ABSTRACT

Given the pharmaceutical industry's immense global importance, drug manufacturers are currently spending approximately one third of sales revenues on marketing their products. A neglected area of inquiry is pharmaceutical marketing's contribution to consumer empowerment. The present investigation proposes an Advertising-Empowerment-Model which was tested in Brazil, the most important pharmaceutical drug market in Latin America. The model includes ad-, product- and health-related variables. Based on survey data from 241 Brazilian subjects (non-student sample), the model received support for four different ad appeals (informative, emotional, mixed and CSR). Results indicate that the mixed appeal ad led to the highest degree of empowerment in all three empowerment categories (message empowerment, self-medication empowerment, and health empowerment) and was followed by the informative and emotional ad appeals. The CSR appeal obtained the overall lowest scores. Implications regarding the relevance of empowerment in international advertising are discussed. Additionally, limitations and directions for further research are addressed.     

What and How to Communicate CSR? The Role of CSR fit,Modality Interactivity,and Message Interactivity on Social Networking Sites

The current study explored how organizations can build credibility of their CSR communication in social media. In particular the study investigated the role of CSR fit, modality interactivity and message interactivity through a 2 × 2 × 3 experimental design (N = 299). The results suggest that promoting CSR activities with a good fit for the organization leads to greater credibility. Message interactivity also leads to greater credibility perception by way of imbuing a sense of social presence and openness to communication; however, modality interactivity did not significantly influence credibility. Additional analysis suggests an interaction between CSR fit and message interactivity that makes fit critical in low-interactivity settings. Implications for public relations research and practice are discussed.     

What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics,network ties,and firm ownership

The paper first investigates how Chinese small-to-medium enterprises’ (SMEs) network ties at home moderate the relationships between different international entrepreneurship (IE) characteristics and the degree of internationalization of the firm. The paper further explores how the Chinese SMEs’ ownership arrangement might explain the boundary conditions of the proposed moderating effects of network ties on the relationship between IE characteristics and internationalization. Findings of our empirical study generally support the hypotheses derived from our theoretical framework. The paper offers new insights into the internationalization of Chinese SMEs by ascertaining the differential contingent value of business versus political ties in the relationship between IE characteristics and internationalization and explores the bounds of our findings in terms of the ownership arrangement unique to the Chinese context.     

Are people less generous after a family member gives to charity? The interaction of self-construal and relationship type

Extant research shows that people become more generous after learning about the charitable giving of in-group members (e.g., family or friends). The present research demonstrates an exception: While a friend’s donation increases both the interdependents’ and the independents’ charitable giving, a family member’s donation decreases the interdependents’ but increases the independents’ charitable giving. Six studies, including a field experiment and an online survey that captures historical behavior, provide converging evidence in support of an interaction effect of consumers’ self-construal and their relationship type with previous donors on their generosity, showing that the interdependents become less generous after a family member (vs friend) donates. Furthermore, we demonstrate that the interaction effect is driven by the perception of shared responsibility and that this interaction effect is weakened when consumers’ personal responsibility is enhanced or when the donation currency is time rather than money. Finally, the theoretical and practical implications of the work are discussed.     

Do SARS-CoV-2 safety measures affect visitors experience of traditional gastronomy,destination image and loyalty to a World Heritage City?

Sars-Cov-2 paralyzed tourism, which only began to recover after the vaccine roll-out. This study investigates loyalty to a city based on the perception of COVID safety measures in traditional restaurants. To test eight hypotheses, the PLS-SEM method was applied to a sample of 154 tourists who visited Córdoba (Spain) for the traditional cuisine. Results show that visitors' perception of restaurants’ COVID safety measures affects their satisfaction with the restaurant and local cuisine, their general image of this World Heritage city, and their loyalty to it. Thus, appropriate coronavirus risk management can help ensure that visitors recommend and revisit the city.     

Do sexy mouthwash ads leave a bad aftertaste? The interaction of sexual self-schema and brand positioning fit on female-targeted sexual advertising efficacy

We explore females’ reactions to a sexually themed advertising with regard to a key personality variable, sexual self-schema (SSS). In extant research, SSS has largely had a positive impact on females’ reactions to sexual advertisements. We further explore this dynamic by considering the role of female sexual self-schema (SSS) on attitudes and purchase intent for products with brand positions that differ with regard to fit with sexual themes. Informed by our study and extant literature, we also offer areas for further SSS-based advertising research, particularly in another unexplored area: the role of SSS in identification and resultant attitude formation in sexual, but less explicit, advertising.     

Are Business Students Prepared for the World of Business? Self‐interest,Conformity and Conflict Styles

While conflict management is a central capability in the business world, it gets relatively little attention in most business schools. In a study of undergraduate and graduate students at a Canadian university, we investigate the roles personal values play in the relationship between majoring in business and students' conflict management propensities. We find that business students hold more narrowly self‐interested, as well as more conformist and traditionalist, values than students in other disciplines, with the implication that business students may be more prone to conflict avoidance and less likely than other students to engage with conflict collaboratively. We discuss both self‐selection and socialization as possible explanations, and the implication this has for business education and curriculum development.