The effects of loyalty programs on customer lifetime duration and share of wallet

In the retailing sector, consumers typically patronize multiple outlets, which confronts these outlets with an important issue: determining how to gain a greater part of consumer expenditures. One potential avenue is to increase consumer lifetime duration and repeat purchases through loyalty cards. This research, using BehaviorScan single-source panel data, examines the impact of loyalty programs on customer lifetime duration in grocery stores. The findings suggest that loyalty schemes have positive effects on customer lifetimes and share of consumer expenditures. However, multiple loyalty card memberships of geographically close retailers reduce lifetime duration. Furthermore, the higher the share of consumer expenditures in a store, the longer the lifetime duration will be.     

Effects of confidence and social benefits on consumers’ extra-role and in-role behaviors: A social identity and social exchange perspective

This study explores the effects of relational benefits on consumers' extra-role (civic virtue) and in-role (consumer loyalty) behaviors from social identity and social exchange perspectives, in addition to the mediating role of consumer–company identification (CCI) and perceived value. Structural equation modeling was used to analyze the data obtained from a cross-sectional survey of 254 consumers. The findings reveal that relational benefits promote consumers’ extra-role and in-role behaviors. Specifically, confidence and social benefits, directly and indirectly, affect civic virtue and consumer loyalty. Supporting our integrative framework, the results demonstrate that CCI mediates the effect of confidence and social benefits on civic virtue and consumer loyalty, whereas perceived value only mediates the relationship between confidence and social benefits and consumer loyalty. This study presents important implications for academicians and practitioners.     

产品伤害事件引发的感知损失及其影响

从产品伤害事件引发的感知损失角度,研究产品伤害事件的感知损失程度与品牌忠诚度之间的关系,以及品牌信任、品牌情感、消费者性别对此关系的调节作用。研究发现产品伤害事件的感知损失与品牌忠诚度之间呈明显的负相关关系,品牌信任度与此关系有正向的调节作用,品牌情感与消费者的性别对此关系的调节作用不明显。     

Building chain loyalty in grocery retailing by means of loyalty programs – A study of ‘the Norwegian case’

The aim of the paper is to analyze chain loyalty effects of customers' perceived value of loyalty programs in grocery retailing. It contributes to filling a gap in the literature, as there has been little earlier focus on the links between customers' perception of loyalty program value and satisfaction, image, and loyalty, at the chain level. One main finding is that customers’ perceived value of a loyalty program has significant direct and moderating effects on chain loyalty, and the moderation effects are chain dependent. Managers should thus consider satisfaction creation, image building, and loyalty program value creation as parallel processes.     

How store attributes impact shoppers’ loyalty: do different national cultures follow the same loyalty building process?

This paper takes a first step toward verifying the robustness of a comprehensive loyalty building model across different national cultures, according to Hofstede’s distinction between individualist and collectivist countries. To this end, we test a two-stage model. After collecting data from 12 countries with different cultural traits, we test the two models in two macro groups: individualist and collectivist countries. The study’s results show that the intensity of some core loyalty model paths – particularly the relationships between store loyalty and its main drivers (perceived value and customer satisfaction) – are contingent on the country’s culture. In particular, the impact of customer satisfaction on store loyalty intention is greater in collectivist countries than in individualist countries. By contrast, the impact of perceived value on store loyalty is greater in individualist than in collectivist countries. Moreover, the cultural dimension moderates the impact of the stores’ environment and promotions on satisfaction. By contrast, some other paths show robustness to national culture.     

服务行业顾客重购意向的影响因素及其相互关系研究

本文探讨了转换壁垒、顾客感知价值、顾客满意对顾客重购意向的影响作用及其相互关系。以理发行业为研究对象,通过发放问卷收集数据,并运用结构方程分析软件进行了实证性检验,结果发现:顾客满意和顾客感知价值都对顾客重购意向具有直接显著影响;转换壁垒的不同维度对顾客重购意向的影响不同,社会利益对顾客重购意向产生积极的影响作用,转换成本不能增加顾客价值和顾客满意,但会对顾客产生锁定作用。对企业来说,管理者可以增加顾客满意和顾客感知价值来增加顾客重购意向,也可以通过提高顾客对转换壁垒的感知,从而对顾客起到锁定作用。     

Consumer–retailer love and attachment: Antecedents and personality moderators

Because loyalty to services remains elusive and unpredictable, there is a need to study consumer relationships with firms apart from the established satisfaction–loyalty chain approach. To that end, the present paper investigates feelings of attachment and love through two empirical consumer studies of two different grocery retailer brands. The findings of the current study imply that retail store image, perceived transactional value, and corporate social responsibility (CSR) associations positively influence consumer–retailer love levels. Furthermore, we find that for consumers scoring low on the value of warm relationships with others and for consumers characterized by an avoidant attachment style, the effect of consumer–retailer love on re-patronage intentions is less salient. Interestingly, in the case of highly avoidant individuals, the effect of consumer–retailer love is negative. Managerial implications for building consumer-firm love in the context of grocery retail, as well as future research perspectives, are provided at the end of the paper.     

Multi-Brand Loyalty Cards: A Good Idea

The UK's leading coalition loyalty card scheme was launched at a time when questions were raised regarding the viability of such schemes. Two years into the scheme, it is now appropriate to review the scheme's relationship with its' customers and judge its' success in terms of its ability to influence card holders' behaviour.

To meet the objectives a survey methodology was adopted, and a new questionnaire devised for administration to a sample of coalition loyalty card scheme cardholders. The survey achieved 153 responses from the scheme members.

Findings from the study revealed that coalition loyalty card scheme holders' exhibit weak bonds between the card provider and its customers and that customers display signs of low commitment, low trust and low perceived relational benefits. There is a decisive lack of awareness of many sponsors and this confusion seemed to be leading to the use of coalition loyalty card scheme as a single-brand card. Although usage rates are on a par with other loyalty schemes, a lack of involvement seems apparent; indicating that no considerable increase in share of customer had occurred. This is mainly down to poorly targeted communications and irrelevant reward offerings.

Finally, there was little to suggest that coalition loyalty card scheme are currently having much influence over consumer behaviour, as the bonds between the two parties were not strong enough to encourage this. However, this does not indicate that the current market leader is currently unsuccessful, there is evidence to suggest consumers perceive real benefits in coalition schemes and that there is a willingness to alter their behaviour if the motivation is sufficient. Implications for future research include more specific investigations into the dynamic of the relationship between loyalty schemes and consumers and further research on coalition schemes per se.     

Understanding the formation of e-loyalty based on a dedication-constraint perspective

Despite the importance of retaining customers in the context of e-shopping, the formation of an e-buyer’s loyalty remains inconclusive. Drawing on e-shopping literature, this study developed and tested a model to explain e-buyer loyalty from the perspective of business-to-consumer relationship management. We build on a dedication-constraint dual model to delineate the relationship between perceived benefits, switching cost, service-specific investment, and loyalty. Empirical results from 505 respondents show that loyalty is influenced by both perceived benefits and switching costs. In addition, switching costs partially mediate the relationship between service-specific investments and loyalty. Implications of these results are discussed.     

The role of customer gratitude in making relationship marketing investments successful

This paper recognises that customer loyalty is important for many competitive organisations, and that retail firms make investments to build and maintain loyal relationships with their existing and potential customers (e.g. loyalty programs). However, there has been little focus on the mechanisms by which these relationship investments operate to achieve customer loyalty. This paper examines one mechanism, namely customer gratitude, which works to make a firm’s relationship marketing investment a success or a failure. Using data from 1600 undergraduate students, this study empirically confirms the mediating role of customer gratitude between the customers’ perceptions a firm’s relationship marketing investments and customers’ perceptions of the value of the relationship with the firm. Further, a significant moderating effect of perceived benevolence on the relationship between customers’ perceptions a firm’s relationship marketing investments and customer gratitude was identified. For theorists, this customer gratitude model offers a better psychological explanation of how relationship marketing investments operate to improve the value that customers place on their relationships with retailers. Our research suggests that managers should invest resources to stimulate customer gratitude in order to build strong customer–seller relationships.     

Share of wallet in retailing: the effects of customer satisfaction, loyalty cards and shopper characteristics

In retailing, consumers typically patronize multiple outlets. Thus, an important issue is why consumers vary in how they divide their purchases across outlets and how outlets can get a greater share of consumer expenditures. Two potential avenues for increasing customer share are to raise customer satisfaction, and increase repeat purchase through loyalty cards. This study examines the effects of customer satisfaction and loyalty cards as well as consumer characteristics on customer share spent on the primary grocery store. The findings suggest that customer satisfaction has a positive, albeit modest, effect on share while consumer economic shopping orientation has a negative direct effect on share. The economic orientation of shoppers, their felt importance of a personal relationship with store personnel, and the level of their aggregate purchase volume moderate the effect of satisfaction on customer share. Finally, the results provide mixed support for the impact of loyalty cards on customer behavior.     

Customer happiness as a function of perceived loyalty program benefits - A quantile regression approach

Customers consider pursuit of happiness to be fundamental to their purchase experiences; thus, companies are increasingly looking for opportunities to bring happiness to customers especially in their consumption activity. The current study undertakes analysis of effect of perceived benefits of loyalty programs and customer satisfaction on customer happiness/purchase enjoyment if he/she has loyalty program membership. Empirical study with 407 participants found that Discovery and Entertainment Benefit (DEB) and Satisfaction Derived (SD) have an effect on customer happiness/purchase enjoyment while being a loyalty program member. Quantile regression analysis was used to analyze if independent variables have a differential effect on different levels of the dependent variable i.e. customer happiness/purchase enjoyment from use of loyalty programs. Since DEB and SD were found to be positively significant in influencing customer happiness/purchase enjoyment, companies should focus on balancing these aspects of customers’ consumption experience.     

Role of customer orientation in an integrative model of brand loyalty in services

This study attempts to model the development of brand loyalty by examining the simultaneous effects of customer orientation, perceived quality, brand associations, and satisfaction on brand loyalty. Data are used from retail banking and discount store retailing services to examine the direct and indirect effects of customer perceptions of customer orientation and quality on brand loyalty. It was found that customer orientation has a direct effect on brand loyalty and indirect effects through customer satisfaction, perceived quality, and brand associations as mediators. Further, perceived quality has a direct effect on brand loyalty as well as an indirect effect with satisfaction as a mediator. The results suggest that effective management of brand loyalty would require tracking of customer perceptions of a firm's customer orientation, quality and brand, in addition to measuring customer satisfaction.     

The effects of perceived value on loyalty: the moderating effect of market orientation adoption

This paper aims to identify the moderating effect of service firms’ adoption of market orientation on key variables of consumer behavior, namely perceived value and loyalty. The study took a business-to-customer perspective. First, the adoption of market orientation was measured, from the firm’s point of view. Second, customer perceptions were analyzed, using the two variables perceived value and loyalty. The sample comprised 100 service firms and 572 of their customers. The present work provides original insights, identifying that the effect of perceived value on loyalty depends on other variables external to the consumer, such as the market orientation approach.     

The development of a consumer value proposition of private label brands and the application thereof in a South African retail context

Private Label Brands are of strategic importance to retailers worldwide. However, there is a dearth of knowledge, particularly in emerging markets, as to the manner in which consumers cognitively assess these brands. At the heart of the issue is a gap in knowledge as to how consumers formulate a value proposition in their minds and the effect of loyalty to existing brands. This paper assumes a positivist, hypothetico-deductive approach by attempting to address the question: What are the key drivers of perceived value of private label branded breakfast cereals, taking price, perceived risk and perceived quality into account? Moreover, the study considers how various attributes of brand image contribute to the perception of brands and the extent to which loyalty to established national brands inhibits purchasing intent of private label merchandise. A conceptual model was developed, and tested by means of Partial Least Squares path analysis, using a sample of 482 respondents. The outcome reflects that consumers take cognisance of value through price, risk and quality cues, but that loyalty to existing brands has a minimal effect in the final stage of the model. Moreover, both in- and out-of-store influences were found to play a significant role in the determination of product quality. Retailers therefore possess a number of levers at their disposal to influence perceived value, most notably price, product quality and the perceived risk portfolio, as well as packaging, shelf placement, store environmental factors, etcetera.     

消费集成的形成机理及其风险防范

消费集成作为一种新的营销管理模式,引起了商家越来越多的关注。消费集成主要包括顾客忠诚卡制度和虚拟社区消费两种形式。消费集成的效果取决于消费者的获益程度,消费集成有利于实现消费者效用最大化。另外,消费集成给消费者带来更大效用的同时,也存在一定的风险,为此,必须对消费集成的风险加强防范。     

Loyalty program structure and consumers' perceptions of status: Feeling special in a grocery store?

Loyalty programs are business practices increasingly pursued by companies in order to achieve customer loyalty. Recent studies have focused on the relationship between loyalty program structures (i.e., number and size of hierarchical tiers) and status levels (i.e., exclusivity) perceived by members. The current study examines two potential moderators of this relationship between program structure and perceived status. Specifically, the aim of our research was to test whether loyalty program structure affects status perceptions in more and less exclusive industries, and among consumers with more and less positive attitudes toward loyalty programs.An experimental design based on different scenarios was used. Two industries and three loyalty program structures were examined. In the airline industry, which is higher in perceived exclusivity, perceived status in the top tier of the loyalty program increased as the number of customers in the top tier decreased and as the number of tiers increased. Notably, however, loyalty program structure had no effect on perceived status in the supermarket industry, which is lower in perceived exclusivity. Moreover, even in the airline industry, status effects were only observed among respondents with a positive attitude toward loyalty programs. Those with neutral or negative attitudes toward loyalty programs were unaffected by the structure of the loyalty program. Thus, the effect of loyalty program structure on consumers' perceived status varied systematically across industries and across individuals.     

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.     

Customer perceived value,satisfaction, and loyalty: the role of willingness to share information

This study proposes and tests an integrative model to examine the relationships among customers’ willingness to share information, satisfaction, perceived value, and loyalty in a retailing context. This study extends research on customers’ willingness to share information from trust and privacy concerns toward key outcome measures such as perceived value, customer satisfaction, and loyalty, and is thus among the first to model customers’ willingness to share information with companies in robust theoretical retailing frameworks. The proposed relationships were tested using data from two retailing contexts – groceries (N = 429) and do-it-yourself (DIY) (N = 895). Findings from the two samples suggest that both perceived value and satisfaction are significant determinants of customers’ willingness to share information with a company. Although some differences emerge in the two studies, structural modeling largely supports the hypothesized framework and positions customers’ willingness to share information as an important antecedent of their loyalty intentions and behavior. This study provides practitioners with preliminary insight into the relationship between willingness to share information and perceived value, customer satisfaction, and customer loyalty. This study advances retailing research, as it is one of the few empirical studies investigating the role of customers’ willingness to share information in driving loyalty and its relationship with perceived value and satisfaction in a retailing context.