Communication strategies for multi-tier loyalty programs: The role of progress framing

Drawing upon goal pursuit research and the social status literature, this paper examines an important and yet unexplored issue in multi-tier loyalty programs (MTLPs): how to use tailor-made progress feedback to motivate members to maintain their tier status. Three experiments conducted in different...

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Bibliographic Details
Published in:Tourism management (1982) 2022-08, Vol.91, p.104460, Article 104460
Main Authors: Zeng, Kevin J., Yu, Irina Y., Yang, Morgan X., Chan, Haksin
Format: Article
Language:English
Subjects:
High and low-tier members
Multi-tier loyalty programs
Progress framing
Status loss
Status retention
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Summary:Drawing upon goal pursuit research and the social status literature, this paper examines an important and yet unexplored issue in multi-tier loyalty programs (MTLPs): how to use tailor-made progress feedback to motivate members to maintain their tier status. Three experiments conducted in different hospitality settings consistently reveal that an accumulated-focus (remaining-focus) feedback frame that highlights the completed (remaining) progress is more conducive in motivating low-tier (high-tier) members to retain their current tier level. Moreover, this research demonstrates that the progress-framing effects are mediated by confidence in tier status retention (concern for tier status loss) for low-tier (high-tier) members. This paper contributes to the loyalty program (LP) research and the broader customer relationship management literature by establishing progress framing as a strategic tool that can help hospitality and tourism firms retain existing members from different tiers.
ISSN:0261-5177
1879-3193
DOI:10.1016/j.tourman.2021.104460