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Implications of Loyalty Program Membership and Service Experiences for Customer Retention and Value
Companies that offer loyalty reward programs believe that their programs have a long-run positive effect on customer evaluations and behavior. However, if loyalty rewards programs increase relationship durations and usage levels, customers will be increasingly exposed to the complete spectrum of ser...
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| Published in: | Journal of the Academy of Marketing Science 2000, Vol.28 (1), p.95-108 |
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| Main Authors: | , , |
| Format: | Article |
| Language: | English |
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| cited_by | cdi_FETCH-LOGICAL-c392t-a1d7af906afda35f55e47bcf8fd8742932b8be6be85fd9a56457b97a83c897503 |
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| container_end_page | 108 |
| container_issue | 1 |
| container_start_page | 95 |
| container_title | Journal of the Academy of Marketing Science |
| container_volume | 28 |
| creator | Bolton, Ruth N Kannan, P K Bramlett, Matthew D |
| description | Companies that offer loyalty reward programs believe that their programs have a long-run positive effect on customer evaluations and behavior. However, if loyalty rewards programs increase relationship durations and usage levels, customers will be increasingly exposed to the complete spectrum of service experiences, including experiences that may cause customers to switch to another service provider. Using cross-sectional, time-series data from a worldwide financial services company that offers a loyalty reward program, a study investigates the conditions under which a loyalty rewards program will have a positive effect on customer evaluations, behavior, and repeat purchase intentions. The results show that members in the loyalty reward program overlook or discount negative evaluations of the company vis-a-vis competition. One possible reason could be that members of the loyalty rewards program perceive that they are getting better quality and service for their price or, in other words, "good value." |
| doi_str_mv | 10.1177/0092070300281009 |
| format | article |
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| fulltext | fulltext |
| identifier | ISSN: 0092-0703 |
| ispartof | Journal of the Academy of Marketing Science, 2000, Vol.28 (1), p.95-108 |
| issn | 0092-0703 1552-7824 |
| language | eng |
| recordid | cdi_proquest_journals_2786680733 |
| source | EBSCOhost Business Source Ultimate; ABI/INFORM Archive; ABI/INFORM Global; Springer Link |
| subjects | Affinity groups Competition Consumer attitudes Customer retention Customer satisfaction Customer services Effectiveness Hypotheses Insurance policies Longitudinal studies Loyalty Loyalty programs Marketing Operations research Pickpockets Regression analysis Service industries Studies Value analysis |
| title | Implications of Loyalty Program Membership and Service Experiences for Customer Retention and Value |
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