Effects of Loyalty Programs on Value Perception, Program Loyalty, and Brand Loyalty

The authors investigate how reward schemes of a loyalty program influence perceived value of the program and how value perception of the loyalty program affects customer loyalty. The results show that involvement moderates the effects of loyalty programs on customer loyalty. In high-involvement situ...

Full description

Saved in:
Bibliographic Details
Published in:Journal of the Academy of Marketing Science 2003-06, Vol.31 (3), p.229-240
Main Authors: Yi, Youjae, Jeon, Hoseong
Format: Article
Language:English
Subjects:
Behavior
Brand loyalty
Competition
Consumer attitudes
Customers
Frequent flier programs
Incentives
Loyalty programs
Marketing
Perceptions
Product differentiation
Purchase intention
Rewards
Service introduction
Studies
Value analysis
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The authors investigate how reward schemes of a loyalty program influence perceived value of the program and how value perception of the loyalty program affects customer loyalty. The results show that involvement moderates the effects of loyalty programs on customer loyalty. In high-involvement situations, direct rewards are preferable to indirect rewards. In low-involvement situations, immediate rewards are more effective in building a program's value than delayed rewards. Under high-involvement conditions, value perception of the loyalty program influences brand loyalty both directly and indirectly through program loyalty. Under low-involvement conditions, there is no direct effect of value perception on brand loyalty. [PUBLICATION ABSTRACT]
ISSN:0092-0703
1552-7824
DOI:10.1177/0092070303031003002