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...

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Bibliographic Details
Published inJournal of the Academy of Marketing Science Vol. 31; no. 3; pp. 229 - 240
Main Authors Yi, Youjae, Jeon, Hoseong
Format Journal Article
LanguageEnglish
Published New York Springer Nature B.V 01.06.2003
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
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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]
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ISSN:0092-0703
1552-7824
DOI:10.1177/0092070303031003002