Perceived Benefits of Loyalty Programs: Scale Development and Implications for Relational Strategies

Positive outcomes of loyalty programs are clear for firms, yet little research examines customer perceptions. To address this gap, this article investigates various perceived benefits of loyalty programs using a multi-benefit framework based on utilitarian, hedonic, and relationship literature. Two quantitative studies, involving 658 French members of loyalty programs, provide a 16-item scale that measures five types of perceived benefits: monetary savings, exploration, entertainment, recognition, and social benefits. The five dimensions have different impacts on satisfaction with the program, loyalty to the program, and perceived relationship investment of the firm. This article offers a discussion of the theoretical and managerial implications of these findings for relationship marketing strategies.loyalty programs; perceived benefits; scale development

The effects of loyalty programs on customer satisfaction, trust, and loyalty toward high- and low-end fashion retailers

This study examines the differential effects of the benefits customers receive from a loyalty program (LP) on satisfaction with the LP, trust in the LP, and store loyalty for high- and low-end fashion retailers. With survey data from U.S. LP subscribers, the study tests the relationships using multiple regressions and analysis of covariance. The results show that symbolic benefits are more important for high-end fashion store consumers' satisfaction with the LP; conversely, utilitarian benefits increase consumers' satisfaction with the LP more in low-end fashion retailing, whereas hedonic benefits increase consumers' satisfaction with the LP in both types of retailers. All benefits in both types of retailers affect trust in the LP. Finally, satisfaction with and trust in the LP are important drivers of loyalty to the retailer. The findings have important implications on how managers of high- and low-end fashion retailing can effectively design their LP rewards to maximize loyalty

B2B Channel Partner Programs: Disentangling Indebtedness from Gratitude

Many suppliers invest heavily in channel partner programs that incentivize selling and learning. The authors conduct a multi-wave field study to investigate the roles of indebtedness and gratitude in transforming these investments into returns. The results show that indebtedness has negative effects on commitment to the supplier, as well as the reseller's sales effort. Gratitude however attenuates the effects of indebtedness on sales effort and commitment, and thus offers a buffer against indebtedness' negative effects. Indebtedness and gratitude thus play key roles in channel partner programs. In addition, the results highlight the importance of perceived motives as they differentially predict these two states. Benevolent motives are found to increase gratitude, though ulterior motives do not detract from it. Ulterior motives do however increase indebtedness. Finally, the results also reveal how entitlement negatively impacts channel partner programs: It decreases the positive effect of perceived program value on partner gratitude while increasing the effect of ulterior motives on indebtedness. This study thus assesses the simultaneous yet contrasting role of gratitude and indebtedness, as well as the complexity associated with realizing the full benefits of channel partner programs. The findings have implications for suppliers, marketers, and further research

The reward gap in hierarchical loyalty programmes: how to enhance bottom-tier customers’ loyalty without alienating top-tier customers

International audienceReward gap is the difference in the number and nature of rewards allocated to specific customer groups (or tiers) in a hierarchical loyalty programme. Building on the social comparison, equity and attribution theories, and two experiments conducted in a retailing context, we investigate the effect of reward gap size and visibility on both bottom-tier (BT) and top-tier (TT) customers. Findings from Study 1 show that a large reward gap reduces loyalty to the programme in BT customers, while it enhances it in TT customers. These effects are mediated by perceived fairness and perceived control. Findings from Study 2 show that a non-visible large reward gap increases loyalty to the programme in BT customers without affecting it in TT customers. This effect is mediated only by perceived fairness. Altogether, the findings highlight the mechanisms that explain the effect of the reward gap on BT and TT customers’ loyalty to the programme

The double-edge effect of retailers’ cause-related marketing: When scepticism cools the warm-glow effect

International audiencePurpose – Cause-related marketing – linking product sales with donations to a cause – are popular with consumers because they produce warm-glow feelings (the positive route). But when they involve large donations, they may trigger consumer scepticism, reducing the warm glow (the negative route). Drawing on the elaboration likelihood model, the purpose of this paper is to examine whether large donations in cause-related marketing can produce consumer scepticism and reduce the warm-glow effect and positive attitude towards the retailer. Design/methodology/approach – An experiment varying the donation size (large, medium, small) in a cause-related marketing offer run by an office equipment retailer is set up. Hypotheses are tested using bootstrapping regression analyses. Findings – The negative route has the greater effect: scepticism towards the offer mediates the relationship between donation size and the warm glow. Furthermore, scepticism towards a large donation is higher (lower) for respondents scoring low (high) on altruism and high (low) on familiarity with cause-related marketing. Practical implications – When using cause-related marketing, retailers should choose their features and target audience carefully in order to reduce scepticism, e.g., small donations should be offered in promotions targeting consumers who are familiar with cause-related marketing and show low altruism. Originality/value – This study contributes to the recent research examining the negative effects of cause-related marketing by explicitly conceptualising and measuring scepticism towards cause-related marketing. The findings are also valuable because they indicate the importance of a shift in focus, away from the conventional question of cause-related marketing effectiveness to the more specific and under-investigated problem of the appropriate core target consumers

Attitude à l’égard des prospectus : influence des bénéfices et coûts perçus

International audienceThis research studies the relative influence of perceived benefits and costs on attitude towards store flyers. A qualitative study identifies the perceived benefits (utilitarian, exploration, and entertainment) and costs (environmental and budget) of store flyers. A quantitative study shows the predominance of entertainment benefits in explaining the attitude towards the store flyer. Based on these results, the article advocates for an experiential perspective for the study of store flyers and provides retailers with practical recommendations on how to manage them.Cette recherche étudie l’influence relative des bénéfices et des coûts perçus du prospectus sur l’attitude à son égard. Une étude qualitative identifie d’abord les bénéfices (utilitaire, d’exploration et de divertissement) et les coûts (environnemental et budgétaire) associés au prospectus. Une étude quantitative montre ensuite la prédominance du bénéfice de divertissement dans l’explication de l’attitude à l’égard du prospectus. Ces résultats replacent le prospectus dans une perspective expérientielle de la consommation et offrent aux enseignes des pistes concrètes afin de mieux concevoir leurs prospectus