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Author: Ulrich Pohl
Publisher: GRIN Verlag
ISBN: 3638635031
Category : Business & Economics
Languages : en
Pages : 209
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Book Description
Master's Thesis from the year 2006 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,5, Maastricht University, language: English, abstract: Although this research is also occupied with customer loyalty programs it examines a new customer loyalty model which tests the influence of reward systems on the value perception of a loyalty program. Thus, the thesis introduces an empirical research on a two part model, whereas one part differentiates between direct and indirect premiums (type of reward) and the second part investigates the differences between delayed and proactive reward programs (timing of reward). The study aims at finding differences between the type and the timing of reward on the value perception of a loyalty program, which is new in academic research. In addition, this study grounds on the automobile industry, i.e. a high involvement setting, in contrast to prior academic science which focused on the low involvement setting. The inclusion of moderating factors that contain information on customer’s relationship maintenance motivation and relational benefits shall also help to shed light on differences in value perception according to the level of dedication or constraint based relationships. In addition, the degree of social, confidence and special treatment benefits is also assumed to manipulate the value perception of loyalty programs as moderating factors. Lastly, the study discovers relationships between the type and the timing of reward. The study results clearly reveal that there is no difference between direct and indirect rewards, whereas the proactive system demonstrates to have an obviously higher value perception than delayed rewards. Furthermore, the moderating factors partly prove to influence value perception. Hence, dedication based relationships favour direct rewards over indirect rewards and the proactive system over the delayed system. The same holds true for confidence benefits whereas constraint based relationships, social and special treatment benefits have no influence in favour of direct / indirect and delayed / proactive rewards. In addition, in a proactive reward program the value perception is higher for direct premiums. Furthermore, in the delayed reward program, people also prefer the direct rewards over the indirect rewards. Consequently, this research proves that there is a connection between the type and the timing of reward, which is also new in academic literature.
Author: Ulrich Pohl
Publisher: GRIN Verlag
ISBN: 3638635031
Category : Business & Economics
Languages : en
Pages : 209
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Book Description
Master's Thesis from the year 2006 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,5, Maastricht University, language: English, abstract: Although this research is also occupied with customer loyalty programs it examines a new customer loyalty model which tests the influence of reward systems on the value perception of a loyalty program. Thus, the thesis introduces an empirical research on a two part model, whereas one part differentiates between direct and indirect premiums (type of reward) and the second part investigates the differences between delayed and proactive reward programs (timing of reward). The study aims at finding differences between the type and the timing of reward on the value perception of a loyalty program, which is new in academic research. In addition, this study grounds on the automobile industry, i.e. a high involvement setting, in contrast to prior academic science which focused on the low involvement setting. The inclusion of moderating factors that contain information on customer’s relationship maintenance motivation and relational benefits shall also help to shed light on differences in value perception according to the level of dedication or constraint based relationships. In addition, the degree of social, confidence and special treatment benefits is also assumed to manipulate the value perception of loyalty programs as moderating factors. Lastly, the study discovers relationships between the type and the timing of reward. The study results clearly reveal that there is no difference between direct and indirect rewards, whereas the proactive system demonstrates to have an obviously higher value perception than delayed rewards. Furthermore, the moderating factors partly prove to influence value perception. Hence, dedication based relationships favour direct rewards over indirect rewards and the proactive system over the delayed system. The same holds true for confidence benefits whereas constraint based relationships, social and special treatment benefits have no influence in favour of direct / indirect and delayed / proactive rewards. In addition, in a proactive reward program the value perception is higher for direct premiums. Furthermore, in the delayed reward program, people also prefer the direct rewards over the indirect rewards. Consequently, this research proves that there is a connection between the type and the timing of reward, which is also new in academic literature.
Author: Sang Mi Jeon
Publisher:
ISBN:
Category : Attitude (Psychology)
Languages : en
Pages : 318
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Book Description
Author: Jing Theng So
Publisher:
ISBN:
Category :
Languages : en
Pages : 446
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Book Description
In times of severe competition, loyalty programs (LPs) are introduced by firms to provide customers with added value to gain higher levels of loyalty and retention. While LPs are claimed to engender customer loyalty, researchers have not reached a decision about whether these programs are worthwhile for businesses in the long-run. Despite being a popular research area in the marketing literature, previous studies have found inconsistent results regarding the effectiveness of these programs in eliciting customer loyalty. A plausible explanation for the contradictory findings is possibly the poor understanding marketers have about the underlying mechanisms that drive the operation of a successful LP. In particular, empirical research examining (1) whether LPs are perceived as valuable to customers, and (2) how LPs contribute in developing customer loyalty, is limited. To address these issues, the present study develops a theoretical framework that investigates the different LP value constructs that customers derive from being a program member, and how different types of value drive customer loyalty. Building on the theory of reciprocity, this study suggests that the value of a LP, as perceived by customers, would encourage them to have a positive attitude towards the firm or the program. The favourable attitude towards either the program or firm then induces customers to engage in different behavioural outcomes that motivate them to stay in a long-term relationship with the firm. Specifically, this study found that customers derive six value constructs from participating in a LP, namely, reward attractiveness, knowledge benefit, required effort, experiential benefit, group belongingness, and disclosure comfort. These LP value constructs are posited to impact two components of customer loyalty - attitudinal and behavioural loyalty. In accordance with the conceptualization proposed by past scholars, this study denotes customer attitudinal loyalty as program loyalty and brand loyalty, whereas behavioural loyalty is measured through customers' Share-of-Wallet (SOW), Share-of-Purchase (SOP), Word-of-Mouth (WOM), and Willingness-to-Pay (WTP) more for a firm's offering. In addition, the proposed framework incorporates two moderating variables (i.e., member duration in LP and customization) to provide an in-depth view on how customer loyalty can be more effectively achieved using a LP.For the purpose of this dissertation, the proposed research framework was tested in the Australian retail setting using two different research methods. An exploratory study was initially carried out to identify the number of constructs that constitute LP value from a customer's perspective and to provide preliminary support for the proposed framework. Following which, a cross-sectional survey was carried out to validate the developed hypotheses. A web-based survey system was used to collect data from LP members residing in Australia. Structural Equation Modeling (SEM) was utilized in this study to examine the influence of LP value on customer loyalty. The findings of this large-scale empirical study offer a number of theoretical and managerial contributions. First, this study represents one of the first empirical studies in the LP literature to develop and investigate a comprehensive list of value constructs that influence customer loyalty. Second, the study extends existing LP literature by clarifying the relationship between LP value, customers' attitudinal loyalty, and behavioural loyalty. Third, the findings of this research can assist managers in their allocation of resources to better design and implement their LPs so that customer loyalty can be built in the most cost-efficient manner. Collectively, the present study provides an improved understanding of the underlying process of developing customer loyalty using a LP, both for academics and businesses.
Author: Yogesh Mahajan
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Purpose: The purpose of this study is to measure the impact of perceived benefits offered by loyalty programmes on store patronage behaviour and repeat purchase behaviour of customers. Another purpose of this study is to assess the impact of mediating and influencing factors on patronage behaviour and customer loyalty.Design/methodology/approach: The convenience sampling method was adopted for the sample selection. Structured questionnaire instruments were distributed to subscribers who are enrolled or subscribed to any loyalty programme and asked them to mark their opinions about subscriptions to a loyalty programme and the benefits or perceived values that customers get from the subscribed loyalty program. To determine respondent responses, closed-end questions and Likert scales were used. A SmartPLS statistical programme was used to analyse the coefficient and p-value of the perceived value of the loyalty programme and its relation with patronage behaviour.Findings: The study finds a significant impact of various loyalty programme determinants on store patronage behaviour, supported by hypothesis testing. Researchers have used variable commitment to the test with satisfaction and trust and found it supportive. Another hypothesis tested for the impact of satisfaction on trust shows a significant relationship. They found a significant relationship between the perceived benefits of a loyalty programme and satisfaction with the store and trust. Another hypothesis tested for the impact of satisfaction on trust shows a similar relationship. The impact of commitment on loyalty behaviour (store patronage) was analysed and found to be significant.Originality/value: To the best of the authors' knowledge, to date, this methodology has not been used to measure the influence of loyalty programme values on patronage behaviour in the present context. Based on the understanding that the measurement of the impact of perceived values of loyalty programmes on repeat purchase behaviour could be very useful in providing guidance for decision-making in consumer retention strategy, this paper contributes to the literature on the evaluation of store patronage behaviour with its influencing variables.
Author: Valeria Stourm
Publisher:
ISBN:
Category :
Languages : en
Pages : 198
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Book Description
In a standard loyalty program, a single retailer offers rewards to customers who stockpile points up to a certain amount. While research on these archetypal loyalty programs is vast, there is an increasing trend for companies to adopt reward programs that do not explicitly incentivize customers to return in order to "cash-in" rewards. Two examples are linear and coalition reward programs. In a linear program, points can be redeemed at anytime for any amount. In a coalition program, points can be earned and redeemed across several partner retail stores. A chapter titled "Stockpiling Points in Linear Loyalty Programs," uses transaction data from a linear loyalty program in Latin America to examine why customers tend to stockpile points for long periods of time, despite economic incentives against doing so (i.e., time value of money). A mathematical model of redemption choice posits three explanations for why customers seem to be motivated to stockpile on their own, even though the retailer does not reward them for doing so: economic (value of forgone points), cognitive (nonmonetary transaction costs), and psychological. The psychological motivation is captured by allowing customers to book cash and point transactions in separate mental accounts. The results indicate substantial heterogeneity in how customers are motivated to redeem and suggest that behavior in the data is driven mostly by cognitive and psychological incentives. A chapter titled "Market positioning in a coalition loyalty program: the value of a shared reward currency" uses a model of multi-store purchase incidence to infer the market positioning among popular partners of a coalition loyalty program. The model shows how the value of a rewards currency that is shared among partner stores can explain patterns in customer-level purchases across the stores, and how these reward spillovers are driven by (1) differences in reward redemption policies among the partners, (2) product category overlap between stores and (3) geographic distance between them. By leveraging a devaluation of the program's points that occurred in our observation period, we demonstrate how the value of coalition points influences the positioning of partner stores within the network.
Author: Keeling, Debbie I.
Publisher: Edward Elgar Publishing
ISBN: 1800371632
Category : Business & Economics
Languages : en
Pages : 384
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Book Description
Identifying customer loyalty as a crucial success factor in contemporary marketing thinking and practice, this innovative Handbook incorporates a rich collection of perspectives on the current topics and research-driven practices in the field. Leading scholars offer an insightful reimagining of the research methods, metrics, and designs for the future of measuring and predicting customer loyalty.
Author: Sören Köcher
Publisher: Springer
ISBN: 3658095431
Category : Business & Economics
Languages : en
Pages : 179
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Book Description
In his research, Sören Köcher provides valuable insights on the paradoxical effects of the magnitude of a loyalty program medium—i.e. the sheer number of points, miles, or stamps credited for every purchase and required for reward redemption—on the central consumer decisions in loyalty program memberships. In sum, the results of twelve empirical studies reveal that high magnitude currencies improve the attractiveness of medium collection but entail reluctant medium spending behavior. These findings provide important implications for a more efficient usage of loyalty programs in business practices. In addition, this dissertation discovers a violation of one of the most fundamental assumptions of rational choice theory and thus contributes to a better understanding of when and why people deviate from rational decision-making.
Author: Katarzyna Szydlowska
Publisher: GRIN Verlag
ISBN: 3346101878
Category : Business & Economics
Languages : en
Pages : 62
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Book Description
Bachelor Thesis from the year 2016 in the subject Communications - Public Relations, Advertising, Marketing, Social Media, grade: 80%, , language: English, abstract: This study will examine factors such as customer satisfaction, corporate social responsibility, service quality and loyalty programs that have crucial impact on customer loyalty. The research will focus in particular on customer’s loyalty in Marks and Spencer in London. The phenomenon of loyalty has met with great deal of interest from researchers in recent years. Customer loyalty indicates sense of belonging or identification with the service or products of the organization. These feelings affect customer behavior directly and lead to repurchase goods and recommend them to others. In general, customer loyalty constitutes a complex issue to analyze since it contains many dimensions.
Author: Uriel G. Foa
Publisher: Emerald Group Publishing
ISBN: 9780122613104
Category : Business & Economics
Languages : en
Pages : 291
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Book Description
This volume serves as an update on current developments in Resource Theory and presents a representative sample of contemporary research conducted within this theoretical perspective. Resource Thoery presents empirical evidence supporting the cross-cultural validity of this framework. Attention is focused on a broad range of social-psychological phenomena that have been fruitfully explored using this theoretical approach. Key Features * Social Exchange Theory * Cross-cultural Theory * Social Relationships
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
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