Do reward programs build loyalty to restaurants? The moderating effect of long‐term orientation on the timing and types of rewards
Managing Service Quality: An International Journal
ISSN: 0960-4529
Article publication date: 9 May 2013
Abstract
Purpose
The purpose of this study is to propose long‐term orientation as a moderating effect on restaurant customer reward programs. Unlike in short‐term oriented and transactional marketing, long‐term orientation is an important factor in creating new loyal customers.
Design/methodology/approach
This research shows how the moderating effect of long‐term orientation affects customer reaction to reward timing (Experiment 1) and reward type (Experiment 2). The independent variables of Experiment 1 were timing of rewards (immediate/accumulate) and long‐term orientation (high/low), with the dependent variable being customer loyalty. The independent variables of Experiment 2 were the types of rewards (monetary/nonmonetary) and long‐term orientation (high/low), with the dependent variable being customer loyalty. The treatment groups are different from each other with regard to reward type and reward timing.
Findings
Depending on the reward type and its timing, long‐term orientation has a moderating effect on customer loyalty. In customers with a high long‐term orientation, there is no difference in the effect of rewards, whether they are immediate or accumulated and monetary or nonmonetary. On the other hand, for customers with a low long‐term orientation, the effect of rewards increases for monetary rewards more than nonmonetary ones and for immediate rewards more than for accumulated ones.
Originality/value
This paper helps restaurant managers to better understand customer loyalty and the value of reward programs that take into account the long‐term orientation concept.
Keywords
Citation
Park, S., Chung, N. and Woo, S. (2013), "Do reward programs build loyalty to restaurants? The moderating effect of long‐term orientation on the timing and types of rewards", Managing Service Quality: An International Journal, Vol. 23 No. 3, pp. 225-244. https://doi.org/10.1108/09604521311312246
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited