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This study presents the applicability of a model-based approach for loyalty program forecasting using smartphone app in the digital strategy of the retail industry.
Abstract
Purpose
This study presents the applicability of a model-based approach for loyalty program forecasting using smartphone app in the digital strategy of the retail industry.
Design/methodology/approach
The authors develop a dynamic model with the cyclical structure of customer segments through customer experience. They use time-series data on the number of members of the loyalty program, “Seven Mile Program” and confirm the validity of the approximate calculation of customer segment share, customer segment sales share and aggregate sales performance. The authors present three medium-term forecast scenarios after the launch of a smartphone payment service linked with the loyalty program.
Findings
The sum of the two customer segment shares for forecasting (the sum of the quasi-excellent and excellent customer ratios) is about 30% in each scenario, consistent with an essential customer loyalty (true loyalty) share obtained in the existing empirical study.
Research limitations/implications
Digital strategy in the retail industry should focus more on estimating and forecasting average amounts of customer segments and the number of aggregated customers through the digitalization on the customer side than on individual customer journeys and responses.
Practical implications
Multi-scenario evaluation through simulation of dynamic models from a systemic view can be used for decision-making in retailing digital strategies.
Originality/value
This study builds a model that integrates the cyclicality of customer segment transition through customer experiences into a loyalty matrix framework, which is a method that has previously been used in the hospitality industry.
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Elina Närvänen, Hannu Kuusela, Heli Paavola and Noora Sirola
This paper's purpose is to develop a meaning-based framework for customer loyalty by examining how consumers make sense of customer loyalty through meanings and metaphors.
Abstract
Purpose
This paper's purpose is to develop a meaning-based framework for customer loyalty by examining how consumers make sense of customer loyalty through meanings and metaphors.
Design/methodology/approach
A qualitative study based on in-depth interviews and focus group data in the retail context was conducted with Finnish customers. The data were analysed with qualitative data analysis techniques such as the constant comparative technique.
Findings
The empirical findings comprise eight loyalty meanings characterised by two dimensions. The first dimension is reflexive vs. routinised, and the second dimension is private vs. social. The loyalty types are dimensionalised through four metaphors: loyalty as freedom of choice; as being conventional and binding; and as belongingness.
Practical implications
The findings improve the way customer loyalty currently is understood in the retail setting. The paper proposes that customer insight that utilises thick data can be used to grasp loyalty meanings. These data are rich in context and detail, and they take into account customers' everyday lives. Utilising thick data in the form of storytelling fuels customers' meaning-making related to customer loyalty, potentially enriching their relationship with the retailer.
Originality/value
Customer loyalty has been driven largely by a transactional and company-centric perspective. This article presents an alternative view of customer loyalty that accounts for the variety of meanings that customers may assign to their loyalty-related thoughts and behaviours.
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Piotr Kwiatek and Marsela Thanasi-Boçe
Loyalty programs (LPs) in a business-to-business (B2B) context have been under-researched when compared to consumer markets. The purpose of this paper is to investigate if and to…
Abstract
Purpose
Loyalty programs (LPs) in a business-to-business (B2B) context have been under-researched when compared to consumer markets. The purpose of this paper is to investigate if and to what extent the loyalty program activity (LPA) based on recency, frequency and monetary framework reflects the effectiveness of a specific LP.
Design/methodology/approach
Using the data obtained from 818 business customers enrolled in a LP, logistic regression models are run to find the impact of LPA on the company’s sales.
Findings
The results suggest that in a linear LP, the frequency of rewards impacts sales the most, compared to recency and amount of points redeemed. The intensity of a LPA is influencing the expected sales in a company.
Research limitations/implications
The current study is not focused on the redemption patterns and the value of the rewards offered in the program. Limitation of the study only to one country and in a single company does not allow to generalize presented findings.
Practical implications
Companies should focus their efforts on defining the best level of frequency rewards in their LPs. Reward timing should be considered as a factor that influences the change in customer purchasing behavior more than the amount of points accumulated.
Originality/value
The research provides empirical evidence to support the highest influence of frequency of rewards on sales, compared to recency and amount of points redeemed. This is one of the few LP studies conducted in the context of the B2B market.
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Agartha Quayson, Kassimu Issau, Robert Ipiin Gnankob and Samira Seidu
The study investigated the effect of marketing communications’ dimensions on brand loyalty in the banking sector.
Abstract
Purpose
The study investigated the effect of marketing communications’ dimensions on brand loyalty in the banking sector.
Design/methodology/approach
The study adopted the quantitative research approach which relied on the explanatory design due to the nature of the hypotheses tested. The convenience sampling technique was used to pull 377 customers of a branch of a commercial bank in Ghana. Furthermore, the PLS-SEM technique was deployed to assess the measurement model and test the research hypotheses.
Findings
Results show that the following dimensions of marketing communications are significant predictors of brand loyalty: direct marketing, public relations and sales promotion. The exception is advertising, which had an inverse relation with brand loyalty.
Practical implications
The results provide significant pointers to banks’ management that they should deploy a variety of marketing communication channels other than intensive advertising to reach and persuade customers.
Originality/value
The study illustrates the latest effort to extensively provide insights into how commercial banks could leverage marketing communication tools to sustain loyalty in an emerging economy that is intensively competitive.
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Eduardo Parra-Lopez, José Alberto Martínez-González and Angel Chinea-Martin
The purpose of this paper is to determine the drivers of the formation of e-loyalty in a tourist destination, providing a model composed of variables that are under the control of…
Abstract
Purpose
The purpose of this paper is to determine the drivers of the formation of e-loyalty in a tourist destination, providing a model composed of variables that are under the control of the firm along with others that are not fully controllable by professionals.
Design/methodology/approach
The study was carried out with a sample of 497 subjects, university students and online consumers, and with the use of structural equations (partial least squares).
Findings
Results show that young people give a high valuation to all the variables used in the research. These results contribute to the literature on e-loyalty in tourism destinations and improve tourism loyalty in this population segment.
Research limitations/implications
The main limitation of this research has been related to the number of variables and measurement indicators that, according to the literature review, influence e-loyalty. Finally, a balanced and statistically significant model has been developed that has practical utility and analyzes online purchase of tourism products from a process perspective that includes variables that are internal and external to the firm.
Practical implications
The study suggests that young people have a favourable attitude and predisposition towards e-commerce, which, in turn, favours firms’ efforts to promote consumption and loyalty within the framework of the model’s variables.
Originality/value
This research paper has important value by analysing the initiating variables to determine how e-loyalty can be managed in tourist destinations, in addition to analysing an important segment for future tourism development.
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Salma Habachi, Jorge Matute and Ramon Palau-Saumell
This study aims to examine the impact of the gameful experience on behavioural outcomes. Drawing from stimulus–organism–response theory, it proposes and tests a new model that…
Abstract
Purpose
This study aims to examine the impact of the gameful experience on behavioural outcomes. Drawing from stimulus–organism–response theory, it proposes and tests a new model that investigates the relationship between the gameful experience, brand loyalty and intention to use gamified branded applications in the sports context. In addition, it explores the mediating role of customer–brand engagement (CBE) and the moderating role of self-image congruity (SIC).
Design/methodology/approach
A sample of 436 active users of sport-related branded gamified applications was used to test the model. Data was collected from online sports forums, brands’ Facebook communities and during sporting events.
Findings
Results indicate that the gameful experience positively and directly impacts behavioural intentions but does not directly influence brand loyalty. This relationship becomes partially significant when mediated by CBE. In addition, results show that users with high levels of SIC are more likely to continue using the gamified application, whereas users with low levels are more likely to engage with the brand.
Originality/value
This study expands the gamification literature in the sports sector by revealing the importance of the gameful experience in driving loyalty, behavioural intentions and CBE. It proposes a new model that sheds light on the emotional aspect of the interaction between a user and a gamified system and the importance of exploring the effects of moderators, such as SIC, in these relationships.
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Alshaimaa Bahgat Alanadoly and Suha Fouad Salem
The aim of this study was to investigate the role of immersive gaming on brand coolness and brand equity, with particular emphasis on fashion gaming collaborations. We used game…
Abstract
Purpose
The aim of this study was to investigate the role of immersive gaming on brand coolness and brand equity, with particular emphasis on fashion gaming collaborations. We used game theory as a theoretical framework to analyse immersive branding strategies and gain a deeper understanding of fashion consumers’ decision-making process in gaming environments. Gender, as a significant factor affecting gamers, has been studied as a moderator that impacts the overall proposed framework.
Design/methodology/approach
A quantitative method was used to assess the significance of relationships within the proposed model empirically. The partial least squares structural equation modelling technique was implemented to assess the relationships of the framework with a sample size of 160 active Malaysian gamers.
Findings
The findings indicate that brand equity is positively associated with perceived brand coolness. Furthermore, of the three core values of online games, perceived enjoyment is most strongly associated with perceived brand coolness, ahead of the values of self-expression and perceived emotional challenge. The results of the multigroup analysis further suggest that in the fashion industry, building brand equity through online games is strongly related to perceived brand coolness among female respondents, the role of perceived brand coolness being weaker among male respondents.
Originality/value
The study contributes to the existing literature by providing a deeper understanding of the impact of immersive gaming branding practices on the overall equity of the fashion brand. The results provide insight for fashion brand managers into the significant effect on consumer behaviour outcomes of fashion-gaming collaborations.
研究目的
本研究擬探討身歷其境的遊戲體驗在品牌酷感和品牌資產上所扮演的角色; 研究特別強調裝扮遊戲的合作。研究人員以博弈論作為研究的理論框架,來分析沉浸品牌策略、和對時裝消費者在遊戲的環境中如何作出決策取得更深入的瞭解。研究人員探討了性別作為影響遊戲參與者的重要因素,這因素被視為為整個被提出的框架帶來調節的影響和作用。
研究設計/方法/理念
研究人員採用定量方法進行研究,目的為於被提出的模型內之各種關聯的意義進行以經驗為依據的評估。研究人員採用了基於偏最小平方法的結構方程模型研究法,來對一個包含160名活躍的馬來西亞遊戲參與者的樣本進行框架的各個聯繫的評估研究。
研究結果
研究結果顯示,品牌資產與品牌酷感成正相關; 而且,在網絡遊戲的三個核心價值中,感知享受與品牌酷感之間的聯繫最為強烈和密切,超過自我表現和感知情感挑戰兩者的價值; 多群組的分析結果更暗示了在時裝產業裡,透過網絡遊戲去建立品牌資產在女性回應者中是與品牌酷感有強烈密切的關係; 而在男性回應者中,品牌酷感所扮演的角色則較弱。
研究的原創性/價值
本研究使我們能更深入認識沉浸遊戲品牌的慣常做法如何影響時裝品牌的整體資產。研究結果為時裝品牌經理提供了啟示,使他們明瞭時裝遊戲的合作會給消費者行為產生重要的影響。
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Francesca De Canio, Maria Fuentes-Blasco and Elisa Martinelli
The purpose of this paper is to examine the influence of several intrinsic motivations driving consumers' intention to buy using a mobile app, namely: shopping gamification…
Abstract
Purpose
The purpose of this paper is to examine the influence of several intrinsic motivations driving consumers' intention to buy using a mobile app, namely: shopping gamification, focussed attention, shopping enjoyment and socialness, through the mediating role of shopping engagement. The online shopping experience is investigated in its dual role as direct driver of the intention to buy using a mobile app and as moderator of the shopping engagement – intention to buy using a mobile app path.
Design/methodology/approach
The empirical analysis was performed in China due to the extensive usage of mobile shopping apps amongst the Chinese population. A structural equation model was estimated on 893 valid and complete structured questionnaires collected amongst a sample of Chinese consumers.
Findings
Findings confirm that intrinsic motivations (i.e. shopping gamification, focussed attention, shopping enjoyment and socialness) indirectly influence the intention to buy using a mobile app channelled by shopping engagement. Most remarkably, results show that the online shopping experience positively moderates the shopping engagement – intention to buy using a mobile app path.
Originality/value
The novelty of the paper lies in the conceptual and empirical evidence provided on shopping gamification, within the retailing marketing domain. The study investigates other related intrinsic motivations that jointly with shopping gamification directly influence shopping engagement and indirectly impact mobile shopping intention. The paper provides insights into the moderating role of online shopping experience, a key aspect when the challenge concerning gamification is considered.
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Manuel E. Pascual and Lisa Nicole Cain
The airline industry has been severely impacted by COVID-19 due to widespread travel restrictions. Its current response is crucial to ensure continued operations after the global…
Abstract
Purpose
The airline industry has been severely impacted by COVID-19 due to widespread travel restrictions. Its current response is crucial to ensure continued operations after the global pandemic is resolved. One resource the airlines are leveraging is loyalty programs. This study aims to examine the viability of leveraging loyalty programs in times of crisis.
Design/methodology/approach
This study employs a case study methodology to examine how one company, American Airlines, has used its loyalty program to survive a pandemic and alleviate the financial costs associated with limited and restricted travel.
Findings
American Airlines' AAdvantage loyalty program structure may be used as a benchmark to understand how airlines can anchor their loyalty base to reinvigorate travel interest and use these programs as safeguards in critical instances that may arise in the future.
Research limitations/implications
The case was bound by the fact that the pandemic was still a threat during the time of analysis. The findings of this case study go beyond the airline industry and may inform other hospitality and tourism organizations on the benefits of loyalty programs in times of financial distress.
Originality/value
This is the first known case study examining the strengths and opportunities of the structure of the American Airlines' AAdvantage program as a means for surviving in a time of crisis. Moreover, understanding how to mitigate the long-term effects of crises may help to inform future short-term strategies of airlines and other hospitality and tourism organizations for navigating unexpected shocks to their ecosystem.
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This paper aims to investigate the combined effect of airline service quality (ASQ), loyalty programme and perceived value (PV) on word-of-mouth (WOM) behavior of passengers’…
Abstract
Purpose
This paper aims to investigate the combined effect of airline service quality (ASQ), loyalty programme and perceived value (PV) on word-of-mouth (WOM) behavior of passengers’ traveling to domestic and international destinations from India.
Design/methodology/approach
Passenger’s perception on service quality, loyalty programme and PV varies with flight type, which can affect WOM. This study was designed to know whether destination based difference in passengers’ perception on airline services affects their WOM. Hence, a sample of 554 frequent passengers was taken, which includes 358 domestic and 196 international passengers. The responses were collected using well-structured questionnaire. The hypothetical model was developed and tested using structural equation modeling using analysis of a moment structures (AMOS).
Findings
Travel destination (flight) type moderates significantly the effect of ASQ on WOM behavior. ASQ affects WOM behavior more in domestic passengers. PV and loyalty programme do not moderate significantly with respect to destination type. PV was found to have significant influence on international passengers. However, loyalty programme was significant among domestic passengers.
Practical implications
Airline managers can develop appropriate marketing strategies targeting the passenger influencing attributes. ASQ is the most significant attribute applicable to both flight types. The airlines can focus on attractive ticket fares for international passengers and more loyalty programme benefits for domestic passengers.
Originality/value
This study examined the combined effect of ASQ, loyalty programme and PV on WOM behavior of passengers traveling in domestic and international sectors, which has not been researched yet.
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