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Article
Publication date: 23 March 2020

The role of relationship quality and loyalty programs in building customer loyalty

Piotr Kwiatek, Zoe Morgan and Marsela Thanasi-Boçe

Despite the abundance of B2B loyalty programs (LPs), the research on their interplay with relationship marketing is scarce. The purpose of this paper is to investigate a…

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Abstract

Purpose

Despite the abundance of B2B loyalty programs (LPs), the research on their interplay with relationship marketing is scarce. The purpose of this paper is to investigate a LP (a relational practice) on a transactional business market to test if and how a B2B LP affects relationship outcomes.

Design/methodology/approach

The study is based on dyadic research in a multi-theory framework. Data were collected from 200 small and medium enterprises that purchase office supplies from a company and merged with the company’s internal records.The formative-reflective measurement model is estimated using structural equation modeling – partial least squares (SEM-PLS).

Findings

Relationship quality (RQ) directly affects sales and customer share of wallet. The effect is strengthened by customer activity in a LP. RQ results directly in a longer tenure and willingness to recommend only for members of a LP.

Research limitations/implications

RQ is driven mainly by customer’s evaluation of prior experience with a supplier, while a LP is based on a forward-looking promise of a reward. The results of the study point to the level of customers’ activity in a LP as a boundary condition of the program’s efficacy.

Practical implications

RQ affects both attitudinal and behavioral outcomes but through distinct mechanisms. Once a supplier is a preferred one, LP membership strengthens the attitudinal outcome of a relationship. The effect of RQ on company performance is magnified by the level of customer activity in a LP but not by the membership status.

Originality/value

The theoretical framework integrates transaction costs, relational contract and relational exchange theories to investigate a LP on a transactional market. The study adds to the scant literature on LPs in business-to-business and provides evidence for similarities and differences in comparison to consumer research.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 11
Type: Research Article
DOI: https://doi.org/10.1108/JBIM-02-2019-0093
ISSN: 0885-8624

Keywords

  • Loyalty program
  • Customer loyalty
  • Relationship quality

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Article
Publication date: 7 December 2020

The importance of distance and attraction in patronizing a shopping mall

Marsela Thanasi-Boçe, Piotr Kwiatek and Lasha Labadze

The purpose of this paper is to establish mall attractiveness factors in Kuwait, examine the relationship between mall dimensions and mall patronage and explore the impact…

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Abstract

Purpose

The purpose of this paper is to establish mall attractiveness factors in Kuwait, examine the relationship between mall dimensions and mall patronage and explore the impact of mall size and distance on mall patronage.

Design/methodology/approach

Data from 190 shopping mall visitors were analyzed using Stata software. Factor analysis was used to identify the mall attraction factors, and regression models were run to analyze their relationships with people’s frequency of visits to shopping malls and the amount of time spent per visit.

Findings

The results unearth five important factors, namely, performance of buying, entertainment, social activities, physical atmosphere and location. Analysis reveals that the performance of buying and social activities factors had a significant impact on the frequency of visits, while the amount of time spent per visit was significantly affected only by the social activities factor. Furthermore, mall size is more important than distance to the mall. Finally, gender differences in shoppers’ mall preferences and behaviors were reported.

Practical implications

On the practical level, shopping mall developers and managers can use the attraction scale to develop attractive malls and effective marketing strategies. Researchers can use findings to confirm the factors extracted in the study and for further research on the topic.

Originality/value

This study extends theories on consumers’ preferences and behaviors. It provides empirical evidence about the impact of attractive mall dimensions on shoppers’ patronage in Kuwait, an understudied context.

Details

Journal of Place Management and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/JPMD-06-2020-0053
ISSN: 1753-8335

Keywords

  • Shopping mall (SM) attractiveness
  • Distance
  • Size
  • Frequency of visits
  • Time spent per visit

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Article
Publication date: 5 August 2019

Loyalty program activity: make B2B customers buy more

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…

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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.

Details

Marketing Intelligence & Planning, vol. 37 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/MIP-06-2018-0193
ISSN: 0263-4503

Keywords

  • Customer activity
  • Loyalty programmes

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Article
Publication date: 31 July 2009

The New Elite. Inside the Minds of the Truly Wealthy

Piotr Kwiatek

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Abstract

Details

Journal of Consumer Marketing, vol. 26 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/07363760910976628
ISSN: 0736-3761

Keywords

  • Consumer behaviour
  • Market segmentation
  • Marketing
  • Wealth

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