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Article
Publication date: 9 January 2024

Aïda Mimouni Chaabane, Virginie Pez and Raphaëlle Butori

The purpose of this research is to identify how a reward programme name (“loyalty programme” (LP) versus “customer club” (CC)) influences the type of central rewards expected and…

Abstract

Purpose

The purpose of this research is to identify how a reward programme name (“loyalty programme” (LP) versus “customer club” (CC)) influences the type of central rewards expected and their impact on loyalty to the retailer.

Design/methodology/approach

The authors conducted a survey followed by an experiment.

Findings

Central rewards from programmes called LP are equally hard and soft, whereas central rewards from programmes called CC are mainly soft. Providing customers with central rewards increases satisfaction with the programme and loyalty to the retailer, but only for programmes called LP.

Practical implications

Loyalty managers are advised to pay particular attention to the consistency between the type of rewards they offer and the reward programme name that carries them. Contrary to the name LP that leads to me-too programmes, the name CC offers more flexibility to choose the rewards, providing opportunities to stand out from competing programmes.

Originality/value

By building on a new and original theoretical approach, this research is the first attempt to investigate the effect of the reward programme naming decisions on customers' evaluations and responses.

Details

International Journal of Retail & Distribution Management, vol. 52 no. 3
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 8 March 2013

Lars Meyer‐Waarden, Christophe Benavent and Herbert Castéran

This article aims to dwell on theoretical, managerial, and empirical knowledge to improve loyalty programme efficiency. Its intention is to try to understand how economic…

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Abstract

Purpose

This article aims to dwell on theoretical, managerial, and empirical knowledge to improve loyalty programme efficiency. Its intention is to try to understand how economic, hedonist, relational, convenience, informational rewards enhance or undermine customers' perceived programme benefits as well as subsequently loyalty according to individual shopping orientations (economical, hedonist, social‐relational, apathetic, brand/loyal).

Design/methodology/approach

The research uses self‐determination theory (SDT) and purchase orientations to classify types of rewards in terms of their effect on perceived programme benefits and loyalty. Scales are developed through exploratory and confirmatory factor analysis. To validate the hypotheses, surveys in two retail chains (grocery/perfumery) are used. Structural equation modelling confirms the research model.

Findings

Perceived benefits and loyalty vary according to purchase orientations, in line with the SDT. Intrinsic (extrinsic) rewards motivate customers to act to obtain a benefit within (apart from) the target of their purchase orientation and influences loyalty positively (have low impact on loyalty).

Research limitations/implications

Further testing of reward types, in(ex)trinsic motivation, across multiple contexts is necessary for validity enhancement as it remains challenging to categorize purchase orientations and rewards. It is necessary to precisely define the degree of the relationship among an intrinsic purchase orientation and perceived loyalty programmes' benefits as orientations might be multidimensional.

Practical implications

Differentiation through tailored rewards is necessary in markets with strong competition to appeal to different segments. Differentiation could be achieved through nonmonetary benefits. The principal role of loyalty programmes should be to identify and segment customers as a means to improve resource allocations.

Originality/value

This is one of the pioneer articles in the use of SDT in marketing research. SDT provides a multi‐benefit framework which identifies the different (non‐) monetary rewards customers may value (in)extrinsically when participating in loyalty programmes. The development of scales which focus on rewards and the impact of purchase orientations on loyalty programmes' perceived benefits is another contribution.

Details

International Journal of Retail & Distribution Management, vol. 41 no. 3
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 30 October 2007

Patricia Milne

The purpose of this paper, drawing as it does on earlier research, is to provide the context for a discussion on the use of rewards and recognition programmes in knowledge aware

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Abstract

Purpose

The purpose of this paper, drawing as it does on earlier research, is to provide the context for a discussion on the use of rewards and recognition programmes in knowledge aware organisations.

Design/methodology/approach

The paper shows that knowledge sharing is the fundamental requirement of a knowledge‐based organisation. Some of the greatest challenges for organisations moving down the knowledge management path stem from well‐established practices of hoarding knowledge, practices which, in the past, have been well rewarded. Employees' motivation was to hoard knowledge because of the competitive advantage that this would give them. The challenge now is to develop an organisational culture where sharing knowledge is the norm. In seeking ways to foster this culture managers are implementing incentive programmes in the belief that employees will be motivated to share their knowledge across the organisation. Some organisations are investing large amounts of organisational resources towards this end. This paper uses the results of the earlier research to provide a context for an examination of the use of rewards and recognition programmes in the knowledge aware organisation.

Findings

The paper finds that reward and recognition programmes can positively affect motivation, performance and interest within an organisation. While a little more problematic, team‐based incentives, if designed appropriately, can also encourage and support a range of positive outcomes. But research has yet to reveal whether programmes of this type will influence employees to share their knowledge and learning. Neither is there any research‐based evidence to show that these activities do provide the expected or hoped for return on the, sometimes, large amounts of money that organisations invest in them.

Research limitations/implications

While there is a strong history of research into the impact of rewards on aspects of employee behaviour including motivation and performance, no research to date has investigated the impact on knowledge sharing.

Practical implications

The paper suggests that managers who are relying on rewards and recognition programmes as part of their strategies for cultural change need to support research programmes so that they can be confident that the large amounts of resources they are investing for this purpose will bring the return they think.

Originality/value

This paper provides the context for a discussion. It shows that while organisations are investing in reward and recognition programmes, research on the value of such programmes as factors that motivate knowledge sharing has not been explored empirically.

Details

Journal of Knowledge Management, vol. 11 no. 6
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 24 May 2013

Lars Meyer-Waarden

The purpose of this research is to contribute to a better theoretical and empirical knowledge about the way frequent flyer programmes influence customer behaviour. It aims to…

6160

Abstract

Purpose

The purpose of this research is to contribute to a better theoretical and empirical knowledge about the way frequent flyer programmes influence customer behaviour. It aims to describe the relationships between purchase orientations and personalized rewards on customers ' perceived programme value and subsequent loyalty.

Design/methodology/approach

The research uses self-determination theory (SDT) and purchase orientations to classify types of rewards in terms of their effect on perceived programme value and loyalty. Scales are developed through exploratory and confirmatory factor analysis. To validate the hypotheses, surveys are realized in a major international airline. Structural equation modelling confirms the research model.

Findings

Perceived value and loyalty vary according to purchase orientation, in support of the SDT. Intrinsic (extrinsic) rewards motivate customers to act to obtain a benefit within (apart from) the target of their purchase orientation and influences loyalty positively (have low impact on loyalty).

Research limitations/implications

Further testing of reward types, in(ex)trinsic motivation, SDT, across multiple contexts is necessary for validity enhancement.

Practical implications

Differentiation through tailored (non-)monetary rewards is possible in markets marked by strong competition to appeal to different segments.

Originality/value

This is one of the pioneer articles in the use of SDT in marketing research. The development of scales which focus on reward types and the moderating impact of purchase orientations on frequent flyer programmes ' perceived value and loyalty is another contribution.

Article
Publication date: 15 February 2008

Lars Meyer‐Waarden

In the retailing sector, consumers typically patronize multiple outlets, which leaves outlets striving to earn a greater portion of consumer expenditures. The purpose of this…

36707

Abstract

Purpose

In the retailing sector, consumers typically patronize multiple outlets, which leaves outlets striving to earn a greater portion of consumer expenditures. The purpose of this paper is to improve theoretical and empirical knowledge about the impact of retailing loyalty programmes on customer purchasing behaviour.

Design/methodology/approach

The effects of two loyalty programmes on customer behaviour are studied through marketwide panel data on supermarket purchases.

Findings

The impact of loyalty programme membership on customer purchase behaviour is significant.

Research limitations/implications

All behavioural indicators show that members and non‐members of loyalty programmes demonstrate significantly different purchase behaviours, irrespective of other factors. The purchase intensity of cardholders, in terms of total and average shopping baskets, share of purchases, purchase frequency and inter‐purchase time, is significantly higher than that of non‐members throughout the entire three‐year period and the trading areas. The findings require confirmation in other retailing sectors before they may be considered fully generalisable.

Practical implications

Retailers may apply the findings in their attempts to segment their target market, which enables them to allocate their marketing expenditures more effectively.

Originality/value

The study contributes to more “generalisable” knowledge by investigating marketwide scanner panel data about competitive purchasing, loyalty programmes and store locations.

Details

European Journal of Marketing, vol. 42 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 11 July 2022

Theo Nyreröd, Stelios Andreadakis and Giancarlo Spagnolo

With sanctions becoming an increasingly important tool in ostracising autocratic regimes from western markets, the need for effective enforcement of sanctions and anti-money…

Abstract

Purpose

With sanctions becoming an increasingly important tool in ostracising autocratic regimes from western markets, the need for effective enforcement of sanctions and anti-money laundering (AML) is increasing, and the global AML regime will be the backbone to detecting evasion of sanctions. This regime, however, has been widely criticised as ineffective. This paper aims to discuss issues with the current sanctions/AML regime and propose a reward scheme for whistleblowers to enable asset seizures that is not reliant on its effectiveness.

Design/methodology/approach

This paper reviews weaknesses in the global AML regime, provide suggestions on how to design whistleblower reward programmes, based on agency experience and empirical evidence, as well as elaborate on how to use such programmes in the AML context.

Findings

This study concludes that for reward programmes to be effective in the context of AML and sanctions enforcement, they need to include witness protection and leniency for money launderers, though not for those convicted of a criminal offence associated with the predicate crime. Moreover, rewards should be mandatory and scale with the amount of money seized or confiscated, and the cap on monetary rewards should be higher than it is under the Kleptocracy Asset Recovery Rewards Programme in the USA.

Originality/value

In contrast to how the USA went about implementing rewards in this area under the Kleptocracy Asset Recovery Rewards Programme, this study argues that these programmes should be designed differently. This study also provides novel advice to governments on different design dimensions in the AML context and a model with three crucial pillars along with other design dimensions that should be considered.

Details

Journal of Money Laundering Control, vol. 26 no. 5
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 6 September 2011

Nor Asiah Omar and Rosidah Musa

This research aims to empirically develop a reliable and valid scale for measuring the service quality of retail loyalty programmes (loyalty programme service quality (LPSQual)…

4278

Abstract

Purpose

This research aims to empirically develop a reliable and valid scale for measuring the service quality of retail loyalty programmes (loyalty programme service quality (LPSQual)) in the context of department stores and superstores in Malaysia.

Design/methodology/approach

By adapting the process proposed by Churchill for developing measures of marketing constructs, an instrument to assess LPSQual in Malaysia is formulated. The methodology consists of developing the scale based on a literature review and qualitative method. The proposed scale is then purified and validated through exploratory factor analysis and confirmatory factor analysis.

Findings

The proposed instrument (LPSQual) contains 26 attributes in seven dimensions: reward, tangibility, policy, information usefulness, courteousness/helpfulness, personalization and communication.

Research limitations/implications

Further testing of the scales across multiple contexts is necessary for validity enhancement.

Practical implications

Retail managers must give serious thought to the non‐material or “soft‐benefits” component in a loyalty programme which emphasizes courteous/helpful and personalized services. Thus, managers need to focus on service personnel by providing training to upgrade employees' skills in creating and delivering pleasant experience/service encounters to cardholders.

Originality/value

The main contribution of this paper is the development and validation of a new scale called LPSQual, which focuses on service quality in a loyalty programme. On the one hand, it is a pioneer in the study of service quality in loyalty programmes and, on the other hand, it confirms results from other researches on non‐material strategies that can be used in loyalty programmes.

Details

International Journal of Retail & Distribution Management, vol. 39 no. 10
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 4 January 2023

Yanju Zhou, Cuilian Lu and Yi Yu

With the development of e-commerce, loyalty programmes (LPs) are gradually being adopted in the online retailing environment to improve consumer loyalty. This article determines…

Abstract

Purpose

With the development of e-commerce, loyalty programmes (LPs) are gradually being adopted in the online retailing environment to improve consumer loyalty. This article determines the factors that affect consumers' LP participation intention on mobile e-commerce platforms to help these platforms improve their performance.

Design/methodology/approach

This article focusses on LP reward types and divides them into self-oriented rewards or altruistic rewards. Two experiments are conducted to test the proposed hypotheses. After online data collection, data analysis is performed.

Findings

LP participation intention with altruistic rewards is significantly stronger than that with self-oriented rewards. Perceived value plays a complete mediating role in the impact of reward type on participation intention, while a point leaderboard plays a positive moderating role in the impact of reward type on perceived value.

Practical implications

This study’s findings can improve the design of LPs by mobile e-commerce platforms.

Originality/value

This article focusses on LPs in the online environment, a stream of research that is limited. The results also have implications for prosocial relationship marketing programmes.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 9
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 8 February 2008

Mario J. Miranda and László Kónya

The aim is to examine whether supermarkets may be losing the opportunity to increase customer purchase outlays by means of loyalty points, convertible to acquire specialty goods…

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Abstract

Purpose

The aim is to examine whether supermarkets may be losing the opportunity to increase customer purchase outlays by means of loyalty points, convertible to acquire specialty goods and services provided by “bonus partners”.

Design/methodology/approach

Two econometric models were constructed from data collected from 470 supermarket shoppers in one major Australian city, to predict mechanisms for making shoppers aware of loyalty points accrued on their credit card purchases and for inducing them to pay for purchases with specific credit cards linked to loyalty programmes of which they were members.

Findings

Shoppers who are aware consider specialty merchandise in exchange for loyalty points to be a significant reason for joining a loyalty programme. However, when they actively seek to pay with specific credit cards because of loyalty points do not rank the conversion into specialty merchandise as a significant reason for membership.

Research limitations/implications

No insight was sought on the relative importance of attitudes and implications of social influences on attitude formation and behavioural intention with respect to the accumulation of loyalty points.

Practical implications

Specialist retailing planners can configure product offerings attractive to customers' lifestyles and broader interests on the basis of shared insights into buying patterns and personal details captured during their enrolment in affiliated loyalty programmes with “bonus partners”.

Originality/value

The paper offers an actionable strategy for customer retention and enhancement.

Details

Marketing Intelligence & Planning, vol. 26 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 15 March 2013

Nor Asiah Omar, Che Aniza Che Wel, Norzalita Abd Aziz and Syed Shah Alam

Retaining and cultivating customer loyalty has become increasingly important for loyalty programme providers and retailers due to the highly competitive environment. The purpose

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Abstract

Purpose

Retaining and cultivating customer loyalty has become increasingly important for loyalty programme providers and retailers due to the highly competitive environment. The purpose of this paper is to develop and test a model investigating how loyalty programme service quality (LPSQual) enhances programme perceived value and programme satisfaction to win loyalty among cardholders.

Design/methodology/approach

Quota sampling technique, using a self‐administered questionnaire survey, was used with a total of 400 respondents who are card holders of loyalty programmes from departments and superstores in the capital of Malaysia.

Findings

It is found that all the loyalty programme service attributes (policy, reward, tangibility, information usefulness, courteousness/helpfulness and communication quality), with the exception of personalization, have a significant positive influence on perceived value. The positive relationship between perceived value‐programme loyalty and programme satisfaction‐programme loyalty was also significant. The result also suggests that programme satisfaction affects store loyalty only through programme loyalty.

Practical implications

The results highlight the crucial role of loyalty programme service attributes in influencing value, satisfaction and loyalty among card holders of a loyalty programme.

Originality/value

This paper seems to be the first in investigating the impacts of LPSQual on value, satisfaction and loyalty in departments and superstores, particularly in the Malaysia context.

Details

Measuring Business Excellence, vol. 17 no. 1
Type: Research Article
ISSN: 1368-3047

Keywords

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