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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.

The authors conducted a survey followed by an experiment.

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.

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.

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.

This study aims to examine consumers’ responses to two types of loyalty programs: coalition and single-firm programs. This study explains the mechanism underlying the link between this program structure and consumers’ program evaluation by incorporating the type of firm offering the program (i.e. a more hedonic or a more utilitarian disposition), the type of rewards (i.e. presence/absence of experiential rewards) and consumers’ reactance.

Two online experiments were employed to test the proposed framework.

Consumers commonly preferred a coalition program to a single-firm program. This preference for the coalition program was strengthened when a utilitarian-dominant firm offered the program. Additionally, consumers evaluated the program lower when a utilitarian-dominant firm provided experiential rewards. Furthermore, situational reactance toward the program mediated the effect of the program structure on the program evaluation.

This study’s findings suggest that firms should consider whether the value consumers predominantly perceive from the firms is utilitarian or hedonic when launching coalition programs. Consumers may not be pleased by the coalition programs offered by hedonic-dominant firms as much as those provided by utilitarian-dominant firms. Moreover, this study’s results help design reward options. Consumers may not well evaluate the inclusion of experiential rewards when offered by utilitarian-dominant firms. For utilitarian-dominant firms, rewards requiring less time and effort may be more suitable.

This research significantly contributes to the literature on loyalty programs. This study showed that consumers viewed single-firm and coalition programs differently and elucidated the mechanism behind the response.

The present study seeks to examine how perceived uncertainty of reward schedule and reward frame (i.e. segregated vs aggregated) affect consumers ' evaluation of loyalty programs.

The authors conducted three experiments to test the hypotheses.

Ambiguity aversion was salient when the subjects perceived low uncertainty in the schedule of a loyalty program, which led to customers ' choice of a loyalty program with an aggregated frame. In contrast, the subjects displayed ambiguity proneness when they detected a high level of uncertainty in the reward schedule; as a result, the subjects preferred a loyalty program that employed a segregated frame.

The findings show that individuals adopt different types of attitudinal pattern and show dissimilar choice behaviors depending on reward schemes. The findings also provide insights to enhance the understanding concerning how consumers perceive the value of loyalty programs.

Previous research suggests the importance of random elements in relationship marketing. The present study supports this assertion by demonstrating that reward programs providing unexpected benefits can enhance the effectiveness of a loyalty program.

The results provide a more refined understanding about the relationship between perceived uncertainty and reward frame and the psychological mechanism underlying this relationship.

The purpose of the paper is to examine how members at different levels in a multi-level loyalty program react when they are allowed the opportunity to compare the rewards they receive with the rewards received by other members. The authors believe this is crucial, as previous research often ignores the social setting in which exchanges concerning loyalty rewards take place. The authors believe such interactions in social settings are likely to induce justice perceptions, which in turn will affect customer satisfaction and repatronizing intentions.

The research question was addressed through a between-subjects experiment in an airline setting.

The results show that belonging to the top-tier level of a multi-level loyalty program seems to boost perceived justice. Participants assigned to this level in the experiment perceived the program as more just than did participants assigned to the lower level. Importantly though, members assigned the second-tier who compared themselves to the top-tier did not perceive to program as more unjust than did second-tier members comparing themselves to other second-tier members. The levels of customer satisfaction and repatronizing intentions followed the same pattern. In social settings, multi-level loyalty programs thus seem to be able to increase justice perceptions, customer satisfaction and repatronizing intentions of top-tier members, while at the same time avoiding the potential drawback of alienating second-tier members.

The study bridges the gap between research on perceived justice, loyalty programs and the effects of social settings on consumer interactions. In doing so, it brings valuable insights to both researchers and practitioners.

This study investigates how reward type (single vs. plural), reward characteristic (utilitarian vs. hedonic) and product involvement (high vs. low) affect the design of reward programs.

A 2 ✕ 2 ✕ 2 fractional factorial experimental design is constructed to explore the main factors influencing the effectiveness of reward programs on a sample of 436 Chinese customers.

The results indicate that reward type is an important determinant of customers' preference toward reward programs. Plural rewards are preferable to a single reward when the alternatives provide the same benefits, particularly in the low level of product involvement. In the high level of product involvement, reward characteristic has a significant effect on customers' preference. Hedonic rewards are more effective in building a program's value than utilitarian rewards. Moreover, reward characteristic interacts with reward type, positively impacting customers' preference toward reward programs.

This study suggests that managers should consider the effects of reward type, reward characteristic and product involvement to formulate attractive reward programs for sustainable business in China.

The purpose of this paper is to investigate how a redemption reward program of credit card works in China. The study also seeks to assess Chinese credit card users' level of awareness about the reward‐point programs. Additionally, the factors affecting the redemption of reward points, one customer loyalty program used by many credit card issuers worldwide, are also identified.

A telephone survey and a followed regression analysis were conducted in five major cities in China with more than 400 samples.

Lack of awareness about the reward points programs and the redemption procedure was shown. Low customer awareness about point‐based reward programs and, not surprisingly, low redemption rates were also discovered. The important conditions positively affecting redemption of reward points were found to include awareness of the reward point program, a positive attitude about the incentives, and average frequency of credit card usage. Also, redemption rates were higher for cards that had been issued more recently. Moreover, redemption behaviors and credit card usage habits may be changed in time of financial crisis.

Awareness of reward points programs, redemption procedure, and benefits of redemption of reward points should be increased by better and more effective communication strategy, provided by credit card marketers, to customers or potential customers.

The lower‐middle class market segment in China is studied to provide background information regarding behavior towards credit card reward programs in the banking industry. Additional information is provided towards marketing managers who hold the responsibility of promoting their usage and rewards.

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).

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.

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).

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.

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.

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.

A loyalty program might influence buyer behavior in several ways. Prior research offers evidence that buyers might increase the frequency of purchases and volume per occasion in a loyalty program; however, the effect on buyers' price tolerance has not been studied before. The aim of this paper is to examine buyers' willingness to pay a price premium for a firm offering a loyalty program reward.

An analytical model of dynamic consumer choice is developed, where one of the two selling firms offers a reward for a certain number of purchases. The maximum price premium that a normatively rational buyer should be willing to pay at each level of accumulated purchases is obtained. A price tolerance in controlled settings is obtained and these are compared with normative solutions.

Analytically, it is shown that the maximum price premium increases as purchases are accumulated; and the exact solutions can be found, given the price distributions and program design parameters. In the empirical studies it is found that individuals' maximum premiums are less than the normative levels. On the other hand, as buyers accumulate purchases from the reward offering firm, and get closer to the reward, maximum premiums paid increase – particularly when the reward is immediate.

This paper contributes to the loyalty programs literature by examining the price premium, or switching barrier, aspect of buyer response. Furthermore, the paper not only models and solves the normative strategy, but also obtains actual price tolerance in laboratory settings.

New approaches in loyalty programs try to activate membership by rewarding not just financial transactions but also customer engagement. The purpose of this paper is to analyze the effect of rewarded customer engagement on loyalty intentions and behavior by applying a social media context.

A field study in the mobility service industry (focus groups (n=18) and questionnaire (n=1,246)) and a laboratory experiment (n=141, 2 (rewarded engagement and transaction/rewarded transaction)×2 (low/high reward) between subjects design) were conducted to determine the effect of rewarded engagement on loyalty.

In the field study, the participants could gather loyalty points through their social media engagement. Their attitudinal loyalty to the loyalty program and the company was significantly higher than that of the loyalty members who collected points solely through transactions. This effect is especially prevalent with respect to engagements rewarded with monetary incentives and is underlined by behavioral data. The results of the laboratory experiment show that rewarded engagement positively moderates the impact of intrinsic motivation on loyalty intentions. Offering rewarded engagement in loyalty programs offsets the undermining effect of rewards.

Rewarding customers for social media engagement can be a beneficial way of boosting active participation in loyalty programs, but this experience should be enjoyable and self-determined.

The study is the first to show the impact of rewarded customer engagement on the attitudinal and behavioral loyalty of members of a loyalty program.

The purpose of this study is to evaluate the impact of reward structure on the customer's value perception of the program, loyalty to the program and loyalty to the firm.

A 2 (type of reward) x 2 (timing of redemption) between subjects experimental design was conducted. In addition, the indirect effect of the customer's value perception of the program on loyalty to the firm via loyalty to the program is tested with Hayes and Preacher's mediation procedure.

Study results indicated that type of reward has a positive impact on the perceived value of a loyalty program. Program loyalty mediates the relationship between the perceived value of the loyalty program and customer loyalty, as well as the relationship between type of reward and customer loyalty.

The findings of this study demonstrate the importance of the type and timing of loyalty program rewards on customer perceptions of the value of the loyalty program. In addition, this study is a step forward in providing a deep understanding of the impact of such perceptions on loyalty. These findings fill a number of research gaps and provide tangible guidance for practitioners.