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1 – 2 of 2As internet dividends are gradually disappearing, loyalty programs have become the panacea for monetizing traffic, attracting new customers and retaining existing customers…
Abstract
Purpose
As internet dividends are gradually disappearing, loyalty programs have become the panacea for monetizing traffic, attracting new customers and retaining existing customers. Improving their effectiveness has thus become key to enterprises’ market competitiveness. However, member customers’ hedonic adaptation to this relationship strategy undermines its effectiveness. Based on the hedonic adaptation theory, this study aims to analyze the process of member customers' hedonic adaptation to preferential treatment in loyalty programs and explore the boundary conditions of alleviating this effect.
Design/methodology/approach
This study surveyed 271 member customers in China and tested the hypothesized relationships using structural equation modeling and multigroup analysis.
Findings
Preferential treatment suffers from hedonic adaptation to member customer engagement and customer gratitude, and customer tenure is a key condition for these effects. Customer gratitude is an intermediary mechanism that explains the hedonic adaptation effect of preferential treatment to member customers engagement. In addition, the structural characteristics of loyalty programs form the boundary condition that alleviates hedonic adaptation. The authors found that high-tier and -payment strategies are more likely to mitigate hedonic adaptation of preferential treatment to customer gratitude.
Originality/value
This study elucidates the factors that influence the effectiveness of preferential treatment and provides constructive insights into customer relationship management and for improving enterprise performance.
Details
Keywords
Etikah Karyani, Ira Geraldina, Marissa Grace Haque and Ahmad Zahir
Halal certification is an acknowledgment of the halalness of a product or service issued by a halal regulator based on Islamic law. This study aims to investigate the intentions…
Abstract
Purpose
Halal certification is an acknowledgment of the halalness of a product or service issued by a halal regulator based on Islamic law. This study aims to investigate the intentions of consumers and regulators toward blockchain-based halal certification. Blockchain is useful for storing and verifying halal certificates, thereby increasing trust in products or services because the public cannot change or access data once it is stored.
Design/methodology/approach
This study uses a triangulation approach by distributing online questionnaires to consumers as a research instrument of a quantitative approach processed with smart partial least squares. Meanwhile, the qualitative approach is carried out through observation, in-depth interviews with the Ministry of Religion’s Halal Product Assurance Organizing Agency (BPJPH) and Halal Examination Agency (LPH), and forum group discussions (FGDs) with several related parties.
Findings
The observation results show that most consumers expect the government to provide an easy-to-use application to check halal food products and restaurants. Consumers’ intention to use this technology is influenced directly by attitudes and indirectly by their beliefs. Furthermore, the results of interviews and FGDs reported that LPH was not ready to apply blockchain technology, while BPJPH strongly supported adopting blockchain technology in the certification process.
Practical implications
This finding recommends that the Indonesian government apply blockchain technology to gain transparency and accountability regarding the halal product process.
Originality/value
This study fills the research gap by observing three perspectives from different stakeholders and using a triangulation approach to analyze the need for adoption of blockchain-based halal certification of halal food products.
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