Consequence of customer loyalty to the loyalty program and to the company

Gaining customer loyalty is an important goal of marketing, and loyalty programs are intended to help in reaching it. Research on loyalty programs suggests that customers differentiate between loyalty to a company and loyalty to a loyalty program, yet little is known about the consequences of these...

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Main Authors: Evanschitzky, H., Ramaseshan, Balasubramani, Woisetschläger, D., Richelsen, V., Blut, M., Backhaus, C.
Format: Journal Article
Published: Sage Publications 2012
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/61933
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author Evanschitzky, H.
Ramaseshan, Balasubramani
Woisetschläger, D.
Richelsen, V.
Blut, M.
Backhaus, C.
author_facet Evanschitzky, H.
Ramaseshan, Balasubramani
Woisetschläger, D.
Richelsen, V.
Blut, M.
Backhaus, C.
author_sort Evanschitzky, H.
building Curtin Institutional Repository
collection Online Access
description Gaining customer loyalty is an important goal of marketing, and loyalty programs are intended to help in reaching it. Research on loyalty programs suggests that customers differentiate between loyalty to a company and loyalty to a loyalty program, yet little is known about the consequences of these two types of loyalty. Therefore, our study intends to make two main contributions: (1) improving our understanding of the constructs “program loyalty” and “company loyalty”, (2) investigating the relative impact of the two types of loyalty on preference, intention, and purchase behavior for the case of a multi-firm loyalty program. Results indicate that company loyalty influences a customer’s choice to visit a particular provider and to prefer it over competitors, but it is not a strong predictor of purchase behavior. Conversely, program loyalty is a far more important driver of purchase behavior. This implies that company loyalty primarily attracts customers to a particular provider and program loyalty ensures that once inside the store, more money is spent.
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institution Curtin University Malaysia
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spelling curtin-20.500.11937-619332018-02-01T05:20:31Z Consequence of customer loyalty to the loyalty program and to the company Evanschitzky, H. Ramaseshan, Balasubramani Woisetschläger, D. Richelsen, V. Blut, M. Backhaus, C. Behavioral consequences Intention Preference Program loyalty Company loyalty Gaining customer loyalty is an important goal of marketing, and loyalty programs are intended to help in reaching it. Research on loyalty programs suggests that customers differentiate between loyalty to a company and loyalty to a loyalty program, yet little is known about the consequences of these two types of loyalty. Therefore, our study intends to make two main contributions: (1) improving our understanding of the constructs “program loyalty” and “company loyalty”, (2) investigating the relative impact of the two types of loyalty on preference, intention, and purchase behavior for the case of a multi-firm loyalty program. Results indicate that company loyalty influences a customer’s choice to visit a particular provider and to prefer it over competitors, but it is not a strong predictor of purchase behavior. Conversely, program loyalty is a far more important driver of purchase behavior. This implies that company loyalty primarily attracts customers to a particular provider and program loyalty ensures that once inside the store, more money is spent. 2012 Journal Article http://hdl.handle.net/20.500.11937/61933 Sage Publications restricted
spellingShingle Behavioral consequences
Intention
Preference
Program loyalty
Company loyalty
Evanschitzky, H.
Ramaseshan, Balasubramani
Woisetschläger, D.
Richelsen, V.
Blut, M.
Backhaus, C.
Consequence of customer loyalty to the loyalty program and to the company
title Consequence of customer loyalty to the loyalty program and to the company
title_full Consequence of customer loyalty to the loyalty program and to the company
title_fullStr Consequence of customer loyalty to the loyalty program and to the company
title_full_unstemmed Consequence of customer loyalty to the loyalty program and to the company
title_short Consequence of customer loyalty to the loyalty program and to the company
title_sort consequence of customer loyalty to the loyalty program and to the company
topic Behavioral consequences
Intention
Preference
Program loyalty
Company loyalty
url http://hdl.handle.net/20.500.11937/61933