A consumers’ evaluation of different loyalty program mechanisms
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2017-06-21
Language
en
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Abstract
Purpose – There is still little known about why consumers enroll in loyalty programs and
how they experience being enrolled. This study investigates which benefits consumers look
for in loyalty programs. Furthermore it investigates if there is a difference in how consumers
perceive loyalty programs that use the points-pressure mechanism and loyalty programs that
use the rewarded behavior mechanism and what these differences are.
Methodology – To collect data 14 in-depth interviews were conducted. To encode the
transcripts of these interviews the inductive coding method was used.
Findings – The consumer does evaluate loyalty programs that use the points-pressure
mechanism and loyalty programs that use the rewarded behavior mechanism differently.
Results of this study show that loyalty program that use the points-pressure bring the
consumer more utilitarian benefits, whereas loyalty programs that use the rewarded behavior
mechanism bring the consumer more hedonic benefits.
Theoretical implications – This study brings new insights to the current literature, since it
shows that the different mechanisms that can be used in loyalty programs do influence the
consumer in different ways. Whereas before, there were only some insights into which types
of benefits a consumer can perceive from being enrolled in a loyalty program, this study gives
insights into which specific benefits a consumers can perceive from being in a loyalty
program and in which cases this occurs.
Practical implications – The results of this study can be beneficial for managers in the
practical field, since it gives insights in to which parts of the currently used loyalty program
consumers do and do not like. Implementing the results into the design of loyalty programs
could attract more consumers to enroll in them.
Social implications – This research can help consumers to perceive more fun by being
enrolled in loyalty programs and feel more appreciated by organization. In the end, this
research will encourage organizations to use their customer data better, to tailor their
collection to the wants and needs of the consumer.
Keywords – Loyalty programs, points-pressure mechanism, rewarded behavior mechanism
Paper type – Research Paper
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Faculteit der Managementwetenschappen