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The similar versus divergent effects of pride and happiness on the effectiveness of loyalty programs

Felix Septianto, Jake An, Tung Moi Chiew, Widya Paramita and Istiharini Tanudharma

Journal of Business Research, 2019, vol. 99, issue C, 12-22

Abstract: Firms typically utilize loyalty programs to encourage repeat purchases. In particular, frequency reward programs and customer tier programs are the two predominant loyalty program structures. However, there is little insight on the conditions under which these loyalty program structures can be more effective. This research investigates how different, discrete positive emotions such as pride and happiness can leverage the effectiveness of these loyalty program structures. Findings from four studies show that while pride and happiness can similarly increase repurchase intentions following a frequency reward program, only pride (vs. happiness) differentially increases repurchase intentions following a customer tier program. Further, the effects of these emotions are mediated by two distinct paths: the intensity of positive affect (for frequency reward programs) and signaling motives (for customer tier programs). These findings have beneficial implications for marketers and firms in employing appropriate positive emotion appeals to promote their loyalty programs.

Keywords: Pride; Happiness; Emotion; Loyalty program; Repurchase intentions (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:99:y:2019:i:c:p:12-22

DOI: 10.1016/j.jbusres.2019.02.021

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