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Loyalty program rewards and their impact on perceived justice, customer satisfaction, and repatronize intentions

Söderlund, Magnus and Jonas Colliander

Journal of Retailing and Consumer Services, 2015, vol. 25, issue C, 47-57

Abstract: This study examines three types of rewards in a retail loyalty program context (under-reward, equity-reward, and over-reward) and their impact on perceived distributive justice, customer satisfaction, and repatronize intentions. The results from a between-subjects experiment showed that equity-reward produced higher levels of perceived distributive justice than both under-reward and over-reward. Moreover, equity-reward and over-reward produced higher levels of both customer satisfaction and repatronize intentions than did under-reward. Yet there were no differences in satisfaction and repatronize intentions for equity-reward and over-reward. These outcomes suggest that loyalty programs have the potential of not boosting members' loyalty, at the same time as they may reduce loyalty among non-members.

Keywords: Loyalty programs; Perceived distributive justice; Customer satisfaction; Loyalty; Repatronize intentions (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1016/j.jretconser.2015.03.005

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