Loyalty program rewards and their impact on perceived justice, customer satisfaction, and repatronize intentions
SÃ¶derlund, Magnus and
Journal of Retailing and Consumer Services, 2015, vol. 25, issue C, 47-57
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)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:25:y:2015:i:c:p:47-57
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