The impact of tangible and intangible rewards on online loyalty program, brand engagement, and attitudinal loyalty

Matti J. Haverila (), Kai Haverila, Caitlin McLaughlin and Hailey Tran
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Matti J. Haverila: Thompson Rivers University
Kai Haverila: Concordia University
Caitlin McLaughlin: St. Francis Xavier University
Hailey Tran: Thompson Rivers University

Journal of Marketing Analytics, 2022, vol. 10, issue 1, No 6, 64-81

Abstract: Abstract This paper investigates customers’ insights about a loyalty program in the online context to examine the impact of tangible and intangible rewards on attitudinal loyalty and brand engagement. The study employed an online survey to collect data from e-commerce customers of a major cosmetics brand. The analysis methods include thematic analysis and partial least squares structural equation modeling. Findings indicated that, while both tangible and intangible rewards have an impact on loyalty and assessment of the overall loyalty program, tangible rewards are much more impactful in generating attitudinal loyalty. Furthermore, both types of rewards had a larger impact on the online loyalty program evaluation than on the attitudinal loyalty construct. The current study provides a systematic look at the relationships between online loyalty program rewards and their impact in bringing about desirable outcomes for online loyalty program managers, utilizing a structural equation model to analyze the relevant relationships. Furthermore, the research focuses upon the cosmetics industry, in which there appears to be a paucity of research in the assessment of both online and offline loyalty program effectiveness.

Keywords: Online loyalty program; Brand engagement; Tangible rewards; Intangible rewards; Attitudinal loyalty; Mediation; Social exchange theory; Stimulus-Organism-Response theory (SOR) (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1057/s41270-021-00150-7

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