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Adding a prosocial spirit to loyalty programs: How does it work?

Aîda Mimouni-Chaabane and Béatrice Parguel ()
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Aîda Mimouni-Chaabane: THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université
Béatrice Parguel: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: This research interrogates how mixed incentive bundles, i.e., selfish and prosocial rewards, enhance corporate social responsibility image and loyalty programs loyalty. Precisely, an experiment (N=204) shows that mixed incentive bundles enhance corporate social responsibility image and loyalty program loyalty compared with more selfish incentive schemes but only when consumers can choose the benefiting charity. This positive influence occurs through the mediating effect of perceived warm glow feelings and without harming perceived monetary benefits. Altogether, these findings extend the literature on prosocial loyalty programs and suggest that they represent a win-win strategy that firms should adopt.

Date: 2021-05
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Published in EMAC 2021 Annual Conference, May 2021, Madrid, Spain

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