Loyalty programs, loyalty engagement and customer engagement with the company brand: Consumer-centric behavioral psychology insights from three industries

Lars Meyer-Waarden, Johan Bruwer and Jean-Philippe Galan ()
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Lars Meyer-Waarden: TSM - Toulouse School of Management Research - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - CNRS - Centre National de la Recherche Scientifique - TSM - Toulouse School of Management - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse
Johan Bruwer: University of South Australia [Adelaide]
Jean-Philippe Galan: UB - Université de Bordeaux, IRGO - Institut de Recherche en Gestion des Organisations - UB - Université de Bordeaux - Institut d'Administration des Entreprises (IAE) - Bordeaux

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Abstract: Firms make large investments in loyalty programs (LPs) to build customer relationships with customer loyalty as one of their primary goals. Despite the popularity of LPs, their effectiveness is questioned and the subject of academic debates in relation to outcomes such as profitability. Moreover, extant research has not investigated if customers engage with LPs through LP perceived value and how LP engagement improves LP loyalty, brand loyalty, and customer engagement (CE) with the company brand. This study examines, from a consumer-centric behavioral perspective, LP engagement (LPE) behavior, and how LPE behavior impacts brand and LP loyalty, as well as CE. We introduce LPE behavior, a relatively new concept, in the form of a multi-dimensional set of hierarchically-ordered dimensions. We show a differentiated view of the relationship between the antecedents of brand loyalty as well as LP loyalty and CE. External, convergent and discriminant validity are confirmed by testing our model with a representative sample (n = 593) of the U.S. LP population with participants being members of either a grocery retail chain, department store chain, or airline frequent flyer LP. We show that perceived LP value engages customers with LPs. Subsequently, LPE behavior improves LP loyalty and brand loyalty as well as CE with the company brand.

Keywords: Loyalty program; Customer engagement; Perceived value; Loyalty program engagement behavior; Brand loyalty (search for similar items in EconPapers)
Date: 2023-03
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Citations: View citations in EconPapers (3)

Published in Journal of retailing and consumer services, 2023, 71, pp.103212. ⟨10.1016/j.jretconser.2022.103212⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04156222

DOI: 10.1016/j.jretconser.2022.103212

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