IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v64y2022ics0969698921003362.html
   My bibliography  Save this article

Customer happiness as a function of perceived loyalty program benefits - A quantile regression approach

Author

Listed:
  • Agarwal, Reeti
  • Mehrotra, Ankit
  • Misra, Dheeraj

Abstract

Customers consider pursuit of happiness to be fundamental to their purchase experiences; thus, companies are increasingly looking for opportunities to bring happiness to customers especially in their consumption activity. The current study undertakes analysis of effect of perceived benefits of loyalty programs and customer satisfaction on customer happiness/purchase enjoyment if he/she has loyalty program membership. Empirical study with 407 participants found that Discovery and Entertainment Benefit (DEB) and Satisfaction Derived (SD) have an effect on customer happiness/purchase enjoyment while being a loyalty program member. Quantile regression analysis was used to analyze if independent variables have a differential effect on different levels of the dependent variable i.e. customer happiness/purchase enjoyment from use of loyalty programs. Since DEB and SD were found to be positively significant in influencing customer happiness/purchase enjoyment, companies should focus on balancing these aspects of customers’ consumption experience.

Suggested Citation

  • Agarwal, Reeti & Mehrotra, Ankit & Misra, Dheeraj, 2022. "Customer happiness as a function of perceived loyalty program benefits - A quantile regression approach," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
  • Handle: RePEc:eee:joreco:v:64:y:2022:i:c:s0969698921003362
    DOI: 10.1016/j.jretconser.2021.102770
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698921003362
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2021.102770?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Margherita Pagani & Charles F. Hofacker & Ronald E. Goldsmith, 2011. "The influence of personality on active and passive use of social networking sites," Post-Print hal-02313092, HAL.
    2. Christopher Peterson & Nansook Park & Martin Seligman, 2005. "Orientations to happiness and life satisfaction: the full life versus the empty life," Journal of Happiness Studies, Springer, vol. 6(1), pages 25-41, March.
    3. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731.
    4. Aîda Mimouni-Chaabane & Pierre Volle, 2010. "Perceived Benefits of Loyalty Programs: Scale Development and Implications for Relational Strategies," Post-Print halshs-00638594, HAL.
    5. Yi-Ching Hsieh & Hung-Chang Chiu & Yun-Chia Tang & Wei-Yun Lin, 2018. "Does Raising Value Co-creation Increase All Customers’ Happiness?," Journal of Business Ethics, Springer, vol. 152(4), pages 1053-1067, November.
    6. repec:dau:papers:123456789/1603 is not listed on IDEAS
    7. Rodríguez, Pablo Gutiérrez & Villarreal, Ricardo & Valiño, Pedro Cuesta & Blozis, Shelley, 2020. "A PLS-SEM approach to understanding E-SQ, E-Satisfaction and E-Loyalty for fashion E-Retailers in Spain," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    8. El-Adly, Mohammed Ismail, 2019. "Modelling the relationship between hotel perceived value, customer satisfaction, and customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 322-332.
    9. Cassie Mogilner & Jennifer Aaker & Sepandar D. Kamvar, 2012. "How Happiness Affects Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(2), pages 429-443.
    10. Hung-Chang Chiu & Yi-Ching Hsieh & Huey-Jiuan Yeh & Chien-Liang Kuo & Monle Lee & Der-Jang Yu, 2011. "The Connection Between Happiness and Service Businesses: A Preliminary Study," Journal of Happiness Studies, Springer, vol. 12(5), pages 841-860, October.
    11. Jason Raibley, 2012. "Happiness is not Well-Being," Journal of Happiness Studies, Springer, vol. 13(6), pages 1105-1129, December.
    12. Quach, Thu Nguyen & Thaichon, Paramaporn & Jebarajakirthy, Charles, 2016. "Internet service providers' service quality and its effect on customer loyalty of different usage patterns," Journal of Retailing and Consumer Services, Elsevier, vol. 29(C), pages 104-113.
    13. Johnson, Michael D & Anderson, Eugene W & Fornell, Claes, 1995. "Rational and Adaptive Performance Expectations in a Customer Satisfaction Framework," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(4), pages 695-707, March.
    14. Orth, Ulrich R. & Limon, Yonca & Rose, Gregory, 2010. "Store-evoked affect, personalities, and consumer emotional attachments to brands," Journal of Business Research, Elsevier, vol. 63(11), pages 1202-1208, November.
    15. Csikszentmihalyi, Mihaly, 2000. "The Costs and Benefits of Consuming," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(2), pages 267-272, September.
    16. Kasiri, Leila Agha & Guan Cheng, Kenny Teoh & Sambasivan, Murali & Sidin, Samsinar Md., 2017. "Integration of standardization and customization: Impact on service quality, customer satisfaction, and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 35(C), pages 91-97.
    17. Aksoy, Lerzan & Keiningham, Timothy L. & Buoye, Alexander & Larivière, Bart & Williams, Luke & Wilson, Ian, 2015. "Does loyalty span domains? Examining the relationship between consumer loyalty, other loyalties and happiness," Journal of Business Research, Elsevier, vol. 68(12), pages 2464-2476.
    18. Dan Haybron, 2007. "Life satisfaction, ethical reflection, and the science of happiness," Journal of Happiness Studies, Springer, vol. 8(1), pages 99-138, March.
    19. Vesel, Patrick & Zabkar, Vesna, 2009. "Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program," Journal of Retailing and Consumer Services, Elsevier, vol. 16(5), pages 396-406.
    20. Khan, Imran & Hollebeek, Linda D. & Fatma, Mobin & Islam, Jamid Ul & Riivits-Arkonsuo, Iivi, 2020. "Customer experience and commitment in retailing: Does customer age matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    21. D. Shin & D. Johnson, 1978. "Avowed happiness as an overall assessment of the quality of life," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 5(1), pages 475-492, March.
    22. Tiphaine Gorlier & Géraldine Michel, 2020. "How special rewards in loyalty programs enrich consumer–brand relationships: The role of self‐expansion," Post-Print hal-02494605, HAL.
    23. Leonardo Nicolao & Julie R. Irwin & Joseph K. Goodman, 2009. "Happiness for Sale: Do Experiential Purchases Make Consumers Happier than Material Purchases?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(2), pages 188-198.
    24. Rosseel, Yves, 2012. "lavaan: An R Package for Structural Equation Modeling," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 48(i02).
    25. Ricardo Montoya & Constanza Flores, 2019. "Buying free rewards: the impact of a points-plus-cash promotion on purchase and reward redemption," Marketing Letters, Springer, vol. 30(1), pages 107-118, March.
    26. Antonella Delle Fave & Ingrid Brdar & Teresa Freire & Dianne Vella-Brodrick & Marié Wissing, 2011. "The Eudaimonic and Hedonic Components of Happiness: Qualitative and Quantitative Findings," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 100(2), pages 185-207, January.
    27. De Silva Kanakaratne, Maheshan & Bray, Jeffery & Robson, Julie, 2020. "The influence of national culture and industry structure on grocery retail customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    28. Steyn, Peter & Pitt, Leyland & Strasheim, Arien & Boshoff, Christo & Abratt, Russell, 2010. "A cross-cultural study of the perceived benefits of a retailer loyalty scheme in Asia," Journal of Retailing and Consumer Services, Elsevier, vol. 17(5), pages 355-373.
    29. Anderson, Kelley C. & Knight, Dee K. & Pookulangara, Sanjukta & Josiam, Bharath, 2014. "Influence of hedonic and utilitarian motivations on retailer loyalty and purchase intention: a facebook perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 21(5), pages 773-779.
    30. Mimouni-Chaabane, Aîda & Volle, Pierre, 2010. "Perceived benefits of loyalty programs: Scale development and implications for relational strategies," Journal of Business Research, Elsevier, vol. 63(1), pages 32-37, January.
    31. Read, Daniel, 2004. "Utility theory from Jeremy Bentham to Daniel Kahneman," LSE Research Online Documents on Economics 22750, London School of Economics and Political Science, LSE Library.
    32. Kim, Woohyoung & Kim, Hyun & Hwang, Jinsoo, 2020. "Sustainable growth for the self-employed in the retail industry based on customer equity, customer satisfaction, and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    33. Baumann, Chris & Hoadley, Susan & Hamin, Hamin & Nugraha, Albert, 2017. "Competitiveness vis-Ã -vis service quality as drivers of customer loyalty mediated by perceptions of regulation and stability in steady and volatile markets," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 62-74.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vinoi, Nivin & Shankar, Amit & Khalil, Ashraf & Mehrotra, Ankit & Kumar, Jitender, 2024. "Holding on to your memories: Factors influencing social media hoarding behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    2. Habib, Muhammad Danish & Alghamdi, Aseel & Sharma, Veenu & Mehrotra, Ankit & Badghish, Saeed, 2024. "Diet or lifestyle: Consumer purchase behavior of vegan retailing. A qualitative assessment," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    3. Vinoi, Nivin & Shankar, Amit & Mehrotra, Ankit & Kumar, Jitender & Azad, Nasreen, 2024. "Enablers and inhibitors of digital hoarding behaviour. An application of dual-factor theory and regret theory," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    4. Malik, Faiza & Ishaq, Muhammad Ishtiaq, 2023. "Impact of minimalist practices on consumer happiness and financial well-being," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    5. Meyer-Waarden, Lars & Bruwer, Johan & Galan, Jean-Philippe, 2023. "Loyalty programs, loyalty engagement and customer engagement with the company brand: Consumer-centric behavioral psychology insights from three industries," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    6. Hallikainen, Heli & Luongo, Milena & Dhir, Amandeep & Laukkanen, Tommi, 2022. "Consequences of personalized product recommendations and price promotions in online grocery shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    7. Rohit, Kumar & Shankar, Amit & Katiyar, Gagan & Mehrotra, Ankit & Alzeiby, Ebtesam Abdullah, 2024. "Consumer engagement in chatbots and voicebots. A multiple-experiment approach in online retailing context," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    8. Mehrotra, Ankit & Agarwal, Reeti & Khalil, Ashraf & Alzeiby, Ebtesam Abdullah & Agarwal, Vaishali, 2024. "Nitty-gritties of customer experience in metaverse retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    9. Pedro, Yael & Friedmann, Enav & Loureiro, Sandra Maria Correia, 2024. "High-end fashion as a social phenomenon: Exploring the perceptions of designers and consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    10. Lina Xu & Zhiqing Meng, 2024. "Optimizing Retailer Ordering Strategies: a Comparative Analysis of Membership and Non-Membership Systems," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13027-13048, September.
    11. Park, Hyejune & Lim, Rachel Esther, 2023. "Fashion and the metaverse: Clarifying the domain and establishing a research agenda," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    12. Ul Ain, Qurat & Lim, Weng Marc & Rasool, Shahid & Zeshan, Muhammad, 2024. "How do customers react to preferential treatment? An affective events theory and time-lagged survey," Journal of Retailing and Consumer Services, Elsevier, vol. 80(C).
    13. Akbari, Morteza & Foroudi, Pantea & Zaman Fashami, Rahime & Mahavarpour, Nasrin & Khodayari, Maryam, 2022. "Let us talk about something: The evolution of e-WOM from the past to the future," Journal of Business Research, Elsevier, vol. 149(C), pages 663-689.
    14. Kim, Woo Bin & Xie, Jiali & Choo, Ho Jung, 2023. "Role of perceived benefits of online shopping festival in vietnam: Differences between millennials and generation Z," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    15. Agarwal, Reeti & Mehrotra, Ankit & Sharma, Veenu & Papa, Armando & Malibari, Areej, 2023. "Over-the-top (OTT) retailing in the post pandemic world. Unveiling consumer drivers and barriers using a qualitative study," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    2. Julia Krasko & Sabrina Intelisano & Maike Luhmann, 2022. "When Happiness is Both Joy and Purpose: The Complexity of the Pursuit of Happiness and Well-Being is Related to Actual Well-Being," Journal of Happiness Studies, Springer, vol. 23(7), pages 3233-3261, October.
    3. Bruneau, Virginie & Swaen, Valérie & Zidda, Pietro, 2018. "Are loyalty program members really engaged? Measuring customer engagement with loyalty programs," Journal of Business Research, Elsevier, vol. 91(C), pages 144-158.
    4. Yen Tran & Naohisa Hashimoto & Takafumi Ando & Toshihisa Sato & Naoki Konishi & Yuji Takeda & Motoyuki Akamatsu, 2024. "The indirect effect of travel mode use on subjective well-being through out-of-home activities," Transportation, Springer, vol. 51(6), pages 2359-2391, December.
    5. Kim, Woo Bin & Xie, Jiali & Choo, Ho Jung, 2023. "Role of perceived benefits of online shopping festival in vietnam: Differences between millennials and generation Z," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    6. Meyer-Waarden, Lars & Bruwer, Johan & Galan, Jean-Philippe, 2023. "Loyalty programs, loyalty engagement and customer engagement with the company brand: Consumer-centric behavioral psychology insights from three industries," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    7. Kumar, Ajay & Paul, Justin & StarÄ ević, SlaÄ‘ana, 2021. "Do brands make consumers happy?- A masstige theory perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    8. Pez, Virginie & Butori, Raphaëlle & de Kerviler, Gwarlann, 2015. "Because I'm worth it: The impact of given versus perceived status on preferential treatment effectiveness," Journal of Business Research, Elsevier, vol. 68(12), pages 2477-2483.
    9. Andrew MacLeod, 2015. "Well-Being: Objectivism, Subjectivism or Sobjectivism?," Journal of Happiness Studies, Springer, vol. 16(4), pages 1073-1089, August.
    10. Andy Chin Woon Fook & Omkar Dastane, 2021. "Effectiveness of Loyalty Programs in Customer Retention: A Multiple Mediation Analysis," Jindal Journal of Business Research, , vol. 10(1), pages 7-32, June.
    11. Alexandra Ganglmair-Wooliscroft & Ben Wooliscroft, 2019. "Well-Being and Everyday Ethical Consumption," Journal of Happiness Studies, Springer, vol. 20(1), pages 141-163, January.
    12. Gaston-Breton, Charlotte & Sørensen, Elin Brandi & Thomsen, Thyra Uth, 2020. "“I want to break free!” How experiences of freedom foster consumer happiness," Journal of Business Research, Elsevier, vol. 121(C), pages 22-32.
    13. Masayuki Yoshida & Brian S. Gordon & Jeffrey D. James, 2021. "Social capital and consumer happiness: toward an alternative explanation of consumer-brand identification," Journal of Brand Management, Palgrave Macmillan, vol. 28(5), pages 481-494, September.
    14. Vilches-Montero, Sonia & Pandit, Ameet & Bravo-Olavarria, Renzo & Chao, Chih-Wei (Fred), 2018. "What loyal women (and men) want: The role of gender and loyalty program characteristics in driving store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 64-70.
    15. Andrew E. Clark, 2015. "SWB as a Measure of Individual Well-Being," Working Papers halshs-01134483, HAL.
    16. Kang, Jun & Alejandro, Thomas Brashear & Groza, Mark D., 2015. "Customer–company identification and the effectiveness of loyalty programs," Journal of Business Research, Elsevier, vol. 68(2), pages 464-471.
    17. Brahim Idir, 2018. "L’impact des bénéfices perçus des programmes de fidélisation sur la fidélité à l’enseigne : le rôle médiateur de la fidélité au programme de fidélité," CEPN Working Papers 2018-03, Centre d'Economie de l'Université de Paris Nord.
    18. Hezhi Chen & Zhijia Zeng, 2023. "Seeking Pleasure is Good, but Avoiding Pain is Bad: Distinguishing Hedonic Approach from Hedonic Avoidance Orientations," Journal of Happiness Studies, Springer, vol. 24(7), pages 2377-2393, October.
    19. Marcus, Hagström & Rosengren, Sara & Hagberg, Johan, 2022. "The Role of Bonuses in Loyalty Programs – A literature review," SSE Working Paper Series in Business Administration 2022:1, Stockholm School of Economics.
    20. Jordan A. Booker & Julie C. Dunsmore, 2019. "Testing Direct and Indirect Ties of Self-Compassion with Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 20(5), pages 1563-1585, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:64:y:2022:i:c:s0969698921003362. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.