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Three decades of research on loyalty programs: A literature review and future research agenda

Author

Listed:
  • Yanyan Chen

    (Unknown)

  • Timo Mandler

    (Unknown)

  • Lars Meyer-Waarden

    (Unknown)

Abstract

Loyalty programs (LPs) are an important marketing instrument used to promote repeat purchases and customer relationships. Although numerous studies have shed light on the adoption, design, and outcomes of LPs, research that reviews the accumulated knowledge in a holistic manner is sparse. Against this background, this study reviews 131 LP-related articles following the Theory-Context-Characteristics-Methodology (TCCM) review protocol. By considering the theories, contexts, characteristics, and methodologies used in LP research, this study (1) paints the most comprehensive picture of the field to date and (2) develops a future research agenda to help advance the field further. Our review reveals that existing studies mostly rely on status-based, inertia-based, or relationship-based mechanisms to theoretically explain LP-related effects, while multi-theoretical perspectives are rare. LP research focuses strongly on a few key industries, such as retail, airlines, and hotels, but lacks insights into the design and outcomes of LPs in online and B2B contexts. Furthermore, we diagnose a need for more research on the role of competition among LPs and the impact of recent technological advances on LP management.

Suggested Citation

  • Yanyan Chen & Timo Mandler & Lars Meyer-Waarden, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Post-Print hal-03652856, HAL.
    • Handle: RePEc:hal:journl:hal-03652856
    DOI: 10.1016/j.jbusres.2020.11.057
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    Citations

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    Cited by:

    1. Minguez, Ana & Javier Sese, F., 2022. "Why do you want a relationship, anyway? Consent to receive marketing communications and donors’ willingness to engage with nonprofits," Journal of Business Research, Elsevier, vol. 148(C), pages 356-367.
    2. Büttgen, Marion & Hogreve, Jens & Zechiel, Felix & Bartsch, Silke & Lorz, Tamara & Trischler, Jakob & Westman Trischler, Jessica & Kuusisto, Jari & Svensson, Peter & Keiningham, Timothy & Aksoy, Lerza, 2023. "Sustainability in Service Research," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 7(3), pages 147-173.
    3. Gouxiong Yu & Jinwen (Jimmy) Tang & Junli Na & Tiancheng Ma, 2022. "Nighttime as Experiences: The Influence of Perceived Value on Urban Waterfront Night Cruise Loyalty," SAGE Open, , vol. 12(2), pages 21582440221, June.
    4. Afonso Vieira, Valter & Agnihotri, Raj & de Almeida, Marcos Inácio Severo & Lopes, Evandro Luiz, 2022. "How cashback strategies yield financial benefits for retailers: The mediating role of consumers’ program loyalty," Journal of Business Research, Elsevier, vol. 141(C), pages 200-212.
    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. Abolghasem Ebrahimi & Kazem Askarifar & Amin Nikbakht, 2024. "Designing and evaluating insurance customer loyalty programs for different customer groups based on their lifetime value," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(3), pages 808-825, September.
    7. Koech, Alex Kipkorir & Buyle, Sven & Macário, Rosário, 2023. "Airline brand awareness and perceived quality effect on the attitudes towards frequent-flyer programs and airline brand choice - Moderating effect of frequent-flyer programs," Journal of Air Transport Management, Elsevier, vol. 107(C).
    8. Dariusz Dudek & Marcin Lipowski & Ilona Bondos, 2021. "Changing Energy Supplier on the Market with a Strong Position of Incumbent Suppliers—Polish Example," Energies, MDPI, vol. 14(13), pages 1-16, June.
    9. Norhazimah Che Hassan & Aisyah Abdul-Rahman & Syajarul Imna Mohd Amin & Siti Ngayesah Ab Hamid, 2023. "Investment Intention and Decision Making: A Systematic Literature Review and Future Research Agenda," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    10. Zeeshan Ullah, 2023. "The determinants and performance outcome of the firm's capacity to maintain customer loyalty," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 265-279, February.
    11. Nguyen, Nga & Priporas, Constantinos-Vasilios & McPherson, Mark & Manyiwa, Simon, 2023. "CSR-related consumer scepticism: A review of the literature and future research directions," Journal of Business Research, Elsevier, vol. 169(C).
    12. Bao, Jingyuan & Durango-Cohen, Elizabeth J. & Levontin, Liat & Durango-Cohen, Pablo L., 2022. "Analysis of factors influencing recurring donations in a university setting: A compound poisson mixture regression model," Journal of Business Research, Elsevier, vol. 151(C), pages 489-503.
    13. Bombaij, Nick J.F. & Gelper, Sarah & Dekimpe, Marnik G., 2022. "Designing successful temporary loyalty programs: An exploratory study on retailer and country differences," International Journal of Research in Marketing, Elsevier, vol. 39(4), pages 1275-1295.
    14. Guo, Xingchen & Jiang, Changmin & Jiang, Siming & Guo, Huanxiu, 2023. "Making airline coalition frequent-flyer programs profitable: An analytical investigation," Transport Policy, Elsevier, vol. 141(C), pages 245-262.
    15. Madani, Fatima & Seenivasan, Satheesh & Ma, Junzhao, 2021. "Determinants of store patronage: The roles of political ideology, consumer and market characteristics," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    16. Hu, Xin & He, Liuyi & Liu, Junjun, 2022. "Status reinforcing: Unintended rating bias on online shopping platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    17. Reyes-Menendez, Ana & Clemente-Mediavilla, Jorge & Villagra, Nuria, 2023. "Understanding STI and SDG with artificial intelligence: A review and research agenda for entrepreneurial action," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    18. Ángel Acevedo-Duque & Romel Gonzalez-Diaz & Alejandro Vega-Muñoz & Mirtha Mercedes Fernández Mantilla & Luiz Vicente Ovalles-Toledo & Elena Cachicatari-Vargas, 2021. "The Role of B Companies in Tourism towards Recovery from the Crisis COVID-19 Inculcating Social Values and Responsible Entrepreneurship in Latin America," Sustainability, MDPI, vol. 13(14), pages 1-21, July.
    19. Samuel Narh Dorhetso, 2024. "A review of fifty-six years of consumer economics research," SN Business & Economics, Springer, vol. 4(11), pages 1-27, November.
    20. Victor Ye. Kovalev & Kseniya V. Novikova & Ekaterina A. Antineskul, 2022. "Efficiency of customer loyalty programmes in the food retail industry," Journal of New Economy, Ural State University of Economics, vol. 23(4), pages 121-136, January.
    21. Secinaro, Silvana & Calandra, Davide & Lanzalonga, Federico & Ferraris, Alberto, 2022. "Electric vehicles’ consumer behaviours: Mapping the field and providing a research agenda," Journal of Business Research, Elsevier, vol. 150(C), pages 399-416.
    22. Khlystova, Olena & Kalyuzhnova, Yelena & Belitski, Maksim, 2022. "The impact of the COVID-19 pandemic on the creative industries: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 139(C), pages 1192-1210.
    23. František Pollák & Peter Markovič & Helena Majdúchová, 2023. "Reputation of Electric Vehicles in the Environment of Carbon Reduction and Accelerated Digitization," Energies, MDPI, vol. 16(9), pages 1-24, April.
    24. Jain, Apoorva & Thukral, Sonal & Paul, Justin, 2024. "Foreign market entry modes of family firms: A review and research agenda," Journal of Business Research, Elsevier, vol. 172(C).

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