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The impact of reward personalisation on frequent flyer programmes' gratifications perceived value and loyalty

Author

Listed:
  • Lars Meyer-Waarden

    (marketing - CRM - Centre de Recherche en Management - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - IAE - Institut d'Administration des Entreprises - Toulouse - CNRS - Centre National de la Recherche Scientifique)

Abstract

The purpose of this research is to contribute to a better theoretical and empirical knowledge about the way frequent flyer programmes influence customer behaviour. It aims to describe the relationships between purchase orientations and personalized rewards on customers' perceived programme value and subsequent loyalty. Design/methodology/approach - The research uses self-determination theory (SDT) and purchase orientations to classify types of rewards in terms of their effect on perceived programme value and loyalty. Scales are developed through exploratory and confirmatory factor analysis. To validate the hypotheses, surveys are realized in a major international airline. Structural equation modelling confirms the research model. Findings - Perceived value and loyalty vary according to purchase orientation, in support of the SDT. Intrinsic (extrinsic) rewards motivate customers to act to obtain a benefit within (apart from) the target of their purchase orientation and influences loyalty positively (have low impact on loyalty). Research limitations/implications - Further testing of reward types, in(ex)trinsic motivation, SDT, across multiple contexts is necessary for validity enhancement. Practical implications - Differentiation through tailored (non-)monetary rewards is possible in markets marked by strong competition to appeal to different segments. Originality/value - This is one of the pioneer articles in the use of SDT in marketing research. The development of scales which focus on reward types and the moderating impact of purchase orientations on frequent flyer programmes' perceived value and loyalty is another contribution

Suggested Citation

  • Lars Meyer-Waarden, 2013. "The impact of reward personalisation on frequent flyer programmes' gratifications perceived value and loyalty," Post-Print halshs-00862362, HAL.
    • Handle: RePEc:hal:journl:halshs-00862362
    DOI: 10.1108/08876041311330681
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    Citations

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    Cited by:

    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. 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.
    3. Catarina Lemos & Ricardo F. Ramos & Sérgio Moro & Pedro Miguel Oliveira, 2022. "Stick or Twist—The Rise of Blockchain Applications in Marketing Management," Sustainability, MDPI, vol. 14(7), pages 1-16, March.
    4. Treiblmaier, Horst & Petrozhitskaya, Elena, 2023. "Is it time for marketing to reappraise B2C relationship management? The emergence of a new loyalty paradigm through blockchain technology," Journal of Business Research, Elsevier, vol. 159(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. Liao, Ziqi & Shi, Xinping, 2017. "Web functionality, web content, information security, and online tourism service continuance," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 258-263.
    7. Gilal, Faheem Gul & Zhang, Jian & Paul, Justin & Gilal, Naeem Gul, 2019. "The role of self-determination theory in marketing science: An integrative review and agenda for research," European Management Journal, Elsevier, vol. 37(1), pages 29-44.
    8. Safura M. Kallier Tar & Johannes A Wiid, 2021. "Consumer perceptions of real-time marketing used in campaigns for retail businesses," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(2), pages 86-105, March.
    9. 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.
    10. Wu, Hanjun & Tsui, Kan Wai Hong, 2020. "Does a reward program affect customers’ behavioural intention of visiting the airport? A case study of Singapore Changi Airport," Journal of Air Transport Management, Elsevier, vol. 82(C).
    11. Meyer-Waarden, Lars, 2015. "Effects of loyalty program rewards on store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 24(C), pages 22-32.

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