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The effects of purchase orientations on perceived loyalty programmes' benefits and loyalty

Author

Listed:
  • Lars Meyer-Waarden

    (EM Strasbourg - École de Management de Strasbourg = EM Strasbourg Business School)

  • Christophe Benavent

    (CEROS - Centre d'Etudes et de Recherches sur les Organisations et la Stratégie - UPN - Université Paris Nanterre)

  • Herbert Castéran

    (EM Strasbourg - École de Management de Strasbourg = EM Strasbourg Business School)

Abstract

Purpose - This article aims to dwell on theoretical, managerial, and empirical knowledge to improve loyalty programme efficiency. Its intention is to try to understand how economic, hedonist, relational, convenience, informational rewards enhance or undermine customers' perceived programme benefits as well as subsequently loyalty according to individual shopping orientations (economical, hedonist, social-relational, apathetic, brand/loyal). 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 benefits and loyalty. Scales are developed through exploratory and confirmatory factor analysis. To validate the hypotheses, surveys in two retail chains (grocery/perfumery) are used. Structural equation modelling confirms the research model. Findings - Perceived benefits and loyalty vary according to purchase orientations, in line with 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, across multiple contexts is necessary for validity enhancement as it remains challenging to categorize purchase orientations and rewards. It is necessary to precisely define the degree of the relationship among an intrinsic purchase orientation and perceived loyalty programmes' benefits as orientations might be multidimensional. Practical implications - Differentiation through tailored rewards is necessary in markets with strong competition to appeal to different segments. Differentiation could be achieved through nonmonetary benefits. The principal role of loyalty programmes should be to identify and segment customers as a means to improve resource allocations. Originality/value - This is one of the pioneer articles in the use of SDT in marketing research. SDT provides a multi-benefit framework which identifies the different (non-) monetary rewards customers may value (in)extrinsically when participating in loyalty programmes. The development of scales which focus on rewards and the impact of purchase orientations on loyalty programmes' perceived benefits is another contribution

Suggested Citation

  • Lars Meyer-Waarden & Christophe Benavent & Herbert Castéran, 2013. "The effects of purchase orientations on perceived loyalty programmes' benefits and loyalty," Post-Print halshs-00914619, HAL.
    • Handle: RePEc:hal:journl:halshs-00914619
    DOI: 10.1108/09590551311306255
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    Citations

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    Cited by:

    1. Sakhhi Chhabra, 2017. "An Empirical Analysis of the Effect of a Retailers Loyalty Programme on Their Customers’ Loyalty," Global Business Review, International Management Institute, vol. 18(2), pages 445-464, April.
    2. 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.
    3. 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," Working Papers hal-01897443, HAL.
    4. Dwayne D. Gremler & Yves Vaerenbergh & Elisabeth C. Brüggen & Kevin P. Gwinner, 2020. "Understanding and managing customer relational benefits in services: a meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 565-583, May.
    5. 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.
    6. 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.
    7. 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 hal-01897443, HAL.
    8. 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.
    9. Ching-Fu Chen & Yi-Xuan Chen, 2023. "Investigating the effects of platform and mobility on mobility as a service (MaaS) users’ service experience and behavioral intention: empirical evidence from MeNGo, Kaohsiung," Transportation, Springer, vol. 50(6), pages 2299-2318, December.

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