Loyalty program rewards and their impact on perceived justice, customer satisfaction, and repatronize intentions.

Magnus Söderlund, Jonas Colliander

Research output: Contribution to journalArticleScientificpeer-review

30 Citations (Scopus)

Abstract

This study examines three types of rewards in a retail loyalty program context (under-reward, equity-reward, and over-reward) and their impact on perceived distributive justice, customer satisfaction, and repatronize intentions. The results from a between-subjects experiment showed that equity-reward produced higher levels of perceived distributive justice than both under-reward and over-reward. Moreover, equity-reward and over-reward produced higher levels of both customer satisfaction and repatronize intentions than did under-reward. Yet there were no differences in satisfaction and repatronize intentions for equity-reward and over-reward. These outcomes suggest that loyalty programs have the potential of not boosting members' loyalty, at the same time as they may reduce loyalty among non-members.
Original languageEnglish
Peer-reviewed scientific journalJournal of Retailing and Consumer Services
Volume25
Pages (from-to)47-57
Number of pages11
ISSN0969-6989
DOIs
Publication statusPublished - 01.07.2015
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Customer loyalty
  • Economic impact
  • Customer satisfaction
  • Economic research
  • Reward (Psychology)
  • Loyalty
  • Loyalty programs
  • Perceived distributive justice
  • Repatronize intentions

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