Redesigning loyalty marketing for a better world: the impact of green loyalty programs on perceived value

Abstract

Purpose

Given the controversial nature of the effectiveness of loyalty programs (LPs), this paper examines the effect of a new type of LP, namely green LPs, on consumers' perceived value of LPs. Specifically, the authors identify three types of green LP design and test their impact on perceived value.

Design/methodology/approach

An experimental protocol involving 1,016 shoppers was adopted in order to analyze the three types of green LPs identified in the literature.

Findings

Supported by social exchange theory (SET), the results show that a green LP can influence the perceived value of LPs. Such programs can drive psychological value in addition to the economic value linked only to monetary incentives. LPs rewarding sustainable behavior appear to be the most significant generators of value.

Originality/value

Since corporate social responsibility (CSR) is now critical to a company's success, this study investigates how firms can integrate it in order to improve the effectiveness of their LP design.

Citation

Flacandji, M., Passebois Ducros, J. and Ieva, M. (2023), "Redesigning loyalty marketing for a better world: the impact of green loyalty programs on perceived value", Journal of Service Theory and Practice, Vol. 33 No. 4, pp. 465-487. https://doi.org/10.1108/JSTP-07-2022-0145