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1 – 3 of 3Youjae Yi, Hoseong Jeon and Beomjoon Choi
The present study seeks to examine how perceived uncertainty of reward schedule and reward frame (i.e. segregated vs aggregated) affect consumers ' evaluation of loyalty…
Abstract
Purpose
The present study seeks to examine how perceived uncertainty of reward schedule and reward frame (i.e. segregated vs aggregated) affect consumers ' evaluation of loyalty programs.
Design/methodology/approach
The authors conducted three experiments to test the hypotheses.
Findings
Ambiguity aversion was salient when the subjects perceived low uncertainty in the schedule of a loyalty program, which led to customers ' choice of a loyalty program with an aggregated frame. In contrast, the subjects displayed ambiguity proneness when they detected a high level of uncertainty in the reward schedule; as a result, the subjects preferred a loyalty program that employed a segregated frame.
Research limitations/implications
The findings show that individuals adopt different types of attitudinal pattern and show dissimilar choice behaviors depending on reward schemes. The findings also provide insights to enhance the understanding concerning how consumers perceive the value of loyalty programs.
Practical implications
Previous research suggests the importance of random elements in relationship marketing. The present study supports this assertion by demonstrating that reward programs providing unexpected benefits can enhance the effectiveness of a loyalty program.
Originality/value
The results provide a more refined understanding about the relationship between perceived uncertainty and reward frame and the psychological mechanism underlying this relationship.
Details
Keywords
Hoseong Jeon and Beomjoon Choi
This study aims to examine whether the relationship between employee satisfaction (ES) and customer satisfaction (CS) is bilateral or unilateral based on dyadic data. In addition…
Abstract
Purpose
This study aims to examine whether the relationship between employee satisfaction (ES) and customer satisfaction (CS) is bilateral or unilateral based on dyadic data. In addition, it seeks to examine the role of moderating variables which have incremental impacts on this link.
Design/methodology/approach
The authors conducted an empirical test on this relationship in an educational service context. Structural equation modeling was employed to test the hypotheses.
Findings
Results indicate that employee satisfaction leads to CS but CS did not affect ES, which suggests that the relationship between ES and CS is unilateral rather than bilateral. The findings also demonstrate that the dispositional variables (i.e. self efficacy, cooperative orientation) moderate the impact of ES on CS.
Research limitations/implications
This study provided theoretical implications for the ES‐CS relationship.
Practical implications
This finding suggests that top level management in the service industry must take an active role in recruiting employees who are confident in their abilities and who display pro‐social dispositions.
Originality/value
The linkage between ES and CS has been previously examined but the findings have been inconsistent. The authors used dyadic data to investigate the relationship between ES and CS and found the influence of ES on CS but not vice versa.
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Keywords
Piotr Kwiatek and Marsela Thanasi-Boçe
Loyalty programs (LPs) in a business-to-business (B2B) context have been under-researched when compared to consumer markets. The purpose of this paper is to investigate if and to…
Abstract
Purpose
Loyalty programs (LPs) in a business-to-business (B2B) context have been under-researched when compared to consumer markets. The purpose of this paper is to investigate if and to what extent the loyalty program activity (LPA) based on recency, frequency and monetary framework reflects the effectiveness of a specific LP.
Design/methodology/approach
Using the data obtained from 818 business customers enrolled in a LP, logistic regression models are run to find the impact of LPA on the company’s sales.
Findings
The results suggest that in a linear LP, the frequency of rewards impacts sales the most, compared to recency and amount of points redeemed. The intensity of a LPA is influencing the expected sales in a company.
Research limitations/implications
The current study is not focused on the redemption patterns and the value of the rewards offered in the program. Limitation of the study only to one country and in a single company does not allow to generalize presented findings.
Practical implications
Companies should focus their efforts on defining the best level of frequency rewards in their LPs. Reward timing should be considered as a factor that influences the change in customer purchasing behavior more than the amount of points accumulated.
Originality/value
The research provides empirical evidence to support the highest influence of frequency of rewards on sales, compared to recency and amount of points redeemed. This is one of the few LP studies conducted in the context of the B2B market.
Details