Effects of loyalty programs on value perception, program loyalty, and brand loyalty

  • Youjae Yi
  • Hoseong Jeon
Articles

Abstract

The authors investigate how reward schemes of a loyalty program influence perceived value of the program and how value perception of the loyalty program affects customer loyalty. The results show that involvement moderates the effects of loyalty programs on customer loyalty. In high-involvement situations, direct rewards are preferable to indirect rewards. In low-involvement situations, immediate rewards are more effective in building a program's value than delayed rewards. Under high-involvement conditions, value perception of the loyalty program influences brand loyalty both directly and indirectly through program loyalty. Under low-involvement conditions, there is no direct effect of value perception on brand loyalty.

Keywords

loyalty program reward scheme brand loyalty program loyalty value perception 

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Copyright information

© Academy of Marketing Science 2003

Authors and Affiliations

  • Youjae Yi
    • 1
  • Hoseong Jeon
    • 1
  1. 1.Seoul National UniversityKorea

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