Where is the love?

2014 ◽  
Vol 26 (4) ◽  
pp. 572-592 ◽  
Author(s):  
Lina Xiong ◽  
Ceridwyn King ◽  
Clark Hu
Keyword(s):  
Program Effectiveness ◽  
Least Square ◽  
Loyalty Programs ◽  
Future Research ◽  
Loyalty Program ◽  
Content Type ◽  
Price Premiums ◽  
Expected Benefits ◽  
Ordinary Least Square Regression ◽  
Norm Of Reciprocity

Purpose – The purpose of this study is to explore polygamous program loyalty in hotel loyalty programs and the relationship between members’ behavioral loyalty and their perceptions of the program effectiveness. Design/methodology/approach – Descriptive statistics, discriminant analysis, ordinary least square regression and one-way ANOVA methods. Findings – This study suggests that the flexibility to purchase points in a loyalty program is significantly associated with the polygamous program loyalty. Members will stay in only one program if they perceive such flexibility. Although members tend to emphasize purchasing accommodation from the loyalty programs’ hotels, they do not necessarily advocate or pay price premiums for the brand. Compared with basic members, elite members exhibit higher levels of loyalty behaviors in general, but not in terms of paying price premiums. Research limitations/implications – The results suggest that how customers value a loyalty program can differentiate the number of membership(s) they have. Increasing the flexibility of point purchase in hotel loyalty programs encourages customers to stay in only one program. With a majority of the participants in the study being senior travelers, the results and implications should be generalized only in the senior market. A larger and more diverse sample is recommended for future research. Practical implications – If loyalty programs seek to keep members from joining other loyalty programs, they should increase members’ likelihood to achieve their expected benefits such as increased flexibility of point purchase. In addition, loyalty programs should encourage, recognize and incentivize members’ reciprocal behaviors based on the norm of reciprocity to build a reciprocal chain in loyalty programs. However, in seeking sustained loyal behavior, loyalty programs need to demonstrate value beyond transactional rewards. Originality/value – This paper explores the reason why customers join multiple loyalty programs (i.e. polygamous program loyalty) and identifies a broken reciprocity link in hotel loyalty programs. Many members primarily focus on the utilities of loyalty programs rather than contributing back to the program; therefore, the norm of reciprocity is suggested to improve loyalty program effectiveness.

Loyalty program and communication effectiveness as drivers of store loyalty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aang Curatman ◽  
Agus Suroso ◽  
Suliyanto Suliyanto
Keyword(s):  
Small And Medium Enterprises ◽  
Loyalty Programs ◽  
Primary Data ◽  
Future Research ◽  
Communication Effectiveness ◽  
Store Loyalty ◽  
Loyalty Program ◽  
Content Type ◽  
Customer Perceptions ◽  
The Relationship

Purpose The purpose of this study is to determine the direct effect of a loyalty program on program loyalty and store loyalty and to determine the role of communication effectiveness as a mediating variable in moving customers from program loyalty to store loyalty in the context of micro, small and medium enterprises (MSMEs). Design/methodology/approach Respondents of this study were 100 customers of the MSMEs that sell Batik products in Cirebon, Indonesia who were selected by the purposive sampling method. This study focuses on primary data collected through a structured questionnaire. Data were analyzed using SmartPLS 3.0 to determine the causality relationship between variables and to test the communication effectiveness as a mediating variable. Findings The results of this study indicate that the loyalty program has a significant effect on program loyalty; program loyalty has a significant effect on store loyalty and communication effectiveness, and communication effectiveness has a significant effect on store loyalty. Other results indicate that communication effectiveness partially mediates the relationship between program loyalty and store loyalty. Research limitations/implications Despite the significant implications, this study has four limitations. First, the research results cannot conclude the store in general because the sampling of this study is limited to MSMEs only. Future research is needed to explore more deeply to compare store loyalty to MSMEs and non-MSMEs. Second, this research is only aimed at MSMEs that have loyalty programs. Future research can be carried out by comparing MSMEs that have loyalty programs and MSMEs without loyalty programs. Third, this study only uses two independent variables and one mediating variable. As is well known, there are many other variables that are antecedents of store loyalty. Future research needs to be done to explore the effect of other variables (mediating and moderating) on store loyalty, such as service quality, company image and customer satisfaction. Fourth, the research sample is only 100 respondents. Future research should use a larger sample as this research is customer-based. Practical implications This study has a significant impact on MSMEs management by providing strategies that can increase and retain customers who have high store loyalty. MSMEs need to design loyalty programs to influence customer perceptions of status, buying habits and relationships with companies. If a customer associates a high value with loyalty program membership, the customer is more likely to find the communication relevant and credible, leading to effective communication that can increase store loyalty. Social implications This study provides real strategies and opportunities for MSMEs to develop so that they can survive or compete with similar companies. It is hoped that MSMEs will be able to absorb more labor so that it can increase the contribution of MSMEs to the national economy. Originality/value This study addresses the inconsistency of various results from previous studies regarding the relationship between program loyalty, loyalty programs, communication effectiveness and store loyalty, both directly and indirectly. In addition, several studies have been carried out in large corporate contexts. However, according to the authors’ knowledge, this research is for the first time being conducted in the context of MSMEs.

scholarly journals Why organizational loyalty programs cannot prevent switching

2020 ◽  
Vol 34 (2) ◽  
pp. 207-222 ◽  
Author(s):  
Frauke Mattison Thompson ◽  
Sven Tuzovic
Keyword(s):  
Cultural Values ◽  
Customer Loyalty ◽  
Affective Commitment ◽  
Program Effectiveness ◽  
Industrial Country ◽  
Loyalty Programs ◽  
Switching Behavior ◽  
Loyalty Program ◽  
Content Type ◽  
Individual Level

Purpose The purpose of this study is to investigate the extent to which loyalty programs can prevent switching, and how individual level cultural values impact this. Loyalty programs are designed to create switching costs, which reduce customers’ desire to leave. However, in practice, these programs are often misapplied; that is, most companies inadvertently treat all customers as equal. While ample research has examined the role of loyalty reward programs in facilitating customer loyalty, little is known about the extent to which individual-level cultural values moderate customer loyalty measures of trust and affective commitment and how this impacts the effectiveness of loyalty programs; that is, consumers’ intentions to “stick” with the program or to switch. Design/methodology/approach This study uses a quasi-experiment combined with an extensive survey to collect the data. Findings Based on data collected from one industrial country and four emerging countries, the results show that loyalty programs do not universally prevent switching behavior. Instead, this study finds that individual-level uncertainty avoidance and collectivist values significantly moderate the effects. Originality/value This study helps advance the understanding of how international retailers can increase their loyalty program effectiveness and reduce customer switching to competitors.

The role of regulatory focus and goal progress on goal-directed consumption behaviors

2017 ◽  
Vol 34 (2) ◽  
pp. 147-155 ◽  
Author(s):  
Nga Cheng Chan ◽  
Ying Ho
Keyword(s):  
Regulatory Focus ◽  
Underlying Mechanism ◽  
Joint Effect ◽  
Service Industries ◽  
Loyalty Programs ◽  
Future Research ◽  
Loyalty Program ◽  
Content Type ◽  
Retail Setting

Purpose This paper aims to examine the moderating role of customers’ regulatory focus on the relationship between progress level of goal pursuit and customers’ consumption behaviors in a retail setting. Design/methodology/approach Data were collected from a loyalty program organized by a retail store selling cosmetic and skincare products. Loyalty program participants were given member cards endowed with different progress levels, and their consumption behaviors during the program period were tracked. Regulatory focus of program participants was also assessed. Findings Regression results show that prevention-focused customers are inclined to spend more money, accumulate more stamps and achieve more additional rewards when progress level is high rather than low. This pattern is reversed for promotion-focused customers. Research limitations/implications Future research may investigate the underlying mechanism by testing potential mediators. Researchers may also test the model in non-retail settings such as service industries. Practical implications The findings provide insights to firms regarding when and how to motivate customers with different regulatory orientations in loyalty programs. Originality/value This study examines the joint effect of regulatory focus and progress level on people’s consumption behaviors. The model was tested using actual consumption data collected in a retail setting.

Loyalty program in Africa: risk-seeking and risk-averse adventurers

2014 ◽  
Vol 69 (2) ◽  
pp. 137-157 ◽  
Author(s):  
Shogo Mlozi
Keyword(s):  
Consumer Behavior ◽  
Consumer Products ◽  
Loyalty Programs ◽  
Risk Averse ◽  
Loyalty Program ◽  
Content Type ◽  
Risk Seeking ◽  
Proposed Model ◽  
First Time ◽  
The Relationship

Purpose – This article aims to test the relationship between expected attractiveness-satisfaction-loyalty for international adventure tourists visiting Tanzania. The proposed model is based on travel consumer behavior theoretical constructs extracted from the literature. Design/methodology/approach – This article aims to test the relationship between expected attractiveness-satisfaction-loyalty for international adventure tourists visiting Tanzania. The proposed model is based on travel consumer behavior theoretical constructs extracted from the literature. Findings – The findings for overall model differed from the moderating factors of high risk, low risk, first-time visit and repeat visit. Also, the results are interesting when satisfaction is tested as a mediator. Practical implications – Practitioners could consider the fact that repeat visits may change tourists’ perceptions toward destination and may even increase their inclination to take on risks. This may impact innovation of consumer products in tourism. Also, policy makers could benefit on how loyalty programs can be developed to increase performance. Originality/value – The study offers specific strategic recommendations toward different groups of tourists (i.e. first-time, repeat visitors, risk averse, risk seeking) and proposes logic for setting up a loyalty program as a long-term strategy for success.

Do the calendar anomalies still exist? Evidence from Indian currency market

2016 ◽  
Vol 42 (2) ◽  
pp. 136-150 ◽  
Author(s):  
Satish Kumar ◽  
Rajesh Pathak
Keyword(s):  
Least Square ◽  
January Effect ◽  
Currency Markets ◽  
Content Type ◽  
Currency Market ◽  
Before And After ◽  
Calendar Anomalies ◽  
Ordinary Least Square Regression ◽  
The 2008 Financial Crisis ◽  
Using Data

Purpose – The purpose of this paper is to examine the presence of the day-of-the-week (DOW) and January effect in the Indian currency market for selected currency pairs; USD-(Indian rupee) INR, EUR-INR, GBP-INR and JPY-INR, from January, 1999 to December, 2014. Design/methodology/approach – Ordinary least square regression analysis is used to examine the presence of DOW and January effect to test the efficiency of the Indian currency market. The sample period is later divided into two sub-periods, that is, pre- and post-2008 to capture the behavior of returns before and after the 2008 financial crisis. Further, the authors also use the non-parametric technique, the Kruskal-Wallis test, to provide robustness check for the results. Findings – The results indicate that the returns during Monday to Wednesday are positive and higher than the returns on Thursday and Friday which show negative returns. The returns during January are found to be higher than the returns during rest of the year. Further, all currencies exhibit significant DOW and January effects in pre-crisis period, however, post-crisis; these effects disappear for all currencies indicating that the markets have become more efficient in the later time. The findings can be further attributed to the increased intervention in the forex markets by the Reserve Bank of India after the crisis. Practical implications – The results have important implications for both traders and investors. The findings suggest that the investors might not be able to earn excess profits by timing their positions in some particular currencies taking the advantage of DOW or January effect which in turn indicates that the currency markets have become more efficient with time. The results are in conformity with those reported for the developed markets. The results might be appealing to the practitioners as well in a way that they can consider the state of financial market for financial decision making. Originality/value – The authors provide the first study to examine the calendar anomalies (DOW and January effect) across a range of emerging currencies using 16 years of data from January, 1999 to December, 2014. To the best of the authors’ knowledge, no study has yet examined these calendar anomalies in the currency markets using data which covers two important periods, pre-2008 and post-2008.

Tacit knowledge transfer in coopetition

2017 ◽  
Vol 10 (4) ◽  
pp. 453-468 ◽  
Author(s):  
Amit Kumar ◽  
Swarup Kumar Dutta
Keyword(s):  
Knowledge Transfer ◽  
Tacit Knowledge ◽  
Least Square ◽  
Service Firms ◽  
Content Type ◽  
Ordinary Least Square ◽  
Tacit Knowledge Transfer ◽  
Potential Benefits ◽  
Ordinary Least Square Regression ◽  
Empirical Context

Purpose The purpose of this paper is to understand how firms affiliated to business groups (BGs) are able to improve their innovation capability (IC) when engaged in coopetition (collaboration between competing firms). This study aims to explore the relationship between coopetitive relationship strength (CRS), the extent of tacit knowledge transfer (TKT) and IC as well as examine the moderating effect of both BG affiliation and coopetitive experience. Design/methodology/approach The paper examines inter-firm relationships within the empirical context of Indian manufacturing and service firms, by adopting (ordinary least square) regression analysis to test the various hypotheses. The central thesis is that the TKT in coopetition constitutes an important driver to the IC. Findings The paper provides some evidence that inter-firm CRS influences the extent of TKT, and the extent of TKT affects firm IC. The results support that firms in coopetition gain more if their coopetitive partner has a BG affiliation. In absence of a BG affiliation of any of the coopetitive partners, the buildup of TKT reduces as CRS is increased. Research limitations/implications Additional large-sample of data may attempt to validate relationships. The study, however, did not consider all enablers that are critical for TKT. Despite these limitations, analysis provides important and novel perspectives. Practical implications The paper contributes to develop executives’ practices in understanding potential benefits of coopetitive relationship. The implications of this research are important for managers seeking understanding of the management of coopetition. Originality/value The paper makes a modest attempt to investigate the various scenarios of the presence or absence of the moderation of BGs and its impact on CRS in the buildup of TKT. This is the first attempt to link coopetition to the TKT in the BG literature. This study also contributes to our understanding of coopetition in a non-western context.

Users’ perception of cybersecurity, trust and cloud computing providers’ performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongjiang Xu ◽  
Sakthi Mahenthiran
Keyword(s):  
Cloud Computing ◽  
Structural Equation ◽  
Design Methodology ◽  
Positive Relationship ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Ordinary Least Square ◽  
Ordinary Least Square Regression ◽  
Computing Literature

Purpose This study aims to develop a scale to measure the cloud provider’s performance and it investigates the factors that impact that performance from the users’ perspective. Design/methodology/approach This paper proposes a research framework, develops hypotheses and conducts a survey to test the framework. Findings The results from both ordinary least square regression and structural equation modeling analyzes indicate that information technology complexity negatively and significantly affects users’ perception of the cloud computing providers’ performance. Additionally, the trust in the supervisor significantly enhances the otherwise insignificant positive relationship between providers’ cybersecurity capability and users’ perception of their providers’ performance. Originality/value The research makes important contributions to the cloud computing literature, as it measures users’ perception of the cloud computing provider’s performance and links it with cybersecurity, technical complexity and incorporates both the trust in the client firm’s supervisor and the strength of cybersecurity offered by cloud computing provider.

Antecedents of switching intention in the mobile telecommunications industry

2018 ◽  
Vol 30 (4) ◽  
pp. 1087-1111 ◽  
Author(s):  
Farzana Quoquab ◽  
Jihad Mohammad ◽  
Norjaya Md Yasin ◽  
Nor Liza Abdullah
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Telecommunications Industry ◽  
Switching Cost ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Loyalty Programs ◽  
Content Type

Purpose This study sheds some light on factors that affect customer switching intention in the Malaysian mobile phone service industry. More particularly, the purpose of this paper is to examine the effect of service quality (SQ), customer satisfaction, switching cost and consumer innovativeness (CI) on service switching intention (SWI); the mediating role of customer satisfaction; and the moderating role of service switching cost on the relationship between CI and SWI. Design/methodology/approach Data were collected using a self-administered questionnaire survey that yielded 535 responses. Using structural equation modelling approach, the partial least square software, version 3 was utilised to test the study hypotheses. Findings Results reveal that customer satisfaction, service switching cost and CI directly affect SWI. However, no significant relationship was found between SQ and SWI. Again, data supported the mediating effect of customer satisfaction as well as the moderating effect of service switching cost. Research limitations/implications It is expected that the findings from this study will enable policymakers, managers and marketers to formulate better strategies and effectively implement loyalty programs, preventing their customers from switching. Originality/value This study contributes to the existing literature by testing switching costs as the quasi moderator. Moreover, this is a pioneer study to consider CI as the antecedent of SWI.

scholarly journals Loyalty programs: the vital safety feature for airlines to survive COVID-19

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel E. Pascual ◽  
Lisa Nicole Cain
Keyword(s):  
Airline Industry ◽  
Loyalty Programs ◽  
Current Response ◽  
Long Term Effects ◽  
Loyalty Program ◽  
Case Study Methodology ◽  
Content Type ◽  
Hospitality And Tourism ◽  
American Airlines

PurposeThe airline industry has been severely impacted by COVID-19 due to widespread travel restrictions. Its current response is crucial to ensure continued operations after the global pandemic is resolved. One resource the airlines are leveraging is loyalty programs. This study aims to examine the viability of leveraging loyalty programs in times of crisis.Design/methodology/approachThis study employs a case study methodology to examine how one company, American Airlines, has used its loyalty program to survive a pandemic and alleviate the financial costs associated with limited and restricted travel.FindingsAmerican Airlines' AAdvantage loyalty program structure may be used as a benchmark to understand how airlines can anchor their loyalty base to reinvigorate travel interest and use these programs as safeguards in critical instances that may arise in the future.Research limitations/implicationsThe case was bound by the fact that the pandemic was still a threat during the time of analysis. The findings of this case study go beyond the airline industry and may inform other hospitality and tourism organizations on the benefits of loyalty programs in times of financial distress.Originality/valueThis is the first known case study examining the strengths and opportunities of the structure of the American Airlines' AAdvantage program as a means for surviving in a time of crisis. Moreover, understanding how to mitigate the long-term effects of crises may help to inform future short-term strategies of airlines and other hospitality and tourism organizations for navigating unexpected shocks to their ecosystem.

Spillover effect of regulatory accounting inspections on accounting quality of peer companies

2020 ◽  
Vol 35 (5) ◽  
pp. 685-704
Author(s):  
Eunjung Cho ◽  
Jeehong Kim ◽  
Sooin Kim
Keyword(s):  
Financial Reporting ◽  
Spillover Effect ◽  
Discretionary Accruals ◽  
Least Square ◽  
Disciplinary Action ◽  
Future Research ◽  
Accounting Quality ◽  
Content Type ◽  
Negative Results

Purpose The purpose of this paper is to examine whether a negative outcome (i.e. a sanction) of an inspection by Korea’s Financial Supervisory Service for an industry-leading company affects the accounting quality of other companies in the same industry. The premise is that when peer companies observe the negative results of such an inspection on a leader in their industry, they will be more concerned about their own risk during a future inspection and more likely to increase their accounting quality. Design/methodology/approach The authors conduct a mutivariate Oridnary Least Squares (OLS) regression using 11,476 South Korean samples from 2002 to 2016. The study uses ordinary least square regressions to test the hypotheses using discretionary accruals as a proxy for accounting quality. Findings The authors find that peer companies reduced their discretionary accruals in the next period and that this reduction is amplified according to the severity of the disciplinary action on the industry leader and the materiality of errors in that leader’s financial statements. Originality/value This finding contributes to the literature by providing the first evidence of a spillover effect of regulatory inspection on accounting quality that financial reporting sanctions not only affect the overall accounting quality of the sanctioned company but also that of its peers in the same industry. The authors expect this study to lead to future research on the effect of other regulations on industry-wide accounting quality.

Sign in / Sign up

Export Citation Format

Share Document