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.

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.

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.

scholarly journals RETAIL LOYALTY PROGRAMS IN MALAYSIA: THE RELATIONSHIP OF EQUITY, VALUE, SATISFACTION, TRUST, AND LOYALTY AMONG CARDHOLDERS / MAŽMENINĖS PREKYBOS LOJALUMO PROGRAMOS MALAIZIJOJE: NUOSAVAS KAPITALAS, VERTĖ, PASITENKINIMAS, PASITIKĖJIMAS IR LOJALUMAS

2011 ◽  
Vol 12 (2) ◽  
pp. 332-352 ◽  
Author(s):  
Nor Asiah Omar ◽  
Syed Shah Alam ◽  
Norzalita Abdul Aziz ◽  
Muhamad Azrin Nazri
Keyword(s):  
Social Exchange ◽  
Structural Equation ◽  
Equation Model ◽  
Loyalty Programs ◽  
Future Research ◽  
Store Loyalty ◽  
Program Satisfaction ◽  
Equity Value ◽  
Perceived Equity ◽  
The Relationship

This study examines loyalty programs in Malaysia in terms of perceived equity, value, program satisfaction, program trust, and store loyalty. A total of 400 questionnaires were collected from cardholders in Klang Valley, Malaysia. The hypotheses were based on social exchange and equity theories. The structural equation model that assessed the relationship between the proposed variables was tested using AMOS 6.0. The findings revealed that perceived equity and perceived value of the loyalty program significantly influence program satisfaction and trust. Program trust was the most important predictor of store loyalty. Limitations of the study and recommendations for future research are discussed. Santrauka Autoriai analizuoja Malaizijoje paplitusias mažmeninės prekybos programas, t. y. jų vertę, patrauklumą, pasitikėjimą programa ir lojalumą. Tyrime dalyvavo 400 respondentų. Hipotezės buvo pagrįstos socialinių mainų ir lygybės teorijomis. Sudarytas struktūrinis modelis vertina siūlomų rodiklių ir jų variacijų santykinę priklausomybę naudojant AMOS 6.0. Gauti rezultatai parodė, kad tiek nuosavo kapitalo, tiek siūlomos programos lojalumas turi įtakos programos pasitenkinimo ir pasitikėjimo lygiui. Pasitikėjimas programa buvo vienas svarbiausių veiksnių vertinant vartotojų lojalumą.

scholarly journals How store flyers design affect perceived variety of retailers’ assortment

2019 ◽  
Vol 119 (2) ◽  
pp. 382-396 ◽  
Author(s):  
Maciel Prediger ◽  
Ruben Huertas-Garcia ◽  
Juan Carlos Gázquez-Abad
Keyword(s):  
Laboratory Experiment ◽  
Conjoint Analysis ◽  
Future Research ◽  
Store Loyalty ◽  
Store Brand ◽  
National Brand ◽  
Content Type ◽  
Returns On Investment ◽  
The Relationship ◽  
Perceived Variety

PurposeThe purpose of this paper is to investigate the relationship between several aspects of store flyers design (presence of a institutional slogan, type of product (national brand (NB) or store brand (SB)) featured on the cover page, the size of the flyer, number of featured NBs, type of brand (NB vs SB) on promotion, and price difference between the most expensive (NB) and the cheapest SB) and the consumer’s perceived variety of the retailer’s assortment, as a dimension of its global image.Design/methodology/approachA mixed laboratory experiment that combined a between-subjects experimental design and inter-subject conjoint analysis was conducted. A fictitious flyer from a fictitious supermarket was created that included both real NBs and fictitious SBs. In total, 12 scenarios (i.e. flyers) were tested using a sample of 406 participants.FindingsAnalysis suggests that longer flyers have the greatest influence on consumers’ perceived variety of a retailer’s assortment; a greater number of NBs in a category influenced consumers’ perceptions positively, and featuring SBs on the cover enhanced perceived variety. If a retailer features SBs on a flyer’s cover, longer flyers are recommended, and shorter flyers are recommended if NBs are featured on the cover. A retailer should promote its own brand only if the most expensive NBs are featured with SBs.Research limitations/implicationsThis study analyses a single aspect of consumers’ purchasing behaviors – variety of a retailer’s assortment. Future research should examine other variables related to consumers’ purchasing behaviors. This study uses an online context to test hypotheses, but many aspects of flyer design are physical. Future research should test current findings in offline contexts to compare results. Research should also explore moderation by consumer variables such as brand and store loyalty.Practical implicationsTo researchers, the authors offer improved understanding of how a flyer’s design affects the first stage of purchasing. To practitioners, results offer better understanding of positive returns on investment of store flyers, and to retailers, results offer a guide to creating and organizing flyers.Originality/valueThis study is first to assess how a flyer’s design influences a dimension of store image. Unlike extant research that examines store flyers using econometric models at the aggregate level, this study uses a laboratory experiment that combines a between-subjects design with conjoint analysis.

Intellectual capital and Organization performance in the manufacturing sector of Mexico

2018 ◽  
Vol 56 (8) ◽  
pp. 1818-1834 ◽  
Author(s):  
Manuel Alejandro Ibarra Cisneros ◽  
Felipe Hernandez-Perlines
Keyword(s):  
Intellectual Capital ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
National Level ◽  
Positive Influence ◽  
Future Research ◽  
Organization Performance ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to empirically test the relationship between the various components of intellectual capital (IC) (human, organizational, technological and relational) and organization performance (OP) in small and medium enterprises (SMEs) in the manufacturing sector in the region of Baja California, Mexico. Design/methodology/approach A sample of 127 surveys was applied to CEOs, CFOs or managers of SMEs. In order to test the research hypotheses, a multiple regression was run prior to the development of exploratory and confirmatory factor analyses. Findings The results showed that the four capitals have a positive influence on OP; the evidence is consistent with several studies in Mexico and abroad. Furthermore, knowledge management was introduced as a moderating variable and the result was that it negatively moderates the relationship between IC and OP. Research limitations/implications The main limitation of this research is that it only focused on one region and a single sector in Mexico. However, future research at the national level might verify the hypotheses tested. Originality/value This research contributes to enrich the theoretical framework for the Mexican context regarding IC; additionally, it allows contrasting the evidence with other studies at national and international levels.

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.

A systematic review of the literature on industrial divestment

2019 ◽  
Vol 14 (3) ◽  
pp. 443-461 ◽  
Author(s):  
Pedro Silva ◽  
Antonio Carrizo Moreira
Keyword(s):  
Primary Data ◽  
Future Research ◽  
Short Term ◽  
Content Type ◽  
Process Outcomes ◽  
Review Protocol ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to review the existing research on industrial divestment in order to identify the reasons for it, the process whereby it is achieved, and the outcomes of industrial sell-offs and closures. The study reports the main findings that have gained acceptance in the literature, gaps in the research and potential directions for future research. Design/methodology/approach A three stage systematic literature review protocol was used to conduct this review. The results are organized according to an “Antecedents – Process – Outcomes” framework. Findings The traditional accounts of industrial divestment have been framed in terms of firms’ weak performance and over-diversification as antecedents to divestment, leading to corporate governance issues. However, the list of antecedents of industrial divestment is more extensive. There is no consensus over the impact of some factors on divestments, as is the case of firm and unit size. The results are not conclusive as to whether firm performance improves after divesting. Research limitations/implications Future research should analyze the relationship between the antecedents of investment and divestment. The divestment process is not well studied and more studies that engage in theory building are needed, namely, on primary data and examining the short-term and long-term impacts of divestment on performance. Practical implications This review offers a comprehensive synthesis of the antecedents, the process and outcomes of divestment through sell-offs and closures. Factors such as environmental conditions and the entry mode strategy are important in determining the divestment of subsidiaries. Divestments may be positively or negatively regarded by shareholders, depending on the context of the firm. Promoting managerial changes facilitates divestment. Originality/value This paper synthesizes knowledge of the main reasons as to why firms completely dispose of their assets, contributing to this under-researched field.

The Impact of Financial Literacy on Financial Preparedness for Retirement in the Small and Medium Enterprises Sector in Uganda

2020 ◽  
Vol 9 (3) ◽  
pp. 26-41
Author(s):  
Colin Agabalinda ◽  
Alain Vilard Ndi Isoh
Keyword(s):  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Group Analysis ◽  
Moderating Effect ◽  
Primary Data ◽  
Retirement Preparedness ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship ◽  
Effect Of Age

The study investigated the direct effects of financial literacy (knowledge, skills, and attitudes) on financial preparedness for retirement and the moderating effect of age among the small and medium enterprises in Uganda. Primary data was collected from a sample of n = 380 selected from the SME workforce. Descriptive analysis was run on SPSS, while validity and reliability of the measurement items yielded satisfactory composite reliability scores and average variance explained (AVE) scores for all items. Structural equation modelling (SEM) was used to test the hypotheses and multi-group analysis conducted to test for the moderating effect of age on the relationship between financial literacy and retirement preparedness. The results revealed that knowledge and skills were significant predictors of retirement preparedness. However, ‘attitude' was not a significant predictor, and age had no moderating effect on the relationship between the study variables. These findings present practical implications for policymakers and financial educators in a developing country context.

Do the heterogeneous determinants of life satisfaction affect differently across borrowers of diverse credit sources? A propensity score approach

2018 ◽  
Vol 45 (8) ◽  
pp. 1142-1158 ◽  
Author(s):  
Tiken Das ◽  
Manesh Choubey
Keyword(s):  
Life Satisfaction ◽  
Propensity Score ◽  
Probit Model ◽  
Ordered Probit ◽  
Primary Data ◽  
Ordered Probit Model ◽  
Future Research ◽  
Content Type ◽  
Credit Access ◽  
Physical Assets

Purpose The purpose of this paper is to evaluate the non-monetary effect of credit access by providing an econometric framework which controls the problem of selection bias. Design/methodology/approach The study is conducted in Assam, India and uses a quasi-experiment design to gather primary data. The ordered probit model is used to evaluate the non-monetary impact of credit access. The paper uses a propensity score approach to check the robustness of the ordered probit model. Findings The study confirms the positive association of credit access to life satisfaction of borrowers. It is found that, in general, rural borrower’s life satisfaction is influenced by the ability and capacity to work, the value of physical assets of the borrowers as well as some other lenders’ and borrowers’ specific factors. But, the direction of causality of the factors influencing borrowers’ life satisfaction is remarkably different across credit sources. Research limitations/implications The study argues to provide productive investment opportunities to semiformal and informal borrowers while improving their life satisfaction score. Although the results are adjusted for selection and survivorship biases, it is impossible with the available data to assess which non-income factors explain the findings, and therefore this limitation is left to future research. Originality/value The study contributes to the literature of rural credit by assessing the probable differences among formal, semiformal and informal credit sources with respect to non-monetary impacts.

The relationship between MNCs’ strategies and executive staffing

2017 ◽  
Vol 25 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Sangeetha Lakshman ◽  
C. Lakshman ◽  
Christophe Estay
Keyword(s):  
International Business ◽  
Business Strategy ◽  
Global Strategy ◽  
Business Strategies ◽  
Future Research ◽  
Research Approach ◽  
Global Integration ◽  
Content Type ◽  
Managerial Implications ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approach Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. Findings The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implications Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implications The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/value Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.

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