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    Consequence of customer loyalty to the loyalty program and to the company

    Access Status
    Fulltext not available
    Authors
    Evanschitzky, H.
    Ramaseshan, Balasubramani
    Woisetschläger, D.
    Richelsen, V.
    Blut, M.
    Backhaus, C.
    Date
    2012
    Type
    Journal Article
    
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    Citation
    Evanschitzky, H. and Ramaseshan, B. and Woisetschläger, D. and Richelsen, V. and Blut, M. and Backhaus, C. 2012. Consequence of customer loyalty to the loyalty program and to the company. Journal of the Academy of Marketing Science. 40 (5): pp. 625-638.
    Source Title
    Journal of the Academy of Marketing Science
    ISSN
    00920703
    School
    School of Marketing
    URI
    http://hdl.handle.net/20.500.11937/61933
    Collection
    • Curtin Research Publications
    Abstract

    Gaining customer loyalty is an important goal of marketing, and loyalty programs are intended to help in reaching it. Research on loyalty programs suggests that customers differentiate between loyalty to a company and loyalty to a loyalty program, yet little is known about the consequences of these two types of loyalty. Therefore, our study intends to make two main contributions: (1) improving our understanding of the constructs “program loyalty” and “company loyalty”, (2) investigating the relative impact of the two types of loyalty on preference, intention, and purchase behavior for the case of a multi-firm loyalty program. Results indicate that company loyalty influences a customer’s choice to visit a particular provider and to prefer it over competitors, but it is not a strong predictor of purchase behavior. Conversely, program loyalty is a far more important driver of purchase behavior. This implies that company loyalty primarily attracts customers to a particular provider and program loyalty ensures that once inside the store, more money is spent.

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