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The effects of purchase orientations on perceived loyalty programmes' benefits and loyalty

Lars Meyer‐Waarden (Humans and Management in Society Institute, EM Strasbourg Business School, Strasbourg, France)
Christophe Benavent (CEROS Institute, University Paris X, Paris, France)
Herbert Castéran (Humans and Management in Society Institute, EM Strasbourg Business School, Strasbourg, France)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Article publication date: 8 March 2013

6946

Abstract

Purpose

This article aims to dwell on theoretical, managerial, and empirical knowledge to improve loyalty programme efficiency. Its intention is to try to understand how economic, hedonist, relational, convenience, informational rewards enhance or undermine customers' perceived programme benefits as well as subsequently loyalty according to individual shopping orientations (economical, hedonist, social‐relational, apathetic, brand/loyal).

Design/methodology/approach

The research uses self‐determination theory (SDT) and purchase orientations to classify types of rewards in terms of their effect on perceived programme benefits and loyalty. Scales are developed through exploratory and confirmatory factor analysis. To validate the hypotheses, surveys in two retail chains (grocery/perfumery) are used. Structural equation modelling confirms the research model.

Findings

Perceived benefits and loyalty vary according to purchase orientations, in line with the SDT. Intrinsic (extrinsic) rewards motivate customers to act to obtain a benefit within (apart from) the target of their purchase orientation and influences loyalty positively (have low impact on loyalty).

Research limitations/implications

Further testing of reward types, in(ex)trinsic motivation, across multiple contexts is necessary for validity enhancement as it remains challenging to categorize purchase orientations and rewards. It is necessary to precisely define the degree of the relationship among an intrinsic purchase orientation and perceived loyalty programmes' benefits as orientations might be multidimensional.

Practical implications

Differentiation through tailored rewards is necessary in markets with strong competition to appeal to different segments. Differentiation could be achieved through nonmonetary benefits. The principal role of loyalty programmes should be to identify and segment customers as a means to improve resource allocations.

Originality/value

This is one of the pioneer articles in the use of SDT in marketing research. SDT provides a multi‐benefit framework which identifies the different (non‐) monetary rewards customers may value (in)extrinsically when participating in loyalty programmes. The development of scales which focus on rewards and the impact of purchase orientations on loyalty programmes' perceived benefits is another contribution.

Keywords

Citation

Meyer‐Waarden, L., Benavent, C. and Castéran, H. (2013), "The effects of purchase orientations on perceived loyalty programmes' benefits and loyalty", International Journal of Retail & Distribution Management, Vol. 41 No. 3, pp. 201-225. https://doi.org/10.1108/09590551311306255

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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