This study examines three types of rewards in a retail loyalty program context (under-reward, equity-reward, and over-reward) and their impact on perceived distributive justice, customer satisfaction, and repatronize intentions. The results from a between-subjects experiment showed that equity-reward produced higher levels of perceived distributive justice than both under-reward and over-reward. Moreover, equity-reward and over-reward produced higher levels of both customer satisfaction and repatronize intentions than did under-reward. Yet there were no differences in satisfaction and repatronize intentions for equity-reward and over-reward. These outcomes suggest that loyalty programs have the potential of not boosting members' loyalty, at the same time as they may reduce loyalty among non-members.
- Loyalty program rewards and their impact on perceived justice, customer satisfaction, and repatronize intentions
- Magnus Söderlund - Stockholm School of Economics, Center for Consumer MarketingJonas Colliander - Stockholm School of Economics, Center for Consumer Marketing
- Journal of Retailing and Consumer Services, Vol.25, pp.47-57
- Elsevier
- 11
- 991001480212006056
- Center for Consumer Marketing
- English
- Journal article