Project

Customer Loyalty, Engagement & Share of Wallet

Goal: Examines loyalty and engagement strategies for service firms.

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Jochen Wirtz
added 10 research items
Marketers have increasingly been utilizing membership programs for various objectives. However, there is little theoretical understanding in this area to provide a concise, conceptual understanding of the workings of membership marketing. This paper attempts to fill this void by developing a conceptual model that draws from the relationship marketing, loyalty programs, and sociopsychology literatures. This paper provides a definition of membership marketing and differentiates it from other loyalty programs. We propose that three factors (i.e., organizational objectives, consumer values, and market situational factors) interactively determine whether a membership program would potentially be effective, and if yes, determine (1) the types of membership, and (2) the specific design features that could be offered to ensure its success.
There is a growing interest in understanding how consumer preferences and choices vary with experience in a product/service category. Previous research provides support for a conceptual distinction between self-assessed or subjective knowledge and objective knowledge. Yet relatively little is known about the impact of these two knowledge types on consumers’ pre-purchase choice and service loyalty behaviors. To bridge that gap, this study examined the relative influence of subjective and objective knowledge on choosing a physician practicing traditional Chinese medicine, and on remaining loyal to the chosen provider. Our findings indicate that high objective knowledge translates into larger consideration sets and decreased loyalty. Although subjective knowledge also had a positive impact on evoked set size, its magnitude was smaller than that observed for objective knowledge. Furthermore, unlike its objective counterpart, self-assessed knowledge did not reduce service loyalty.
ABSTRACT This study, set in a credit card context, examined the impact of loyalty programs on share of wallet and explored the moderating,role of attitudinal loyalty on this relationship. We were particularly interested in two characteristics of reward programs: their perceived attractiveness and perceived switching costs between,loyalty programs. Our findings suggest that perceived switching costs were highly effective in driving share of wallet at low rather than high levels of attitudinal loyalty, and only when combined with an attractive reward
Jochen Wirtz
added a project goal
Examines loyalty and engagement strategies for service firms.