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Perceived Benefits of Loyalty Programs: Scale Development and Implications for Relational Strategies

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Abstract

Positive outcomes of loyalty programs are clear for firms, yet little research examines customer perceptions. To address this gap, this article investigates various perceived benefits of loyalty programs using a multi-benefit framework based on utilitarian, hedonic, and relationship literature. Two quantitative studies, involving 658 French members of loyalty programs, provide a 16-item scale that measures five types of perceived benefits: monetary savings, exploration, entertainment, recognition, and social benefits. The five dimensions have different impacts on satisfaction with the program, loyalty to the program, and perceived relationship investment of the firm. This article offers a discussion of the theoretical and managerial implications of these findings for relationship marketing strategies.

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... More specifically, value in an RLP is driven by three consumer choice-based drivers, namely, utilitarian, hedonic and symbolic drivers (Stathopoulou and Balabanis, 2016). Utilitarian value emanate from functional and economic benefits (Yoo et al., 2018), hedonic value from subjective feelings of emotion, experiences, joy, pleasure or entertainment (Meyer-Waarden et al., 2013) and symbolic value from intangible rewards associated with recognition, social benefits and special treatment rewards (Mimouni-Chaabane and Volle, 2010). Repeat purchase behaviour H7 ...
... The recognition of customers through improved differentiation, customisation and special-treatment benefits is central to symbolic benefits and include, for example, access to VIP treatment (Yoo et al., 2018) or premium check-in facilities (Mimouni-Chaabane and Volle, 2010). Symbolic drivers of value therefore reflect the softer dimensions of RLPs due to not being monetary related and driving the sense of appreciation, value, recognition and social benefits (Stathopoulou and Balabanis, 2016) that drive emotional engagement towards the program (Kyguoliene et al., 2017). ...
... The arguments of Finn (2012, p.107) that delight occurs once a minimum threshold of satisfaction is surpassed, seem to apply to the expectations of value from the RLPs of FIs, suggesting a preference for rewards that elicit higher-order psychological relational outcomes. These findings not only provide support for designing RLPs that are as comprehensive as possible to cater for subjective and personal perceptions of value, but also that rewards need to be personalised to elucidate a heightened state of emotions, experiences, recognition and special treatment (Mimouni-Chaabane and Volle, 2010;Dorotic et al., 2012) that surpass the minimum base expectation typical of utilitarian rewards. By implication, the notion that the rewards offered by FIs are highly commoditised (that is, undifferentiated and not necessarily unique enough) is implied by the results, potentially justifying the reason why FIs have a lower uptake of their RLPs than those offered by retail firms: FIs have less detail of the underlying products and services that are being purchased in respective transactions -a feature that retail firms are privy to. ...
Article
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This study investigates the impact of value preferences on relational outcomes such as loyalty and repeat purchase behaviour that customers of financial institutions (FIs) have towards their rewards and loyalty programs (RLPs). Using a structural equation model, the results indicate that utilitarian, hedonic and symbolic value drivers are all positively associated with perceptions of delight, satisfaction, trust, attitudinal and behavioural loyalty. Symbolic value drivers were found to have a particularly strong association with perceptions of delight and satisfaction. Although a strong positive relationship was found between attitudinal loyalty and repeat purchase behaviour, no significant relationship was found between behavioural loyalty and repeat purchase behaviour. The findings suggest that if RLPs provide a comprehensive ecosystem reflecting aspects of all the value drivers, customers will be more likely to exhibit true loyalty towards the program of the FI if symbolic rewards are particularly prominent due to eliciting higher-order psychological relational outcomes.
... Y. Liu, 2007). The loyalty program can only achieve its goals if clients perceive the benefits presented by the companies (Agarwal et al., 2022;Mimouni-Chaabane & Volle, 2010;S. Yang et al., 2018). ...
... Based on the original framework related to the benefits of loyalty as proposed by Yi and Jeon (2003) along with the structure of advantages given by Mimouni-Chaabane and Volle (2010), the current study analyses customers' perception regarding the different categories of benefits accruing from loyalty programs. The benefits are categorised as utilitarian benefits, symbolic benefits, and hedonic benefits which are financial, appreciation & communal, and exploration & entertainment benefits respectively. ...
... Utilitarian advantages include practical, instrumental, or cognitive qualities that meet customer needs (Chiu et al., 2014). Along with meeting customer needs, utilitarian benefits offer financial and convenience benefits (Chai et al., 2015;Mimouni-Chaabane & Volle, 2010;Omar et al., 2015;S. Yang et al., 2018). ...
... Based on social exchange theory (SET) (Emerson, 1976), the present research examines whether green LPs can be perceived as more valuable than conventional ones. A large body of research has indicated that LPs can only build loyalty through customer value perception (Kreis and Mafael, 2014;Mimouni-Chaabane and Volle, 2010). However, to our knowledge, the role of perceived value has not been explored with regard to green LPs. ...
... Economic value reflects financial advantages and the LP's capacity to save customers money (Kreis and Mafael, 2014;Mimouni-Chaabane and Volle, 2010). Most customers attach importance to the economic benefits of LP membership as they are tangible and easy to evaluate (Mimouni-Chaabane and Volle, 2010). ...
Article
Purpose Given the controversial nature of the effectiveness of loyalty programs (LPs), this paper examines the effect of a new type of LP, namely green LPs, on consumers' perceived value of LPs. Specifically, the authors identify three types of green LP design and test their impact on perceived value. Design/methodology/approach An experimental protocol involving 1,016 shoppers was adopted in order to analyze the three types of green LPs identified in the literature. Findings Supported by social exchange theory (SET), the results show that a green LP can influence the perceived value of LPs. Such programs can drive psychological value in addition to the economic value linked only to monetary incentives. LPs rewarding sustainable behavior appear to be the most significant generators of value. Originality/value Since corporate social responsibility (CSR) is now critical to a company's success, this study investigates how firms can integrate it in order to improve the effectiveness of their LP design.
... Definition Accessibility [29] The degree to which consumers can access several channels using omnichannel (i.e., access timing, connection, and place) Monetary Saving [97] The extent to which consumers save money using omnichannel (i.e., lower price and payment cost) ...
... Saving [97] MOS1 I chose omnichannel because I want to purchase a good quality product at a lower price. ...
Article
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Nowadays, consumers use information devices to use products and services through various channels. Omnichannel promotes sales improvement by allowing businesses to secure multiple channels. It provides consumers with a wider range of choices and monetary advantages. As such, omnichannel facilitates economic sustainability as a major platform for commerce. The purpose of this study is to identify the determinants of consumers’ continuous intention to use omnichannel. This research collected data from 262 consumers who had used omnichannel. Partial lease square structural equation modeling was employed to analyze the empirical data. The results found that accessibility positively affects perceived ease of use, perceived usefulness, and relative advantage. Monetary saving positively influences relative advantage. Perceived risk has a negative association with relative advantage. Continuance intention is influenced by relative advantage, attitude, subjective norms, and perceived behavioral control. This study offers an academic contribution in that the model was expanded by combining the theories of both technology and human behavior. It provides practical implications that omnichannel practitioners should prioritize money saving, perceived risks, and relative advantages. To enhance the generality of the results, future research needs to survey consumers in more countries. This work would be a useful guide to the sustainability of the economy.
... The definition of beauty is very relative. It can be said that beauty standards, from time to time, continue to change along with changes in human standards for defining beauty [1]. Beauty standards can also vary in each country. ...
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The purpose of this study is to examine how consumers' purchase intentions are affected by price discounts by examining how they are regarded to be beneficial, valuable, and high-quality. This study used a conclusive research design and a descriptive research type, and it was quantitative in nature. This study employs a single cross-sectional design so each sample will be sampled just once. The target population for this study was everyone who had done retail shopping. There were 100 samples used in this investigation. Online questionnaires were distributed by researchers in order to gather data. Researchers processed pre-test data using SPSS and factor analysis. Research leads one to the following conclusions on the study's findings: Discounts on prices positively impact the perceived savings. Discounts in price have a detrimental effect on the perceived quality. Price reductions positively impact other price reductions. Discounts in price positively impact the perceived savings. Discounts in price positively impact the perception of quality. Perceived value is positively influenced by the price reduction effect. In terms of perceived savings, perceived quality, and perceived value, the price discount influences the mediator and positively effects price discounts. Perceived value is positively impacted by perceived savings. Perceived value is positively impacted by perceived quality. Purchase intentions are positively impacted by perceived value.
... In general, it has been argued that, as it is challenging to integrate non-monetary promotions with the cost of the product, consumers regard these promotions as separate gains (Furinto et al., 2009;Leenheer et al., 2007;Morrisson and Huppertz, 2010;Mimouni-Chaabane and Volle, 2010), and progressively feel less attracted by promotions from other retailers (Meyer-Waarden, 2008). Research also has proven that this type of promotion prompts the consumer to buy on impulse (Nagadeepa et al., 2015). ...
Article
Purpose Drawing upon the elaboration likelihood model, this study aims to illuminate contradictory findings from previous research regarding the impact of positive and negative emotions, as well as promotions, on impulse buying (IB). Specifically, this study takes a two-faceted approach to IB, considering both affective IB and cognitive IB. Design/methodology/approach A proposed model of IB is tested using a mall intercept survey. Findings The findings provide evidence for the two-dimensional nature of IB. Cognitive and affective IB are affected differently by promotions and emotions, and in turn, have different impacts on cognitive dissonance (CD). Specifically, promotions have a positive effect only on cognitive IB, while positive emotions have a positive effect only on affective IB. Additionally, cognitive IB positively affects CD, while affective IB does not. Research limitations/implications Future research could explore different types of IB and unplanned purchases, consider the valence and arousal dimensions of emotions and examine how technological changes impact IB. Additionally, studying satisfaction as a mediator between IB and cognitive dissonance can contribute to the understanding of IB post-purchase outcomes. Practical implications By tailoring promotional techniques to cognitive IB and using positive emotions to stimulate affective IB, retailers can enhance the effectiveness of strategies. Furthermore, post-purchase strategies can be developed to reduce the negative effects of CD. Originality/value By exploring the different dimensions of IB and their relationships with CD, this study enhances our understanding of the underlying processes and mechanisms that drive consumer IB behavior during and after shopping trips.
... In addition, in the literature there are recommendations for further studies considering monetary and non-monetary benefits, and studies that seek to determine causes and consequences of perceived benefits for loyalty programs (Mimouni-Chaabane & Volle, 2010) or the need new research addressing the theme and also relating it to other variables and/or constructs (Boksberger & Melsen, 2011;Sánchez-Fernández & Iniesta-Bonillo, 2007) both antecedent and consequent constructs of perceived value (M. Choi et al., 2017). ...
Article
The purpose of this paper is to test the PERVAL scale by consumers of vegetarian food concerning the perceived value and to verify its influence on satisfaction and loyalty. A survey was conducted through social media and 484 responses were obtained. The data were analyzed using multivariate statistical techniques and structural equation modeling. The results indicate that the PERVAL scale has nomological validity and that the perceived value is formed quality, price, emotional and social values. The perceived value influences the satisfaction (R2 = 64%) and loyalty (R2 = 45%) of consumers of vegetarian food but consumer satisfaction did not have a statistically significant impact on their loyalty.
... Both types of rewards have been proven to positively impact customer satisfaction towards the loyalty program and the retailer, leading to long-term loyalty outcomes (Bridson et al. 2008). Moreover, despite more expensive, non-monetary rewards are usually offered, alongside monetary rewards, since they are unique and not easy to replicate by competitors (Chaabane and Volle 2010). Remarkably, customers may react differently to the same rewards offered, based on their own characteristics or motivations. ...
... Loyalty programs offer prices and encourage customers to repeat purchasing (Dorotic et al., 2012). The programs give customers with practical, hedonic, and emblematic benefits (Mimouni-Chaabane & Volle, 2010). They are designed to increase the chances of re-buying from being customers, attract new customers, and improve consumer perception of its value (Erbschloe, 2017). ...
Article
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The study aims to investigated of iGen customer loyalty model that effected by service quality, culture, loyalty program and trust trough customer satisfaction. Following the conceptual model, an inclusive set of hypotheses have been developed. The demanded data were collected from 663 samples using an online survey, and Structural Equation Model with Smart Partial Least Square was applied to test the model and hypotheses. The research found that service quality, culture,loyalty programs, and trust are combined to predict customer loyalty. Trust and loyalty programs exert a more powerful impact on customer loyalty than service quality and culture variables. Customer satisfaction acts as a mediator in the relationship between service quality, loyalty programs, customer trust, and customer loyalty. The results have some critical academic and professional implication for determining the model of consumer loyalty and the internet generation (iGen) in mobile communication services. The study can be used as a part model in formulating a marketing strategy operation that has a competitive advantage in the mobile communication services in Indonesia.
... Both types of rewards have been proven to positively impact customer satisfaction towards the loyalty program and the retailer, leading to long-term loyalty outcomes (Bridson et al., 2008). Moreover, despite more expensive, non-monetary rewards are usually offered, alongside monetary rewards, since they are unique and not easy to replicate by competitors (Chaabane and Volle, 2010). Remarkably, customers may react differently to the same rewards offered, based on their own characteristics or motivations. ...
Chapter
When designing a loyalty program, a major decision is that of identifying which rewards and of which nature (monetary vs. non-monetary) to offer. Customers do not evenly react to the same rewards, a fact that draws retailers to identifying segments that share a common preference. The present study adopts a generational segmentation approach to identify differences in generational cohorts according to their attitude towards loyalty programs as well towards rewards offered within these programs, in the supermarket industry. Data were collected through a panel survey on 1,162 Italian consumers. Significant differences are found with reference to enrollment in a loyalty program and reasons not to enroll, and to preference for rewards. Implications for retailers and for future research are drawn.KeywordsSupermarket retailingloyalty programgenerational cohort theoryreward type
... Both types of rewards have been proven to positively impact customer satisfaction towards the loyalty program and the retailer, leading to long-term loyalty outcomes (Bridson et al. 2008). Moreover, despite more expensive, non-monetary rewards are usually offered, alongside monetary rewards, since they are unique and not easy to replicate by competitors (Chaabane and Volle 2010). Remarkably, customers may react differently to the same rewards offered, based on their own characteristics or motivations. ...
Chapter
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This study aims to identify the determinants of purchasing private label brands (PLBs) by non-buyers and occasional buyers. This study aims to identify levers that may raise the purchasing rate of non and occasional Private Label Brands (PLBs) buyers.We conducted online quantitative research with 151 customers from a panel attending one of the French retail chains. In addition, we used PLS-SEM to test the research model. The findings show that attitude toward PLBs plays a central role in converting non and occasional PLBs buyers into more regular buyers. Furthermore, theoretical contributions and managerial implications are developed.KeywordsPrivate Label BrandAttitudeTrustOccasional Buyers
... Although it is a common practice that the loyalty benefit is offered in the form of some percentage reduction in product price (Mimouni-Chaabane and Volle, 2010;Kang et al., 2015), there is scarce research recognizing the existing of information discrimination and discussing the underlying mechanism for the implementation of different information strategies. Accordingly, this study examines the impacts of the level of transparency in member-only discount information on customers' behaviors and the associated platform's revenue by making a thorough comparative analysis of the information hiding strategy and information disclosing strategy. ...
... Additionally, a loyalty program motivates customers to participate in loyalty programs on e-commerce sites [76]. Omnichannel clients utilizing at least two channels throughout their encounter with the company build their opinion of quality across all channels, not just one, influencing their total happiness. ...
Article
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Omnichannel is not just a marketing, e-commerce, or customer support buzzword. This future customer engagement platform helps businesses communicate with customers through centralized channels on a smart interface. It is difficult to achieve customer loyalty when the risk in online transactions, which creates anxiety, exists in all transaction processes in an omnichannel system. Hence, the purpose of this research was to analyze the influence of anxiety on relationships when clients purchase from an omnichannel platform using the stimulus-organism-response (SOR) paradigm. To fulfill study aims, qualitative and quantitative research approaches were used. In-depth interviews and focus group discussions were used to acquire qualitative data, while survey responses from 485 participants were used to collect quantitative data. This study's results revealed relationships between consumer psychology factors such as perceived mental benefits, hedonic value, and anxiety. Moreover, customer anxiety in omnichannel can be measured as a novel and exact concept in marketing science and have a moderating role in the effect of perceived mental benefits on electronic loyalty and perceived mental benefits on hedonic value in omnichannel systems. As a result, enterprises were also offered various managerial implications to develop their omnichannel system.
... D'après Berry ( , 2002 Volle, 2010 ;Chen et Chiu, 2009). Les recherches sur le concept de qualité vont montrer que l'évaluation de la qualité perçue par le consommateur est affectée par la crédibilité, la réputation, l'image, la notoriété, etc. de la marque (Parasuraman, Zeithaml et Berry, 1985Grönroos, 1990 ;Chen et Chiu, 2009 ;Stanaland, Lwin et Murphy, 2011). ...
Thesis
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... Hasil penelitian (Erita, 2019) menyatakan bahwa indikator dari persepsi manfaat konsumen yaitu kegunaan yang dirasakan dan produk dirasakan yang mengenakan. Sedangkan menurut (Volle, 2010) menyatakan bahwa persepsi manfaat konsumen ini diukur dengan indikator yaitu nilai emosional, nilai sosial, harga atau nilai uang yang bersaing dan kualitas atau nilai kinerja produk. Kemudian (Li, 2009) menyatakan bahwa persepsi nilai pelanggan akan memberikan nilai kepercayaan yang kuat bagi konsumen dalam menentukan pilihan produk atau jasa dengan merek tertentu. ...
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... Past literature has identified a handful of antecedents of PRI in service settings, such as relationshipbonding tactics (Yoon et al., 2008), relationship investment efforts (Shi et al., 2016), perceived benefits (Mimouni-Chaabane & Voile, 2010), benefit convenience (Virto et al., 2019), and new service bonds (Siu et al., 2013). However, existing studies failed to explore the predictors of PRI from a humor usage perspective. ...
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Companies often implement LPs in an effort to foster client loyalty and increase revenue. While effective at attracting fresh participants to the LP, they generally fall short when it comes to retaining those members. To that end, this article will define "LP engagement," discuss possible metrics for it, and explain how it connects to the engagement of organizations. Recent research has demonstrated that traditional measures of LP engagement, such as customer card usage or point redemption, significantly understate the true level of LP engagement. The author identifies four observable actions as indicators of LP participation: app use, point accumulation, point redemption, and benefit receipt. Members of the loyalty program are the only ones to be counted if we want a true headcount. All 318 carpenters in our survey regularly use adhesives and are participants in customer loyalty programs. A structural equation model (SEM) was used to determine a connection between the variables under consideration. Factors such as app usage, redemptions, and benefits were found to affect LP Engagement. User frequency is the sole variable that can change LP satisfaction. Moreover, LP Satisfaction has an impact on LP Engagement.
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Purpose This study aims to investigate the effects of interaction in agricultural product live rooms, including personalization, responsiveness, and entertainment, on consumers’ purchase intention. Design/methodology/approach The SOR model has been applied to formulate hypotheses. This study is based on an online survey conducted with a sample of 433 valid questionnaires from Chinese consumers on the TikTok agricultural products live platform. A partial least squares structural equation modeling (PLS-SEM) is used to test the hypotheses. Findings The findings indicate that (1) interactions (personalization, responsiveness, and entertainment) in the agricultural products live room have a positive effect on perceived values (utilitarian value, symbolic value, and entertainment value); (2) utilitarian value positively affects purchase intention and mediates the effects of personalization and entertainment interactions on purchase intention, respectively; (3) entertainment value positively influences purchase intention and mediates the influence of entertainment interaction on purchase intention. Originality/value This study offers theoretical insights into live marketing of agricultural products and practical implications for practitioners of agricultural products in live streaming commerce.
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Purpose This study adopted the collaborative consumption triangle to explore the influence of online food delivery platforms (OFDP) on consumer purchase intentions. It investigates the effects of restaurants' corporate social responsibility (CSR) practices, individuals' food neophilic tendencies (FNT), and platforms' perceived benefits on purchase intention within OFDP. Furthermore, the study analyses differences in consumers' pro-environmental behaviour (PEB) on OFDP. Design/methodology/approach The 497 participants conducted a web-based self-completion survey, using structural equation modelling to analyse the path structure of consumer purchasing intention. Furthermore, differences in PEB among OFDP consumers were compared through multigroup analysis. Findings The findings indicate that CSR influences the perceived value of sustainability and that the perceived value of sustainability influences purchase intention. Additionally, the influence of the perceived value of sustainability on purchase intention is more pronounced among consumers with low PEB compared to those with high PEB. Research limitations/implications The findings may not be generalisable to other countries due to cultural differences, CSR policies, and strategies for promoting sustainable development. Social implications The study provides valuable contributions related to (1) restaurants increasing their revenue and meeting their long-term sustainable development goals; (2) providing reusable containers policy and reusable containers policy and category tags for restaurants within OFDP. Originality/value This study is a pioneering work examining factors influencing purchase intentions within OFDP from the tripartite collaborative consumption perspective post-COVID-19 and focuses on the differences in PEB concerning OFDP.
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Purpose The purpose of this research is to identify how a reward programme name (“loyalty programme” (LP) versus “customer club” (CC)) influences the type of central rewards expected and their impact on loyalty to the retailer. Design/methodology/approach The authors conducted a survey followed by an experiment. Findings Central rewards from programmes called LP are equally hard and soft, whereas central rewards from programmes called CC are mainly soft. Providing customers with central rewards increases satisfaction with the programme and loyalty to the retailer, but only for programmes called LP. Practical implications Loyalty managers are advised to pay particular attention to the consistency between the type of rewards they offer and the reward programme name that carries them. Contrary to the name LP that leads to me-too programmes, the name CC offers more flexibility to choose the rewards, providing opportunities to stand out from competing programmes. Originality/value By building on a new and original theoretical approach, this research is the first attempt to investigate the effect of the reward programme naming decisions on customers' evaluations and responses.
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Purpose of the study: The aim of the study was to determine the factors contributing to online or in-store shopping behaviour among academics from a private higher education institution in South Africa. In addition the study examined types of products or services consumers are likely to purchase in-store and online and particular aspects relating to store atmosphere, as well as the challenges that were experienced using both modes of shopping. The study was conducted at a private higher education institution. Design/methodology/approach: A cross-sectional quantitative study was conducted among all the academics in the organisation. Findings: the study show that the majority of respondents belonged to generation X and Y and that they are more inclined to purchase from both in-store and online stores rather than a singular mode of shopping. However, there is an element of fear, anxiety and uncertainty that customers face when purchasing online. This is motivated by the Stimulus-Organism-Response (SOR) model. Factors that influence the overall purchasing decision for both online and in-store shopping include accessibility, convenience, delivery service, store aesthetics (atmosphere and ambience) and the availability of an assistant. Recommendations/value: Recommendations for retail marketing managers include the fact that they should consider a hybrid model of both in-store and online shopping. Moreover, invest in enhancing the store image of both physical stores as well as virtual online stores as the subtle atmospheric cues trigger impulse purchasing. Managerial implications: The implications of the study’s findings to the contemporary field of marketing management has been outlined.
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The marketing success of online shopping festivals (OSFs) has captured the attention of consumers. However, research on the effects of perceived benefits during OSFs is scarce. This study examines the effects of five perceived benefits on affective commitment to and advocacy for Vietnamese OSFs. Data were collected from young Vietnamese consumers (n = 245) through an online survey company. The collected data were analyzed using SPSS 26.0 for descriptive statistics, frequency analysis, and reliability analysis. AMOS 22.0 was used for confirmatory factor analysis and structural equation modeling analysis. The results show that high levels of price, product, recreational, and social benefits increase affective commitment, thus increasing consumers’ advocacy intentions for OSFs. Generational differences are also examined. Interestingly, the convenience benefit of OSFs is a positive factor that increases affective commitment only for Millennials. The recreational and social benefits of OSFs are determinants of affective commitment across generations. The findings enrich the literature on OSF participation in Southeast Asia.
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Higher education institutions (HEIs) operate in a dynamic environment driven by increasing competition, reduced funding and the deteriorating South African economy. Understanding the needs of students as customers puts pressure on HEIs to provide a unique customer experience to gain a competitive advantage, as both private and public HEIs compete not only for funding but also for prospective students. This study takes a business perspective of higher education by examining how students relate higher education service providers’ (academic and administrative staff) attitudes towards them, to their perceptions of service experience and satisfaction using a sample of 411 students and 428 employees from private and public HEIs in SA. Convenience random sampling was used to identify and select research participants. SPSS Version 22 was used to perform descriptive and inferential statistical analysis, and structural equation modelling was used to test seven (7) hypotheses. The study results highlighted important issues relating to customer-oriented behaviour in the HE industry. Students are more likely to have positive higher education experiences and be satisfied with services when higher education service providers are customer-focused and have a positive attitude towards students. This study recommends that HEIs ensure that their frontline employees (academics and administrators) are customer-focused and empowered to drive continuous improvement activities to enhance the overall customer experience and student satisfaction while maintaining academic integrity.
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Purpose As internet dividends are gradually disappearing, loyalty programs have become the panacea for monetizing traffic, attracting new customers and retaining existing customers. Improving their effectiveness has thus become key to enterprises’ market competitiveness. However, member customers’ hedonic adaptation to this relationship strategy undermines its effectiveness. Based on the hedonic adaptation theory, this study aims to analyze the process of member customers' hedonic adaptation to preferential treatment in loyalty programs and explore the boundary conditions of alleviating this effect. Design/methodology/approach This study surveyed 271 member customers in China and tested the hypothesized relationships using structural equation modeling and multigroup analysis. Findings Preferential treatment suffers from hedonic adaptation to member customer engagement and customer gratitude, and customer tenure is a key condition for these effects. Customer gratitude is an intermediary mechanism that explains the hedonic adaptation effect of preferential treatment to member customers engagement. In addition, the structural characteristics of loyalty programs form the boundary condition that alleviates hedonic adaptation. The authors found that high-tier and -payment strategies are more likely to mitigate hedonic adaptation of preferential treatment to customer gratitude. Originality/value This study elucidates the factors that influence the effectiveness of preferential treatment and provides constructive insights into customer relationship management and for improving enterprise performance.
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The emergence of digital technology has fundamentally transformed how businesses generate value for their customers. One of the critical components of this paradigm shift in digital transformation is improving customer experience, which benefits both consumers and organizations. This study aims to evaluate customer experience and its influence on customer satisfaction and loyalty in the digital wallet domain. It also analyzes the moderating role of loyalty programs. This study was conducted in the Indian context since, alongside advancements in technology and a focus on digitalization, there has been a substantial increase in the acceptance of cashless payment options. The data from 349 respondents using the snowball sampling technique were collected through Google Forms, and SmartPLS 4.0 was used for analysis.The results showed that loyalty and satisfaction are significantly influenced in the digital wallet domain if organizations work on factors affecting customer experience. The results also proved that loyalty programs moderate the relationship between customer experience and customer satisfaction.This analysis successfully unlocked the potential of loyalty programs and established that loyalty programs do not moderate customer loyalty. However, organizations must note that poorly designed loyalty programs are just like any other sale promotion scheme, which adds up to the promotional expense without achieving the overall long-term objective of sustaining loyal consumers.
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Loyalty Programs (LPs) aim to increase profit by rewarding, with various benefits, customers who patronize the retailer. This study investigated the benefits LPs provide in the South African Fast-moving consumer goods (FMCG) marketplace and how these influence relationship quality and loyalty between retailer and customer. How the perceived benefits of LPs contribute to relationship quality (satisfaction, trust and commitment), and how they lead to loyalty are examined. To illustrate these relationships, a model showing three independent (perceived benefits, namely altruistic, consumeristic, and egoistic) and three dependent variables (relationship quality, namely trust, satisfaction, and commitment), plus customer loyalty, was developed. A quantitative survey was administered electronically over 11 days to a randomly selected sample of 5000 consumers per day from a commercial database, resulting in 1944 responses. After the deletion of incomplete or inappropriate responses, 479 usable replies remained. Since this sample was self-selected, it should be considered a convenience sample. Structural equation modelling (SEM) with confirmatory factor analysis (CFA) was applied to test the hypotheses and develop the model. SEM indicated that respondents consider egoistic and consumeristic benefits as the same. Furthermore, trust and satisfaction manifest as a single construct. Both consumeristic and altruistic benefits had a significant positive relationship with this unified construct of trust/satisfaction, and the relationship between altruistic benefits and commitment was also positive and significant. Finally, although neither altruistic nor consumeristic benefits appeared to contribute directly to loyalty, a positive relationship existed between the new construct of trust/satisfaction and those of commitment and loyalty. The pathway to loyalty is indirect, and to reach this sought-after goal, relationship quality constructs must first be achieved.
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As market competition intensifies, companies recognize the value of attracting customers to participate in activities and loyalty programs (LPs) that encourage repeat purchases and maintain customer loyalty. Literature on LP design explores the positive impact of program structure and rewards on the acquisition of customers. However, research is lacking on the role of LP information transparency on customer participation intention. This study uses 280 college students in China as the survey object to explore the influence of LP information transparency on willingness to participate in such programs. Using experimental design methods, the authors verify whether the type of merchant and channel customers select affect willingness to participate when customers redeem rewards. This study also explains the internal psychological mechanism of information transparency, merchant and channel types, and customer participation intention from the perspective of perceptual psychological distance in construal level theory (CLT) and the elaboration likelihood model (ELM). Both information visibility and accessibility have a positive impact on customer intention to participate in LPs. When a customer redeems a reward from a LP operator, information visibility has a more positive impact on willingness to participate than redeeming a reward from an alliance partner. Moreover, when a customer redeems a reward from online channels, the positive impact of information accessibility on willingness to participate is greater than redeeming from offline channels. Under the influence of multiple psychological distance effects, the synergistic effect of merchant type and channel type is not significant in the relationship between information transparency and willingness to participate in LPs. This article will provide design strategies and management suggestions for retail managers to attract customers to participate in LPs.
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This study clarifies the student’s perspective in the disputed territory, to inculcate the influence of personality traits, moral obligation, entrepreneurial education, entrepreneurial intentions, and these relationships mediated by perceived advantage. A framework for the judgment of entrepreneurial mindset in the context of disputed territory and special administrative zones is presented. The data was collected from Eastern students at four universities. The current survey was conducted using purposive sampling, and the sample size was 344 students from four different universities. The study used CFA (Confirmatory Factor Analysis) and SEM (Structural Equation Modeling) for data analysis by using Smart PLS 3.2.9 and SPSS 26. The findings revealed the direct and indirect influence of personality traits entrepreneurial education and moral obligation on the intentions mediated by perceived advantage. Diversely, moral obligations do affect entrepreneurial intention in the presence of perceived advantage. The counterintuitive situation arises in the case of and helpful situation, where moral obligations are not playing role in the case of the disputed territory. The study contributes to enhancing the understanding of the entrepreneurial intention of university students in disputed territories. It brings into light the research agenda of entrepreneurship in disputed territories and special administrative areas. Specifically, the perceived advantage proved unique and verifiable intervening in the role between entrepreneurial education, personality traits, and the moral obligation with entrepreneurial intentions. This research supplies the basis for compatible academic and economic policy formulation. This study supplies a knowledge base for startups in special and disputed territories. It enhances innovation by making students fit their needs.
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The study investigates the iGen customer loyalty model that is affected by service quality, culture, loyalty program, and trust through customer satisfaction. Following the conceptual model, an inclusive set of hypotheses have been developed. The needed data were collected from 663 samples using an online survey, and Structural Equation Model with Smart Partial Least Square was applied to test the model and hypotheses. The research found that service quality, culture, loyalty programs, and trust are combined to predict customer loyalty. Trust and loyalty programs exert a more powerful impact on customer loyalty than service quality and culture variables. Customer satisfaction is a mediator between service quality, loyalty programs, customer trust, and customer loyalty. The results have some critical academic and professional implications for determining the model of consumer loyalty and the uniqueness of internet generation (iGen) in mobile communication services. The study can be used as a role model in formulating a marketing strategy management with a competitive advantage in mobile communication services in Indonesia.
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urpose The purpose of this study is to measure the impact of perceived benefits offered by loyalty programmes on store patronage behaviour and repeat purchase behaviour of customers. Another purpose of this study is to assess the impact of mediating and influencing factors on patronage behaviour and customer loyalty. Design/methodology/approach The convenience sampling method was adopted for the sample selection. Structured questionnaire instruments were distributed to subscribers who are enrolled or subscribed to any loyalty programme and asked them to mark their opinions about subscriptions to a loyalty programme and the benefits or perceived values that customers get from the subscribed loyalty program. To determine respondent responses, closed-end questions and Likert scales were used. A SmartPLS statistical programme was used to analyse the coefficient and p-value of the perceived value of the loyalty programme and its relation with patronage behaviour. Findings The study finds a significant impact of various loyalty programme determinants on store patronage behaviour, supported by hypothesis testing. Researchers have used variable commitment to the test with satisfaction and trust and found it supportive. Another hypothesis tested for the impact of satisfaction on trust shows a significant relationship. They found a significant relationship between the perceived benefits of a loyalty programme and satisfaction with the store and trust. Another hypothesis tested for the impact of satisfaction on trust shows a similar relationship. The impact of commitment on loyalty behaviour (store patronage) was analysed and found to be significant. Originality/value To the best of the authors’ knowledge, to date, this methodology has not been used to measure the influence of loyalty programme values on patronage behaviour in the present context. Based on the understanding that the measurement of the impact of perceived values of loyalty programmes on repeat purchase behaviour could be very useful in providing guidance for decision-making in consumer retention strategy, this paper contributes to the literature on the evaluation of store patronage behaviour with its influencing variables.
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Com as constantes mudanças no mundo dos negócios, o ambiente empresarial vem sendo marcado por contínuas transformações, desenvolvidas a partir de tendências tecnológicas e da competitividade entre empresas. Este estudo teve como objetivo investigar a relação entre os programas de fidelidade das companhias aéreas na criação de valor percebido, engajamento e lealdade. Trata-se de um estudo exploratório e descritivo de natureza quantitativa. Adotou-se o método survey para a coleta dos dados, em que foi obtida uma amostra de 429 questionários validados, os dados foram coletados na rede social Facebook, e compreendeu o período de 18 e dezembro de 2019 ao 9 de fevereiro de 2020. Utilizou-se a Modelagem de Equações Estruturais para o tratamento e a análise dos dados. O estudo fornece evidências de que a satisfação é essencial nesse setor e que pode ser um preditor de lealdade. O estudo mostra os efeitos dos benefícios na satisfação e, indiretamente, na lealdade, valor percebido e engajamento. Esse fator fornece informações úteis, mostrando a importância dos benefícios para um público considerado com alto poder de compra. O presente estudo contribuiu para a literatura ao examinar as relações entre os benefícios simbólicos, hedônicos e utilitários, adaptados da literatura de varejo para os programas de fidelidades em companhias aéreas.
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Most research in customer asset management has focused on specific aspects of the value of the customer to the company. The purpose of this article is to propose an integrated framework, called CUSAMS (customer asset management of services), that enables service organizations (1) to make a comprehensive assessment of the value of their customer assets and (2) to understand the influence of marketing instruments on them. The foundation of the CUSAMS framework is a careful specification of key customer behaviors that reflect the length, depth, and breadth of the customer-service organization relationship: duration, usage, and cross-buying. This framework is the starting point for a set of propositions regarding how marketing instruments influence customer behavior within the relationship, thereby influencing the value of the customer asset. The framework and propositions provide the impetus for a research agenda that identifies critical issues in customer asset management.
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This research, investigating retailer-consumer relationships, has three distinct intended contributions: (1) It shows that different relationship marketing tactics have a differential impact on consumer perceptions of a retailer's relationship investment; (2) it demonstrates that perceived relationship investment affects relationship quality, ultimately leading to behavioral loyalty; and (3) it reveals that the effect of perceived relationship investment on relationship quality is contingent on a consumer's product category involvement and proneness to engage in retail relationships. The authors empirically cross-validate the underlying conceptual model by studying six consumer samples in a three-country, transatlantic, comparative survey that investigates two industries.
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This research examines the benefits customers receive as a result of engaging in long-term relational exchanges with service firms. Findings from two studies indicate that consumer relational benefits can be categorized into three distinct benefit types: confidence, social, and special treatment benefits. Confidence benefits are received more and rated as more important than the other relational benefits by consumers, followed by social and special treatment benefits, respectively. Responses segmented by type of service business show a consistent pattern with respect to customer rankings of benefit importance. Management implications for relational strategies and future research implications of the findings are discussed.
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The author presents a conceptual model of brand equity from the perspective of the individual consumer. Customer-based brand equity is defined as the differential effect of brand knowledge on consumer response to the marketing of the brand. A brand is said to have positive (negative) customer-based brand equity when consumers react more (less) favorably to an element of the marketing mix for the brand than they do to the same marketing mix element when it is attributed to a fictitiously named or unnamed version of the product or service. Brand knowledge is conceptualized according to an associative network memory model in terms of two components, brand awareness and brand image (i. e., a set of brand associations). Customer-based brand equity occurs when the consumer is familiar with the brand and holds some favorable, strong, and unique brand associations in memory. Issues in building, measuring, and managing customer-based brand equity are discussed, as well as areas for future research.
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Despite the large number of firms offering loyalty programs and their high levels of consumer membership, many of these loyalty programs have not been successful. This article differentiates among four different types of loyalty programs and offers a series of guidelines to assist firms to develop, implement, and control an effective loyalty program. It also describes several potential pitfalls that need to be avoided.
Article
Despite the proliferation of loyalty programs in a wide range of categories, there is little empirical research that focuses on the measurement of such programs. The key to measuring the influence of loyalty programs is that they operate as dynamic incentive schemes by providing benefits based on cumulative purchasing over time. As such, loyalty programs encourage consumers to shift from myopic or single-period decision making to dynamic or multiple-period decision making. In this study, the author models customers' response to a loyalty program under the assumption that purchases represent the sequential choices of customers who are solving a dynamic optimization problem. The author estimates the theoretical model using a discrete-choice dynamic programming formulation. The author evaluates a specific loyalty program with data from an online merchant that specializes in grocery and drugstore items. Through simulation and policy experiments, it is possible to evaluate and compare the long-term effects of the loyalty program and other marketing instruments (e.g., e-mail coupons, fulfillment rates, shipping fees) on customer retention. Empirical results and policy experiments suggest that the loyalty program under study is successful in increasing annual purchasing for a substantial proportion of customers.
Article
Although frequency programs (FPs) have become ubiquitous in the marketplace and a key marketing-mix tool for promoting customer relationship and loyalty, little is known about the factors that determine how such programs are evaluated by consumers. The authors investigate the impact of the level of effort participants must invest to obtain the reward on the types of rewards they prefer and, consequently, on the decision to join the FP. In particular, the authors propose that higher required effort shifts consumer preferences from necessity to luxury rewards, because higher efforts reduce the guilt that is often associated with choosing luxuries over necessities. A series of studies with approximately 3100 consumers demonstrated that (1) higher program requirements shift preferences in favor of luxury rewards, (2) this effect is also observed when consumers choose between luxury and necessity rewards (of the same value) that they themselves proposed, and (3) the effect of program requirements on reward preferences is stronger among consumers who tend to feel guilty about luxury consumption and among those for whom the effort is invested in the context of work rather than pleasure. In addition, contrary to an alternative explanation based on the notion that higher requirements signal higher value of luxury rewards, the authors show that (1) when the program requirements are held constant but the individual consumer's effort is higher, the shift in preference toward luxuries is still observed and (2) increasing the monetary cost of participating in the FP decreases consumer preferences for luxury rewards. The authors discuss the theoretical implications of this research and the practical implications with respect to the design, targeting, and promotion of FPs.
Article
As shoppers, what factors influence our decision to purchase an object or service? Why do we chose one product over another? How do we attribute value as part of the shopping experience? The theme of 'serving' the customer and customer satisfaction is central to every formulation of the marketing concept, yet few books attenpt to define and analyse exactly what it is that consumers want. In this provocative collection of essays, Morris Holbrook brings together a team of the top US and European scholars to discuss an issue of great importance to the study of marketing and consumer behaviour. This ground-breaking, interdisciplinary book provides an innovative framework for the study of consumer value which is used to critically examine the nature and type of value that consumers derive from the consumption experience - effiency, excellence, status, esteem, play, aesthetics, ethics, spirituality. Guaranteed to provoke debate and controversy, this is a courageous, individualistic and idiosyncratic book which should appeal to students of marketing, consumer behaviour, cultural studies and consumption studies.
Article
Over the past few years, customer relationship management and loyalty programs (LPs) have been widely adopted by companies and have received a great deal of attention from marketers, consultants, and, to a lesser degree, academics. In this research, the authors examine the effect of the level of effort required to obtain an LP reward on consumers' perception of the LP's attractiveness. The authors propose that in certain conditions, increasing program requirements can enhance consumers' likelihood of joining the program, thus leading consumers to prefer a dominated option. Specifically, the authors hypothesize that consumers often evaluate LPs on the basis of their individual effort to obtain the reward relative to the relevant reference effort (e.g., the effort of typical other consumers). When consumers believe they have an effort advantage over typical others (i.e., an idiosyncratic fit with the LP), higher program requirements magnify this perception of advantage and can therefore increase the overall perceived value of the program. The authors support this proposition in a series of studies in which the perceived idiosyncratic fit was manipulated either by reducing the individual effort or by raising the reference effort. The authors' findings also indicate that (1) idiosyncratic fit considerations are elicited spontaneously, (2) idiosyncratic fit mediates the effect of effort on consumer response to LPs, and (3) an alternative account for the results based on signaling is not supported. The authors conclude that the findings are part of a broader phenomenon, which they term the "idiosyncratic fit heuristic," whereby a key factor that affects consumers' response to marketing programs and promotional offers is the perceived relative advantage or fit with consumers' idiosyncratic conditions and preferences.
Article
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
Article
A critical element in the evolution of a fundamental body of knowledge in marketing, as well as for improved marketing practice, is the development of better measures of the variables with which marketers work. In this article an approach is outlined by which this goal can be achieved and portions of the approach are illustrated in terms of a job satisfaction measure.
Article
According to this article, most techniques of market segmentation rely only on DESCRIPTIVE factors pertaining to purchasers and are not efficient predictors of future buyer behavior. The author proposes an approach whereby market segments are delineated first on the basis of factors with a CAUSAL relationship to future purchase behavior. The belief underlying this segmentation strategy is that the benefits which people are seeking in consuming a given product are the basic reasons for the existence of true market segments.
Article
This paper defines hedonic consumption as those facets of consumer behavior that relate to the multisensory, fantasy and emotive aspects of product usage experience. After delineating these concepts, their theoretical antecedents are traced, followed by a discussion of differences between the traditional and hedonic views, methodological implications of the latter approach, and behavioral propositions in four substantive areas relevant to hedonic consumption-mental constructs, product classes, product usage and individual differences. Conclusions concern the usefulness of the hedonic perspective in supplementing and extending marketing research on consumer behavior.
Article
The authors investigate how reward schemes of a loyalty program influence perceived value of the program and how value perception of the loyalty program affects customer loyalty. The results show that involvement moderates the effects of loyalty programs on customer loyalty. In high-involvement situations, direct rewards are preferable to indirect rewards. In low-involvement situations, immediate rewards are more effective in building a program's value than delayed rewards. Under high-involvement conditions, value perception of the loyalty program influences brand loyalty both directly and indirectly through program loyalty. Under low-involvement conditions, there is no direct effect of value perception on brand loyalty.
Article
Collectively, the responses of the individuals interviewed reveal that there is a multitude of reasons for participating in a marketing relationship. Although many of the reasons are cognitive in nature, many others are affective. This affective “dimension” of relationship marketing remains unexplored but would seem to offer great promise for explaining the long-term nature of a firm-consumer relationship. Moreover, a liberal interpretation of the collective responses of the interviewed individuals suggests an alternative fundamental axiom of relationship marketing consistent with the definition of Angeles (1992): Consumers enter into a marketing relationship because they expect to receive positive value from their participation. Acceptance of this axiom would seem to suggest a conceptualization and research agenda much broader and potentially more productive than that associated with the axiom currently being offered. Sheth and Parvatiyar have raised a question that, despite its obviousness in retrospect, has yet to be addressed satisfactorily. Hopefully their article will prove to be the genesis of an answer. Although no one is likely to agree with all of their propositions, or even their speculation that relationship marketing will ultimately improve marketing productivity, Sheth and Parvatiyar have done the discipline a service by focusing attention on a neglected topic. Indeed, what they have effectively done is to challenge the discipline to debate what they believe to be the fundamental axiom of relationship marketing in consumer markets. Regardless of the outcome of this debate, marketing knowledge will have advanced.
Article
We examine one-on-one relationships between customers and sales associates, which we refer to as relationship selling to differentiate it from relationship marketing, using a qualitative research approach. We conducted observations of and interviews with a successful group of retail sales associates and a set of their “call customers.” Based on our data, a relationship formation/enhancement model emerged, which focused on: (1) commitment and orientation to customer service by top management and employees, as well as a desire for a relationship by the customer; (2) augmented personal service and team playing by employees; (3) repeat customer-employee interactions based on trust, friendship, and functionality; and (4) development of customer loyalty to the sales associate and firm, and employee reinforcement and loyalty to the company and customer.
Article
Previous research on both hedonic and utilitarian shopping value has focused much effort on the antecedents of shopping value with very little emphasis on the outcomes of shopping value. This study investigates the complex interrelationships between satisfaction with the retailer, hedonic and utilitarian shopping value, and important retail outcomes. Both hedonic and utilitarian shopping values are found to influence key retail outcomes. The results also support predicted differences in the relative influence of hedonic and utilitarian shopping value. Hedonic and utilitarian shopping values are also found to moderate a number of relationships between satisfaction and retail outcomes.
Article
One of the central tools for enhancing brand/outlet loyalty both in durables and nondurables consumer markets is membership clubs. The present study examines effects of several membership behavior variables on three loyalty dimensions of members in such clubs. Empirical results are reported and discussed.
Article
This research critically reviews the process and procedures used in marketing to assure valid and reliable measures for theoretical model tests involving unobserved variables and survey data, and it selectively suggests improvements. The review and suggestions are based on reviews of articles in the marketing literature, and the recent methods literature. This research also provides several perhaps needed explanations and examples, and is aimed at continuous improvement in theoretical model tests involving unobserved variables and survey data.
Article
Relationship marketing is an old idea but a new focus now at the forefront of services marketing practice and academic research. The impetus for its development has come from the maturing of services marketing with the emphasis on quality, increased recognition of potential benefits for the firm and the customer, and technological advances. Accelerating interest and active research are extending the concept to incorporate newer, more sophisticated viewpoints. Emerging perspectives explored here include targeting profitable customers, using the strongest possible strategies for customer bonding, marketing to employees and other stakeholders, and building trust as a marketing tool. Although relationship marketing is developing, more research is needed before it reaches maturity. A baker’s dozen of researchable questions suggests some future directions.
Article
Consumer researchers' growing interest in consumer experiences has revealed that many consumption activities produce both hedonic and utilitarian outcomes. Thus, there is an increasing need for scales to assess consumer perceptions of both hedonic and utilitarian values. This article describes the development of a scale measuring both values obtained from the pervasive consumption experience of shopping. The authors develop and validate the scale using a multistep process. The results demonstrate that distinct hedonic and utilitarian shopping value dimensions exist and are related to a number of important consumption variables. Implications for further applications of the scale are discussed. Copyright 1994 by the University of Chicago.
Article
Cet article se base sur les recherches sur la conception de site Web et sur l'environnement d'achat en magasin pour conceptualiser les liens entre la conception du site Web et le comportement du consommateur. Le cadre proposé ici retrace les liens entre la conception du site Web, la perception du site Web et les réponses du consommateur. Il postule que ces liens dépendent du contexte de la visite. Son objectif est de répondre à la question des variables d’action déterminantes pour influencer le comportement du consommateur sur le site, en tenant compte du contexte de la visite.
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