How do perceived benefits of loyalty programs translate into company loyalty?
(A2019-10139)

AUTHORS

BRAHIM IDIR, Paris 13 University

KEYWORDS

perceived benefits of LPs; program loyalty; perfumery chain

ABSTRACT

Gaining customer loyalty is an important goal of marketing, and loyalty programs are designed to help in reaching it. This research investigates how do perceived benefits of loyalty programs (i.e., monetary savings, special treatment and social benefits) translate into company loyalty. Highlighted in the context of perfumery chain, our findings show that program loyalty and customer loyalty mediates the relationship between perceived benefits of LPs and company loyalty. Furthermore, program loyalty is an important driver of share of wallet (SOW). The findings have important implications on how managers of perfumery chains can effectively design their LP rewards to improve customer loyalty.