Article2021

Are your customers grateful? How customer gratitude impacts loyalty programme effectiveness

20 citations0/0 files storedInternational Journal of Retail & Distribution Management

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Customer Service Quality and Loyalty Consumer Market Behavior and Pricing Consumer Behavior in Brand Consumption and Identification

Abstract

Purpose The purpose of this paper is to identify which loyalty programme (LP) benefits are most likely to create consumer gratitude and increase loyalty towards the brand for consumer goods and services loyalty schemes. Design/methodology/approach French-speaking Quebecer (Canada) members of retail LPs answered an online survey. The S-O-R framework was used to investigate the effects of LP benefits on customer loyalty to the brand through the mediating mechanism of gratitude. Data analysis was performed by means of partial least square structural equation modelling. Findings Three benefits (entertainment, recognition and social) out of five were identified to significantly enhance customer gratitude towards the brand. Neither monetary nor exploration benefits had a direct effect on gratitude or loyalty. In addition, gratitude was positively and strongly related to loyalty and fully mediated the effects of entertainment and recognition benefits on loyalty. As for social benefits, gratitude complementarily mediated their relationship to loyalty. Practical implications The findings are of utmost interest to LP managers. They offer valuable insights to maintain or modify LPs to enhance customer true loyalty. First, they highlight the strategic role of gratitude, which strongly determines customer loyalty. Second, this study's findings indicate which LP benefits should be prioritised to enhance customer gratitude and loyalty. Originality/value This research is the first empirical attempt to study the effects of LP perceived benefits on customer gratitude. It addresses the paucity of research on customer gratitude and enhances its importance in retail and relationship literature.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 2011PLS-SEM: Indeed a Silver Bullet 1981Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics 1998The partial least squares approach for structural equation modeling.1991Assessing Construct Validity in Organizational Research 2006Formative Versus Reflective Indicators in Organizational Measure Development: A Comparison and Empirical Illustration 2014Emotion and Decision Making 1998Relational Benefits in Services Industries: The Customer's Perspective

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