Building loyalty through reward programs: The influence of perceptions of fairness and brand attachment

Abstract

Grounded in the Theory of Justice, perception of fairness is evaluated as a key element to enhance the effectiveness of loyalty programs. Using a robust sample of casino reward program members, the research examines the mediating roles of brand attachment and loyalty intention between perceptions of fairness and loyalty outcomes. The study introduces share-of-wallet as a critical outcome of the loyalty process. The results indicate that communication-based and value-based fairness significantly influence brand attachment and loyalty intention. Moreover, brand attachment has a stronger impact on share-of-wallet than loyalty intention does. The research yields guidance for hospitality marketers to structure effective and competitive loyalty programs. The results add new insight into loyalty processes and extend the hospitality loyalty literature by suggesting brand attachment as a primary indicator for loyalty outcomes. The findings suggest that through perceived fairness, marketers can build brand attachment and increase share of wallet, thereby increasing profitability.