Consumer evaluation of customer loyalty programs: the role of customization in customer loyalty program involvement

Abstract

This study investigates the role of customizing the offerings (rewards and services) of a customer loyalty program in consumers' responses regarding perceived value (cash value and emotional value), satisfaction with the loyalty program, and loyalty intention toward the focal retailer. It also examines the moderating role that customer loyalty program involvement may play in value–satisfaction–loyalty associations. Data were collected from 174 college students using a web-based survey. Results yield overall support for the model in which customization of a loyalty program influences perceived cash value of the loyalty program, which in turn influences perceived emotional value, satisfaction with the loyalty program, and loyalty toward the retailer. Additionally, consumer involvement in customer loyalty programs moderates the effectiveness of customer loyalty programs by differentiating the degrees to which perceived emotional value and satisfaction influence loyalty intention.