The Effects of Loyalty Program Quality on Word -of -Mouth Recommendations Intentions

Authors: Nedra Bahri-Ammari

Abstract:

Literature review revealed the importance of the adoption of marketing Relationship for loyalty and retaining profitable customer (Customer Relationship Management). LPQ satisfaction will reinforce the loyalty and customer brand attachment. Customer will communicate the operator to others. The focus of this study is to examine the relationship between the LPPQ and the WOM recommendations through: customer satisfaction, loyalty and attachment. The results show that LPQ affect positively the satisfaction, negatively the loyalty. LPQ has an indirectly effect on WOM recommendations but through the satisfaction and attachment. The mediating effect of satisfaction in the relationship between LPQ and Loyalty is rejected. This finding can be explained by the nature of mobile sector in Tunisia.

Keywords: Attachment, Loyalty program quality, satisfaction, WOM

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1083373

References:

[1] R. Bolton, P. Kannan, and M. Bramlett, "Implications of Loyalty Program Membership and service Experiences for Customer Retention and Value", Journal of the Academy of Marketing Science, 28, (1), pp. 95-108, 2000.
[2] D. Peppers and M. Rogers, "The one to one en pratique", Edition d-organisation, 442p, 1999.
[3] F. Dwyer, P. Schurr, and S. Oh, "Developing Buyer-Seller Relationships", Journal of Marketing, 51 (2), pp. 11-27, 1987.
[4] B. Sharp, and A. Sharp, "Loyalty Programs and their Impact on Repeat- Purchase Loyalty Patterns", International Journal of research in Marketing, 14, pp. 473-486, 1997.
[5] P.C. Verhoef, and F. Langerak, « Eleven Misconceptions about Customer Relationship Management », Busines Strategy Review, 3(4), pp. 70-76, 2002.
[6] F. E. Webster, "The changing Role of Marketing Corporation", Journal of Marketing, 56, pp. 1-17, October 1992.
[7] J. Lacoeuilhe, « L-attachement ├á la marque: proposition d-une échelle de mesure », Recherche et Applications en Marketing, 15, 4, pp. 61-77, 2000.
[8] C. Cristau, « Définition, mesure et modélisation de l-attachement ├á une marque avec deux composantes: La dépendance et l-amitié vis-├á-vis d-une marque », Working Paper n┬░ 591, CEROG, 2001, IAE d-aix-en- Provence, Université Aix-Marseille III, 1-32.
[9] C. Benavent & W.L. Meyer, "Analysis of the Efficiency of Loyalty Programs", The 3 rd AFM French-German Conference about Retailing and distribution in Europe, St. Malo, June, 2000.
[10] S. Rayer, "Customer Loyalty schemes: effective Implementation and Management. Financial Times retail and Consumer Publishing. London, 1996.
[11] F.F. Reicheld, "The Loyalty Effect: the Hidden Force behind Growth, Profits and Lasting Value", Harvard Business School publications, Boston, 1996.
[12] Y. Yu, and A. Dean, "The contribution of emotional satisfaction to consumer loyalty", International Industry Management, 12(3), pp. 234- 250, 2001.
[13] P. Vesel, and V. Zabkar, "Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program", Journal of Retailing and consumer services, 16 (2009), pp 396-406, 2009.
[14] P.N. Spring., P.C. Verhoef, J.C. Hoekstra, and P.S.H. Leeflang, "The Commercial Use of Segmentation and Predictive Modeling Techniques for database Marketing", Working paper, University of Groningen, 2000.
[15] F.F. Reichheld, and E. Sasser, "Zero Defections: Quality Comes to Services", Harvard Business Review, September-October, pp. 105-111, 1990.
[16] M. Shor, and R. L. Oliver, "Price Discrimination Through Online Couponing: Impact on Likelihood of Purchase and Profitability", Journal of Economic Psychology, 27, pp.423-440, 2006.
[17] L. Ryals, and S. Knox, "Measuring and Managing Customer Relationship Risk in Business Markets", Industrial Marketing Management, to be published.
[18] C. Hamon, P. Lézin and A. Toullec, "Gestion de la Clienteles", Edition DUNOD, 368p, 2004.
[19] Y. Liu, "The long-term impact of loyalty programs on consumer purchase behavior and loyalty ", Journal of marketing, 71(4), pp. 19-35, 2007.
[20] V.A. Zeithaml., L.L. Berry, and A. Parasuraman. "The Behavioral Consequences of Service Quality", Journal of Marketing, 60(2), pp.31- 46, 1996.
[21] W. G. Kim, C. Y. N. Ng, and Y.S. Kim, "Influence of institutional DINESERV on Customer satisfaction, return intention, and word-ofmouth", International Journal of Hospitality Management, 28, pp. 10- 17, 2009.
[22] J. Brown, and P. H. Reingen, "Social ties and word-of-mouth referral behavior", Journal of Consumer Research, 14(3), pp. 350-362, 1987.
[23] B. S. C. Liu, O. Furrer, and D. S. Sudharshan, "The relationships between culture and behavioral intentions toward services", Journal of Service Research, 4(2), pp.118-129, 2001.
[24] L.L. Bove, and W. Lester. Johnson, "Customer Loyalty to one Service worker: Should it be Discouraged?", International Journal of Research in Marketing, 23, pp. 79-91, 2006.
[25] W.J. Reinartz, and V. Kumar, "On the Profitability of Long-life Customers in a Noncontractual Setting: An Empirical Investigation and Implications for Marketing", Journal of Marketing, 64 (4), pp. 17-35, 2003.
[26] N. Bahri-Ammari, "The effects of technologic Customer relationship Management on customer retention and organisational profitability", International Journal of Research in Marketing, Submitted for publication.
[27] R.A. Spreng, S.B. MacKenzie, and R.W. Olshavsky, "A Re-examination of the Determinants of Consumer Satisfaction", Journal of Marketing, 60, 3, pp. 15-32, 1996.
[28] K. D. Wulf., G. Odkerken-Schroder, and D. Lacobucci, "Investments in Consumer Relationships: A Cross-Country and Cross-Industry Exploration", Journal of Marketing, Chicago, Vol. 65, N┬░4, pp. 33-50, 2001.
[29] J.F. Lemoine, and S. Onnée, "Vers une meilleure compréhension du statutd'actionnaire -client", Gestion 2000, 4, pp.127-138, 2001.
[30] R.L. Oliver, "Whence Customer Loyalty", Journal of Marketing, 63, pp, 1997.
[31] J. Vanhamme, « La satisfaction des consommateurs spécifique ├á une transaction : définition, antécédents, mesures et modes », Recherche et Application en Marketing, 17,2, pp. 55-85, 2002.
[32] E.W. Anderson, C. Fornell, and D.R. Lehmann, "Customer Satisfaction, Market Share, and Profitability: Findings from Sweden", Journal of Marketing, 58(3), pp. 53-67, 1994.
[33] B. Jolley., R. Mizerski, and O. Doina, "How Habit and Satisfaction Affects Player Retention for Online Gambling", Journal of Business Research, 59, pp. 770-777, 2006.
[34] K. Backhaus, and J. Buschken, « The paradox of Unsatisfying but Stable Relationship a look at German Car Suppliers », Journal of Business Research, 46, pp. 245-257, 1999.
[35] J.L. Moulins, "Etat de fidélité et relation de fidélité: Eléments de réflexion pour une nouvelle approche de l'échange", Décision Marketing, 13, pp. 67-73, 1998.
[36] Hennig-Thurau, and A. Klee, "The Impact of Customer Satisfaction and Relationship Quality on Customer Retention: a Critical Assessment of Model Development", Psychology and Marketing, 14, pp. 737- 64, December 1997.
[37] B. Heilbrunn, « Les facteurs d-attachement du consommateur ├á la marque », thèse pour l-obtention du titre de docteur en Sciences de Gestion, Université Paris-Dauphine, 2001.
[38] J. Lacoeuilhe, « Le r├┤le du concept d-attachement dans la formation du comportement de fidélité », Revue Fran├ºaise du Marketing, 165, 5, pp. 29-42, 1997.
[39] C. Cristau, « Définition, mesure et modélisation de l-attachement ├á une marque comme la conjonction de deux dimensions distinctes et concomitantes : la dépendance et l-amitié vis-├á-vis de la marque », Congrès International, 2003, « Les tendances du marketing », Venise.
[40] S. Belaïd, and J. Lacoeuilhe, « Quelle(s) mesure(s) pour l'attachement ├á la marque? », Revue Fran├ºaise du Marketing, 21, 3, pp.7-25, 2007.
[41] S. Onkvisit, and J. Shaw, "Self Concept and Image, Congruence: Some Research and Managerial Implication", Journal of Consumer Marketing, 4, 1, pp. 13-23, 1987.
[42] R. Divard, and P. Robert- Demontrond, « La Nostalgie : un thème Récent dans la Recherche Marketing », Recherche et Applications en Marketing, 12, 4, pp. 41-61, 1997.
[43] J. Sweeney, and J. Swait, "The effects of brand credibility on customer loyalty", Journal of Retailing and Consumer Services, 15(2008), pp. 179-193, 2008.
[44] T.H. Roh, C.K. Ahn, and I. Han, "The Priority Factor Model for Customer Relationship Management System Success", Expert Systems with Applications, pp. 1-14, 2005.
[45] Y. Ekinsi., P.L. Dawes, and G.R. Massey, "An extended model of the antecedents and consequences of consumer satisfaction for hospitality services", European Journal of Marketing, 42(1/2), pp. 35-68, 2008.
[46] M. Zineldin, "Beyond Relationship Marketing: Technologicalship Marketing", Management Intelligence & planning, 18/1, pp.9-23, 2000.
[47] A. Parasuraman, V.A. Zeithaml, and L.L. Berry, "Reassessment of Expectations as a Comparison Standard in Measuring Service Quality: Implications for Future Research", Journal of Marketing, 58, pp. 6-17, February 1994.
[48] J. Rowley, "Quality Measurement in the Public Sector: Some Perspectives from the Service Quality Literature", Total Quality Management, 9 (2/3), pp. 321-335, 1998.
[49] U. Lehtinen and J.R. Lehtinen, "Service Quality - a Study of Dimensions", Unpublished Working Paper, Service Management Institute, Helsinki, pp. 439-60, 1982.
[50] C. Gr├┤nroos, "A Service Quality Model and Its Marketing Implications", European of marketing, 18 (4), pp. 36-44, 1984.
[51] R. Lacey., Z.J. Sneath, "Customer loyalty programs: are they fair to consumers?" Journal of Consumer Marketing, 23(7), pp. 458-464, 2006.
[52] A.N. Omar, R. Musa, and A.M. Nazri, « Program perceived value and program satisfaction influences on store loyalty », Gadja Mada International Journal of Business, 9(3), pp. 345-368, 2007.
[53] M. Lewis, "The Influence of Loyalty Programs and Short-Term Promotions on Customer Retention," Journal of Marketing Research, 41 (3), pp. 281-292, 2004.
[54] E. Garbarino, and M.S. Johnson, "The Different Roles of Satisfaction, Trust and Commitment in Customer Relationships", Journal of Marketing, 63, April, pp. 70-87, 1999.
[55] G. J, Torsten., W. Rams, and A. Schindler, "Customer Retention, Loyalty, and Satisfaction in the German Mobile Cellular Telecommunication Market", Telecommunications Policy, 25, pp 249- 269, 2001.
[56] J. Egan, "Drivers to relational strategies in retailing", International Journal of Retail & Distribution management, 28(8), pp. 379-386, 2004.
[57] C. Noorddhoff, P. Pauwels, and G. Odekerken-Schr˂der, "The effect of customer effect card programs. A comparative study in Singapore and the Netherlands", International Journal of Service Industry Management, 15(4), pp. 351-364, 2004.
[58] M. Thomson, D. J. Macinnis, and Whan Park, « Les liens attachants: mesurer la force de l'attachement émotionnel des consommateurs ├á la marque », Recherche et Application en Marketing, 20, 1, pp. 79-98, 2005.
[59] F. Smaoui, "Les determinants de l-attachement émotionnel ├á la marque: Effet des variables relationnelles et des variables relatives au produit", 7 ème Congrés des Tendances Marketing, Venise, 17-19, Janvier, 2008.
[60] G. Silverman, « How to harness the awesome power of word of mouth », Direct Marketing, 60, pp. 32-37, November 1997.
[61] V. Mittal, W. T. Ross, and P.M. Baldasare, « The asymmetric impact of negative and positive attribute-level performance on overall satisfaction and repurchase intentions », Journal of Marketing, 62, pp. 33-47, 1998.
[62] R.T. Rust, A.J. Zahorik, and T.L. Keiningham, "Return on quality (ROQ): making service quality financially accountable », Journal of Marketing, 59, pp. 58-70, April 1995.
[63] T.J. Brown., T.E. Barry., P.A. Dacin, and R.F. Gunst., "Spreading the word: investigating antecedents of consumer-s positive word-of-mouth intentions and behaviors in a retailing context », Journal of the Academy of Marketing Science, 33 (2), pp. 123-138, 2005.
[64] C.A. Matos, and C.A. Rossi, "Word-of-Mouth Communications in Marketing: a Meta- analytic Review of the Antecedents and Moderators", Journal of the Academy of Marketing Science, 36, 4, pp. 578-596, 2008.
[65] B. Boyle, F. R. Dwyer, R. A. Robicheaux, and J. T. Simpson, "Influence Strategies in Marketing Channels: Measures and, Use in Different Relationship Structures", Journal of Marketing research, 29 (4), pp. 462-473. 1992.
[66] A. Parasuraman, V.A. Zeithaml, and L.L. Berry, "SERVQUAL: a Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality", Journal of Retailing, 64 (1), pp. 12-40, 1988.
[67] J. C. Nunnally, "Psychometric Theory", 2 ème, New York, NY, McGraw-Hill, 1978.
[68] J. Cronbach Lee, "Coefficient Alpha and the Internal Structure of Tests", Psychometrica", pp. 297-334, October 1951.
[69] P. Roussel., F. Durrieu., E. Campoy & A. El Akremi, "Méthodes d-équations structurelles: recherche et applications en gestion", Paris, Economica, 274p, 2002.
[70] J.C. Anderson, and D.W. Gerbing, « Structural equation modeling in practice: A review and recommended two-step approach », Psychological Bulletin, 103 (3), pp. 411-423, 1988.
[71] G. Roehrich, and P. Valette-Florence, "Une comparaison structurelle de deux échelles de mesure de l-implication", Actes de l-Association Fran├ºaise de Marketing, Clermont-Ferrand, pp. 2-21, 1989.
[72] K.G. Jöreskog., D. Sörbom., S. Du Toit & M. Du Toit, « LISREL 8: NEW Statistical Feature », Chicago, IL: Scientific Software International Inc, 1999.
[73] Y. ├ëvrard, B. Pras, and E. Roux, "Market : Etudes et Recherches en Marketing", Editions DUNOD, 3 ème édition, 699 p, 2003.
[74] C. Mauri, « Card loyalty. A new emerging issue in grocery retailing », Journal of Retailing and Consumer Services, 10(1), pp.13-25, 2003.