Abstract

As important components of firms’ relationship management strategies, multivendor loyalty programs aim to deepen relationships by rewarding consumers for doing business with coalition firms. However, relatively little research has examined the factors and mediating mechanisms that underlie the relationship between the perceived value of loyalty programs and consumers’ purchase behavior. This study proposes and tests a model in which perceived value affects purchase behavior (i.e., purchase volume and purchase frequency) through overall satisfaction and switching barriers. According to both self-reported and objective behavioral data, five proposed dimensions of loyalty programs significantly influence consumers’ purchase behavior. In particular, cash value exerts the greatest effect on repurchase intention through both mediators (i.e., overall satisfaction and switching barriers). The results also show that group norms positively moderate the relationship between repurchase intention and actual purchase behavior. The authors conclude with some managerial and research implications of the study’s findings.  

Keywords

multivendor loyaltyprograms perceived program value perceived relationship investments