Social exchange theory

Customers’ disposition towards engagement framework

Customers’ disposition towards engagement framework is used to understand LP engagement

Perceived benefits and temporal price search positively impact LP engagement which, in turn, influences engagement with retailer

A combination of trust, commitment and perceived benefit is the key configuration whose presence and absence determines the enhancement or impediment of LP engagement

LP engagement is the key condition, the presence and absence of which (in combination with other conditions) drives the enhancement or impediment of engagement with retailer

LP engagement is a multi-dimensional construct

LP engagement positively impacts company engagement

LP perceived value (Financial value, personalisation value, preferential treatment value, exploration/hedonistic) impacts LP engagement

Pricing of loyalty programme and denomination of accrual affect customer perception and engagement towards LP

Point redemptions in other stores of different chains positively (negatively) affect the focal store’s point redemptions

Customer relationship characteristics in loyalty programmes (i.e. purchase depth, purchase breadth, purchase recency, redemption depth, redemption breadth and redemption recency) impact customers’ point redemption behaviour

Mobile push messages positively impact redemption behaviour

Stability of the exchange rate influences point redemption

Online channels increase redemption likelihood

Age is inversely related to redemption behaviour

LP design, retailer and country characteristics moderate the impact of LP on a retailer’s sales productivity

Introducing an LP can increase sales and gross profits in the short term, and these positive effects are sustained in the long term

LP effectiveness consists of psychological, design and operational elements that account for differential effects across customer acquisition, onboarding, expansion and retention stages

Customer’s purchase at the focal firm is affected by the customer’s purchases and redemptions across competing firms

Tier level and goal distance jointly determine loyalty programme members’ reaction to cognitive vs affective email appeals and the associated underlying process

Loyalty programmes positively influence target customers by enhancing their sense of gratitude and perceived status, leading to increased loyalty and sales

Bystander customers may experience feelings of unfairness and diminished status, potentially reduce their loyalty and purchasing behaviour

Social identity theory

Self-determination theory

Social exchange theory

Open loyalty programmes lead to more in-group identification whereas selective programmes lead to more gratitude

Loyalty programmes that are visible lead to more in-group identification