Hotel loyalty programs: How valuable is valuable enough?

International Journal of Contemporary Hospitality Management

Volumn 26, Issue 1, 2014, Pages 107-129

 

^a Karen)   (United States)

Author keywords

Active loyalty; Hospitality industry; Loyalty programs; Perceived program value

Indexed keywords

EID: 84890318374     PISSN: 09596119     EISSN: None     Source Type: Journal    
DOI: 10.1108/IJCHM-08-2012-0145     Document Type: Article

References (90)

1. Alford, B.L., Sherrell, D.L. (1996), "The role of affect in consumer satisfaction judgments of credence-based services" in Journal of Business Research, Vol. 37, No. 1, pp. 71-84.
2. Anderson, E.W., Fornell, C., Lehmann, D.R. (1994), "Customer satisfaction, market share, and profitability: findings from Sweden" in The Journal of Marketing, Vol. 58, No. 3, pp. 53-66.
3. Anderson, E.W., Sullivan, M.W. (1993), "The antecedents and consequences of customer satisfaction for firms" in Marketing Science, Vol. 12, No. 2, pp. 125-143.
4. Anderson, J.C., Gerbing, D.W. (1988), "Structural equation modeling in practice: a review and recommended two-step approach" in Psychological Bulletin, Vol. 103, No. 3, pp. 411-423.
5. Anderson, R.E., Srinivasan, S.S. (2003), "E-satisfaction and e-loyalty: a contingency framework" in Psychology and Marketing, Vol. 20, No. 2, pp. 123-138.
6. Babin, B.J., Darden, W.R., Griffin, M. (1994), "Work and/or fun: measuring hedonic and utilitarian shopping" in Journal of Consumer Research, Vol. 20, No. 4, pp. 644-656.
7. Bagozzi, R.P. (1992), "The self-regulation of attitudes, intentions, and behavior" in Social Psychology Quarterly, Vol. 55, No. 2, pp. 178-204.
8. Berger, P.D., Nasr, N.I. (1998), "Customer lifetime value: marketing models and applications" in Journal of Interactive Marketing, Vol. 12, No. 1, pp. 17-30.
9. Berman, B. (2006), "Developing an effective customer loyalty program" in California Management Review, Vol. 49, No. 1, p. 123.
10. Boardingarea.com (2011), "Are Starwood points too valuable for the program to be any good?", available at: http://boardingarea.com/blogs/onemileatatime/2011/06/17/are-starwood-points-too-valuable-for-the-program-to-be-any-good/comment-page-1/ (accessed June 17, 2011).
11. Bojanic, D. (1996), "Consumer perceptions of price, value and satisfaction in the hotel industry: an exploratory study" in Journal of Hospitality and Leisure Marketing, Vol. 4, No. 1, pp. 5-22.
12. Bolton, R.N., Kannan, P.K., Bramlett, M.D. (2000), "Implications of loyalty program membership and service experiences for customer retention and value" in Journal of the Academy of Marketing Science, Vol. 28, No. 1, pp. 95-108.
13. Bowen, J., Shoemaker, S. (1998), "Loyalty: a strategic commitment" in Cornell and Restaurant and Administration Quarterly, Vol. 39, No. 1, pp. 12-25.
14. Brehm, J. (1966), A Theory of Psychological Reactance, Academic Press, New York, NY.
15. Chang, T.Z., Wildt, A.R. (1994), "Price, product information, and purchase intention: an empirical study" in Journal of Academy of Marketing Science, Vol. 22, No. 1, pp. 16-27.
16. Chen, P.Y., Hitt, L.M. (2003), "Measuring switching costs and the determinants of customer retention in Internet-enabled businesses: a study of the online brokerage industry" in Information Systems Research, Vol. 13, No. 3, pp. 255-274.
17. Chen, C.F., Tsai, D.C. (2007), "How destination image and evaluative factors affect behavioural intentions" in Tourism Management, Vol. 28, No. 4, pp. 1115-1122.
18. Chenet, P., Tynan, C., Money, A. (1999), "Service performance gap: re-evaluation and redevelopment" in Journal of Business Research, Vol. 46, No. 2, pp. 133-147.
19. Choi, T.Y., Chu, R. (2001), "Determinants of hotel guests' satisfaction and repeat patronage in the Hong Kong Hotel industry" in International Journal of Hospitality Management, Vol. 20, No. 3, pp. 277-297.
20. Crick, A.P., Spencer, A. (2011), "Hospitality quality: new directions and new challenges" in International Journal of Contemporary Hospitality Management, Vol. 23, No. 4, pp. 463-478.
21. Cronin, J., Taylor, S. (1992), "Measuring service quality: a reexamination and extension" in Journal of Marketing, Vol. 56, No. 3, pp. 55-68.
22. Dekay, F., Toh, R.S., Raven, P. (2009), "Loyalty programs" in Cornell Hospitality Quarterly, Vol. 50, No. 3, pp. 371-382.
23. De Wulf, K., Odekerken-Schröder, G., Iacobucci, D. (2001), "Investments in customer relationships: a cross-country and cross-industry exploration" in Journal of Marketing, Vol. 65, No. 4, pp. 33-50.
24. Dick, A.S., Basu, K. (1994), "Customer loyalty: toward an integrated conceptual framework" in Journal of the Academy of Marketing Science, Vol. 22, No. 2, pp. 99-113.
25. Dodds, W.B., Monroe, K.B., Grewal, D. (1991), "Effects of price, brand, and store information on buyers' product evaluations" in Journal of Marketing Research, Vol. 28, No. 3, pp. 307-319.
26. Dowling, G.R., Uncles, M. (1997), "Do customer loyalty programs really work" in Sloan Management Review, Vol. 38, No. 4, pp. 71-82.
27. Dube, L., Shoemaker, S. (1999), "Loyalty marketing and brand switching" Swartz, T. (Ed.), Handbook of Services Marketing and Management, Sage Publications, Beverly Hills, CA.
28. Ennew, C.T., Binks, M.R. (1999), "Impact of participative service relationships on quality, satisfaction, and retention: an exploratory study" in Journal of Business Research, Vol. 46, pp. 121-132.
29. Ferguson, R., Hlavinka, K. (2007), "The COLLOQUY loyalty marketing census: sizing up the US loyalty marketing industry" in Journal of Customer Marketing, Vol. 24, No. 5, pp. 313-321.
30. Fornell, C., Larcker, D.F. (1981), "Evaluating structural equation models with unobservable variables and measurement error" in Journal of Marketing Research, Vol. 18, No. 2, pp. 39-50.
31. Freefrombroke.com (2011), "Wyndham rewards hotel points - a review", available at: http://freefrombroke.com/wyndham-rewards-hotel-points-a-review/ (accessed November 12, 2011).
32. Gale, B.T. (1994), Managing Customer Value, The Free Press, New York, NY.
33. Ganesh, J., Arnold, M.J., Reynolds, K.E. (2000), "Understanding the customer base of service providers: an examination of the differences between switchers and stayers" in Journal of Marketing, Vol. 64, No. 3, pp. 65-87.
34. Gotlieb, J.B., Grewal, D., Brown, S.W. (1994), "Consumer satisfaction and perceived quality: complementary or divergent constructs" in Journal of Applied Psychology, Vol. 79, No. 6, pp. 875-885.
35. Harris, E. (2000), "Recognize, reward, reap the benefits" in Sales and Marketing Management, Vol. 152, No. 9, p. 109.
36. Hoffman, J.L., Lowitt, E.M. (2008), "A better way to design loyalty programs" in Strategy and Leadership, Vol. 36, No. 4, pp. 44-47.
37. Jones, M.A., Mothersbaugh, D.L., Beatty, S.E. (2002), "Why customers stay: measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes" in Journal of Business Research, Vol. 55, No. 6, pp. 441-450.
38. Keh, H.T., Lee, Y.H. (2006), "Do reward programs build loyalty for services? The moderating effect of satisfaction on type and timing of rewards" in Journal of Retailing, Vol. 82, No. 2, pp. 127-136.
39. Kelley, S.W., Davis, M.A. (1994), "Antecedents to customer expectations for service recovery" in Journal of the Academy of Marketing Science, Vol. 22, No. 1, pp. 52-61.
40. Kim, B., Shi, M., Srinivasan, K. (2001), "Reward programs and tacit collusion" in Marketing Science, Vol. 20, No. 2, pp. 99-120.
41. Kim, W.G., Kim, S.Y., Leong, J.K. (2003), "Impact of guest reward programs on the firms' performance" in Journal of Quality Assurance in Hospitality and Tourism, Vol. 4, No. 1, pp. 87-109.
42. Kim, D., Lee, S., Bu, K., Lee, S., Do, V.I.P. (2009), "programs always work well? The moderating role of loyalty" in Psychology and Marketing, Vol. 26, No. 7, pp. 590-609.
43. Kivetz, R. (2005), "Promotion reactance: the role of effort congruity" in Journal of Customer Research, Vol. 31, No. 4, pp. 725-736.
44. Kivetz, R., Simonson, I. (2003), "The idiosyncratic fit heuristic: effort advantage as a determinant of consumer response to loyalty programs" in Journal of Marketing Research, Vol. 40, No. 4, pp. 454-467.
45. Lacey, R., Sneath, J.Z. (2006), "Customer loyalty programs: are they fair to customers" in Journal of Customer Marketing, Vol. 23, No. 7, pp. 458-464.
46. Leenheer, J., van Heerde, H.J., Bijmolt, T.H., Smidts, A. (2007), "Do loyalty programs really enhance behavioral loyalty? An empirical analysis accounting for self-selecting members" in International Journal of Research in Marketing, Vol. 24, No. 1, pp. 31-47.
47. Lewis, M. (2004), "The influence of loyalty programs and short-term promotions on customer retention" in Journal of Marketing Research, Vol. 41, No. 3, pp. 281-292.
48. LoyaltyTraveler.com (2011), "Consumers earn over points for their hotel stays", available at: www.loyaltytraveler.com/hotel-loyalty-programs/intercontinental-hotels-group-priority-club/ (accessed November 12, 2011).
49. McCall, M., Voorhees, C. (2010), "The drivers of loyalty program success" in Cornell Hospitality Quarterly, Vol. 51, No. 1, pp. 35-52.
50. Maddock, R.C., Fulton, R.L. (1996), Marketing to the Mind: Right Brain Strategies for Advertising and Marketing, Greenwood, Westport, CT.
51. Mattila, A.S. (2006), "How affective commitment boosts guest loyalty (and promotes frequent-guest programs)" in Cornell Hotel and Restaurant Administration Quarterly, Vol. 47, No. 2, pp. 174-181.
52. Mittal, B., Lassar, W.M. (1998), "Why do customers switch? The dynamics of satisfaction versus loyalty" in Journal of Services Marketing, Vol. 12, No. 3, pp. 177-194.
53. Nasution, H.N., Mavondo, F.T. (2008), "Customer value in the hotel industry: what managers believe they deliver and what customer experience" in International Journal of Hospitality Management, Vol. 27, No. 2, pp. 204-213.
54. Novak, T.P., Donna, L.H., Duhachek, A. (2003), "The influence of goal-directed and experiential activities on online flow experiences" in Journal of Consumer Psychology, Vol. 13, No. 1, pp. 3-16.
55. Nunes, J., Dreze, X. (2006), "The endowed progress effect: how artificial advancement increases effort" in Journal of Consumer Research, Vol. 32, pp. 504-512.
56. Nunnally, J.C. (1978), Psychometric Theory, McGraw-Hill, New York, NY.
57. O'Brien, L., Jones, C. (1995), "Do rewards really create loyalty" in Long Range Planning, Vol. 28, No. 4, p. 130.
58. O'Malley, L. (1998), "Can loyalty schemes really build loyalty" in Marketing Intelligence & Planning, Vol. 16, No. 1, pp. 47-55.
59. Parasuraman, A., Zeithaml, V.A., Berry, L.L. (1985), "A conceptual model of service quality and its implications for future research" in Journal of Marketing, Vol. 49, No. 4, pp. 41-50.
60. Parasuraman, A., Zeithaml, V.A., Berry, L.L. (1988), "SERVQUAL: a multi-item scale for measuring consumer perceptions of service quality" in Journal of Retailing, Vol. 64, No. 1, pp. 12-40.
61. Park, C.W., Jaworski, B.J., MacInnis, D.J. (1986), "Strategic brand concept-image management" in Journal of Marketing, Vol. 50, No. 4, pp. 135-145.
62. Patterson, P.G., Spreng, R.A. (1997), "Modeling the relationship between perceived value, satisfaction and repurchase intentions in a business-to-business, services context: an empirical examination" in International Journal of Service Industry Management, Vol. 8, No. 5, pp. 414-434.
63. Petrick, J.F., Bachman, S.J. (2002a), "An examination of the construct of perceived value for the prediction of golf travelers' intentions to revisit" in Journal of Travel Research, Vol. 41, No. 1, pp. 38-45.
64. Petrick, J.F., Bachman, S.J. (2002b), "An examination of the determinants of golf travelers' satisfaction" in Journal of Travel Research, Vol. 40, No. 3, pp. 252-258.
65. Podsakoff, P.M., MacKenzie, S.B., Lee, J.Y., Podsakoff, N.P. (2003), "Common method biases in behavioral research: a critical review of the literature and recommended remedies" in Journal of Applied Psychology, Vol. 88, No. 1, pp. 879-903.
66. Prentice, C. (2013), "Service quality perceptions and customer loyalty in casinos" in International Journal of Contemporary Hospitality Management, Vol. 25, No. 1, pp. 49-64.
67. Pura, M. (2005), "Linking perceived value and loyalty in location-based mobile services" in Managing Service Quality, Vol. 15, No. 6, pp. 509-538.
68. Ramanathan, U., Ramanathan, R. (2011), "Guests' perceptions on factors influencing customer loyalty: an analysis for UK hotels" in International Journal of Contemporary Hospitality Management, Vol. 23, No. 1, pp. 7-25.
69. Reichheld, F.F., Sasser, W.E. Jr (1990), "Zero defections: quality comes to services" in Harvard Business Review, Vol. 68, pp. 105-111.
70. Robinette, S., Brand, C., Lenz, V. (2001), Emotion Marketing: The Hallmark Way of Winning Customers for Life, McGraw-Hill, New York, NY.
71. Rosenbaum, M.S., Ostrom, A.L., Kuntze, R. (2005), "Loyalty programs and a sense of community" in Journal of Services Marketing, Vol. 19, No. 4, pp. 222-233.
72. Rust, R.T., Zahorik, A.J. (1993), "Customer satisfaction, customer retention, and market share" in Journal of Retailing, Vol. 69, No. 2, pp. 193-215.
73. Schweidel, D.A., Fader, P.S., Bradlow, E.T. (2008), "Understanding service retention within and across cohorts using limited information" in Journal of Marketing, Vol. 72, No. 1, pp. 82-94.
74. Sharp, B., Sharp, A. (1997), "Loyalty programs and their impact on repeat-purchase loyalty patterns" in International Journal of Research in Marketing, Vol. 14, No. 5, pp. 473-486.
75. Sheth, J.N., Newman, B.I., Gross, B.L. (1991), "Why we buy what we buy: a theory of consumption values" in Journal of Business Research, Vol. 22, No. 2, pp. 159-170.
76. Shugan, S.M. (2005), "Brand loyalty programs: are they shams" in Marketing Science, Vol. 24, No. 2, pp. 185-193.
77. Sirohi, N., McLaughlin, E.W., Wittink, D.R. (1998), "A model of consumer perceptions and store loyalty intentions for a supermarket retailer" in Journal of Retailing, Vol. 74, No. 2, pp. 223-245.
78. Skogland, I., Siguaw, J.A. (2004), "Are your satisfied customers loyal" in Cornell Hotel and Restaurant Administration Quarterly, Vol. 45, No. 3, pp. 221-234.
79. Spreng, R.A., Mackoy, R.D. (1996), "An empirical examination of a model of perceived service quality and satisfaction" in Journal of Retailing, Vol. 72, No. 2, pp. 201-214.
80. Sweeney, J.C., Soutar, G.N. (2001), "Consumer perceived value: the development of a multiple item scale" in Journal of Retailing, Vol. 77, No. 2, pp. 203-220.
81. Sweeney, J.C., Soutar, G.N., Johnson, L.W. (1999), "The role of perceived risk in the quality-value relationship: a study in a retail environment" in Journal of Retailing, Vol. 75, No. 1, pp. 77-105.
82. Tideswell, C., Fredline, E. (2004), "Developing and rewarding loyalty to hotels: the guest's perspective" in Journal of Hospitality and Tourism Research, Vol. 28, No. 2, pp. 186-208.
83. Tsang, N., Qu, H. (2000), "The service quality in China's hotel industry: a perspective from tourists and hotel managers" in International Journal of Contemporary Hospitality Management, Vol. 12, No. 5, pp. 316-326.
84. Voorhees, C.M., McCall, M., Calantone, R.J. (2011), "Customer loyalty: a new look at the benefits of improving segmentation efforts with rewards programs" in Cornell Hospitality Reports, Vol. 11, No. 11, pp. 4-14.
85. Wakefield, K.L., Barnes, J.H. (1996), "Retailing hedonic consumption: a model of sales promotion of a leisure service" in Journal of Retailing, Vol. 72, No. 4, pp. 409-428.
86. Wansink, B. (2003), "Developing a cost-effective brand loyalty program" in Journal of Advertising Research, Vol. 43, No. 3, pp. 301-309.
87. Wirtz, J., Mattila, A.S., Oo Lwin, M. (2007), "How effective are loyalty reward programs in driving share of wallet" in Journal of Service Research, Vol. 9, No. 4, pp. 327-334.
88. Woodruff, R.B. (1997), "Customer value: the next source for competitive advantage" in Journal of the Academy of Marketing Science, Vol. 25, No. 2, pp. 139-153.
89. Yoo, M., Lee, S., Bai, B. (2011), "Hospitality marketing research from 2000 to 2009: topics, methods, and trends" in International Journal of Contemporary Hospitality Management, Vol. 23, No. 4, pp. 517-532.
90. Zeithaml, V. (1988), "Consumer perceptions of price quality, and value: a means-end model and synthesis of evidence" in Journal of Marketing, Vol. 52, No. 1, pp. 2-22.