Purpose Despite the abundance of B2B loyalty programs (LPs), the research on their interplay with relationship marketing is scarce. The purpose of this paper is to investigate a LP (a relational practice) on a transactional business market to test if and how a B2B LP affects relationship outcomes. Design/methodology/approach The study is based on dyadic research in a multi-theory framework. Data were collected from 200 small and medium enterprises that purchase office supplies from a company and merged with the company’s internal records.The formative-reflective measurement model is estimated using structural equation modeling – partial least squares (SEM-PLS). Findings Relationship quality (RQ) directly affects sales and customer share of wallet. The effect is strengthened by customer activity in a LP. RQ results directly in a longer tenure and willingness to recommend only for members of a LP. Research limitations/implications RQ is driven mainly by customer’s evaluation of prior experience with a supplier, while a LP is based on a forward-looking promise of a reward. The results of the study point to the level of customers’ activity in a LP as a boundary condition of the program’s efficacy. Practical implications RQ affects both attitudinal and behavioral outcomes but through distinct mechanisms. Once a supplier is a preferred one, LP membership strengthens the attitudinal outcome of a relationship. The effect of RQ on company performance is magnified by the level of customer activity in a LP but not by the membership status. Originality/value The theoretical framework integrates transaction costs, relational contract and relational exchange theories to investigate a LP on a transactional market. The study adds to the scant literature on LPs in business-to-business and provides evidence for similarities and differences in comparison to consumer research.
Although the concept of a loyalty program has been widely adopted in business practice and researched by academics for decades, its efficacy is still disputable. Some researchers argue that studies on loyalty programs do not account for cross-customer effects and the simultaneous interplay of multiple psychological mechanisms with program delivery. Thus, the main aim of the study is to examine the meaning of marketing actions which form a "loyalty program" in an intercultural context. The authors argue that customers' understanding of the meaning of marketing actions plays a crucial role in the effective planning of marketing activities. The study draws from Wittgenstein's linguistic theory and investigates which marketing actions customers perceive as building their loyalty towards a company. The data was collected from over 300 customers in Poland, Serbia and Kuwait and analysed in a conjoint design. The study finds that intercultural differences do bring varying understanding of the same marketing activities which needs to be taken into account both in future studies and in business practice. This study provides guidelines for adaptation of marketing loyalty programs to specifics of culture which may go beyond country borders.
Purpose This study aims to understand the consequences of the decision by some hotels during the COVID-19 pandemic to contract their accommodation to be used as managed isolation and quarantine (MIQ) facilities. Specifically, this study aims to understand the impact of this decision in terms of corporate brand image, brand loyalty, negative word of mouth (NWOM) and purchase intention. Design/methodology/approach Data were collected through a quasi-experimental research design and was analysed through a t-test. Findings This study hypothesises that the use of a hotel brand as a COVID-19 MIQ facility will be detrimental to its corporate brand image because of the expectation disconfirmation theory and attribution theory, thus reducing brand loyalty and increasing NWOM. The result supports the hypotheses. Research limitations/implications This study does not factor in a time period for the observed effects. While the results indicate that hotels used for MIQ purposes have reduced corporate brand image, brand loyalty and purchase intention, this study does not establish the duration of the damage. Originality/value This study provides insight into consumers' perceptions of hotel brands that served as COVID-19 MIQ facilities. The originality lies in the discovery that the decision by hoteliers to opt to use their facilities for COVID-19 MIQ facilities was detrimental to corporate brand image and brand loyalty.
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