Can loyalty programs enhance relational behaviors?

Previous research on loyalty programs is mainly characterized by the use of panel data and measures of repurchase behavior. This is a rather short-term approach that contrasts with the objective of strengthening retailer-customer bonds. In this article, we draw on relationship marketing literature in order to investigate the efficiency of loyalty programs. Findings of an experiment conducted with 608 respondents lead to two major contributions: (1) perceived benefits of loyalty programs have a differential impact on customers’ relational behavior, measured in terms of cooperation, opportunism and word of mouth; and (2) the efficiency of the program is contingent upon individual characteristics.