The effect of customization of customer loyalty programs on value and loyalty intention

The purpose of the current study was to determine the role of customization on perceived value, customer satisfaction and loyalty. Bagozzi's Appraisal-Emotional Response-Coping Framework provided the theoretical support for the study. The objectives of the current study were to explore: (1) the effect of customization of a customer loyalty program on consumer value perceptions of a loyalty program (aspirational and cash value) (2) the effects of perceived value of a loyalty program on customer satisfaction and loyalty intention. An online survey was utilized to determine the results. Hierarchical multiple regression analyses indicated that aspirational value and cash value are predicted by customization of a loyalty program; satisfaction is predicted by aspirational value and cash value; and loyalty is predicted by satisfaction. The current study provides theoretical and managerial implications. The results contribute to current literature which suggests that customization and aspirational value are important components and should be included in loyalty programs. Further, the results may provide retailers with a better understanding of customer demands in a loyalty program, which will allow them to create more profitable reward programs.