Which benefits to provide to customers to enhance their satisfaction towards loyalty programs and their store loyalty? The particular case of hierarchical loyalty programs

This study investigates the benefits customers perceived from their participation in a store loyalty program (LP). More specifically, we assess how the perceived benefits (i.e., utilitarian, hedonic and symbolic) impact on the satisfaction towards the program and finally on store loyalty. We develop and test a model of store loyalty including perceived benefits, LP satisfaction, several dimensions of store loyalty and involvement as a moderator. In addition, we explore the context of a multi-level membership LP in the apparel industry. The results show that perceived benefits in general and the symbolic ones in particular are strong determinants of the satisfaction towards LPs and substantially drive store loyalty. Our findings provide insights about the effectiveness of multi-level membership LPs. We suggest some practical recommendations in designing LPs in a more effective way.