Examining the differential effects of social and economic rewards in a hotel loyalty program

Jin Soo Lee; Kee Fu Tsang; Steve Pan

doi:10.1016/j.ijhm.2015.05.003

Examining the differential effects of social and economic rewards in a hotel loyalty program

Jin Soo Lee, Kee Fu Tsang, Steve Pan

Research output: Journal article publication › Journal article › Academic research › peer-review

27 Citations (Scopus)

Abstract

This study aims to explore how differently social and economic rewards of a hotel loyalty program impact program loyalty and further examine how the differential impact produces relational behaviors. Findings suggest that economic rewards drive program loyalty more strongly than social rewards because members tend to stay with a loyalty program due to its economic reward. However, social rewards facilitate relational behaviors more than economic rewards, given that social rewards intrinsically motivate members to actively defend and support a program provider through affective commitment. The results provide loyalty program operators with insight into how to balance social and economic rewards in designing loyalty programs and suggest how hotels amplify relational value to establish sustainable relationships with customers.

Original language	English
Pages (from-to)	17-27
Number of pages	11
Journal	International Journal of Hospitality Management
Volume	49
DOIs	https://doi.org/10.1016/j.ijhm.2015.05.003
Publication status	Published - 1 Aug 2015

Keywords

Economic and social rewards
Hotel loyalty program
Relational behaviors
Relationship marketing investments (RMI)
Scenario-based survey

ASJC Scopus subject areas

Tourism, Leisure and Hospitality Management
Strategy and Management

More information

10.1016/j.ijhm.2015.05.003

Cite this

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abstract = "This study aims to explore how differently social and economic rewards of a hotel loyalty program impact program loyalty and further examine how the differential impact produces relational behaviors. Findings suggest that economic rewards drive program loyalty more strongly than social rewards because members tend to stay with a loyalty program due to its economic reward. However, social rewards facilitate relational behaviors more than economic rewards, given that social rewards intrinsically motivate members to actively defend and support a program provider through affective commitment. The results provide loyalty program operators with insight into how to balance social and economic rewards in designing loyalty programs and suggest how hotels amplify relational value to establish sustainable relationships with customers.",

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AB - This study aims to explore how differently social and economic rewards of a hotel loyalty program impact program loyalty and further examine how the differential impact produces relational behaviors. Findings suggest that economic rewards drive program loyalty more strongly than social rewards because members tend to stay with a loyalty program due to its economic reward. However, social rewards facilitate relational behaviors more than economic rewards, given that social rewards intrinsically motivate members to actively defend and support a program provider through affective commitment. The results provide loyalty program operators with insight into how to balance social and economic rewards in designing loyalty programs and suggest how hotels amplify relational value to establish sustainable relationships with customers.

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KW - Relationship marketing investments (RMI)

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ER -

Examining the differential effects of social and economic rewards in a hotel loyalty program

Abstract

Keywords

ASJC Scopus subject areas

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