The Study of Customers’ Participation in On-line Coalition Loyalty Programs: The Case of “Ipoint”
Date Issued
2008
Date
2008
Author(s)
Chang, Tzu-Yun
Abstract
Coalition loyalty programs become newly-emerged loyalty trend. Coalition loyalty programs mean three or more companies band together to share the branding, operational costs, marketing expense and data ownership of a common loyalty currency. Compared with traditional solus schemes, coalition loyalty programs offer higher velocity of points accumulation for customers and strong economic benefits for firms, including benefits from the chances of cross-selling. On-line shopping is a promising channel of choice for consumers under busy life nowadays, and coalition loyalty programs also emerge and flourish gradually on electronic commerce. Our study intends to explore the positive and negative antecedents and purchase intention of customers’ participation in on-line coalition loyalty programs. The proposed model includes three components of customer commitment (normative commitment, continuance commitment, affective commitment), e-trust, cross-buying concepts, and relationship hindrance. We also incorporate customer perceived switching costs and overall satisfaction as moderators. LISREL method is adopted to test the model based on the questionnaire data of members in “Ipoint Program” on the internet. Our study can generalize following conclusions: Among three components of customer commitment, only continuance commitment leads to repurchase intention. E-trust positively influences repurchase intention, but it doesn’t enhances cross-buying intention directly. Cross-buying drivers ( the extent or varieties of the stores in the coalition loyalty program, the extent of image fit, payment equity, complementarity, customization) positively influence cross-buying intention, but the effect depends on customer perceived switching costs. Relationship hindrance (upkeep themes, time themes, benefit themes, personal loss themes) will hinder the relationship development between consumers and firms. Finally, positive effect exists between repurchase intention and cross-buying intention.
Subjects
loyalty program
coalition loyalty program
customer commitment
cross-buying
relationship hindrance
e-trust
Structural Equation Modeling (LISREL)
Type
thesis
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