A wide proliferation of rewards programmes in many industries has triggered researchers’ interest in this marketing approach. A large number of studies have been focused on investigating the ability of these programmes to create customer brand loyalty. However, existing research findings have been contradictory.
A study conducted between participants and non-participants in the loyalty program of a large supermarket chain shows positive relationship between true loyalty and the reward program. The results demonstrate that reward card holders exhibit higher levels of favorable attitude towards the brand and tend to revisit more often compared to non-participants in that programme. These findings are supported by another comparative work carried out in retail sector. This shows the ability of reward programs to create true loyalty.
Several papers also show positive linkage between reward programs and the behavioral component of loyalty. For example, some demonstrate that loyalty program members are more frequent users of the brand than non-members. However, the behavioural approach adapted in these studies provides a limited view of loyalty and makes it impossible to distinguish whether created loyalty is true or spurious.
It was also suggested that rewards offered by a loyalty scheme create loyalty to a program rather than a brand. Thus, this suggests that reward programmes can create spurious brand loyalty.
On the other hand, many authors argue that reward programs are not effective at building customer loyalty. Some research shows almost no change in the consumer’s purchase behaviour before and after these customers have become loyalty card holders. Several studies show that many customers who have retail loyalty cards do not use them. Moreover, a large proportion of adults participate in more than one reward program offered within the same industry. For example, according to a survey carried out by OAG Worldwide Limited 40 percent of European airline travellers are members of four or more airline frequent flyer programs. All this is due to the fact that people enjoy getting something for nothing.



