Customer Loyalty Programs: It is easy to giveth, not so easy to take away

Document Type

Conference Proceeding

Conference Track

Marketing Management/ Strategy/ Branding

Publication Date



Loyalty programs have become almost obligatory in the service and hospitality industries. These programs are often initiated with little evidence that these programs create behavioral or attitudinal loyalty to the firm that offers the program. Further complicating the reward program management process is the idea that customers have come to expect some type of reward in exchange for their patronage. In this brief report, we explore the possible impact that program changes might have on consumer purchasing behavior. Drawing from a larger hospitality survey 542 consumers completed an online survey indicating their degree of brand loyalty towards a particular hotel chain. They then assessed their response to various hypothetical changes in their program. Results indicated that program changes including increasing reward tier requirements or even discontinuing the program is likely to increase consumer defection from the program. The implications of these findings for reward program management are considered.

Copyright Statement / License for Reuse

Digital Commons@Georgia Southern License

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