The Influence Factors Of Loyalty Program's Performance:the Perspective Of Value Co-creation

Loyalty program is one of the most commonly used marketing tools,which helps companies to attract new customers and retain old customers at the same time.It provides customers with economic value,emotional value and social value that will affect their repeat purchase behavior,word of mouth and customer relationships accordingly.These values are created by both the companies and their customers,and the process of creating those kinds of values is influenced by a value co-creation platform.To interpret systematically about how values affect the implementation of loyalty program,and what value co-creation can do as a mediator during the process,this paper clarifies the inner relations between value factors,effects of loyalty programs,service system and DART model firstly,and then uses a questionnaire to test customers' subjective feelings about participating in loyalty programs and collect relevant data.By using structural equation model to analyze these data,here comes the following research conclusions of this empirical study.First,economic value,emotional value,social value are key dimensions that represent loyalty program's influence factors.And repeat purchase,word of mouth,customer relationships are important parts of loyalty program's work performance.Second,economic value,emotional value and social value have significant positive effects on repeat purchase,word of mouth.In addition,economic value can not significantly affect customer relationships,but emotional value and social value will do.Among these,emotional value lays the maximum impact on repeat purchase and word of mouth,while social value can affect customer relationship at utmost.Third,in the inspection of relationships among values,service system and effects of loyalty program,it turns out that economic value,emotional value,social value will positively affect service system one by one.And service system plays a positive driving role in repeat purchase,word of mouth,customer relationships.What's more,service system works as a mediator when economic value,emotional value,social value influence loyalty program.Forth,when it comes to the connections among values,DART model and effects of loyalty program,it shows that economic value has no significant impact on DART model,while emotional value and social value can positively influence DART model.And DART model will affect repeat purchase,word of mouth,customer relationships respectively.In addition,DART model works differently when values affect loyalty program.On the one hand,DART model doesn't intermediate the relations between economic value and loyalty program's effects.On the other hand,DART model plays a mediator role when emotional value and social value respectively affect loyalty program's performance.