An examination of restaurant loyalty programs: what kinds of rewards do customers prefer?

An examination of restaurant loyalty programs: what kinds of rewards do customers prefer? Purpose – This study aims to investigate customer preferences towards loyalty reward programs in the restaurant industry. Willingness to join such programs and expected benefits are also examined. Design/methodology/approach – Focus group interviews followed by a survey methodology were used to test the research questions. The study sample included participants in a popular arts festival in Pennsylvania, USA and restaurant patrons in Las Vegas, USA. Findings – A vast majority of study respondents favored immediate, necessary, and monetary gratification. These results were consistent across restaurant types (fast‐food versus casual dining). Although savings was the most sought‐after benefit, intangible benefits such as quality and convenience also received high ratings. Casual dining customers, in particular, seemed to be highly motivated by exploration and entertainment‐type benefits. Research limitations/implications – Future research should investigate the optimal level or combination of rewards. In addition, other types of restaurants (e.g. fine dining) might require different types of reward schemes. Practical implications – The findings of this study suggest that restaurant operators in the casual dining and fast‐food segments should consider employing immediate, necessary, and monetary rewards as opposed to points‐system, luxury, and non‐monetary rewards. In terms of motivation to join loyalty reward programs, the study results indicate that casual dining patrons are looking for exciting and entertaining rewards in addition to mere cost savings. Originality/value – This paper helps restaurant managers to better understand customer preferences for loyalty reward programs and to realize the value of targeted rewards. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Contemporary Hospitality Management Emerald Publishing

An examination of restaurant loyalty programs: what kinds of rewards do customers prefer?

Loading next page...
 
/lp/emerald-publishing/an-examination-of-restaurant-loyalty-programs-what-kinds-of-rewards-do-A3HiX3Stf9
Publisher
Emerald Publishing
Copyright
Copyright © 2005 Emerald Group Publishing Limited. All rights reserved.
ISSN
0959-6119
DOI
10.1108/09596110510604823
Publisher site
See Article on Publisher Site

Abstract

Purpose – This study aims to investigate customer preferences towards loyalty reward programs in the restaurant industry. Willingness to join such programs and expected benefits are also examined. Design/methodology/approach – Focus group interviews followed by a survey methodology were used to test the research questions. The study sample included participants in a popular arts festival in Pennsylvania, USA and restaurant patrons in Las Vegas, USA. Findings – A vast majority of study respondents favored immediate, necessary, and monetary gratification. These results were consistent across restaurant types (fast‐food versus casual dining). Although savings was the most sought‐after benefit, intangible benefits such as quality and convenience also received high ratings. Casual dining customers, in particular, seemed to be highly motivated by exploration and entertainment‐type benefits. Research limitations/implications – Future research should investigate the optimal level or combination of rewards. In addition, other types of restaurants (e.g. fine dining) might require different types of reward schemes. Practical implications – The findings of this study suggest that restaurant operators in the casual dining and fast‐food segments should consider employing immediate, necessary, and monetary rewards as opposed to points‐system, luxury, and non‐monetary rewards. In terms of motivation to join loyalty reward programs, the study results indicate that casual dining patrons are looking for exciting and entertaining rewards in addition to mere cost savings. Originality/value – This paper helps restaurant managers to better understand customer preferences for loyalty reward programs and to realize the value of targeted rewards.

Journal

International Journal of Contemporary Hospitality ManagementEmerald Publishing

Published: Aug 1, 2005

Keywords: Loyalty schemes; Customer loyalty; Fast foods; United States of America

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off