Navigating from programme loyalty to company loyalty

Abstract

Loyalty programmes build attitudinal loyalty towards the loyalty programme, but not necessarily towards the company brand. This research answers the question, “How do customers navigate from programme loyalty to company loyalty?” by uncovering three mediating processes. The first process shows that programme loyalty improves perceived functional value of the brand, leading to company loyalty. The second process shows that programme loyalty increases customer's involvement with brand experience, fuelling company loyalty. Finally, the third process shows that programme loyalty increases the communication effectiveness for the brand, which enhances company loyalty.