ABSTRACT

Grounded in the Theory of Justice, perception of fairness is evaluated as a key element to enhance the effectiveness of loyalty programs. Using a robust sample of casino reward program members, the research examines the mediating roles of brand attachment and loyalty intention between perceptions of fairness and loyalty outcomes. The study introduces share-of-wallet as a critical outcome of the loyalty process. The results indicate that communication-based and value-based fairness significantly influence brand attachment and loyalty intention. Moreover, brand attachment has a stronger impact on share-of-wallet than loyalty intention does. The research yields guidance for hospitality marketers to structure effective and competitive loyalty programs. The results add new insight into loyalty processes and extend the hospitality loyalty literature by suggesting brand attachment as a primary indicator for loyalty outcomes. The findings suggest that through perceived fairness, marketers can build brand attachment and increase share of wallet, thereby increasing profitability.

5. Discussion

The current study provides an in-depth understanding of loyalty processes by incorporating the perception of fairness originating from the Theory of Justice. The study proposes that brand attachment and loyalty intention mediate the relationship between perceptions of fairness and loyalty outcomes. The results reveal strong support for the proposed model. The research findings highlight the importance of investigating customers’ perceptions of rewards programs in terms of communication-based and value-based fairness. The study provides meaningful insights for researchers and industry professionals to consider for enhancing relationship marketing strategy and, ultimately, motivating reward program members to stay with the companies that offer such programs.

5.1. Discussion of model variables

To gain deeper insight into the course of loyalty, the current study incorporated two unique components: perception of fairness (POF) and share of wallet (SOW). The study extends the essential role of brand attachment, which is a more comprehensive form of emotional commitment, on loyalty intention and loyalty outcomes.