The Role of Loyalty Program (LP) and Brand Attachment in Establishing Word-of-Mouth Intentions: An Empirical Investigation in the Mobile Sector

Introduction

The loyalty concept has an important role, namely, in the saturated market. This last is characterized by: competition intense and recruitment costs are higher than those associated with retention (e.g., Bolton and Drew, 1994; Norizan et al., 2010). Retention strategy is a plausible alternative to develop the company’s business and to defend its market share. The firm should determine the specific customers’ profiles (specific information) to respond to their needs or expectations and to satisfy them (e.g., Peppers et al., 1999). In fine, it aims through rewards to have customer retention (e.g., Beker et al., 2009; Berné et al., 2001; Dwyer et al., 1987; Gummesson, 1999; Lewis, 2006; Peck et al., 1999). The effect of loyalty program is then manifested in the duration of the relationship (e.g., Bahri-Ammari, 2014; Bolton et al. 2000; Sharp and Sharp, 1997; Verhoef & Langerak, 2002) and by the efficient WOM intentions (Kim & Lee, 2011). Generally, the more customer stay loyal to the firm, the more propensities to recommend the firm are strongly and the more are appropriate the recommendations. This interpersonal and informal (WOM) communication takes benefits from the free aspect and especially of the conviction effect. This last has a direct connection with the affective emotion of the customer, that is the reason for what we must evoke the brand attachment concept. Some of several approaches are related to the determinant role of brand in the contribution of the evaluation of customer emotion and of the strong sense of adhesion. The customer perception to the brand is thus manifested by attachment (e.g., Belaîd & Temessek-Behi, 2011; Feldweck, 1996). Other concerns the marketing paradigm which focuses on the long term relationship consequences, such: brand engagement. This one has two dimensions: cognitive and affective. According to Belaîd & Temessek-Behi, (2011), the cognitive emotion integrated the perception of the risk and the switching cost, whereas the affective is referred to attachment. In the theory, the brand attachment is an emergent concept that can explain the affective relationship between the customer and the brand. It is an affective reaction and a sustainable emotional relationship (e.g., Belaîd & Temessek-Behi, 2011; Cristau, 2001; Fournier, 1998; Lacoeuille, 2000). Despite a lack of research concerning the determinant of the brand attachment, Webster (1992) argues the importance of relationship variables between the individual aspects and the brand attachment. There are also for the satisfaction, loyalty, trust…..

Through this paper, we will try to explain if the loyalty program perception affects the WOM? To show if the impact is direct or indirect through others variables such: satisfaction and loyalty? And finally, by evaluating the contribution of the brand attachment to reinforce the WOM?

In this paper, we will start by presenting the literature review on the different concepts of our research. Once the relationships between the different variables of the research have been established, then we test the structural model through second generation methods. We will after present and interpret the results, discuss and conclude this work by advancing suggestions for other future research in the same sector.