Do reward programs build loyalty to restaurants? The moderating effect of long-term orientation on the timing and types of rewards

Purpose - The purpose of this study is to propose long-term orientation as a moderating effect on restaurant customer reward programs. Unlike in short-term oriented and transactional marketing, long-term orientation is an important factor in creating new loyal customers. Design/methodology/approach - This research shows how the moderating effect of long-term orientation affects customer reaction to reward timing (Experiment 1) and reward type (Experiment 2). The independent variables of Experiment 1 were timing of rewards (immediate/accumulate) and long-term orientation (high/low), with the dependent variable being customer loyalty. The independent variables of Experiment 2 were the types of rewards (monetary/nonmonetary) and long-term orientation (high/low), with the dependent variable being customer loyalty. The treatment groups are different from each other with regard to reward type and reward timing. Findings - Depending on the reward type and its timing, long-term orientation has a moderating effect on customer loyalty. In customers with a high long-term orientation, there is no difference in the effect of rewards, whether they are immediate or accumulated and monetary or nonmonetary. On the other hand, for customers with a low long-term orientation, the effect of rewards increases for monetary rewards more than nonmonetary ones and for immediate rewards more than for accumulated ones. Originality/value - This paper helps restaurant managers to better understand customer loyalty and the value of reward programs that take into account the long-term orientation concept.