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Do Consumption Goals Matter? The Effects of Online Loyalty Programs in the Satisfaction-Loyalty Relation



This article is corrected by:

  1. Errata: Erratum Volume 29, Issue 10, 804, Article first published online: 11 September 2012

This research was supported by the Institute of Management Research, Seoul National University. The first author (Jung-Chae Suh) pays tribute to her late mother, Kong-Suh Park, who had provided unwavering support for her daughter, Jung-Chae's academic endeavors, including this article.Correspondence regarding this article should be sent to: Youjae Yi, KT Professor of Marketing, College of Business Administraton, Seoul National University, 599 Gwanangno, Gwanak-gu, Seoul 151–916, Korea (


This study investigates the effects of online loyalty programs in the customer satisfaction-loyalty relationship. It is proposed that loyalty programs may induce loyalty toward programs (program loyalty), which may then influence loyalty toward stores (store loyalty). According to the results of a two-wave survey, consumption goals matter in the effects of program loyalty on online store loyalty. For consumers with hedonic goals, hedonic program loyalty (e.g., free gifts) has a significant effect on online loyalty. For consumers with utilitarian goals, however, utilitarian program loyalty (e.g., coupons) has a significant influence on online loyalty. Theoretical and managerial implications are also discussed.