The Influence of the Relationship between Consumer and Tie-in Promotion on Loyalty: Focusing on the Difference between Target Customers and Non-target Customers of Tie-in Promotion
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There has been recognition of the increasing importance of cooperation as an element of marketingstrategy. Such cooperation is confined to four levels based on product development, sales promotion,pricing arrangements, and place (or distribution) mechanisms as the usual marketing 4Ps mixed(Varadarajan 1986). At present, however, little is known about the nature of tie-in promotion as acooperative sales promotion comparing three other levels. The primary goal of this study is to examine the effect of consumer – tie-in promotion relationshipon loyalty. The construct of consumer – tie-in promotion relationship is based on the previousresearch on consumer-brand relationship. In addition, this study divides the concept of loyalty intohost brand loyalty and partner brand loyalty to reflect the characteristics of tie-in promotionincluding program in order to determine the effect of the consumer – tie-in promotion relationshipon loyalty. The results showed that the three dimensions of the consumer – tie-in promotion relationship (i.e.,commitment, intimacy, and interdependence) had significantly positive effect on program loyalty. The effect of program loyalty is significantly on both host and partner brand loyalty. This studyempirically tested the relationships among consumer – tie-in promotion relationship, program loyalty,host brand loyalty, and partner brand loyalty, and then compared with the difference in the suggestedmodel for the target customers and non-target customers. As a result, for target customers, intimacyand interdependence among dimensions of consumer – tie-in promotion relationship had significantlypositive influence on program loyalty. In case of non-target customers, however, commitment and interdependence among dimensions of consumer – tie-in promotion relationship had significantlypositive influence on program loyalty. Also, program loyalty had significantly positive impact on hostbrand loyalty and partner brand loyalty in both target and non-target customers. This study has significance in that it addresses the need to identify research and academicimplications by analyzing the consumer – tie-in promotion relationship to determine the relationshipbetween tie-in promotion and loyalty, which has not been clearly described by previous studies. Furthermore, this study builds a foundation for firms and managers actively using tie-in promotion toestablish tie-in promotion strategies that can maximize loyalty for both host and partner brands fromthe consumers’ point of view.
Abstract
There has been recognition of the increasing importance of cooperation as an element of marketingstrategy. Such cooperation is confined to four levels based on product development, sales promotion,pricing arrangements, and place (or distribution) mechanisms as the usual marketing 4Ps mixed(Varadarajan 1986). At present, however, little is known about the nature of tie-in promotion as acooperative sales promotion comparing three other levels. The primary goal of this study is to examine the effect of consumer – tie-in promotion relationshipon loyalty. The construct of consumer – tie-in promotion relationship is based on the previousresearch on consumer-brand relationship. In addition, this study divides the concept of loyalty intohost brand loyalty and partner brand loyalty to reflect the characteristics of tie-in promotionincluding program in order to determine the effect of the consumer – tie-in promotion relationshipon loyalty. The results showed that the three dimensions of the consumer – tie-in promotion relationship (i.e.,commitment, intimacy, and interdependence) had significantly positive effect on program loyalty. The effect of program loyalty is significantly on both host and partner brand loyalty. This studyempirically tested the relationships among consumer – tie-in promotion relationship, program loyalty,host brand loyalty, and partner brand loyalty, and then compared with the difference in the suggestedmodel for the target customers and non-target customers. As a result, for target customers, intimacyand interdependence among dimensions of consumer – tie-in promotion relationship had significantlypositive influence on program loyalty. In case of non-target customers, however, commitment and interdependence among dimensions of consumer – tie-in promotion relationship had significantlypositive influence on program loyalty. Also, program loyalty had significantly positive impact on hostbrand loyalty and partner brand loyalty in both target and non-target customers. This study has significance in that it addresses the need to identify research and academicimplications by analyzing the consumer – tie-in promotion relationship to determine the relationshipbetween tie-in promotion and loyalty, which has not been clearly described by previous studies. Furthermore, this study builds a foundation for firms and managers actively using tie-in promotion toestablish tie-in promotion strategies that can maximize loyalty for both host and partner brands fromthe consumers’ point of view.
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