Stress and fresh-start mindsets promote repatronage intention in loyalty programs

The present research proposes and tests a conceptual model of the effects of mindsets (stress-based vs. fresh-start-based) on the relationship between compensations (discount coupons vs. bonus reward points) and repatronage intention in loyalty programs. In two experiments, we tested the effects of two compensation practices on repatronage intention in loyalty programs. We analyzed the moderating effect of stress-is-debilitating, stress-is-enhancing, and fresh-start mindsets. Regarding types of compensation, discount coupons (vs. bonus reward points) positively increased the effect of repatronage intention. Regarding internal influences represented by mindsets, ‘stress-is-debilitating’ combined with discount coupons led to increased repatronage intention. In contrast, a ‘stress-is-enhancing’ mindset and bonus reward points can encourage repatronage intention. Additionally, a match between a ‘fresh-start’ mindset and bonus reward points may increase repatronage intention in loyalty programs. Our findings help hospitality and tourism firms better understand compensation strategies to improve the repatronage intention of loyalty reward program members.