Understanding customer repurchase behavior based on reward programs implementation

A process model of how repurchase intentions, service experiences and value perception of a reward program influence repurchase behavior are developed. The result shows that customers make repurchase decisions on the basis of their prior repurchase intentions and number of transactions, updated by their service experiences. However, their experiences are relatively complex. In our study, reward programs have a positive effect on customer repurchase behavior and provide an opportunity to build longer relationships with customers.