The Loyalty Program for Our Self-Esteem: The Role of Collective Self-Esteem in Luxury Hotel Membership Programs

This research explores the social mechanism of luxury hotel membership programs and extends current loyalty program literature that has mainly examined membership programs from a mental-accounting perspective. By building upon the social identity theory, this study posits that luxury hotel membership programs provide social platforms, allowing members to construct a collective identity and collective self-esteem. Consequently, collective self-esteem is proposed as an antecedent of customer-brand relationship constructs, such as commitment, switching resistance, and word of mouth. Members from two South Korean luxury hotel membership programs were recruited to participate in a survey to test these constructs' relationship, and findings demonstrate that membership programs' effectiveness in cultivating a robust customer-brand relationship is contingent upon members' collective self-esteem with the program. This correlation involves the four dimensions of collective self-esteem: membership esteem, private esteem, public esteem, and importance to identity. This study is preeminent to the current literature by identifying a critical psychological mechanism, which luxury hotel brand managers can leverage to successfully launch a membership program that ultimately cultivates enduring customer-brand relationships. The results of this study also suggest several managerial implications for hotel marketers to effectively design and manage membership programs by considering collective self-esteem's four dimensions.