Naquita Maria-Jose Achadinha Fernandes, Devina Harry, Pierre Koekemoer
Abstract
Businesses often overlook the importance of reward timing in loyalty programs, especially in emerging-market retailers facing increasing customer switching. This study investigates local customer expectations regarding reward timing using a quantitative, cross-sectional approach. A survey completed by 222 active users of an African-based Fast-moving consumer goods (FMCG) retailer’s loyalty program (offering instant and delayed rewards) was analysed using partial least squares structural equation modelling and the Sobel test for mediation. Results indicate a preference for instant rewards over delayed ones. By focusing on the FMCG sector in growing emerging economies and applying Vroom’s expectancy theory in a non-managerial context, this study offers valuable insights into context-specific reward timing strategies and highlights the significance of expectation alignment.