Loyalty Programs

Paper Summary:

Popularity of loyalty programs is increasing, both in terms of the number of programs offered by merchants and in participation by customers. Yet, it seems that both groups remain ill informed of how the programs actually work and the true benefits and costs. This paper explores the reality of loyalty programs and concludes that they can be beneficial for all parties provided that they fully understand what the programs accomplish.

From the Paper:

"Research suggests that the demand-side success of loyalty programs is less than promised. It is difficult to change established patterns of repeat-purchase behavior and competition quickly develops counter responses that mitigate the impact of the program. However, it is possible to reap advantages from loyalty programs such as maintaining customer loyalty and brand share, improving accessibility and brand awareness, and offering incentives expected by customers."

More papers on Loyalty Programs:

• Term Paper # 115596 : "Customer Loyalty Programs"
• Research Proposal # 128167 : "Customer Loyalty Programs"
• Business Plan # 87286 : "Building Customer Loyalty "

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