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Consumer learning as a determinant of a multi-partner loyalty program’s effectiveness: A behaviorist and long-term perspective

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  • Frisou, Jean
  • Yildiz, Hélène

Abstract

In this article, we argue that a loyalty program’s effectiveness depends on how the consumer learns to use its rules. The proposed theoretical framework was tested on the behavioral trajectories of 1380 individuals observed over a four-year period. The tendency of customers to spend more over four years became increasingly pronounced as they learned how to accumulate loyalty points and asked for these to be redeemed. This finding suggests that a loyalty program’s effectiveness does not depend on the program alone. To obtain the loyalty behaviors, firms should take specific measures to help their customers familiarize themselves with the program’s rules.

Suggested Citation

  • Frisou, Jean & Yildiz, Hélène, 2011. "Consumer learning as a determinant of a multi-partner loyalty program’s effectiveness: A behaviorist and long-term perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 18(1), pages 81-91.
    • Handle: RePEc:eee:joreco:v:18:y:2011:i:1:p:81-91
    DOI: 10.1016/j.jretconser.2010.10.002
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    References listed on IDEAS

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    1. Rajiv Lal & David Bell, 2003. "The Impact of Frequent Shopper Programs in Grocery Retailing," Quantitative Marketing and Economics (QME), Springer, vol. 1(2), pages 179-202, June.
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    3. Bagozzi, Richard P & Warshaw, Paul R, 1990. "Trying to Consume," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(2), pages 127-140, September.
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    Cited by:

    1. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    2. Tsiotsou, Rodoula H. & Boukis, Achilleas, 2022. "In-home service consumption: A systematic review, integrative framework and future research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 49-64.
    3. Atul Purohit & Urjita Thakar, 2019. "Role of information and communication technology in improving loyalty program effectiveness: a comprehensive approach and future research agenda," Information Technology & Tourism, Springer, vol. 21(2), pages 259-280, June.
    4. Meyer-Waarden, Lars, 2015. "Effects of loyalty program rewards on store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 24(C), pages 22-32.

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