IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v18y2011i1p81-91.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698910001074
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2010.10.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    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.
    2. Morgan, Neil A. & Clark, Bruce H. & Gooner, Rich, 2002. "Marketing productivity, marketing audits, and systems for marketing performance assessment: integrating multiple perspectives," Journal of Business Research, Elsevier, vol. 55(5), pages 363-375, May.
    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.
    4. Steven M. Shugan, 2005. "Brand Loyalty Programs: Are They Shams?," Marketing Science, INFORMS, vol. 24(2), pages 185-193.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Verhoef, Peter C. & Venkatesan, Rajkumar & McAlister, Leigh & Malthouse, Edward C. & Krafft, Manfred & Ganesan, Shankar, 2010. "CRM in Data-Rich Multichannel Retailing Environments: A Review and Future Research Directions," Journal of Interactive Marketing, Elsevier, vol. 24(2), pages 121-137.
    2. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," CEPN Working Papers 2018-04, Centre d'Economie de l'Université de Paris Nord.
    3. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," Working Papers hal-01904416, HAL.
    4. Dorotic, Matilda & Verhoef, Peter C. & Fok, Dennis & Bijmolt, Tammo H.A., 2014. "Reward redemption effects in a loyalty program when customers choose how much and when to redeem," International Journal of Research in Marketing, Elsevier, vol. 31(4), pages 339-355.
    5. A. Yeşim Orhun & Tong Guo & Andreas Hagemann, 2022. "Reaching for Gold: Frequent-Flyer Status Incentives and Moral Hazard," Marketing Science, INFORMS, vol. 41(3), pages 548-574, May.
    6. repec:hal:cepnwp:hal-01904416 is not listed on IDEAS
    7. Sunil Gupta & Valarie Zeithaml, 2006. "Customer Metrics and Their Impact on Financial Performance," Marketing Science, INFORMS, vol. 25(6), pages 718-739, 11-12.
    8. Rehnen, Lena Marie, 2016. "Exit strategies of loyalty programs," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 9(1), pages 564-596.
    9. Neil A. Morgan & Lopo Leotte Rego, 2006. "The Value of Different Customer Satisfaction and Loyalty Metrics in Predicting Business Performance," Marketing Science, INFORMS, vol. 25(5), pages 426-439, September.
    10. Malika Chaudhuri & Clay M. Voorhees & Jonathan M. Beck, 2019. "The effects of loyalty program introduction and design on short- and long-term sales and gross profits," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 640-658, July.
    11. Praveen K. Kopalle & Yacheng Sun & Scott A. Neslin & Baohong Sun & Vanitha Swaminathan, 2012. "The Joint Sales Impact of Frequency Reward and Customer Tier Components of Loyalty Programs," Marketing Science, INFORMS, vol. 31(2), pages 216-235, March.
    12. Lin, Chen & Bowman, Douglas, 2022. "The impact of introducing a customer loyalty program on category sales and profitability," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    13. Faramarzi, Ashkan & Bhattacharya, Abhi, 2021. "The economic worth of loyalty programs: An event study analysis," Journal of Business Research, Elsevier, vol. 123(C), pages 313-323.
    14. Kang, Jun & Alejandro, Thomas Brashear & Groza, Mark D., 2015. "Customer–company identification and the effectiveness of loyalty programs," Journal of Business Research, Elsevier, vol. 68(2), pages 464-471.
    15. Dewani, Prem Prakash & Sinha, Piyush Kumar & Mathur, Sameer, 2016. "Role of gratitude and obligation in long term customer relationships," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 143-156.
    16. Wagner Kamakura & Carl Mela & Asim Ansari & Anand Bodapati & Pete Fader & Raghuram Iyengar & Prasad Naik & Scott Neslin & Baohong Sun & Peter Verhoef & Michel Wedel & Ron Wilcox, 2005. "Choice Models and Customer Relationship Management," Marketing Letters, Springer, vol. 16(3), pages 279-291, December.
    17. Das, Gopal, 2014. "Factors affecting Indian shoppers׳ attitude and purchase intention: An empirical check," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 561-569.
    18. Gandomi, Amir & Zolfaghari, Saeed, 2018. "To tier or not to tier: An analysis of multitier loyalty programs׳ optimality conditions," Omega, Elsevier, vol. 74(C), pages 20-36.
    19. Alina Filip, 2011. "Loyalty Programs. Role, Structure and Potential Benefits," International Journal of Economic Practices and Theories, Academy of Economic Studies - Bucharest, Romania, vol. 1(2), pages 88-93, September.
    20. Schmidt, Robert J., 2019. "Do injunctive or descriptive social norms elicited using coordination games better explain social preferences?," Working Papers 0668, University of Heidelberg, Department of Economics.
    21. Noah Lim & Teck-Hua Ho, 2007. "Designing Price Contracts for Boundedly Rational Customers: Does the Number of Blocks Matter?," Marketing Science, INFORMS, vol. 26(3), pages 312-326, 05-06.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:18:y:2011:i:1:p:81-91. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.