Designing Loyalty-Building Programs for Packaged Goods Brands

2002 ◽  
Vol 39 (2) ◽  
pp. 202-213 ◽  
Author(s):  
Michelle L. Roehm ◽  
Ellen Bolman Pullins ◽  
Harper A. Roehm
Keyword(s):  
Brand Loyalty ◽  
Loyalty Programs ◽  
Brand Associations ◽  
Loyalty Program ◽  
Packaged Goods ◽  
Series Of Experiments

The authors investigate the effects of loyalty programs on loyalty to packaged goods brands. Findings from a series of experiments indicate that the incentive that is offered in a loyalty program is important to whether the program succeeds or fails at building brand loyalty. The data reported suggest that incentives that have overlap with brand associations, which the authors term cue-compatible incentives, can prompt rehearsal that increases the accessibility of favorable brand associations. This, in turn, helps boost postprogram loyalty. At the same time, incentives that are tangible or concrete can undermine postprogram loyalty. This seems to occur because elaboration is attracted to the incentive at the expense of the brand. Incentive associations may thus gain in accessibility and interfere with access to brand associations.

Loyalty program in Africa: risk-seeking and risk-averse adventurers

2014 ◽  
Vol 69 (2) ◽  
pp. 137-157 ◽  
Author(s):  
Shogo Mlozi
Keyword(s):  
Consumer Behavior ◽  
Consumer Products ◽  
Loyalty Programs ◽  
Risk Averse ◽  
Loyalty Program ◽  
Content Type ◽  
Risk Seeking ◽  
Proposed Model ◽  
First Time ◽  
The Relationship

Purpose – This article aims to test the relationship between expected attractiveness-satisfaction-loyalty for international adventure tourists visiting Tanzania. The proposed model is based on travel consumer behavior theoretical constructs extracted from the literature. Design/methodology/approach – This article aims to test the relationship between expected attractiveness-satisfaction-loyalty for international adventure tourists visiting Tanzania. The proposed model is based on travel consumer behavior theoretical constructs extracted from the literature. Findings – The findings for overall model differed from the moderating factors of high risk, low risk, first-time visit and repeat visit. Also, the results are interesting when satisfaction is tested as a mediator. Practical implications – Practitioners could consider the fact that repeat visits may change tourists’ perceptions toward destination and may even increase their inclination to take on risks. This may impact innovation of consumer products in tourism. Also, policy makers could benefit on how loyalty programs can be developed to increase performance. Originality/value – The study offers specific strategic recommendations toward different groups of tourists (i.e. first-time, repeat visitors, risk averse, risk seeking) and proposes logic for setting up a loyalty program as a long-term strategy for success.

scholarly journals Loyalty programs: the vital safety feature for airlines to survive COVID-19

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel E. Pascual ◽  
Lisa Nicole Cain
Keyword(s):  
Airline Industry ◽  
Loyalty Programs ◽  
Current Response ◽  
Long Term Effects ◽  
Loyalty Program ◽  
Case Study Methodology ◽  
Content Type ◽  
Hospitality And Tourism ◽  
American Airlines

PurposeThe airline industry has been severely impacted by COVID-19 due to widespread travel restrictions. Its current response is crucial to ensure continued operations after the global pandemic is resolved. One resource the airlines are leveraging is loyalty programs. This study aims to examine the viability of leveraging loyalty programs in times of crisis.Design/methodology/approachThis study employs a case study methodology to examine how one company, American Airlines, has used its loyalty program to survive a pandemic and alleviate the financial costs associated with limited and restricted travel.FindingsAmerican Airlines' AAdvantage loyalty program structure may be used as a benchmark to understand how airlines can anchor their loyalty base to reinvigorate travel interest and use these programs as safeguards in critical instances that may arise in the future.Research limitations/implicationsThe case was bound by the fact that the pandemic was still a threat during the time of analysis. The findings of this case study go beyond the airline industry and may inform other hospitality and tourism organizations on the benefits of loyalty programs in times of financial distress.Originality/valueThis is the first known case study examining the strengths and opportunities of the structure of the American Airlines' AAdvantage program as a means for surviving in a time of crisis. Moreover, understanding how to mitigate the long-term effects of crises may help to inform future short-term strategies of airlines and other hospitality and tourism organizations for navigating unexpected shocks to their ecosystem.

scholarly journals Motivation and consumer behaviour in the context of loyalty programs

2012 ◽  
Vol 60 (2) ◽  
pp. 211-216
Author(s):  
Klára Mrkosová ◽  
Ondřej Dufek ◽  
Luděk Majer
Keyword(s):  
Consumer Behaviour ◽  
Marketing Research ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Deferred Compensation

The paper introduces the partial results of the marketing research on loyalty programs. The aim was to identify the reasons that lead consumers to participate in loyalty programs and the benefits that are the main motivators for participation in the loyalty program. Respondents had the opportunity to create a loyalty program as they wish. The aim of this paper was also to prove the popularity of loyalty programs based on the principles of the deferred compensation.

scholarly journals NECESSITY OF CUSTOMER LOYALTY FORMATION AND ITS PECULIARITIES IN THE TELECOMMUNICATION SERVICES

2019 ◽  
Vol 1 ◽  
pp. 142
Author(s):  
Iveta Linina ◽  
Velga Vevere ◽  
Rosita Zvirgzdina
Keyword(s):  
Customer Loyalty ◽  
Customer Relations ◽  
Loyalty Programs ◽  
Telecommunication Industry ◽  
Consumer Loyalty ◽  
Loyalty Program ◽  
Telecommunication Services ◽  
Corporate Loyalty ◽  
Time And Energy ◽  
To Receive

Everyday life is unimaginable without telecommunication services; they are the significant players in the national economy. All business activities, including the ones of telecommunication services, are directed towards the satisfaction of customers’ needs and wants, and hence towards the profit earning. This process, in its turn, entails the formation of different company/customer relations, where both parties want to gain something out of these relations. The company strives, first of all, to increase the turnover and profit, while the customer wants to receive the desired services, information and the proper attitude. These customer gains can be basis of the loyalty formation, that is very important for the company, because the process of attracting new consumers always involves spending money, time and energy. The goal of this work is to explore the loyalty formation process and its peculiarities in the telecommunication services. Based on the results of the study, it was found that the experts rated the offer of corporate loyalty programs at the lowest, then followed the service offer and the price, but slightly higher the service quality. The experts assigned the highest rating to the prestige of the service. Based on the low assessment of the experts in the telecommunication industry of the loyalty program offer, the authors propose the conceptual consumer loyalty model for the practical use.

Building an Effective Customer Loyalty Program

2018 ◽  
pp. 195-212 ◽  
Author(s):  
Kumari Smriti
Keyword(s):  
Customer Loyalty ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Targeted Marketing ◽  
The Right ◽  
Customer Loyalty Programs ◽  
A Company ◽  
Loyal Customers

Customer loyalty schemes is a practice, employed by retailers, to reward their loyal customers. It entails giving incentives such as loyalty cards, reward points, etc. These also serve as a repository of information about a customer which helps in targeted marketing. This chapter analyses some of the successful customer loyalty programs by companies, discusses some of the reasons of failures of such program and looks at what industry experts have to say in this regard. We then collate all this information to suggests a process to identify and choose the right customer loyalty programs for a company.

Can Advertising Copy Make FSI Coupons More Effective?

1997 ◽  
Vol 34 (4) ◽  
pp. 473-484 ◽  
Author(s):  
France Leclerc ◽  
John D. C. Little
Keyword(s):  
Brand Loyalty ◽  
Laboratory Experiments ◽  
Product Category ◽  
Consumer Attitudes ◽  
Separate Analysis ◽  
Free Standing ◽  
Packaged Goods ◽  
Print Advertisement ◽  
Per Se ◽  
The Impact

Packaged goods manufacturers distribute cents-off coupons in freestanding inserts (FSIs) in newspapers. Free-standing insert coupons are typically composed of two parts: the coupon per se and a print advertisement. Using two laboratory experiments and a separate analysis of coupon measurements from scanner panels, the authors investigate whether the content of the print advertisement influences the effectiveness of the coupon. Theoretical arguments suggest that the impact on consumer attitudes will depend on the executional cues of the copy, the brand loyalty of the consumers, and the consumer's involvement with the product category. The results support the theoretical framework and suggest that it is possible to make FSI coupons more effective by choosing appropriate executional cues for their advertising copy.

scholarly journals A New Card-Linked Loyalty Program: Estimated and Anticipated Benefits for Payment Transaction Parties

Electronics ◽  
2020 ◽  
Vol 9 (11) ◽  
pp. 1956
Author(s):  
Albert Sitek ◽  
Zbigniew Kotulski
Keyword(s):  
Risk Management ◽  
Processing Time ◽  
Loyalty Programs ◽  
Security Level ◽  
Loyalty Program ◽  
Payment Card ◽  
Contextual Risk ◽  
High Level ◽  
In The Beginning ◽  
The Impact

Electronic card payments are getting more and more popular, mainly because of their simplicity, convenience, processing time and high level of security. The fact that a single payment card is issued for a particular cardholder makes it possible to link a card to various services. In this paper, we investigated a usage of a payment card in the loyalty program that incorporates our Contextual Risk Management System (CRMS) to assure a novel intangible reward: Shorter transaction processing time. In the beginning, we emphasize the importance of soft benefits in modern loyalty programs and recall the risk management algorithms and the reputation system that has been used in the CRMS. Then, using an extensive dataset of 2.5 million payment transaction traces (collected within a year from 68 terminals) we estimate potential benefits for merchants and cardholders and try to predict an effect of this system for the future. We also discuss the impact of this system on the real and user-perceived security level.

The impact of brand associations on brand loyalty in the football industry

2016 ◽  
Vol 6 (5) ◽  
pp. 499-519 ◽  
Author(s):  
Daniel Maderer ◽  
Dirk Holtbruegge ◽  
Rachel Woodland
Keyword(s):  
Brand Loyalty ◽  
Structural Equation ◽  
Brand Management ◽  
Negative Impact ◽  
Equation Modeling ◽  
Brand Associations ◽  
Content Type ◽  
Attitudinal Loyalty ◽  
The Usa ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of brand associations on brand loyalty of fans toward professional football clubs in developed and emerging football markets (EFM). In particular, the following research questions are answered: how important are different determinants of brand associations for fans from developed football markets (DFM) and EFM? Are there any major differences in the importance of different brand associations and their influence on brand loyalty between fans from DFM and EFM? Design/methodology/approach Based on the customer-based brand equity framework the impact of brand associations on brand loyalty is tested with a sample of 3,587 fans from DFM – Germany, England, Spain, Italy, and France (2,032) – as well as fans from EFM – Brazil, Russia, India, China, and the USA (1,555). Findings Structural equation modeling is applied and shows a negative impact of brand attributes on attitudinal loyalty, whereas brand benefits positively impact attitudinal loyalty. Furthermore, significant differences between fans from developed and EFM are revealed. Implications for the management of football teams and for research on brand management are derived. Originality/value This study extends the work of Gladden and Funk (2001) by expanding the model used to assess brand loyalty and analyzes it empirically in different football markets. When looking to foster attitudinal loyalty, marketers should concentrate on benefit associations instead of attribute associations. Most importantly, marketers should be aware that when focusing on developing brand loyalty amongst EFM fans, they should not simply apply the same strategies that proved to be effective in DFM and vice versa.

scholarly journals Brand importance across product categories in the Czech Republic

2016 ◽  
Vol 11 (1) ◽  
pp. 341-354
Author(s):  
Tomáš Formánek ◽  
Radek Tahal
Keyword(s):  
Customer Loyalty ◽  
Brand Loyalty ◽  
Product Category ◽  
Point Of View ◽  
Loyalty Programs ◽  
Primary Data ◽  
Empirical Estimation ◽  
The Czech Republic ◽  
Product Categories ◽  
Empirically Supported

Abstract This paper deals with customer loyalty to brands and provides an analysis of brand-related attitudes among Czech consumers. Brand loyalty is a very important aspect of competitive marketing and we contribute an empirically supported point of view on the topic. Based on primary data from a complex consumer survey carried out for the purpose of this study, we investigate the extent of brand loyalty across different product categories, mostly fast moving consumer goods (FMCG). For convenience, the analysis of our survey-data may be divided in two main areas. First, product categories are ranked according to their potential power to attract customers’ interest and loyalty towards brands. When loyalty programs are prepared, it is important to discern product categories where loyalty potential is weak from those categories that attract consumer loyalty. Second, sociodemographic features and lifestyle factors from the survey are evaluated with respect to different product categories, by means of logistic regression and subsequent average partial effect (APE) analysis. A detailed and practically oriented interpretation of the empirical results is provided by the authors. However, both corporate marketers and academic readers can use the tables with empirical estimation outputs that are provided in this article to draw their own conclusions, which may be focused on the product category of interest and/or focused on any specific consumer group that is of particular interest. Among other topics, this paper emphasizes the fact that brand loyalty is a highly complex phenomenon and that it can and should be analysed from different perspectives.

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