Loyalty Programs. Role, Structure and Potential Benefits
International Journal of Economic Practices and Theories
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Title |
Loyalty Programs. Role, Structure and Potential Benefits
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Creator |
Filip, Alina
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Subject |
Marketing, Relationship Marketing, Customer Relationship Management
customer clubs, loyalty schemes, relationship marketing, rewards, sales promotion techniques M31 |
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Description |
A loyalty program consists of an integrated system of marketing activities, aimed at increasing members’ loyalty by rewarding customers according to their purchasing frequency and amount spent. Loyalty schemes, customer clubs and sales promotion techniques are the most common relationship tools used in marketing practice. To join the program and receive a card, consumers must fill in a registration form, providing demographic, behavioural or even psychographic data. Loyalty schemes and customer clubs offer long lasting benefits to participants. Sales promotion techniques can be used both as tools to attract new customers, as well as instruments to stimulate repurchase behaviour. The potential of a loyalty scheme to achieve members depends mainly on rewards value, diversity and timing. Similar, the success of clubs depends on whether customers perceive enough relational benefits according to their personal interests. Although currently, loyalty programs have become very popular, programs effectiveness and implicitly the managerial decision to implement them are determined by different factors, including: homogeneity of supply and products purchase frequency, competition and consumer demand characteristics and the internal environment of the company.
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Publisher |
International Journal of Economic Practices and Theories
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Contributor |
Work cofinanced from the European Social Fund through Sectoral Operational Programme Human Resources Development 2007-2013, project number POSDRU/89/1.5/S/59184 “Performance and excellence in postdoctoral research in Romanian economics science domain”.
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Date |
2011-10-15
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://www.ijept.org/index.php/ijept%20/article/view/12
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Source |
International Journal of Economic Practices and Theories; Vol 1, No 2 (2011); 88-93
2247 – 7225 |
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Language |
eng
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Relation |
http://www.ijept.org/index.php/ijept%20/article/view/12/16
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