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Refocusing loyalty programs in the era of big data: a societal lens paradigm

Author

Listed:
  • Valeria Stourm

    (HEC Paris)

  • Scott A. Neslin

    (Dartmouth College)

  • Eric T. Bradlow

    (Wharton School of the University of Pennsylvania)

  • Els Breugelmans

    (KU Leuven)

  • So Yeon Chun

    (INSEAD)

  • Pedro Gardete

    (Nova School of Business and Economics)

  • P. K. Kannan

    (University of Maryland)

  • Praveen Kopalle

    (Dartmouth College)

  • Young-Hoon Park

    (Cornell University)

  • David Restrepo Amariles

    (HEC Paris)

  • Raphael Thomadsen

    (Washington University in St. Louis)

  • Yuping Liu-Thompkins

    (Old Dominion University)

  • Rajkumar Venkatesan

    (University of Virginia)

Abstract

Big data and technological change have enabled loyalty programs to become more prevalent and complex. How these developments influence society has been overlooked, both in academic research and in practice. We argue why this issue is important and propose a framework to refocus loyalty programs in the era of big data through a societal lens. We focus on three aspects of the societal lens—inequality, privacy, and sustainability. We discuss how loyalty programs in the big data era impact each of these societal factors, and then illustrate how, by adopting this societal lens paradigm, researchers and practitioners can generate insights and ideas that address the challenges and opportunities that arise from the interaction between loyalty programs and society. Our goal is to broaden the perspectives of researchers and managers so they can enhance loyalty programs to address evolving societal needs.

Suggested Citation

  • Valeria Stourm & Scott A. Neslin & Eric T. Bradlow & Els Breugelmans & So Yeon Chun & Pedro Gardete & P. K. Kannan & Praveen Kopalle & Young-Hoon Park & David Restrepo Amariles & Raphael Thomadsen & Y, 2020. "Refocusing loyalty programs in the era of big data: a societal lens paradigm," Marketing Letters, Springer, vol. 31(4), pages 405-418, December.
    • Handle: RePEc:kap:mktlet:v:31:y:2020:i:4:d:10.1007_s11002-020-09523-x
    DOI: 10.1007/s11002-020-09523-x
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    References listed on IDEAS

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    1. Valeria Stourm & Eric Bradlow & Peter Fader, 2017. "Market Positioning Using Cross-Reward Effects in a Coalition Loyalty Program," Working Papers hal-02068352, HAL.
    2. Christopher Barrington-Leigh & Alice Escande, 2018. "Measuring Progress and Well-Being: A Comparative Review of Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(3), pages 893-925, February.
    3. Wang, Jessie J. & Lalwani, Ashok K., 2019. "The distinct influence of power distance perception and power distance values on customer satisfaction in response to loyalty programs," International Journal of Research in Marketing, Elsevier, vol. 36(4), pages 580-596.
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    5. So Yeon Chun & Anton Ovchinnikov, 2019. "Strategic Consumers, Revenue Management, and the Design of Loyalty Programs," Management Science, INFORMS, vol. 65(9), pages 3969-3987, September.
    6. Kakatkar, Chinmay & Spann, Martin, 2019. "Marketing analytics using anonymized and fragmented tracking data," International Journal of Research in Marketing, Elsevier, vol. 36(1), pages 117-136.
    7. 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.
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    Cited by:

    1. Wang, Xin (Shane) & Ryoo, Jun Hyun (Joseph) & Bendle, Neil & Kopalle, Praveen K., 2021. "The role of machine learning analytics and metrics in retailing research," Journal of Retailing, Elsevier, vol. 97(4), pages 658-675.
    2. Bombaij, Nick, 2021. "Effectiveness of loyalty programs," Other publications TiSEM 095c506d-5b5c-4ea3-9b41-a, Tilburg University, School of Economics and Management.
    3. Stourm, Valeria & Bradlow, Eric T., 2023. "Cross-reward effects in a coalition loyalty program: The impact of a point currency devaluation," International Journal of Research in Marketing, Elsevier, vol. 40(2), pages 276-293.
    4. Federico Rossi & Pradeep K. Chintagunta, 2023. "Consumer Loyalty Programs and Retail Prices: Evidence from Gasoline Markets," Marketing Science, INFORMS, vol. 42(4), pages 794-818, July.
    5. Rami Alkhudary & Bertrand Belvaux & Nathalie Guibert, 2023. "Understanding non-fungible tokens (NFTs): insights on consumption practices and a research agenda," Marketing Letters, Springer, vol. 34(2), pages 321-336, June.

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