Advanced Search
MyIDEAS: Login

Do Loyalty Programs Enhance Behavioral Loyalty: An Empirical Analysis Accounting for Program Design and Competitive Effects

Contents:

Author Info

  • Leenheer, J.
  • Bijmolt, T.H.A.
  • Heerde, H.J. van
  • Smidts, A.

    (Tilburg University, Center for Economic Research)

Registered author(s):

    Abstract

    This paper studies the effects of loyalty programs on share-of-wallet using market-wide household panel data on supermarket purchases.We find that loyalty programs relate positively to share-of-wallet, but the programs differ in effectiveness and some are ineffective.Both a saving component and a multi-vendor structure enhance the effectiveness of a loyalty program, but high discounts do not lead to higher share-of-wallets.Further, if households have multiple loyalty cards, the effectiveness of a specific loyalty program is much smaller.The positive loyalty program effects on share-of-wallet entail substantial additional customer revenues.However, given the high number of loyalty programs already available in the market, our model predicts that a new loyalty program introduction will only lead to small effects on share-of-wallet.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://arno.uvt.nl/show.cgi?fid=4357
    Download Restriction: no

    Bibliographic Info

    Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2002-65.

    as in new window
    Length:
    Date of creation: 2002
    Date of revision:
    Handle: RePEc:dgr:kubcen:200265

    Contact details of provider:
    Web page: http://center.uvt.nl

    Related research

    Keywords:

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Peter E. Rossi & Robert E. McCulloch & Greg M. Allenby, 1996. "The Value of Purchase History Data in Target Marketing," Marketing Science, INFORMS, vol. 15(4), pages 321-340.
    2. Campo, Katia & Gijsbrechts, E & Goossens, T & Verhetsel, A, 2000. "The impact of location factors on the attractiveness and optimal space shares of product categories," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/98380, Katholieke Universiteit Leuven.
    3. Muniz, Albert M, Jr & O'Guinn, Thomas C, 2001. " Brand Community," Journal of Consumer Research, University of Chicago Press, vol. 27(4), pages 412-32, March.
    4. Liebermann, Yehoshua, 1999. "Membership Clubs as a Tool for Enhancing Buyers' Patronage," Journal of Business Research, Elsevier, vol. 45(3), pages 291-297, July.
    5. Laitila, Thomas, 1993. "A pseudo-R2 measure for limited and qualitative dependent variable models," Journal of Econometrics, Elsevier, vol. 56(3), pages 341-355, April.
    6. Fournier, Susan, 1998. " Consumers and Their Brands: Developing Relationship Theory in Consumer Research," Journal of Consumer Research, University of Chicago Press, vol. 24(4), pages 343-73, March.
    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 in new window

    Cited by:
    1. Pierre Volle & Aîda Mimouni, 2006. "Les bénéfices perçus des programmes relationnels : une approche de segmentation appliquée aux enseignes de distribution," Post-Print halshs-00164834, HAL.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:dgr:kubcen:200265

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Corry Stuyts).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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