Multi-vendor loyalty programs are a common phenomenon in loyalty marketing. Such programs use marketing actions to engage their members in purchase behaviour at cooperating vendors. This study assesses the impact of marketing actions on vendors? sales and the number of collectors attracted in a multi-vendor loyalty program. In analysing this impact a distinction is made between own-effects of an action and cross-vendor effects. Our findings indicate limited effects of these actions. Only when two mediums (e-mails and direct mailings) are used in an integrated way we find an effect on sales and attraction of collectors. These effects do, however, die out rapidly (within two or three weeks). In line with prior findings on cross-category effects of sales promotions, we find little support for the existence of cross-vendor effects. In addition, the results show that a reduction in the saving benefits of a program does not necessarily reduce the number of collectors attracted to stores.
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Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number
09001.