Moral Hazard and Customer Loyalty Programs

2007 ◽  
Author(s):  
Leonardo J. Basso ◽  
Matthew T. Clements ◽  
Thomas W. Ross
Keyword(s):  
Moral Hazard ◽  
Customer Loyalty ◽  
Loyalty Programs ◽  
Customer Loyalty Programs

Moral Hazard and Customer Loyalty Programs

2009 ◽  
Vol 1 (1) ◽  
pp. 101-123 ◽  
Author(s):  
Leonardo J Basso ◽  
Matthew T Clements ◽  
Thomas W Ross
Keyword(s):  
Moral Hazard ◽  
Customer Loyalty ◽  
Switching Cost ◽  
Loyalty Programs ◽  
Agency Relationship ◽  
Ticket Prices ◽  
Customer Loyalty Programs

Frequent-flier plans (FFPs) may be the most famous of customer loyalty programs, and there are similar schemes in other industries. We present a theory that models FFPs as efforts to exploit the agency relationship between employers (who pay for tickets) and employees (who book travel). FFPs “bribe” employees to book flights at higher prices. While a single airline offering an FFP has an advantage, competing FFPs can result in lower profits for airlines even while ticket prices rise. Thus, in contrast to switching-cost treatments of FFPs, we may observe prices and profits moving in opposite directions. (JEL D82, L93, M31)

An approach to develop effective customer loyalty programs

2009 ◽  
Vol 19 (6) ◽  
pp. 702-720 ◽  
Author(s):  
Richard Ho ◽  
Leo Huang ◽  
Stanley Huang ◽  
Tina Lee ◽  
Alexander Rosten ◽  
...  
Keyword(s):  
Customer Loyalty ◽  
Loyalty Programs ◽  
Customer Loyalty Programs

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.

Innovating the customer loyalty program with social media

2019 ◽  
Vol 32 (5) ◽  
pp. 807-823 ◽  
Author(s):  
Wu He ◽  
Xin Tian ◽  
Feng-Kwei Wang
Keyword(s):  
Social Media ◽  
Customer Loyalty ◽  
Theory And Practice ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Data Set ◽  
Content Type ◽  
Media Technologies ◽  
Customer Loyalty Programs

Purpose Few academic studies specifically investigate how businesses can use social media to innovate customer loyalty programs. The purpose of this paper is to present an in-depth case study of the Shop Your Way (SYW) program, which is regarded as one of the most successful customer loyalty programs with social media. Design/methodology/approach This paper uses case study research as the methodology to uncover innovative features associated with the SYW customer loyalty program. The authors collected the data from SYW’s social media forums and tweets. The data set was analyzed using social media analytics tools including the R package and Lexicon. Findings Based on the research results, the authors summarize innovative social media features identified from SYW. The authors also provide insights and recommendations for businesses that are seeking to innovate their customer loyalty programs using social media technologies. Originality/value The results of this case study set a good example for businesses which want to innovate and improve their customer loyalty programs using social media technologies. This is the first in-depth case study on the SYW program, one of the most successful customer loyalty programs with social media. The results shed light on how social media can innovate customer loyalty programs in both theory and practice.

scholarly journals Effect of customer loyalty program on customer satisfaction and its impact on customer loyalty

2019 ◽  
Vol 9 (1) ◽  
pp. 15-23
Author(s):  
Salihah Khairawati
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Sampling Technique ◽  
Loyalty Programs ◽  
Survey Method ◽  
Business Managers ◽  
Loyalty Program ◽  
Retail Business ◽  
Customer Loyalty Programs ◽  
A Company

The aim of this research is to examine the effect of the customer loyalty program on customer satisfaction and its impact on customer loyalty. This program is developed by the company in order to increase customer satisfaction. Optimal customer satisfaction will be able to create customer loyalty. For a company, customer loyalty will guarantee the company’s income to be constantly optimal. The research is conducted using the survey method involving 110 customers and 100 feasible data used. The sampling technique used is judgment sampling and data collected through the questionnaire. It uses SEM in examining hypotheses assisted by software AMOS version 20.0. Member card significantly affects customer satisfaction, while discount promo has no significant effect on customer satisfaction and it also doesn’t affect customer loyalty. Member cards and discount promo have a direct effect on customer loyalty. In general, it can be understood that the customer loyalty program applied by Alfamart either member card or discount promo affects customer satisfaction and has an impact on customer loyalty. This research gives input to retail business managers in managing customer satisfaction through the proper development of customer loyalty programs.

scholarly journals The effects of frequent flyer programs in the airline industry on customer loyalty

2021 ◽  
Vol 3 (2) ◽  
pp. 130-147
Author(s):  
Hande Sahin ◽  
Ali Osman Kusakci ◽  
Baboucarr Mbowe
Keyword(s):  
Customer Loyalty ◽  
Airline Industry ◽  
Vital Role ◽  
Loyalty Programs ◽  
Civil Aviation ◽  
Aviation Industry ◽  
Frequent Flyer ◽  
And Gender ◽  
Main Components ◽  
Customer Loyalty Programs

Customer Loyalty Programs are one of the handiest tools to raise brand awareness, and secure long-term and strong ties between a brand and existing consumers. Airline companies have been using frequent flyer programs (FFPs) to retain customers with the expectation of increasing passengers’ loyalty levels. The purpose of this study was to examine the significance of FFPs for customer loyalty, which is of great help for customer retention in the civil aviation industry in the sample of passengers flying from the new Istanbul Airport. Furthermore, we questioned the effectiveness of various services and products offered within FFPs for loyalty, which is decomposed into two main components, behavioral, and attitudinal commitment of loyalty. We evaluated the significance of various demographic factors on passengers’ perception of FFPs services and privileges, and customer loyalty. The study confirmed the vital role of FFPs to build up brand loyalty, where profession, duration of the membership to FFPs, and gender are essential factors.

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