By Sören Köcher
In his learn, Sören Köcher presents beneficial insights at the paradoxical results of the significance of a loyalty software medium—i.e. the sheer variety of issues, miles, or stamps credited for each buy and required for gift redemption—on the vital customer judgements in loyalty application memberships. In sum, the result of twelve empirical reviews exhibit that prime value currencies increase the popularity of medium assortment yet entail reluctant medium spending habit. those findings supply very important implications for a extra effective utilization of loyalty courses in enterprise practices. moreover, this dissertation discovers a contravention of 1 of the main basic assumptions of rational selection thought and therefore contributes to a greater figuring out of whilst and why humans deviate from rational decision-making.
Read or Download The Paradox of Points: Theoretical Foundation and Empirical Evidence of Medium Magnitude Effects in Loyalty Programs PDF
Similar marketing books
The authors have distilled their 40-plus years of selling services to supply the most important to today's aggressive market, exhibiting you what makes a few items inordinately winning whereas others fall via the wayside.
The literature of market behaviour, lengthy ruled through monetary and mental discourse, has matured within the final decade to bare the giant expanse of intake task no longer thoroughly addressed – in both theoretical or empirical point of view - by means of the discipline's favoured techniques. The lived adventure of intake in cultural and ancient context, rendered in a way that's either intellectually insightful and authentically evocative, and that acknowledges the dynamics of lodging and resistance that represent the individual's dating with the marketplace, is the relevant interpretive thrust of an rising interdisciplinary box inquiry commonly labelled "consumer tradition thought.
Your net money laptop takes you purchase the hand and leads you thru the complete strategy of construction a winning net company. It walks you thru the method of choosing a distinct segment in response to your pursuits and needs, development a website, and dealing with your enterprise. masking very important themes like advertising and attracting site visitors and filled with convenient assets, this can be the hands-on advisor you must begin getting cash now.
How can you double, triple, or quadruple your revenues within the subsequent ninety days and extend your small business exponentially? the bottom line is with three way partnership partnerships. no matter if it sounds daunting or oversimplified, the obvious fact is, it really works. you could take what you are promoting to the subsequent point with the ability of joint ventures.
Additional info for The Paradox of Points: Theoretical Foundation and Empirical Evidence of Medium Magnitude Effects in Loyalty Programs
4 Long-Term Orientation Long-term orientation, the fourth common thread among loyalty programs, highlights that loyalty schemes operate differently from other marketing techniques. For instance, due to their degree of defensive and long-term orientation, loyalty programs can be distinguished from sales promotions and advertising campaigns which are characterized by a clear time line and, accordingly, pursue distinct objectives (Sharp and Sharp 1997). These promotions aim to increase market share through a substantial gain in penetration and a small increase in average purchase frequency (Ehrenberg, Goodhardt, and Barwise 1990).
Gold (15 nights, 10%), Platinum (50 nights, 50%) 3,000 pts. Marriott (Marriott Rewards) $1 = 10 pts. 7,500 pts. Silver (10 nights, 20%), Gold (50 nights, 25%), Platinum (75 nights, 50%) - Starwood (Preferred Guest) 1$ = 2 pts. 2,000 pts. , 2,000 points for a free night at Starwood hotels versus 5,000 points at Hyatt hotels; see also Bagchi and Lee 2011). Second, all illustrated loyalty schemes are characterized by a non-linear medium issuance structure such that the number of earned points per dollar increases as a function of repeat purchase (Leenheer 2004; Hsee et al.
E. participation exclusivity (De Wulf et al. 2003)—has to be specified (Leenheer 2004). Following O’Brien and Jones (1995), opening loyalty programs to a wide range of participants might involve a waste of resources in over-satisfying less profitable customers, while undersatisfying more valuable customers. , membership-fees; Bolton et al. 2000; Kivetz and Simonson 2002; Liu and Yang 2009) as well as non-economic costs in terms of the amount of disclosed personal information through registration and subsequent identification at transactions (Leenheer et al.
The Paradox of Points: Theoretical Foundation and Empirical Evidence of Medium Magnitude Effects in Loyalty Programs by Sören Köcher