Coalition loyalty-programme adoption and urban commercial-network effectiveness evaluation

Abstract

Purpose

To counter the proliferation of out-of-town shopping centres, a spontaneous or planned coalition loyalty programme (CLP), one involving most retailers in an urban network, may positively affect a town centre's capacity to entice customers and may enhance its competitiveness. The purpose of this paper is to assess the effectiveness of CLP implementation in town-centre management (TCM) as a tool for enhancing urban commercial-system attractiveness.

Design/methodology/approach

The theoretical framework used in this study is supported by the evaluation methodologies of an empirical case study: the Savigliano Card project. CLP performance analysis uses a dynamic network-competitiveness index, an approach based on Laspeyres-type decomposition. The effects on each retailer's profitability are then tested by matching network and regression analyses.

Findings

The results suggest that CLPs implementation in a TCM scheme can produce benefits and positive externalities for customers, retailers and urban areas. CLPs can influence a town centre's revitalisation process, improve the attractiveness of the urban commercial network and increase the profitability of private retailers by enhancing cross-selling dynamics.

Practical implications

The paper provides a CLP performance-evaluation methodology and presents the benefits concerning CLP implementation in TCM strategies.

Originality/value

This type of CLP is weakly exploited in marketing theory and practice; therefore, the paper provides theoretical and empirical explanations for the measurement of CLP effectiveness in TCM. In addition, it has significant implications for both practitioners and academics.

Citation

De Noni, I., Orsi, L. and Zanderighi, L. (2014), "Coalition loyalty-programme adoption and urban commercial-network effectiveness evaluation", International Journal of Retail & Distribution Management, Vol. 42 No. 9, pp. 818-838. https://doi.org/10.1108/IJRDM-05-2012-0043