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Article

Stephan Zielke and Marcin Komor

This paper analyses three strategies in customers’ use to afford consumption in a developed and an emerging market for different product groups. The strategies are: (1…

Abstract

Purpose

This paper analyses three strategies in customers’ use to afford consumption in a developed and an emerging market for different product groups. The strategies are: (1) usage of loyalty cards, (2) usage of credit cards and (3) usage of long-term credits.

Design/methodology/approach

Mall intercept surveys conducted in Poland (emerging market) and Germany (developed market) provide data for testing a set of hypotheses using ANOVAs.

Findings

Results show that customers in emerging markets show no differences in the usage of loyalty cards for product categories with high shopping frequency (groceries) compared to developed markets, while in all other product categories loyalty card usage is stronger. Results show further that in low price categories, customers in emerging markets use credit card payments more often compared to customers in developed markets. In high price categories, they use credit cards less often, but long-term credits more often.

Research limitations/implications

Results have implications for the design of loyalty programs and payment options in different markets. Results have also implications for public policy regarding concerns about increasing private debt in emerging countries.

Originality/value

This paper suggests a cost-benefit framework where customers in emerging countries perceive benefits of loyalty cards and credit options higher, while they are willing to bear higher costs. As a result, effects of product category characteristics on usage that are observable in developed markets do not exist in emerging markets.

Details

International Journal of Retail & Distribution Management, vol. 48 no. 6
Type: Research Article
ISSN: 0959-0552

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Article

Rachel Hobbs and Jennifer Rowley

This research aims to explore the extent to which pub or bar discount cards that are distributed to students function as loyalty cards, or make a contribution to…

Abstract

Purpose

This research aims to explore the extent to which pub or bar discount cards that are distributed to students function as loyalty cards, or make a contribution to relationship building. The research also aims to make a contribution to the role of “instant discount” loyalty cards.

Design/methodology/approach

Data were collected on the design of the discount card schemes, their advantages and disadvantages from the customer and management perspective, the business motivations for introducing the scheme, the student motivations in purchasing the cards, and the impact of membership on profitability, popularity of venues, and repeat visits. Three main methods of data collection were used: questionnaires to collect a profile of customers' views; a focus group to gain a more in‐depth understanding of customer attitudes and behaviour; and, interviews with pub managers to understand the operation of the scheme and their perceptions of the impact of the scheme.

Findings

Pub discount cards do not generate either behavioural or attitudinal loyalty directly, but indirectly through the issue of a discount card, whose associated discounts cause a “flocking” behaviour through which the atmosphere in the pub is enhanced and its popularity and patronage are increased. The relationship between the customer and the pub is then mediated by customer‐to‐customer interactions and, thereby, in turn the discount cards “add value” for both customers and businesses.

Originality/value

This research makes a contribution to the use of discount/club cards in the hospitality sector, outside of the major schemes such as airline and hotel reward schemes. In addition, research into the use of these schemes provides a unique opportunity to understand the way in which the student demographic adopts and uses loyalty and discount cards.

Details

Journal of Consumer Marketing, vol. 25 no. 6
Type: Research Article
ISSN: 0736-3761

Keywords

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Article

Claire Wright and Leigh Sparks

The proliferation of retail loyalty schemes has been one of the most marked features of retail marketing in the 1990s. Many retailers have one in some guise or other…

Abstract

The proliferation of retail loyalty schemes has been one of the most marked features of retail marketing in the 1990s. Many retailers have one in some guise or other. Their sheer volume has meant that some have begun to question whether there is a limit to loyalty. Presents results from exploratory research that demonstrates that consumers may be becoming more wary of cards and schemes and being more selective. Managerial lessons from this are developed.

Details

International Journal of Retail & Distribution Management, vol. 27 no. 10
Type: Research Article
ISSN: 0959-0552

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Article

Joseph A. Bellizzi and Terry Bristol

A survey was conducted in a large US metropolitan area of the West. The objective of the study was to determine if loyalty cards issued by supermarkets are actually…

Abstract

A survey was conducted in a large US metropolitan area of the West. The objective of the study was to determine if loyalty cards issued by supermarkets are actually associated with customer loyalty and how loyalty cards compare with other factors that retailers could use to enhance supermarket loyalty. The results indicate that loyalty cards are not associated with supermarket loyalty. Frequent users of loyalty cards are more likely to shop at different stores and use loyalty cards from several stores. The consumer respondents indicated that there are a number of factors other than having a supermarket loyalty card that would be more likely to increase their loyalty to any one supermarket. Besides confirming the universally accepted belief that consumers would be more loyal to conveniently located supermarkets, the respondents identified a few other factors that would enhance their supermarket loyalty such as stores that offer fast check‐out lanes. Loyalty factors were cluster analyzed into three categories, those most important, those least important, and those of moderate importance.

Details

Journal of Consumer Marketing, vol. 21 no. 2
Type: Research Article
ISSN: 0736-3761

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Article

Steve Worthington

The context for this paper is the growth of the out‐of‐town superstore and the subsequent decline of the town centre. It examines the development of a town centre loyalty

Abstract

The context for this paper is the growth of the out‐of‐town superstore and the subsequent decline of the town centre. It examines the development of a town centre loyalty card programme in the town of Leominster and reports on both quantitative and qualitative research carried out to assess the results of this initiative and its prospects for the future. The paper comments on the criteria that other town centre loyalty cards must consider and discusses the options available for enhancement of loyalty cards in the light of technological developments and in the context of the role that they can play in the revitalisation of the town centre.

Details

International Journal of Retail & Distribution Management, vol. 26 no. 2
Type: Research Article
ISSN: 0959-0552

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Article

Elena Cedrola and Sabrina Memmo

Loyalty programmes are an important tool with which retail companies manage relationships. While the last 15 years have seen a broad dissemination of loyalty programmes in…

Abstract

Purpose

Loyalty programmes are an important tool with which retail companies manage relationships. While the last 15 years have seen a broad dissemination of loyalty programmes in new sectors and new countries, since the early 2000s, both in the academic and managerial world, the power of loyalty programmes to stimulate retention and support loyalty, has been brought into question. The purpose of this paper is to focus on these elements, analyzing data collected on a sample of loyalty cardholders.

Design/methodology/approach

The paper presents the results of an exploratory study focused on a sample of loyalty cardholders by means of telephone interviews.

Findings

The empirical data demonstrate that loyalty is not created and supported by a loyalty programme and prove how weak and limited such programmes are, especially point collection programmes. Programme effectiveness can however be achieved if there is a continuous search for differentiation and through reduced loss (discounts) and extra gain (prizes) initiatives.

Research limitations/implications

The analysis of what customers expect and how they behave towards programme innovations needs further empirical detail. For the future, qualitative research should be provided, as well as analyses of a higher number of socio‐demographical variables and life‐styles.

Originality/value

The paper provides empirical data on customer behaviour and opinion towards loyalty programmes.

Details

International Journal of Retail & Distribution Management, vol. 38 no. 3
Type: Research Article
ISSN: 0959-0552

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Article

Steve Worthington and Alan Hallsworth

Over the last five years, a great deal of attention has been paid to the genesis of what have come to be termed local loyalty cards. Researches the development of the…

Abstract

Over the last five years, a great deal of attention has been paid to the genesis of what have come to be termed local loyalty cards. Researches the development of the pioneering card – based in Leominster, Herefordshire. This programme of research has led to contacts with a large number of such schemes in Britain – totalling over 60. With the creation of a database of these cards it has now become possible to produce a typology of local loyalty cards. Examines the motivation to adopt and, ultimately, the process whereby individual localities came to select a particular system from the increasing range of available card systems. Also illustrates the remarkable diversity in the nature and scope of such card schemes.

Details

International Journal of Retail & Distribution Management, vol. 27 no. 10
Type: Research Article
ISSN: 0959-0552

Keywords

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Article

Jennifer Rowley

Loyalty cards have become a popular strategy among retailers for collecting information about customer purchases and for offering “‘reward points” and other promotions…

Abstract

Loyalty cards have become a popular strategy among retailers for collecting information about customer purchases and for offering “‘reward points” and other promotions. Many commentators have, however, been skeptical about the value of loyalty cars and, in particular, their ability to cultivate and promote the attitudes and behaviour associated with loyalty. This case study‐based article describes a new application of loyalty cards, which is being piloted in selected Sainsbury’s stores. Loyalty cards are swiped through a slot in a public access kiosk, located in store, to provide customer access to a range of selected benefits. These benefits include recipes, special reductions, information on videos, and other customer service options. The customer selects options by choosing from a simple touch screen. Special offer coupons or recipes are printed on small pieces of paper. Is this new application the basis for an enhanced role for loyalty cards? The article argues that this potential will only be realised if loyalty cards can become an integral part of the relationship with the customer, and cease to be no more than an “‘add‐on”.

Details

British Food Journal, vol. 102 no. 5/6
Type: Research Article
ISSN: 0007-070X

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Article

Sanjai K. Parahoo

In a fiercely competitive industry, credit card issuers need to develop a loyal customer base and motivate their card holders to use their cards at a sufficient level to…

Abstract

Purpose

In a fiercely competitive industry, credit card issuers need to develop a loyal customer base and motivate their card holders to use their cards at a sufficient level to assure profitability. The purpose of this article is to propose a consumer model of customer loyalty in the credit card industry.

Design/methodology/approach

A model of customer loyalty incorporating service quality, value and involvement is developed theoretically and validated empirically through SEM using data collected from a global sample of 114 credit card holders.

Findings

The loyalty model proposed was validated, showing that the independent variable, i.e. customer involvement, had path loadings of 0.32 and 0.26 on quality and value, respectively, while both service quality and value had direct effects on loyalty, with path loadings of 0.30 and 0.51, respectively.

Research limitations/implications

Customer involvement has been shown to directly influence both service quality and value, and it should be further investigated for its effect on sustaining relationships, as well as a variable for segmenting customers.

Practical implications

In order to develop sustainable relationships, marketers of credit cards should leverage involvement in their customers by employing strategies such as branding, positioning, and attractive and flexible frequent use benefits. Further, credit card customers desire high service quality, but at an affordable cost, therefore making value a prime consideration for achieving loyalty.

Originality/value

This study has identified “involvement” as an independent variable that provides stability and sustainability to the firm‐customer relationship. Despite its pertinence, this customer characteristic that may be also used to segment customers has not been investigated in prior quantitative studies.

Details

International Journal of Bank Marketing, vol. 30 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

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Article

Mario J. Miranda and László Kónya

The aim is to examine whether supermarkets may be losing the opportunity to increase customer purchase outlays by means of loyalty points, convertible to acquire specialty…

Abstract

Purpose

The aim is to examine whether supermarkets may be losing the opportunity to increase customer purchase outlays by means of loyalty points, convertible to acquire specialty goods and services provided by “bonus partners”.

Design/methodology/approach

Two econometric models were constructed from data collected from 470 supermarket shoppers in one major Australian city, to predict mechanisms for making shoppers aware of loyalty points accrued on their credit card purchases and for inducing them to pay for purchases with specific credit cards linked to loyalty programmes of which they were members.

Findings

Shoppers who are aware consider specialty merchandise in exchange for loyalty points to be a significant reason for joining a loyalty programme. However, when they actively seek to pay with specific credit cards because of loyalty points do not rank the conversion into specialty merchandise as a significant reason for membership.

Research limitations/implications

No insight was sought on the relative importance of attitudes and implications of social influences on attitude formation and behavioural intention with respect to the accumulation of loyalty points.

Practical implications

Specialist retailing planners can configure product offerings attractive to customers' lifestyles and broader interests on the basis of shared insights into buying patterns and personal details captured during their enrolment in affiliated loyalty programmes with “bonus partners”.

Originality/value

The paper offers an actionable strategy for customer retention and enhancement.

Details

Marketing Intelligence & Planning, vol. 26 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

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