Search results

The purpose of this paper is to report a case study analysis of the major retail loyalty scheme, Tesco Clubcard, with a view to exploring how loyalty schemes can be used to add brand value.

The paper provides a literature review that establishes the limitations of the present research on loyalty schemes and thereby establishes the rationale for this article. The methodology section explains the case study approach adopted and the reasons for focussing on the specific case, Tesco Clubcard. A content analysis of a recent book which “tells the story” of the development of Tesco Clubcard is used to surface and explore a number of key characteristics of the scheme and its development.

Key characteristics of Tesco Clubcard are summarised under the following headings: commitment and championing, being integral to business processes, innovation and evolution, multi‐dimensional reward design, alignment with brand strategy and values, customer contract and value, and customer focus in information systems design and use.

Further research is needed to explore the complexities associated with designing loyalty schemes that work for different organizations with a range of different types of interactions with their customers.

The article suggests that current research on loyalty schemes is too preoccupied with the relationship between loyalty and loyalty schemes and the design of rewards. Through a case study analysis of the reward scheme of a major UK retailer the article demonstrates the way in which loyalty schemes can be used to enhance and tailor an organisation's offering, and thereby enhance customer value and loyalty.

This paper's purpose is to develop a meaning-based framework for customer loyalty by examining how consumers make sense of customer loyalty through meanings and metaphors.

A qualitative study based on in-depth interviews and focus group data in the retail context was conducted with Finnish customers. The data were analysed with qualitative data analysis techniques such as the constant comparative technique.

The empirical findings comprise eight loyalty meanings characterised by two dimensions. The first dimension is reflexive vs. routinised, and the second dimension is private vs. social. The loyalty types are dimensionalised through four metaphors: loyalty as freedom of choice; as being conventional and binding; and as belongingness.

The findings improve the way customer loyalty currently is understood in the retail setting. The paper proposes that customer insight that utilises thick data can be used to grasp loyalty meanings. These data are rich in context and detail, and they take into account customers' everyday lives. Utilising thick data in the form of storytelling fuels customers' meaning-making related to customer loyalty, potentially enriching their relationship with the retailer.

Customer loyalty has been driven largely by a transactional and company-centric perspective. This article presents an alternative view of customer loyalty that accounts for the variety of meanings that customers may assign to their loyalty-related thoughts and behaviours.

With the development of e-commerce, loyalty programmes (LPs) are gradually being adopted in the online retailing environment to improve consumer loyalty. This article determines the factors that affect consumers' LP participation intention on mobile e-commerce platforms to help these platforms improve their performance.

This article focusses on LP reward types and divides them into self-oriented rewards or altruistic rewards. Two experiments are conducted to test the proposed hypotheses. After online data collection, data analysis is performed.

LP participation intention with altruistic rewards is significantly stronger than that with self-oriented rewards. Perceived value plays a complete mediating role in the impact of reward type on participation intention, while a point leaderboard plays a positive moderating role in the impact of reward type on perceived value.

This study’s findings can improve the design of LPs by mobile e-commerce platforms.

This article focusses on LPs in the online environment, a stream of research that is limited. The results also have implications for prosocial relationship marketing programmes.

The aim of the research is to identify the impact of the Tesco Clubcard on customer loyalty. The secondary aim is to contrast customer perceptions of the Clubcard, staff and “feeling valued” to identify which factor has the greater impact on customer loyalty to store.

Quantitative analysis was used based on 60 questionnaires conducted with randomly selected customers in Tesco Metro Dundee in 2005. Tesco were not involved in the research other than to provide approval at a store level for the research to take place outside their premises.

A positive moderate relationship was found r=0.388, p=0.01 between the owning of a Clubcard and loyalty to store. It was also found that there was a positive moderate relationship between the Clubcard returns and customer loyalty, with r=0.334, p=0.01. The research, however, found no relationship between loyalty and customers feeling more valued by Tesco, nor did the research reveal a significant relationship between Tesco staff and customer loyalty.

The research is restricted in so far as it only considers Tesco Clubcard in the grocery retail sector and as it is an exploratory study the research is limited in so far as the number of participants is only 60. A further limitation surrounds the issue of generalisability as only one Tesco retail outlet in Dundee was used. Further research needs to include other Tesco formats and contrast with grocery retailers who do not use loyalty cards.

It is suggested that Tesco consumers are influenced by having a loyalty card in so far as it contributes to making them loyal. However, other factors need to compliment such a card, with consumers seeing the Tesco “provision” as inter‐related.

The paper is useful to both practitioners and academics in the fields of relationship marketing and loyalty. The research provides some initial insight into consumer perspectives in the value of loyalty cards.

New approaches in loyalty programs try to activate membership by rewarding not just financial transactions but also customer engagement. The purpose of this paper is to analyze the effect of rewarded customer engagement on loyalty intentions and behavior by applying a social media context.

A field study in the mobility service industry (focus groups (n=18) and questionnaire (n=1,246)) and a laboratory experiment (n=141, 2 (rewarded engagement and transaction/rewarded transaction)×2 (low/high reward) between subjects design) were conducted to determine the effect of rewarded engagement on loyalty.

In the field study, the participants could gather loyalty points through their social media engagement. Their attitudinal loyalty to the loyalty program and the company was significantly higher than that of the loyalty members who collected points solely through transactions. This effect is especially prevalent with respect to engagements rewarded with monetary incentives and is underlined by behavioral data. The results of the laboratory experiment show that rewarded engagement positively moderates the impact of intrinsic motivation on loyalty intentions. Offering rewarded engagement in loyalty programs offsets the undermining effect of rewards.

Rewarding customers for social media engagement can be a beneficial way of boosting active participation in loyalty programs, but this experience should be enjoyable and self-determined.

The study is the first to show the impact of rewarded customer engagement on the attitudinal and behavioral loyalty of members of a loyalty program.

The purpose of this paper is to investigate the role of patient loyalty programs in healthcare environment, generally considered as a way to engage patients and potentially increase the perception of service quality of healthcare systems, but not systematically analyzed at the state of the art.

The Service Dominant logic and, in particular, the service ecosystem construct are adopted and integrated with relevant literature references and empirical studies on a sample of patients. Loyalty programs are interpreted as institutions coordinating actors of the healthcare service ecosystem.

A conceptual model linking loyalty programs to patients and healthcare providers’ co-creation practices, engagement, satisfaction, trust, and perception of service quality is build and explained based on literature and a case study, finding that loyalty programs can strengthen the adaptability and the well-being of a healthcare service ecosystem.

This contribution can have a significant impact on the design of new and the evolution of current healthcare service ecosystem, providing interesting insights to practitioners on the topic of loyalty programs, both for their development and their benefits.

The paper revised previous healthcare service ecosystems and highlights the role of the loyalty program institution at each level and between levels of the ecosystem.

This study seeks to understand how elaboration and loyalty programs affect the relative importance of satisfaction and the zone of tolerance (ZOT) in determining customer loyalty to an airline service provider.

Hierarchical moderated regression analysis was used to test the hypotheses.

Customers with high elaboration rely more heavily on satisfaction than the ZOT to maintain customer loyalty. In addition, loyalty programs can decrease the effect of satisfaction on customer loyalty, but cannot increase the strength of the relationship between the ZOT and customer loyalty.

This study is a preliminary attempt to integrate the ZOT and satisfaction in determining customer loyalty in a simultaneous model. The findings suggest that there is a trade‐off between the effects of satisfaction and the ZOT on customer loyalty. Most importantly, the results provide new insights into the loyalty response with regard to dissatisfaction.

Considers the potential that retail loyalty card schemes offer for a more informed understanding of consumer behaviour. With the widespread introduction of loyalty card schemes across the UK, Europe and North America, retailers now have the opportunity to link detailed shopping pattern information to the individual consumer. Data gathered from loyalty card transactions can be referenced to the address of the individual, and as such, can be considered to be a particular type of potential geographic information. Based on detailed semi‐structured interviews within five UK retail organisations that have implemented loyalty card schemes, the article shows the nature of data analysis and applications at present, with data being mostly utilised in direct marketing. It is argued that recognition of the geographic nature of loyalty card data is currently lacking amongst scheme operators, yet is vital if higher order functions are to be realised. To that end, the paper presents visual frameworks that position loyalty card data within the organisational hierarchy and highlight potential techniques and applications that can be achieved via loyalty card data analysis.

Marketing management, services marketing, customer relationship management and strategic marketing management.

This case can be taught effectively to MBA/MS students.

Hyundai Motor India Ltd (HMIL) commenced operations in India in 1996 and launched its first car in India – the Hyundai Santro – in 1998. Since then, there has been no looking back for the company. Its domestic and export sales figures have risen manifold each year and the car maker has gone on to become the second largest manufacturer in the Indian car market with a market share of 18.10 percent as of 2010-2011. By 2009-2010, most of the major international car makers were setting up production facilities in India. The market was set to become highly competitive and it became imperative for manufacturers like Maruti Suzuki India Ltd (MSIL) and HMIL to retain their customers in order to maintain their market share. Nalin Kapoor, General Manager (Sales & Marketing) was contemplating the marketing strategies he could use to counter the stiff competition. Customer retention was one of the major problems in the automobile industry as the purchase time span varied between three and five years and the cost of brand switching was nil. HMIL had been pursuing customer relationship management activities but its customer retention ratio was declining. Kapoor and his team decided to study the loyalty programs of some companies in the automobile industry to ascertain whether launching a loyalty card could solve their problem of retention. The marketing strategy department with the help of a management intern extensively studied the existing loyalty program of Hero Honda, MSIL, and Ford to identify how those programs were designed and promoted to the customer. The reports also indicated the shortcomings of each program and the features which were highly accepted by the customer. The loyalty program also had cost implications as there was a need for a strong technical support team to run it successfully. With the reports in hand, Kapoor was in a dilemma on whether launching a loyalty card would be feasible or not. If yes, then how should it be structured to motivate the customers to stay loyal to the company? Also, how could the cost in terms of promotion, training, and technical support be justified? If not a loyalty program, then what marketing strategies should the company pursue to retain customers effectively? The problem demanded immediate attention and action and Kapoor was well aware of the implications that a delay in decision making would have for the market share of the company in the growing and dynamic automobile industry in India.

These include: the concept of customer relationship management; relationship marketing; customer retention; customer loyalty; customer profitability segments; relationship bonds; and designing loyalty programs.

Teaching notes are available for educators only. Please contact your library to gain login details or email: support@emeraldinsight.com to request teaching notes.

The purpose of this study is to propose long‐term orientation as a moderating effect on restaurant customer reward programs. Unlike in short‐term oriented and transactional marketing, long‐term orientation is an important factor in creating new loyal customers.

This research shows how the moderating effect of long‐term orientation affects customer reaction to reward timing (Experiment 1) and reward type (Experiment 2). The independent variables of Experiment 1 were timing of rewards (immediate/accumulate) and long‐term orientation (high/low), with the dependent variable being customer loyalty. The independent variables of Experiment 2 were the types of rewards (monetary/nonmonetary) and long‐term orientation (high/low), with the dependent variable being customer loyalty. The treatment groups are different from each other with regard to reward type and reward timing.

Depending on the reward type and its timing, long‐term orientation has a moderating effect on customer loyalty. In customers with a high long‐term orientation, there is no difference in the effect of rewards, whether they are immediate or accumulated and monetary or nonmonetary. On the other hand, for customers with a low long‐term orientation, the effect of rewards increases for monetary rewards more than nonmonetary ones and for immediate rewards more than for accumulated ones.

This paper helps restaurant managers to better understand customer loyalty and the value of reward programs that take into account the long‐term orientation concept.