Skip to main content
SpringerLink
Log in

A Typology Framework of Loyalty Reward Programs

  • Conference paper
E-business Technology and Strategy (CETS 2010)

Part of the book series: Communications in Computer and Information Science ((CCIS,volume 113))

Included in the following conference series:

  • 1431 Accesses

Abstract

Loyalty reward programs (LRPs), initially developed as marketing programs to enhance customer retention, have now become an important part of customer-focused business strategy. With the proliferation and increasing economy impact of the programs, the management complexity in the programs has also increased. However, despite widespread adoption of LRPs in business, academic research in the field seems to lag behind its practical application. Even the fundamental questions such as what LRPs are and how to classify them have not yet been fully addressed. In this paper, a comprehensive framework for LRP classification is proposed, which provides a foundation for further study of LRP design and planning issues.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Duffy, D.: Customer Loyalty Strategies. Journal of Consumer Marketing 15(5), 435–448 (1998)

    Article  MathSciNet  Google Scholar 

  2. Funny Money. Economist 377(8458), 102–103 (2005)

    Google Scholar 

  3. Berman, B.: Developing an Effective Customer Loyalty Program. California Management Review 49(1), 123–150 (2006)

    Article  Google Scholar 

  4. Lewis, M.: The Influence of Loyalty Programs and Short-Term Promotions on Customer Retention. Journal of Marketing Research XLI, 281–292 (2004)

    Article  Google Scholar 

  5. Reichheld, F.: The Loyalty Effect, the Hidden Force Behind Growth, Profits and Lasting value. Harvard Business School Press, Boston (1996)

    Google Scholar 

  6. Nunes, J., Dreze, X.: Your Loyalty Program is Betraying You. Harvard Business Review 84(4), 124–128 (2006)

    Google Scholar 

  7. Liu, Y.: Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior & Loyalty. Journal of Marketing 71(4), 19–35 (2007)

    Article  Google Scholar 

  8. Bagdonienė, L., Jakštaitė, R.: Customer Loyalty Programs: Purpose, Means and Development. Organizacijų vadyba:sisteminiai tyrimai 37, 21–35 (2006)

    Google Scholar 

  9. Oliver, R.: Whence Customer Loyalty. Journal of Marketing 63, 33–44 (1999)

    Article  Google Scholar 

  10. Dick, A., Basu, K.: Customer Loyalty: toward An Integrated Conceptual Framework. Journal of the Academy of Marketing Science 22(2), 99–113 (1994)

    Article  Google Scholar 

  11. Palmer, A.: Relationship Marketing: A Universal Paradigm or Management Fad. The Learning Organization 3(3), 18–25 (1996)

    Article  Google Scholar 

  12. O’Malley, L.: Can Loyalty Schemes Really Build Loyalty? Marketing Intelligence & Planning 16(1), 47–55 (1998)

    Article  Google Scholar 

  13. O’Brien, L., Jones, C.: Do Rewards Really Create Loyalty? Harvard Business Review 73(3), 75–82 (1995)

    Google Scholar 

  14. Ebert, J.: Psychological Approaches to Future Rewards: Sequences, Valuation, Effort, and Frequency Programs. Advances in Consumer Research 30, 68–71 (2003)

    Google Scholar 

  15. George, C., Cawthorne, J.: Systems and Methods for Operating Loyalty Programs, http://www.freepatentsonline.com/EP1483708.html (last accessed, March 2010)

  16. Sharp, B., Sharp, A.: Loyalty Programs and Their Impact on Repeat-Purchase Loyalty Patterns. International Journal of Research in Marketing 14, 473–486 (1997)

    Article  Google Scholar 

  17. Banasiewicz, A.: Loyalty Program Planning and Analytics. Journal of Consumer Marketing 22(6), 332–339 (2005)

    Article  Google Scholar 

  18. Sayman, S., Hoch, S.: Dynamic Choice in Frequency Programs. working paper, University of Pennsylvania (2005)

    Google Scholar 

  19. Kadar, M., Kotanko, B.: Designing Loyalty Programs to Enhance Value Growth. Mercer on Transport and Travel 8(2), 28–33 (2001)

    Google Scholar 

  20. Gudmundsson, S., de Boer, E., Lechner, C.: Integrating Frequent-Flier Programs in Multilateral Airline Alliances. Journal of Air Transport Management 8, 409–417 (2002)

    Article  Google Scholar 

  21. Hofer, D.: Reinforcing the Value of Frequent Flyer Miles. White paper, CEO Loylogic Inc. (2008)

    Google Scholar 

  22. Mortimer, R.: A Tang of Bitter-Sweet Loyalty. Brand Strategy 164, 16–19 (2002)

    Google Scholar 

  23. Shi, M., Soman, D.: Multi-Medium Reward Programs, http://www.rotman.utoronto.ca/bicpapers/pdf/04-07.pdf (last accessed, March 2010)

  24. Dowling, G., Uncles, M.: Do Customer Loyalty Programs Really Work? Sloan Management Review 38(4), 71–82 (1997)

    Google Scholar 

  25. Kim, B., Shi, M., Srinivasan, K.: Reward Programs and Tacit Collusion. Marketing Science 20(2), 99–120 (2001)

    Article  Google Scholar 

  26. Nunes, J., Park, C.: Incommensurate Resources: Not Just More of the Same. Journal of Marketing Research 40, 26–38 (2003)

    Article  Google Scholar 

  27. Yi, Y., Jeon, H.: Effects of Loyalty Programs on Value Perception, Program Loyalty, and Brand Loyalty. Journal of the Academy of Marketing Science 31(3), 229–240 (2003)

    Article  Google Scholar 

  28. Keh, H., Lee, Y.: Do Reward Programs Build Loyalty for Services? The Moderating Effect of Satisfaction on Type and Timing of Rewards. Journal of Retailing 82(2), 127–136 (2006)

    Article  Google Scholar 

  29. Zhang, Z., Krishna, A., Dhar, S.: The Optimal Choice of Promotional Vehicles: Front-Loaded or Rear-Loaded Incentives? Management Science 46(3), 348–362 (2000)

    Article  MATH  Google Scholar 

  30. Atalık, Ö.: The Impact of the Reward Program Elements on Airlines Customers: Case of Turkish Airlines, http://www.e-sosder.com/dergi/1417-33.pdf (last accessed, March 2010)

  31. Wells, J.: Exporting the Loyalty Business: Hoarding, Frustrating, Winning, http://www.globeadvisor.com/servlet/ArticleNews/story/gam/20080823/RCOVER2 (last accessed, March 2010)

Download references

Author information

Authors and Affiliations

  1. Sprott School of Business, Carleton University, 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6

    Yuheng Cao, Aaron Luntala Nsakanda & Inder Jit Singh Mann

Authors
  1. Yuheng Cao
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Aaron Luntala Nsakanda
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Inder Jit Singh Mann
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Queen’s University, 99 University Avenue, K7L 3N6, Kingston, Ontario, Canada

    Marzia Zaman

  2. Royal Military College of Canada, 13 General Crerar Cres, K7K 7B4, Kingston, ON, Canada

    Yawei Liang

  3. Université du Québec en Outaouais, 283 boul. Alexandre-Taché, C.P. 1250, J8X 3X7, Gatineau, Québec, Canada

    Sohail M Siddiqui

  4. CeBA Canada, 1107-2720 Queensview Drive, K2B 1A5, Ottawa, ON, Canada

    Tim Wang

  5. Sprott School of Business, Carleton University, 1125 Colonel By Drive, K1S 5B6, Ottawa, Ontario, Canada

    Vincent Liu

  6. University of Toronto, 172 St. George Street, M5R 0A3, Toronto, Canada

    Ceecee Lu

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Cao, Y., Nsakanda, A.L., Mann, I.J.S. (2010). A Typology Framework of Loyalty Reward Programs. In: Zaman, M., Liang, Y., Siddiqui, S.M., Wang, T., Liu, V., Lu, C. (eds) E-business Technology and Strategy. CETS 2010. Communications in Computer and Information Science, vol 113. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-16397-5_14

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-16397-5_14

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-16396-8

  • Online ISBN: 978-3-642-16397-5

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Search

Navigation