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Applying an eMASS Customization Program as a Research Tool to Evaluate Consumer Benefits
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Multi-Vendor Loyalty Programs: Influencing Customer Behavioral Loyalty?

Teresa Villacé-Molinero1, Pedro Reinares-Lara1, Eva Reinares-Lara1

  • 1Departamento de Economía de la Empresa, Universidad Rey Juan Carlos Madrid, Spain.

Frontiers in Psychology
|March 5, 2016
PubMed
Summary
This summary is machine-generated.

Multi-vendor loyalty programs shorten purchase intervals but do not increase spending. Customer recency is key to understanding behavioral changes in loyalty program members.

Keywords:
behavioral loyaltycustomer behaviorcustomer loyaltymulti-vendor loyalty programsreward programs

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Area of Science:

  • Marketing
  • Consumer Behavior
  • Retailing

Background:

  • Loyalty programs are widely adopted but poorly understood marketing tools.
  • Limited research exists on multi-vendor loyalty programs and their impact on repeat purchase behavior.

Purpose of the Study:

  • To investigate the effect of loyalty programs on repeat purchase behavior.
  • To identify customer profiles exhibiting significant behavioral changes post-enrollment.
  • To explore new variables in multi-vendor loyalty programs, including enrollment location and associated outlet purchases.

Main Methods:

  • Longitudinal study of 1200 individuals and 31,746 purchases over 13 years.
  • Analysis of transactional data from before and after program enrollment.
  • Focus on a multi-vendor loyalty program and associated market, under-researched areas.

Main Results:

  • Loyalty programs reduced the time between purchases.
  • No significant impact was observed on purchase volume or average expenditure.
  • A distinct customer profile emerged for those with greater behavioral changes.
  • Recency was identified as the primary driver of behavioral change.

Conclusions:

  • Multi-vendor loyalty programs effectively influence purchase frequency but not spending levels.
  • Understanding customer recency is crucial for predicting and leveraging behavioral shifts.
  • Further research is needed on the nuanced effects of loyalty programs in diverse markets.