Loyalty Card Research Articles

Expenditure-based segmentation of visitors to the Tsitsikamma National Park

Purpose and/or objectives: The purpose of this article is to apply expenditure-based segmentation to visitors at the Tsitsikamma National Park. The objective of the research is twofold, to identify the socio-demographic and behavioural variables that influence spending at the Tsitsikamma National Park and to make recommendations on how to attract the high-spending market. Problem investigate: The Tsitsikamma National Park is Africa's oldest and largest marine reserve and plays a vital role in the preservation and conservation of marine fauna and flora. The park is also a popular holiday destination for international and local tourists and therefore plays an important role in the regional economy. Due to the importance of the park to the community and region, the Tsitsikamma National Park needs to attract more high spenders since this will contribute to the sustainability of the park. Expenditure-based segmentation is regarded as the best method for creating a profile of the high-spending market. Design and/or methodology and/or approach: To achieve this, tourist surveys from 2001 to 2008 were used. In total, 593 questionnaires were used in the analysis. Statistical analysis was done by applying K-means clustering and Pearson's chi-square as well as ANOVA analysis. Findings and/or implications: The research revealed that the province of origin, group size, length of stay and accommodation preference have a positive influence on higher spending. Originality and/or value of the research : Even though this type of research has been done for the Kruger National Park, a more innovative approach was followed by using K-means clustering, which is also the first time that this approach was used in determining the high-spending market at the Tsitsikamma National Park. Conclusion: Two distinct markets were identified. These were the high and low spenders where the most significant differences were with regard to province of origin, group size, length of stay and preferred type of accommodation. Interestingly, aspects such as owning a Wild Card (which is a loyalty card) showed no significant difference. The same applied for age, marital status or frequency of visits. Therefore, the results (if one compares this research with that done at the Kruger National Park) confirm that the size of operations and activities available have a dual impact.

In-store one-to-one marketing

With the proliferation of electronic media, one-to-one marketing has become more accessible and it is moving toward widespread adoption. It is particularly important for retailers, where several forms of one-to-one marketing are performed either before or after a shopping experience. One-to-one marketing during the shopping experience is still elusive; however, with recent technological advances it could soon become reality. We show how it can be carried out by using either personal digital assistance devices and wireless communication, or radio frequency identification. The main concept is based on providing coupons during a shopping experience and then routing the customer within the facility to possibly redeem them. The novel approach of selecting the coupons based on the already purchased goods enables one-to-one marketing during the actual shopping trip. Several models are presented based on the underlying technology and the option of a loyalty card. The concepts are computationally evaluated based on data obtained from a grocery store. They allude to substantially increased revenue by the store.

A cross-cultural study of the perceived benefits of a retailer loyalty scheme in Asia

The aim of this paper is to explore loyalty, loyalty schemes, and loyalty cards, as well as the internationalisation of loyalty schemes. We focus on loyalty schemes in Asia to define the primary objective of our study: to assess the impact of perceived benefits on the feelings of participants of a specific retailer's loyalty scheme, as well as customer loyalty towards the retailer. A literature review of loyalty schemes and loyalty cards is undertaken as well as the internationalisation of these cards. A survey was conducted in five Asian countries in which Toys’R’Us operates, namely Singapore, Malaysia, Hong Kong, Taiwan, and Thailand. Data was collected among members of the Toys’R’Us Star Card loyalty programme. Structural equation modelling was used to build a model that can be used to explain the simultaneous structural relations between perceived benefits, emotional feelings, and loyalty behaviours. Invariance testing was applied in order to test whether the model holds across the five countries. Our findings suggest that perceived benefits have a weak direct effect on loyalty behaviours. However, perceived benefits have a much stronger effect on feelings, which in turn have a strong effect on loyalty behaviours. We also found subtle differences between the countries in the study, which could either be attributed to cultural differences, to marketing practices, or to both, which can only be ascertained through further research.

Are There Differences between Consumers’ and Marketers’ Privacy Expectations? A Segment- and Technology-Level Analysis

Despite previous examinations of business actions, consumer reactions, and regulatory efforts, there has been no direct comparison of consumer and marketer expectations for establishing and respecting privacy boundaries. This study directly compares consumer segments’ and marketers’ expectations for privacy boundaries that regulate marketers’ access to consumers and their information. Using data from a national online survey, the authors compare three consumer segments’ preferences regarding the boundaries for the use of eight information technologies (cookies, biometrics, loyalty cards, radio frequency identification, text messaging, pop-up advertisements, telemarketing, and spam) with survey results of marketing managers and database vendors for the same set of questions. The results identify consumer segments and technologies for which consumer expectations differ from marketers and, thus, for which more regulatory and public policy attention and research scholarship is needed.

Loyalty marketing and loyalty cards: a study of the Italian market

PurposeLoyalty 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/approachThe paper presents the results of an exploratory study focused on a sample of loyalty cardholders by means of telephone interviews.FindingsThe 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/implicationsThe 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/valueThe paper provides empirical data on customer behaviour and opinion towards loyalty programmes.

Loyalty card programs, customer relationship and information technology: an exploratory approach

Loyalty card-based initiatives are structured programs utilised in supermarkets and retailers, industry wide, with the purpose of providing value-added benefits, namely: savings, rewards and perks, directly to the customer. Through both theoretical and empirical methods, a market survey of the effectiveness of loyalty card programs in the Pittsburgh, PA metropolitan area that focused on supermarket and retailer-based loyalty card programs, resulting in 200 completed questionnaires among web-enabled professionals. Statistical analyses via multiple linear regression and principal-components analysis, via factor analysis, revealed many layers of complexity, especially concerning the comparative success of loyalty card programs between supermarket and more durable goods-based retailers. The factor-based constructs are, in order of the greatest explained variance, technology sophistication, purchase amount, number of loyalty programs, maturity and financial means, purchase selection and store selection, resulting in significant combined variance of 68.921%. Although all constructs were positively associated with using loyalty cards during their purchases, not all were found statistically significant, suggesting that such extensive use of loyalty cards cuts across age, income, financial income levels, technological savvy, purchase amounts and type of purchases. Recommendations for customer relationship management are made concerning loyalty card programs and their overall improvement.

Retail-based loyalty card programmes and CRM concepts: an empirical study

Through both theoretical and empirical methods, a market survey was done on the potential use of loyalty card programmes in the Pittsburgh, PA metropolitan area that focused on supermarket and retailer-based loyalty card programmes, resulting in 200 completed questionnaires among web-enabled professionals. Statistical analyses, via regressions, paired tests and chi-square revealed many layers of complexity, especially concerning the comparative success of loyalty card programmes between supermarkets and more durable goods-based retailers, with supermarket programmes being more successful in their focused marketing attempts compared to the relative market saturation of durable goods retailers. Recommendations for customer relationship management and their overall improvement of business planning and operations are made.

Impacts of store and chain images on the “quality–satisfaction–loyalty process” in petrol retailing

Image building is an essential tool both for attracting and retaining customers. In this study chain image and store image as well as store satisfaction are treated as mediators of assortment, service quality and price, on store loyalty. Loyalty card and demographic variables (gender and age) are included as control variables. The context is a Norwegian petrol station belonging to a large chain of petrol stations. The findings suggest that chain image and store image are different concepts and that a two-level image building approach is an important aspect for petrol retailing. All the three mediating variables influence store loyalty, but image building (chain and store) seems to be more important than satisfaction creation, mediating about 2 3 of the impacts of the store loyalty drivers. However, the effects of chain image on store loyalty are entirely mediated by store image and store satisfaction, implying that the petrol station manager to a large extent can influence the drivers of loyalty. Service quality was the decisive loyalty driver. Additional multi-level studies would help illuminate the issue further.

Challenges of Investigating Community Outbreaks of Cyclosporiasis, British Columbia, Canada

Investigations of community outbreaks of cyclosporiasis are challenged by case-patients’ poor recall of exposure resulting from lags in detection and the stealthy nature of food vehicles. We combined multiple techniques, including early consultation with food regulators, traceback of suspected items, and grocery store loyalty card records, to identify a single vehicle for a cyclosporiasis outbreak in British Columbia, Canada, in 2007.

Drivers of Customers’ Adoption and Adoption Timing of a New Loyalty Card in the Grocery Retail Market

The authors study consumers’ process of adoption of a new loyalty card in a grocery retail context. More specifically, the authors simultaneously investigate the impact of attitudinal, behavioral, and socio-demographic variables on the likelihood of adoption and the time to adoption. They show that these variables differently affect the adoption likelihood and timing and demonstrate the importance of attitudinal measures of customer loyalty such as commitment to the store. This research confirms the so-called self-selection bias and extends it to the attitudinal dimension of loyalty. Some guidelines are proposed to increase the effectiveness of loyalty card program launches.

Loyalty cards: The risks and rewards

Loyalty cards – with their numerous risks and few rewards – have really taken off. Can we trust that the commercial organisations that store our data will take good care of it? Cath Everett investigates and finds there's no such thing as a free lunch…

Case—Revenue Management at Harrah's Entertainment, Inc.

Free AccessAboutSectionsView PDF ToolsAdd to favoritesDownload CitationsTrack Citations ShareShare onFacebookTwitterLinked InEmail Go to SectionFree Access HomeINFORMS Transactions on EducationVol. 9, No. 3 Case—Revenue Management at Harrah's Entertainment, Inc.Narendra Agrawal, Morris A. Cohen, Noah GansNarendra Agrawal, Morris A. Cohen, Noah GansPublished Online:1 May 2009https://doi.org/10.1287/ited.1090.0031cs Previous Back to Top Next FiguresReferencesRelatedInformation Volume 9, Issue 3May 2009Pages 97-189 Article Information Metrics Downloaded 774 times in the past 12 months Information Published Online:May 01, 2009 Copyright © 2009, INFORMSCite asNarendra Agrawal, Morris A. Cohen, Noah Gans, (2009) Case—Revenue Management at Harrah's Entertainment, Inc.. INFORMS Transactions on Education 9(3):160-168. https://doi.org/10.1287/ited.1090.0031csPDF download

Case Article—Revenue Management at Harrah's Entertainment, Inc.

Harrah's Entertainment operates a highly diversified network of gambling facilities in the United States and the United Kingdom. This case introduces students to Harrah's use of price controls for hotel revenue management: how it works, how it integrates with Harrah's Total Rewards loyalty card, and how it might be changed. Within the context of a course on revenue management or service operations, the case can be used effectively to discuss principles of revenue management and to demonstrate the use of a number of quantitative analysis techniques to design and optimize revenue management systems. Case Teaching Note: Interested Instructors please see the Instructor Materials page for access to the restricted materials. To maintain the integrity and usefulness of cases published in ITE, unapproved distribution of the case teaching notes and other restricted materials to any other party is prohibited.

Information privacy in institutional and end-user tracking and recording technologies

This paper presents an analysis of attitudes towards everyday tracking and recording technologies (e.g., credit cards, store loyalty cards, store video cameras). This work focuses on both institutional and end-user tracking and recording technologies. In particular, this paper describes (1) an empirical interview and survey study of everyday institutional tracking and recording technologies and (2) an analysis of these empirical data against a framework originally used to describe tension points for end-user tracking and recording technologies. Results from the study demonstrate that people can be highly concerned with information privacy while simultaneously reporting significantly less concern regarding the use of everyday technologies that have the capabilities to collect, process, and disseminate personal information. The empirical results and theoretical analysis identify and begin to explain this dissonance. Furthermore, we provide extensions to the analytic framework for capture and access technologies to address differences, similarities, and interplay between institutional and end-user tracking and recording technologies. The results of this paper contribute to the fields of personal and ubiquitous computing by providing significant insight relevant to the evaluation, design, deployment, and adoption of new tracking and recording technologies.

The consumers' predisposition towards enrolling for retail loyalty cards: the Indian retail story

Relationship marketing has developed from focusing on retaining customers. The traditional view of marketing focused on 'single, discrete transactions' (McIlroy and Barnett, 2000). The important aspect of relationship marketing is the evolution of strategies that help an organisation create loyal customers. The idea is to develop cost-effective marketing strategies which link the organisation to its customers. By using the experiences of customers, companies can devise programmes which give greater value and thrust to relationship marketing (Morris et al., 1999). Organisations continuously try to improve their product offerings so that they are able to attract customers by providing better quality. 'The key to the successful adoption of relationship marketing lies in the building of client loyalty in dynamic business environments' (Morris et al., 1999). The paper is based upon primary research conducted on the impact of loyalty programmes in retail on consumers' purchase behaviour. It studies the willingness of customers to enrol for loyalty cards and schemes in retail in India. As retail is in the growth stage in the country, the willingness of customers towards loyalty schemes are mixed. As the market matures in loyalty programmes, trends that are similar to those of developed countries would be visible in the Indian retail market.

Ukrop's Savings Spot

Ukrop's has developed a unique coupon dispenser that is placed in front of the store. Customers with Ukrop's loyalty card can use this system to obtain coupons that are customized for them. The case explores the impact of this system on customer loyalty and store profitability. The case presents an opportunity to discuss the process of establishing the return on investment from such a loyalty program. Excerpt UVA-M-0753 Ukrop's Savings Spot Company Background Ukrop's was a family-owned and -operated supermarket chain located primarily in the Richmond, Virginia, area. “We have an advantage [of] being local,” said Jim Ukrop. “We live here; we have our friends here. We talk to our neighbors [and] hear what they like and what they don't like. We're able to put our arms around our business. We can do a lot of things that companies with branches can't do.” But the Ukrop's name and its reputation had spread far beyond southern Virginia. “The stores [Ukrop's] have a national reputation for excellence,” said Bill Bishop, a food retailing analyst with Willard Bishop Consulting in Barrington, Illinois. For more details on Ukrop's history, current competitive situation, and marketing strategy, see these links: · www.ukrops.com · http://www.timesdispatch.com/cva/ric/news/business.apx.-content-articles-RTD-2007-06-13-0048.html Supermarket Industry . . .

The implementation of lean manufacturing in the UK food and drink industry

The structure of the food and drink market in the UK is characterised today by the emergence of major retailers and their own brands and bigger store sizes, greater retailer concentrations, an increasing demand for one-stop shopping, an improved retailer access to information via the Electronic Point of Sale (EPoS), the introduction of loyalty cards and a massive proliferation of choices have caused the shift of power balance from the food and drink industry to the retailer's side in the UK. Most of the food manufacturers have to do business with powerful retailers who demand a wide range of products, short delivery times, frequent deliveries and regular price reductions. In this scenario, it is important for the food and drink industry that there be a mechanism in place that enables it to learn continuously and develop 'world-class practices'. Lean manufacturing has been widely used in the discrete industry as an operational improvement initiative, but nobody has systematically investigated the applicability of lean principles and practices to the food and drink industry. This paper has made an attempt to examine the leanness of six UK food and drink companies and identify the key inhibitors and enablers of lean manufacturing. A multiple case study approach has been used for this purpose.

Acquisition, affinity and rewards: Do they stay or do they go?

Customer relationship management seeks to understand how to generate profitable customers who enter into a long-term relationship with a firm. In this paper, we examine the role of modes of acquisition and retention programmes on customer lifetime in the context of a credit card issuing bank. While other papers have studied retention programmes such as loyalty card and reward card, there is no published study in the credit card context. Using a rich data set on nearly 5,000 customers observed over a three-year period, we are able to provide detailed insights about the efficacy of these strategies. We show that affinity cards customers and customers acquired through direct mail have longer lifetimes. We also find that reward card programmes generate customers with a shorter lifetime. Finally we re-examine the link between long-life customers and profitability and find that the relationship is weak, consistent with recent findings.

Identification and analysis of moderator variables

PurposeResearch on the relationship between customer satisfaction and customer loyalty has advanced to a stage that requires a more thorough examination of moderator variables. Limited research shows how moderators influence the relationship between customer satisfaction and customer loyalty in a service context; this article aims to present empirical evidence of the conditions in which the satisfaction‐loyalty relationship becomes stronger or weaker.Design/methodology/approachUsing a sample of more than 700 customers of DIY retailers and multi‐group structural equation modelling, the authors examine moderating effects of several firm‐related variables, variables that result from firm/employee‐customer interactions and individual‐level variables (i.e. loyalty cards, critical incidents, customer age, gender, income, expertise).FindingsThe empirical results suggest that not all of the moderators considered influence the satisfaction‐loyalty link. Specifically, critical incidents and income are important moderators of the relationship between customer satisfaction and customer loyalty.Practical implicationsSeveral of the moderator variables considered in this study are manageable variables.Originality/valueThis study should prove valuable to academic researchers as well as service and retailing managers. It systematically analyses the moderating effect of firm‐related and individual‐level variables on the relationship between customer satisfaction and loyalty. It shows the differential effect of different types of moderator variables on the satisfaction‐loyalty link.

Are pub discount cards loyalty cards?

PurposeThis 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/approachData 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.FindingsPub 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/valueThis 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.