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Influence on loyalty programme effectiveness : A conceptual framework and case study investigation

Palmer, A, McMahon-Beattie, U and Beggs, R (2000) Influence on loyalty programme effectiveness : A conceptual framework and case study investigation. Journal of Strategic Marketing, 8 (1). pp. 47-66. [Journal article]

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URL: http://www.tandfonline.com/toc/rjsm20/8/1

DOI: 10.1080/096525400346303

Abstract

This paper explores the effects of market structure on the effectiveness of loyaltyprogrammes. A literature review led to the proposition that effectiveness isdependent upon firms’ existing customer information deficit and their ability tosegment markets with differentiated products. A case study examines two sectorswith differing market characteristics: civil aviation and car ferries. Loyalty programmesappeared to be less successful in the latter, where information aboutcustomers was more readily available than for airlines. Opportunities for segmentationwere less. Although questions are raised about how the effectiveness of a loyaltyprogramme can be measured, the proposition that market characteristics caninfluence the effectiveness of a loyalty programme is accepted.KEYWORDS: Loyalty; market structure; segmentation; effectiveness; civil aviation; passengerferries

Item Type:Journal article
Faculties and Schools:Ulster Business School > Department of Hospitality and Tourism Management
Ulster Business School
ID Code:29235
Deposited By: Professor Una McMahon-Beattie
Deposited On:10 Apr 2014 10:29
Last Modified:09 Mar 2017 16:20

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