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“Competing Loyalty Programs: Impact of Market Saturation, Market Share, and Category Expandability”

In: Other Topics

Submitted By rozali
Words 542
Pages 3
1. Journal Title

“Competing Loyalty Programs: Impact of Market Saturation, Market Share, and Category Expandability”

2. Introduction

Loyalty programs have become an important component of firms’ relationship management strategies. There are now some industries in which numerous rival loyalty programs are offered, inducing intense competition among these programs. However, existing research on loyalty programs has often studied such programs in a on competitive setting and has often focused on a single program in isolation. Addressing this gap, this research examines the effect of a firm’s competitive positioning and market saturation on the performance of the firm’s loyalty program.

3.1. Research Problem Statement

Are loyalty programs a viable strategy that can increase revenue potentials, even with competitive offerings in the same market?

3.2. Jurnal Summary

With limited research on loyalty programs, it is still unclear to what extent loyalty programs are effective and, more important, what induces the success and failure of different programs. Although some studies have examined the moderating effects of program and consumer characteristics, existing research tends to put a loyalty program in a vacuum that is void of impact from rival firms and programs.

Questions still remain as to whether competitive loyalty programs in such industries really cancel one another’s effects out, creating a zero-sum game, or whether some firms may enjoy asymmetric advantages with their loyalty programs due to their competitive positioning.

3. Research Methodology
The research has taken a sample studies from the previous research performed as per list below:- a) Kim, Shi, and Srinivasan (2001), b) Kivetz (2005), c) Kivetz and Simonson (2002), d) Kivetz and Simonson (2003) e) Leenheer and Bijmolt (2008) f)…...

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