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| Author: | Leenheer, J. (et al.) |
| Title: | Do loyalty programs really enhance behavioral loyalty? An empirical analysis accounting for self-selecting members |
| Journal: | International Journal of Research in Marketing
2007 : MAR, VOL. 24:1, p. 31-47 |
| Index terms: | loyalty netherlands retailing |
| Language: | eng |
| Abstract: | Important issue in marketing is whether loyalty programs really enhance behavioral loyalty. In order to benefit from the program, loyal customers may select themselves to become members. This article uses panel data from a representative sample of Dutch households who report their loyalty program memberships for all seven loyalty programs in grocery retailing as well as their expenditures at each of the 20 major supermarket chains. The result show a small positive yet significant effect of loyalty program membership on share-of-wallet. The papers shows that creating loyalty program membership is a crucial step to enhance share-of-wallet, and it provides guidelines on how to achieve this. |
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