Noordhoff et al (2004) find that loyalty card programs impact behavioral as well
as affective loyalty of the customers. However, the efficacy of the program tends to
diminish with the increase in number of alternative card programs. In a similar study on
Tesco loyalty cardholders of Dundee, it was found that having a loyalty card moderately
affects the customer’s loyalty. Moreover findings suggest that owning the cards clearly
increased the purchase volumes of the consumers (Turner, Wilson, 2006).
Liu (2007) on his research on long term purchase behavior of consumers has
found support for the claims made by O’Brien and Jones (1995). Using two year
longitudinal data of a convenience store franchisee the researchers concluded that
loyalty card holders who were heavy buyers at the beginning tend to claim their
rewards without increasing their purchase frequency. In contrast, loyalty programs had
more positive impact on moderate and light buyers with respect to increase in
purchase frequency.
There is availability of extant literature that deals with the reasons and issues
that make customers participate in loyalty programs. Using Zaichkowsky’s (1985)
involvement inventory researchers have studied the influence of rewards on the
perceived value of the loyalty program and how this perceived value affects customer
loyalty. They find involvement to be a moderator in the effect of the loyalty program
on customer loyalty (Yi and Jeon, 2003).
Noordhoff et al (2004) find that loyalty card programs impact behavioral as wellas affective loyalty of the customers. However, the efficacy of the program tends todiminish with the increase in number of alternative card programs. In a similar study onTesco loyalty cardholders of Dundee, it was found that having a loyalty card moderatelyaffects the customer’s loyalty. Moreover findings suggest that owning the cards clearlyincreased the purchase volumes of the consumers (Turner, Wilson, 2006).Liu (2007) on his research on long term purchase behavior of consumers hasfound support for the claims made by O’Brien and Jones (1995). Using two yearlongitudinal data of a convenience store franchisee the researchers concluded thatloyalty card holders who were heavy buyers at the beginning tend to claim theirrewards without increasing their purchase frequency. In contrast, loyalty programs hadmore positive impact on moderate and light buyers with respect to increase inpurchase frequency.There is availability of extant literature that deals with the reasons and issuesthat make customers participate in loyalty programs. Using Zaichkowsky’s (1985)involvement inventory researchers have studied the influence of rewards on theperceived value of the loyalty program and how this perceived value affects customerloyalty. They find involvement to be a moderator in the effect of the loyalty programon customer loyalty (Yi and Jeon, 2003).
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