Essay On Loyalty Programme

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There have been many new generations of loyalty programmes that have gained a widespread appeal during the first airline industry when America introduced its first flyer programme. Loyalty Programmes can be traced back to 1896 through the introduction of S&H Green Stamps which was recorded as the largest consumer’s goods in the world. Technological development generated a large increase in loyalty programmes which helped to develop the world economically. “2000 Jupiter Research study, 75% of US consumers participated in at least one loyalty programme.” Lacey, R, 2006. Customer Loyalty Programme. Customer Loyalty Programme: are they fair to consumers?, 23, 458-464.
Organizations that exploit personal information captured by consumers and firms and discriminate value proposition segmentation is the vital reason that cause unfair Loyalty Programmes as there is an absence of incorporating equity and exchange theories in South Africa.
Loyalty programmes are synchronized, membership based, marketing activities that use targeted communications and customize the delivery of branded goods and services and build a powerful bond with the sponsoring firms. These factors are used as marketing tools by organizations to maintain their Customer Relationship Management strategies by making use of loyalty cards, club cards and advantage cards.
Organisations that make use of the equity and exchange theory create an environment that can successfully evaluate the fairness throughout the Loyalty Programmes.
Organizations using an equity theory allow firms to help distinguish and reward more valuable customers without excluding less valuable customers. If this may occur it generates variables that can negatively affect the organizations reputation and ...

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... products, sale coupons and free merchandise throughout the different levels of segmentations. This enhances customer service and created a larger benefit to firms financially in long run.
By collecting the mass data and analysing it through cross-tabulation and looking at problems of one question in relation to the response of another question, it creates a link between factors that correspond to each other. Effective and orderly research helps a firm to act timely and accurate when addressing problems to customers and ultimately enhances the efficiency of the entire firm.
Through this marketing research proposal it has shown that by combing equity and exchange theory it enhances the ability for organisations to solve many problems that are brought into place on different levels to ensure that there is fair treatment to all customers concerning Loyalty Programmes.
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