Which retailers adopt a loyalty program? An empirical study

Loyalty Programs: Generalizations on Their Adoption, Effectiveness and Design

“…Moreover, LPs will mainly benefit the large-share brands, which have already successfully established a competitive advantage (Leenheer et al, 2007;Liu and Yang, 2009;Meyer-Waarden and Benavent, 2006;Sharp and Sharp, 1997). Interestingly, though, larger firms are not more inclined than smaller firms to adopt LPs (Leenheer and Bijmolt, 2008). In essence, any firm, small or large, which uses an LP to build relationship-based market assets (Srivastava et al, 1998), can create a sustainable competitive advantage and survive in the market.…”

“…Although LPs span many industries, from manufacturing to retailing, they are particularly pronounced in service sectors: airlines, grocery, apparel, and book retailers; financial service firms; hotels and casinos; and car rental companies (Consumer Reports, 2008;Dekay et al, 2009;Leenheer and Bijmolt, 2008). Among these sectors, LPs are more common in customer-oriented firms, particularly in those that strive to identify customer preferences to increase their marketing effectiveness (Gable et al, 2008;Leenheer and Bijmolt, 2008;Smith et al, 2004).…”

“…Among these sectors, LPs are more common in customer-oriented firms, particularly in those that strive to identify customer preferences to increase their marketing effectiveness (Gable et al, 2008;Leenheer and Bijmolt, 2008;Smith et al, 2004). LPs are particularly prominent in retailing sectors characterized by high purchase frequencies, competitors with relatively similar assortments, and different profitability potentials for various customer segments (Leenheer and Bijmolt, 2008).…”

“…Among these sectors, LPs are more common in customer-oriented firms, particularly in those that strive to identify customer preferences to increase their marketing effectiveness (Gable et al, 2008;Leenheer and Bijmolt, 2008;Smith et al, 2004). LPs are particularly prominent in retailing sectors characterized by high purchase frequencies, competitors with relatively similar assortments, and different profitability potentials for various customer segments (Leenheer and Bijmolt, 2008). Another key driver of LP adoption by companies is the level and nature of competition within a sector; many firms introduce their LPs in response to a competitor's introduction of such a program (Leenheer and Bijmolt, 2008;Liu and Yang, 2009;Ziliani and Bellini, 2004).…”

“…LPs are particularly prominent in retailing sectors characterized by high purchase frequencies, competitors with relatively similar assortments, and different profitability potentials for various customer segments (Leenheer and Bijmolt, 2008). Another key driver of LP adoption by companies is the level and nature of competition within a sector; many firms introduce their LPs in response to a competitor's introduction of such a program (Leenheer and Bijmolt, 2008;Liu and Yang, 2009;Ziliani and Bellini, 2004). Nevertheless, costs of introducing an LP can be substantial and therefore careful strategic evaluation of LP adoption is necessary.…”