Loyalty program types as drivers of customer retention: a comparison of stand-alone programs and multi-vendor loyalty programs through the lens of transaction cost economics

Rese, Mario ; Hundertmark, Annika ; Schimmelpfennig, Heiko ; Edinger-Schons, Laura Marie

DOI: https://doi.org/10.1080/09593969.2013.775957
URL: http://www.tandfonline.com/doi/pdf/10.1080/0959396...
Additional URL: https://www.researchgate.net/publication/271559519...
Document Type: Article
Year of publication: 2013
The title of a journal, publication series: The International Review of Retail, Distribution and Consumer Research
Volume: 23
Issue number: 3
Page range: 305-323
Place of publication: London [u.a.]
Publishing house: Routledge, Taylor & Francis
ISSN: 0959-3969 , 1466-4402
Publication language: English
Institution: Business School > Sustainable Business (Edinger-Schons 2015-2022)
Subject: 650 Management
Keywords (English): loyalty programs , multi-vendor loyalty program , stand-alone programs , customer retention , relationship marketing , switching barriers , transaction cost economics
Abstract: Loyalty programs have enjoyed a steady increase in popularity, particularly in retailing. Past research has explored whether the membership in a loyalty program affects important customer outcomes. However, none of the previous contributions has differentiated between the effects of different loyalty program types on customer retention. This paper intends to fill this research gap by focusing on the question whether different types of loyalty programs, i.e. multi-vendor loyalty programs (MVLP) or stand-alone programs (SAPs) are most effective in retaining customers. Based on a transaction cost theoretic analysis of benefits generated by the two types of programs, two empirical studies are conducted in the retail sector. Our results clearly indicate that a higher level of customer retention cannot be achieved by joining an MVLP, but by setting up an SAP. It is, however, possible to win new customers through joining an MVLP which does not seem feasible through setting up an SAP.

Dieser Datensatz wurde nicht während einer Tätigkeit an der Universität Mannheim veröffentlicht, dies ist eine Externe Publikation.

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