The Effectiveness of customer loyalty programs: a longitudinal comparison of the demographic and consumer behaviour predictors of share of wallet in the retail grocery sector

Kirsty Wright, Chris Baumann

Research output: Contribution to journalConference paperpeer-review

Abstract

One of the pressing issues in marketing is to resolve the debate over the effectiveness of customer loyalty programs. This study adds to the discussion by examining the relative importance of loyalty programs, demographic and consumer behaviour characteristics, on share of wallet over time. Based on demographically representative data from 643 Australian households, the study investigates the usage patterns of three subscription based loyalty programs. The results show that ownership of the loyalty card is not a consistent predictor of SOW over time. This suggests that some of the more established customer loyalty programs may be negatively influenced by the introduction of competitor loyalty cards and consumer perceptions towards the attractiveness of the reward structure.
Original languageEnglish
Pages (from-to)497-501
Number of pages5
JournalProceedings of the thirty-seventh annual meeting of the Western Decision Sciences Institute
Publication statusPublished - 2008
EventWestern Decision Sciences Institute Annual Meeting (37th : 2008) - San Diego, CA
Duration: 18 Mar 200822 Mar 2008

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