MKT 300 Chapter Notes - Chapter 12: Loyalty Program, Program Management

• School: Ryerson University
• Department: Marketing
• Course: MKT 300
• Professor: Armand Gervais

Document Summary

In recent years, there have been an increase in the number of people participating in loyalty programs. Competitors are implementing their own, individual, loyalty programs. Current loyalty programs are based on advantage programme. Loyalty programs are distinguished by: participation. I(cid:374)(cid:272)rease i(cid:374) popularit(cid:455) of lo(cid:455)alt(cid:455) progra(cid:373)s is e(cid:454)plai(cid:374)ed (cid:271)(cid:455) (cid:272)usto(cid:373)er"s a(cid:271)ilit(cid:455) to choose from a wide variety of suppliers of seemingly homogenous goods. Loyalty programs are a key marketing tool that drives customer relationship building. Good lo(cid:455)alt(cid:455) progra(cid:373)s redu(cid:272)e (cid:272)usto(cid:373)er"s dri(cid:448)e to s(cid:449)it(cid:272)h good/ser(cid:448)i(cid:272)e provider. Customer loyalty: constant and positive attitude toward a brand or company: beha(cid:448)ioural lo(cid:455)alt(cid:455): (cid:272)usto(cid:373)er"s a(cid:272)tio(cid:374)s (repeat pur(cid:272)hases, pro(cid:374)e(cid:374)ess to (cid:271)e attra(cid:272)ted to (cid:272)o(cid:373)petitor"s (cid:373)arketi(cid:374)g efforts, (cid:449)illi(cid:374)g(cid:374)ess to engage in word-of-mouth marketing) Income and lack of alternatives to choose from also affects customer loyalty. Customer loyalty is affected by external factors, marketing actions of the company, and internal factors.