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Multiple Memberships - Loyalty Programs from a Consumer Perspective

Lundell Pettersson, Evelina and Hedestad, Sophie (2011)
Department of Business Administration
Abstract
Purpose: The aim of this study is to unravel consumer motives for enrolling in multiple programs and explore the consumer experience of multiple memberships in the highly competitive loyalty program market. Methodology: We have conducted a qualitative research with a hermeneutic approach. A sample group of nine women in the ages 47-62 were selected based on a snowball sample. Through detailed account of the process and rich example of empirical data we aimed to maintain a high validity and reliability throughout the thesis. Theoretical Perspective: The thesis builds upon the relationship marketing perspective; the relationship between company and consumer is essential to build consumer satisfaction and retention to gain competitive... (More)
Purpose: The aim of this study is to unravel consumer motives for enrolling in multiple programs and explore the consumer experience of multiple memberships in the highly competitive loyalty program market. Methodology: We have conducted a qualitative research with a hermeneutic approach. A sample group of nine women in the ages 47-62 were selected based on a snowball sample. Through detailed account of the process and rich example of empirical data we aimed to maintain a high validity and reliability throughout the thesis. Theoretical Perspective: The thesis builds upon the relationship marketing perspective; the relationship between company and consumer is essential to build consumer satisfaction and retention to gain competitive advantage. Empirical Data: The respondents kept a diary for seven days reflecting on the usage and received offering from their loyalty programs. The diaries were followed up by a semi-structured interview with each respondent. Conclusion: Consumers’ motives for initiating multiple memberships have been found to mainly relate to opportunistic reasons due to convenience and economical benefits. Consumers partake in competing loyalty programs to take advantage of all available offers and reward systems. The experience of multiple memberships does not increase commitment or bond towards a company and not convincingly be said to add value to the experience as the multiple membership is indicated to have a cancel out effect. The experience of multiple memberships is affected by the persistence by competing companies to attain members to the extent that consumers take distance from further relationships. (Less)
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author
Lundell Pettersson, Evelina and Hedestad, Sophie
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Loyalty Programs, multiple memberships, consumer, experience, relationship marketing, Management of enterprises, Företagsledning, management
language
Swedish
id
1982635
date added to LUP
2011-06-01
date last changed
2012-04-02 19:04:22
@misc{1982635,
  abstract     = {Purpose: The aim of this study is to unravel consumer motives for enrolling in multiple programs and explore the consumer experience of multiple memberships in the highly competitive loyalty program market. Methodology: We have conducted a qualitative research with a hermeneutic approach. A sample group of nine women in the ages 47-62 were selected based on a snowball sample. Through detailed account of the process and rich example of empirical data we aimed to maintain a high validity and reliability throughout the thesis. Theoretical Perspective: The thesis builds upon the relationship marketing perspective; the relationship between company and consumer is essential to build consumer satisfaction and retention to gain competitive advantage. Empirical Data: The respondents kept a diary for seven days reflecting on the usage and received offering from their loyalty programs. The diaries were followed up by a semi-structured interview with each respondent. Conclusion: Consumers’ motives for initiating multiple memberships have been found to mainly relate to opportunistic reasons due to convenience and economical benefits. Consumers partake in competing loyalty programs to take advantage of all available offers and reward systems. The experience of multiple memberships does not increase commitment or bond towards a company and not convincingly be said to add value to the experience as the multiple membership is indicated to have a cancel out effect. The experience of multiple memberships is affected by the persistence by competing companies to attain members to the extent that consumers take distance from further relationships.},
  author       = {Lundell Pettersson, Evelina and Hedestad, Sophie},
  keyword      = {Loyalty Programs,multiple memberships,consumer,experience,relationship marketing,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Multiple Memberships - Loyalty Programs from a Consumer Perspective},
  year         = {2011},
}