The Role Of Effort Advantage In Consumer Response To Loyalty Programs: The Idiosyncratic Fit Heuristic
- Topics:
- Marketing Strategy
- Tags:
- Advertising & Promotion,
- Customer Relationship Management (CRM),
- Enterprise Software,
- Loyalty Program,
- Marketing,
- Software
- Source:
- Stanford Knowledgebase
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Overview: Over the past few years, customer relationship management and loyalty programs (LPs) have been widely adopted by companies and have received a great deal of attention from marketers, consultants, and, to a lesser degree, academics. The article examines the effect of the level of effort required to obtain a LP’s reward on consumers’ perception of the LP’s attractiveness. It proposes that, under certain conditions, increasing the program requirements can enhance consumers’ likelihood of joining the program, thus leading consumers to prefer a dominated option. Specifically, it hypothesize that consumers often evaluate LPs based on their individual effort to obtain the reward relative to the relevant reference effort.
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Format: PDF | Size: 330KB | Date: Mar 2003 | Pages: 43
