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Loyalty Schemes in Retailing: a Comparison of Stand-Alone and Multi-Partner Programs A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Hoffmann, Nicolas Book Loyalty Schemes in Retailing: A Comparison of Stand-alone and Multi-partner Programs Forschungsergebnisse der Wirtschaftsuniversität Wien, No. 61 Provided in Cooperation with: Peter Lang International Academic Publishers Suggested Citation: Hoffmann, Nicolas (2013) : Loyalty Schemes in Retailing: A Comparison of Stand-alone and Multi-partner Programs, Forschungsergebnisse der Wirtschaftsuniversität Wien, No. 61, ISBN 978-3-653-03515-5, Peter Lang International Academic Publishers, Frankfurt a. M., http://dx.doi.org/10.3726/978-3-653-03515-5 This Version is available at: http://hdl.handle.net/10419/178473 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ www.econstor.eu Loyalty Schemes in Retailing Forschungsergebnisse der WU Wirtschaftsuniversität Wien Band 61 NICOLAS HOFFMANN Loyalty Schemes in Retailing A Comparison of Stand-alone and Multi-partner Programs Bibliographic Information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Bibliografische Information der Deutschen Nationalbibliothek Nationalbibliografie; detailed bibliographic data is available in the internet Bibliografische Information der Deutschen Nationalbibliothek at http://dnb.d-nb.de. Open Access: The online version of this publication is published on www.peterlang.com and www.econstor.eu under the international Creative Commons License CC-BY 4.0. Learn more on how you can use and share this work: http://creativecommons.org/licenses/by/4.0. Bibliografische Information der Deutschen Nationalbibliothek Bibliografische InformationGedruckt der mit Deutschen Unterstützung Nationalbibliothek der Helmut Schmidt Universität Hamburg Gedruckt mit Unterstützung der Helmut Schmidt Universität Hamburg This book is available Open Access thanks to the kind support of ZBW – Leibniz-Informationszentrum Wirtschaft. Library of Congress Cataloging-in-Publication Data D 705 GedrucktISSN mit 1433-1519 Unterstützung Hoffmann, Nicolas, 1983- der Helmut Schmidt Universität Hamburg Loyalty schemes in retailing : a comparison of stand-alone and multi- ISBN 978-3-631-63445-5D 705 (Print) part- ner programs / Nicolas Hoffmann. – 1 Edition. E-ISBN 978-3-653-05213-8ISSN 1433-1519 (E-Book) DOIISBN 10.3726/978-3-653-05213-8 978-3-631-63445-5 (Print) pages cm.– (Forschungsergebnisse der wirtschaftsuniversität Wien : E-ISBNGedruckt 978-3-653-05213-8 mit Unterstützung (E-Book) Band 61) der DOIHelmut 10.3726/978-3-653-05213-8© Schmidt Peter Lang Universität GmbH Hamburg ISBN 978-3-631-63880-4 Internationaler Verlag der Wissenschaften 1. Customer loyalty. 2. Consumer satisfaction. 3. Retail trade. I. Title. Frankfurt© Peter amLang Main GmbH 2015 D 705 HF5415.525.H64 2013 Internationaler Verlag der Wissenschaften PL Academic ResearchFrankfurtISSN ist ein 1433-1519 am Imprint Main 2015 der Peter Lang GmbH. 658.8'343–dc23 2013037452 ISBN 978-3-631-63445-5 (Print) ISSN 1613-3056 PeterPL Academic Lang –E-ISBN Frankfurt Research 978-3-653-05213-8 am ist Mainein Imprint · Bern ·der Bruxelles(E-Book) Peter Lang · New GmbH. York · DOI 10.3726/978-3-653-05213-8 ISBN 978-3-631-63880-4 (Print) Oxford · WarszawaD 705 · Wien E-ISBN 978-3-653-03515-5 (E-Book) Peter Lang – Frankfurt ISSNam Main 1433-1519 · Bern · Bruxelles · New York · © Peter Lang GmbH DOI 10.3726/ 978-3-653-03515-5 ISBNOxford 978-3-631-63445-5 · Warszawa · Wien (Print) Internationaler Verlag der Wissenschaften E-ISBN 978-3-653-05213-8 (E-Book) © Peter Lang GmbH Frankfurt am Main 2015 DOI 10.3726/978-3-653-05213-8 Internationaler Verlag der Wissenschaften Frankfurt am Main 2013 PL Academic Research ist ein Imprint der Peter Lang GmbH. © Peter Lang GmbH Internationaler Verlag der Wissenschaften PL Academic Research is an Imprint of Peter Lang GmbH. Peter Lang – Frankfurt am Main · Bern · Bruxelles · New York · Frankfurt am Main 2015 Peter Lang – Frankfurt am Main · Bern · Bruxelles · New York · Diese PublikationOxford · Warszawa wurde begutachtet.· Wien Oxford · Warszawa · Wien PL Academic Research ist ein Imprint der Peter Lang GmbH. This book is part of an editor’s series of PL Academic Research Diese Publikationwww.peterlang.com wurde begutachtet. and was peer reviewed prior to publication. Peter Lang – Frankfurt am Main · Bern · Bruxelles · New York · Oxfordwww.peterlang.com · Warszawa · Wien www.peterlang.com Diese Publikation wurde begutachtet. www.peterlang.com Diese Publikation wurde begutachtet. www.peterlang.com Table of Contents Index of Tables ..................................................................................................... 9 Index of Figures .................................................................................................. 11 1. Introduction .................................................................................................. 15 1.1 Problem Definition ............................................................................... 15 1.2 Research Objective............................................................................... 18 1.3 Structure of This Paper ......................................................................... 20 2. Loyalty ......................................................................................................... 21 2.1 Definition ............................................................................................. 22 2.1.1 Historical Development of the Loyalty Definition ..................... 23 2.1.2 An Attempt at Pinpointing the Terms ........................................ 23 2.2 Exploring the Emergence of Loyalty ................................................... 25 2.2.1 Classifying the Reasons for Loyalty Formation ......................... 25 2.2.2 The S-O-R Model as a Way Out ................................................ 27 2.2.3 Conclusion ................................................................................. 35 2.3 Customer Loyalty Schemes and Loyalty .............................................. 35 2.3.1 Predominantly Positive Evidence .............................................. 40 2.3.2 Predominantly Negative Evidence ............................................. 44 2.3.3 Possible Explanations for the Mixed Results ............................. 46 2.3.4 Reflection ................................................................................... 50 3. Loyalty Schemes .......................................................................................... 53 3.1 Definition ............................................................................................. 53 3.2 Historical Development and Current Spread ........................................ 54 3.3 Types of Loyalty Schemes ................................................................... 58 3.3.1 B2C vs. B2B .............................................................................. 62 3.3.2 Stand-Alone vs. Shared vs. Coalition......................................... 62 3.3.3 Within Sector vs. Across Sector ................................................. 64 3.3.4 In-House vs. Outsourced Administration ................................... 64 3.3.5 Target Group .............................................................................. 64 3.3.6 Open vs. Closed ......................................................................... 66 3.3.7 Member Limit ............................................................................ 68 5 3.3.8 Reward Structure ....................................................................... 68 3.4 The Value of Data ................................................................................ 81 3.4.1 Data Mining ............................................................................... 83 3.4.2 A Look at Retailing and Market Basket Analysis ...................... 88 3.5 Characteristics of Loyalty Schemes ..................................................... 91 3.5.1 Benefits ...................................................................................... 93 3.5.2 Drawbacks ................................................................................. 97 4. Coalition Schemes ..................................................................................... 107 4.1 Scheme Types .................................................................................... 108 4.1.1 Retail-Oriented Coalitions ......................................................
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