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Essay / Research Paper Abstract
This 17 page paper looks at the way that companies try and create loyal customers with the use of reward schemes. The paper looks at the use of reward or loyalty schemes, how and why they have become so popular and the way loyalty is seen in the real world, including the idea of polygamous loyalty and the way they may support brand values and their potential to provide differentiation. The bibliography cites 22 sources.
Page Count:
17 pages (~225 words per page)
File: TS14_TEloyalcust.rtf
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Unformatted sample text from the term paper:
Loyalty Schemes 14 4. CONCLUSION 18 REFERENCES 19 1. Introduction The idea that creating loyalty through rewards schemes is not
new, the idea is that it is more cost effective to invest a little to get customers to return than to invest more to continually attract new customers or keep
competing. The development of loyalty is seen as both cost effective and a way of preventing the lost of customers to the competition, some theorists also argue that loyalty will
also create a customer base that will be less price sensitive (Hooley et al, 2003). The idea of loyalty can be seen in the way many business to business companies
will treat existing customers with better terms of services than the new customers. The idea of using programmes to create or enhance customer loyalty has seen many times, examples
such as Green Shield Stamps was an early example, and more modern points methods may be traced back to British Airways Air Miles scheme, where air miles where given as
a reward for each mile flown with the airline, the miles could then be cashed in for free or discounted flights and other rewards. The scheme has been so successful
that Air Miles are almost a form of shadow currency that many companies use to reward purchases (Liston-Heyes, 2002). Today this scheme is so widespread many points can be earned
without even having to step foot on an aircraft. The idea of a loyalty card or scheme that rewarded repeat visits was perceived as a way of creating loyalty and
has since been emulated by many other companies, from supermarkets and credit cards to hotel chains, such as the Hilton HHonors scheme, the Starwood Preferred Guest (SPG) scheme and the
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