Journal article
Cross-partner effects in coalition loyalty programs: the interaction of point redemptions with program sales
European journal of marketing, v 59(3), pp 645-668
08 Jan 2025
Abstract
Purpose
Many firms engage customers using coalition loyalty programs. One unique characteristic of these programs is that one partner's performance can affect the performance of other partners (cross-partner effect). While previous research discusses cross-partner effects from the program sales perspective, the role of point redemptions in cross-partner effects is unknown to marketers. This study aims to investigate this role and discusses its variations among stores of the same chain and those of different chains.
Design/methodology/approach
Using the data of a popular coalition loyalty program, this paper estimates an empirical model that accounts for the dynamics of program sales and point redemptions and the heterogeneity among different partners in the program.
Findings
Cross-partner effects are different between point redemption and program sales. In particular, program sales (point redemptions) in other stores of different chains positively (negatively) affect the focal store's point redemptions. However, point redemptions in other stores of the same chain as the focal store positively affect the focal store's program sales.
Research limitations/implications
Coalition loyalty programs are becoming popular around the globe. This research investigates the cross-partner effects of coalition loyalty programs. This is of immense value to practitioners and researchers alike.
Practical implications
This research gives marketing managers insights into the workings of coalition loyalty programs.
Originality/value
This research contributes to loyalty program literature in three ways. First, it complements the literature by investigating the role of point redemption in cross-partner effects. Second, it discusses cross-partner effects in the competing stores from the same chain of the focal store and those from different chains. Third, it explores the dynamic effects of program sales and point redemptions at other stores on program sales at the focal store.
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Details
- Title
- Cross-partner effects in coalition loyalty programs: the interaction of point redemptions with program sales
- Creators
- Chen Li - University of Wisconsin–OshkoshSrinivasan Swaminathan - Drexel University, MarketingJunhee Kim - California State University, Stanislaus
- Publication Details
- European journal of marketing, v 59(3), pp 645-668
- Publisher
- Emerald Group Publishing
- Number of pages
- 24
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Marketing
- Web of Science ID
- WOS:001390607700001
- Scopus ID
- 2-s2.0-105001073228
- Other Identifier
- 991022012187204721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business