The influence of marketing instruments and rewarding on cardholders' behavior in coalition loyalty programs

This thesis analyses often advocated but rarely empirical) investigated coalition loyalty programs; where several ve dorsjointly participate in the loyalty scheme. Following th increasing importance of strategic aspects of networkin and rewarding in loyalty programs , this thesis provides set of novel and thought-provoking studies. This thesis shows there is little empirical support for the anecdota evidence of the efFects of promotions across vendors i a large Dutch coalition loyalty program. The majority loyalty program cardholders do not significantly Chang their behavior in response to loyalty program mailing However, cardholders respond to the process of rewarding whilst participating in the program. In anticipation of th reward, in the few weeks before the reward redemption cardholder increases his/her likelihood of purchasing an the amount purchased. Subsequently, increased purchas behavior carries over to the few weeks after the reward has been redeemed. The effects of rewarding occur acros various customer types and reward options. Therefore, the positive effects of rewarding in loyalty programs are tried by the reward redemption momentum itself This thesis provides empirical evidence that it is beneficial for firms to nurture their relationships with customers and to reward cardholders'loyalty.