Online Loyalty Program & Type Identification

by Daniel Svensson

Institution: Linnæus University
Year: 2014
Keywords: CRM; Loyalty programs; Online; Type identification; Setup & development; Opportunistic behavior and Behavior change.; Social Sciences; Economics and Business; Business Administration; Samhällsvetenskap; Ekonomi och näringsliv; Företagsekonomi; Marknadsföring, magisterprogram, 60 hp; Marketing, Master Programme, 60 credits; Företagsekonomi - Marknadsföring; Business Administration - Marketing
Record ID: 1359643
Full text PDF: http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-34994


<strong>Purpose</strong>: To expand the fundamental knowledge of how online loyalty programs are developed, utilized and maintained. <strong>Design/methodology/approach</strong>: A deductive approach with a qualitative research method, consisting of multiple case studies with a total of four companies operating online within Sweden. The data gathering was conducted through a semi structured interviews. <strong>Findings</strong>: With four companies operating in different industries, holds different levels of experiences of managing an online loyalty program and are in various sizes, it can be concluded that the companies have approached the development of the loyalty programs in similar manners with the customer focus in mind to create loyalty. To expand upon the setup and development of online loyalty programs, a type identification was performed on the cases in the research with some additional theories added upon. The results showcased that the cases were spread out as to regards to their general types. <strong>Research limitations/implications</strong>: Future research could arguably expand upon the research regarding the different loyalty program identity types in an online perspective as the subject has limited previous research while also validate or reject the argued components added onto Berman’s (2006) framework. Additionally the theoretical framework of identification types also requires further research to obtain a more objective analysis that can increase the reliability and external validity of the studies. <strong>Practical implications</strong>: By validating the type identification model, businesses are able to determine what type of loyalty program the organizations holds and what kind of actions are required in order to further develop the program. <strong>Originality/Value</strong>: Establishing an updated framework from which future managers and researchers can obtain an understanding of the different factors that has of importance for the phenomenon.