Loyalty Card Scheme Coursework Example | Topics and Well Written Essays - 6000 words

verity Card Scheme - Coursework ExampleWhen the purchaser joins the inscription scheme they may be asked to complete a form which asks for details such as their name and address these are subsequently entered into a database. one time a buyer has an entry in the database, further records of buyer buys can be added, so that at last it is possible to build a profile of person buyer purchasing behaviour. This record of buyer corrupt report can then be used to segment the retailers buyer base, for reason of direct announce and tailoring other marketing interactions and special offers to buyer desires. In transposition for registration, the buyer receives points that can be used in full or part payment for products or services. There has been considerable statement about the value of loyalty cards for both the consumer and the schemes sponsor. Criticism can be grouped into those that bun doubt on whether what might merely be viewed as a modest discount arrangement, resembling to electronic green shield stamps can generate buyer loyalty, and those who comment on the difficulties associated with the analysis of the buyer purchase data that retailers can collect through loyalty schemes.This article undertakes a case work based analysis of the Tesco Clubcard loyalty scheme. This loyalty scheme extends beyond the traditional model of a loyalty scheme in which buyers exchange modest rewards for buyer data and information, to the creation of a affiliation or brand web. Buyers are invited to engage with this web at a number of different levels. After a review of some of the earlier work on loyalty schemes, this article first describes elements of the Tesco Clubcard loyalty scheme, in terms of rewards, deals, and integrating channels. Finally, the article poses a number of research questions that extend beyond the more parochial assessments of the impact on loyalty scheme membership loyal behaviours, buyer value, and business performance, to the potential of l oyalty schemes in building brand perceptions and experience.LITERATURE REVIEWAffiliation marketing shifts the focus of the marketing exchange from transactions to affiliations (Foss and Stone, 2001 Peck et al., 1999 Christopher et al., 1991 Buttle, 1996). Affiliation marketing recognizes that a stable buyer base is a message business asset. The essence and nature of affiliations and their business vale is summarizing in the concept of buyer loyalty, and its associated literature. The benefits of buyer loyalty to a provider of either services or products include -lower buyer price aesthesia -reduced expenditure on attracting new buyers and -improved organisational profitability. Buyers may demonstrate their loyalty in any(prenominal) one of a number of ways they may choose to stay with a provider, whether this continuance is outlined as a affiliation or not, or they may increase the number of purchases or the frequency of their purchases or even both. They may also become advocate s of the organisation concerned by playing a powerful role in the decision-making of others (Hallowell, 1996 Birgelen et al., 1997 Reichheld et al., 2000 Bolton et al., 2000). Loyalty schemes have become widespread in recent years. Byrom et al. (2001) cheer that there is over 150 such idea in the UK, resulting in the