Reply only needs to be 1-2 paragraphs and please use 1-2 references
When developing a successful loyalty/reward program companies must ensure that “the program supports and is consistent with the brand’s value proposition; the program adds value to the product or service; Lifetime customer value is high” (Winer &Dhar, 2016, p. 429). Yi and Jeon agree that “the program should be perceived as valuable by the customers,” (2003, p.231). They go on to suggest five variables that contribute to perceived value: cash value, redemption choice, aspirational value, relevance, and convince (2003, p.231).
It is interesting to compare one of the rewards programs I participate in, Barnes and Noble, against the above factors. Barnes and Noble has a rewards program that targets frequent book readers and offers them discounts on their purchase for a year. This program is consistent with the brand’s value proposition and due to the “perks,” $60 dollars in bonus coupons, 40% off of list price for hardcover best sellers and 10% off of almost everything else I would associate a high value to it. However, when compared to the standards set forth by Yi and Jeon there are some opportunities for improvement. It cost the customer $25 dollars a year to participate in Barnes and Nobles program. Therefore, this is best directed at customers making a large purchase who will immediately see their return on investment. I appreciate that the B&N rewards programs offers discounts on best sellers and there are no specific exempted items or titles. I am a frequent reader so the value is certainly relevant for me. The variables in which B&N could improve would include creating a sense of aspiration value, and convenience. While it is easy to use the card or my phone number in-store, there is a lack of convenience with online purchases and e-books are not available for my current reader so if I want something immediately I usually purchase from Amazon.
Winer, R.S., & Dhar, R. (2016). Marketing Management. 4th Edition. Pearson Learning Solutions, 10/2016. VitalBook file.
Yi, Y., & Jeon, H. (2003). Effects of loyalty programs on value perception, program loyalty, and brand loyalty. Journal of the Academy of Marketing Science, 31(3), 229. Retrieved from https://saintleo.idm.oclc.org/login?url=https://search-proquest-com.saintleo.idm.oclc.org/docview/224881850?accountid=4870
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more