The Effectiveness of Loyalty Programs

A loyalty program is a specific marketing strategy which is used within the global market to attract more profitable customers and enhance the level of the organization’s income. Organizations usually offer reward cards or loyalty cards, flyers, and discounts in order to establish the long-term relations with loyal customers.Advertising We will write a custom proposal sample on The Effectiveness of Loyalty Programs specifically for you for only $16.05 $11/page Learn More Loyalty programs are oriented toward the stimulation of the customer’s buying behavior with the help of the rewards and bonuses proposed (Dekay, Toh, Raven, 2009). From this point, the loyalty program is one of the oldest marketing strategies which are used in the global economy during a long period of time. History of Loyalty Programs The first usages of loyalty programs are associated with the development of strategic management principles within organizations. That is w hy, loyalty programs are directly connected with loyalty marketing. The noticeable start of using the principles of loyalty within the hospitality industry is typical for the 1980s with the further intensive development of the tendency in the 1990s. However, the aspects of the modern loyalty programs are also characteristic for the marketing in the 18th – 19th centuries when the first premiums and prizes were proposed to affect the customers’ loyalty (Yi Jeon, 2003). Premiums as the most typical forms of the loyalty programs were used in the business environment also along with prizes, trading stamps, discounts, and box tops. If premiums can provide significant discounts for customers in order to guarantee their next usage of the product or service, prizes are the small gifts which evoke the target audience’s interest in buying this or that product or using the definite service. According to Voss and Seiders, there are many possible variants of prizes that reta ilers use to create the customer loyalty. During the first stages of the marketing development, cigarette cards and other trading cards were proposed to customers in order to create the loyal relations and make them purchase the certain product. During different periods, the modern food packaging and other prize strategies were proposed to attract customers (Voss Seiders, 2003).Advertising Looking for proposal on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The hospitality industry is one of the most competitive industries in the word. That is why the usage of the loyalty programs can be observed within the market since the early 1980s. To win within the highly competitive market, hotels are inclined to use different loyalty programs and combine them with references to the group of customers. The typical feature of using the loyalty programs in the hospitality industry is the focus on attracting new customers (Berman, 2006). That is why, much attention is paid to the development of loyalty strategies which are used to work with customers when they utilize the services of the hotel for the first time (Yi Jeon, 2003). As a result, the system of bonuses and rewards is constantly developed in the hotel chains globally. During the 1990s, the strategy of direct mailing was worked out in order to strengthen the current relations with customers and contribute to creating the group of the profitable customers. Thus, the customers who are involved in the loyalty programs are the profitable customers, and hotel managers pay much attention to working with these clients in order to increase the profits and guarantee the further returns. To respond to the changes in the business environment and enhance the quality performance among individuals, the principles of direct marketing and direct mailing were developed. The next stages were the usage of the mail order catalogue and the involvement of the media in t he direct marketing (Berman, 2006). The evolution of premiums and prizes and the contributions of the pioneers of direct marketing have led to the establishment of the modern loyalty programs used by organizations within the hospitality industry to attract potential customers and maintain the existing profitable clients. The introduction of present modern loyalty programs such as card linked offers, consolidated loyalty programs, and frequent flyers is based on the achievements within the market and analysis of the most effective strategies to stimulate the customers’ loyalty (Yi Jeon, 2003).Advertising We will write a custom proposal sample on The Effectiveness of Loyalty Programs specifically for you for only $16.05 $11/page Learn More The Effectiveness of Loyalty Programs Business organizations are traditionally oriented to the profit maximization. However, organizations cannot maximize profits without focusing on the intense competition with other companies within the industry. From this perspective, the usage of loyalty programs as a marketing strategy is important for companies to accentuate the definite advantages of the company, to help customers distinguish between different representatives of the same industry, and to make choice which is beneficial for the certain company. Thus, hotels are inclined to propose various loyalty programs in order to attract the definite social categories and improve the customers’ brand loyalty. Many researchers are inclined to agree that loyalty programs are the necessary and effective strategies to be implemented in the hospitality industry because they are the successful variant to draw the customers’ attention to the positive features and emphasize the real advantages for them (Dekay, Toh, Raven, 2009). The accents on the advantages in the form of rewards and discounts for customers are the direct way to contribute to the customer loyalty in relation to the defini te hotel and increase the company’s profits basing on the long-term relations. The loyalty programs which are effective to establish the profitable relations with customers can be divided into several types. A loyalty program with a saving feature enables customers to receive rewards after spending a certain amount of money while using the hotel services. The organization can use this program to create customer loyalty and increase purchases (Berman, 2006). Thu, the program encourages the constant use of a loyalty card. Furthermore, this method supports the customer awareness of the services provided. The program also enables an organization to determine the product preferences and focus on the customer relationship status with the company.Advertising Looking for proposal on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Hotels and other organizations within the hospitality market offer price promotions to customers on definite products and services. This feature can provoke the customer buying behavior and make several customers join the loyalty program provided by a company in order to become members and enjoy the proposed and promoted benefits. These programs can enhance the customer loyalty directly. Moreover, this strategy enables an organization to obtain and pay attention to specific personal responses (Bolton, Lemon, Verhoef, 2004). Direct mailing is also an effective marketing strategy used by hotels in order to address the needs of customers at the personal level with concentrating on their personal expectations. This is a method that an organization can use as a personal treatment for customers, and it can enhance the personal customer loyalty. Receiving the individual response, the company can improve services and the provision of products with references to the customers’ desire s and expectations. Factors that Attract People to Loyalty Programs and Staying at Hotels during a Longer Period of Time The factors which can attract people to loyalty programs and affect their customer loyalty are associated with the types of the programs proposed. Those loyalty programs that are based on savings enable customers to save for the future use of this definite service or product. This proposition is interesting for those clients who have to use the hotels services in the definite region frequently or during a long period of time. Moreover, these loyalty programs attract customers to the respective organizations and famous hotel chains because they can redeem their points and use them to purchase. However, the saving culture is an aspect that the most consumers evaluate, but they can find it difficult to practice, and the detailed loyalty programs proposed in hotels provide customers with the opportunity to use all the benefits of the program fully (Bolton, Lemon, Ver hoef, 2004). Thus, consumers are able to save their money by joining loyalty programs. Loyalty programs which are associated with promotions can be based on the propositions of the lower prices or discounts to use definite services. Customers are mainly inclined to buying affordable, but high-quality products (McCall Voorhees, 2010). Reduced prices and discounts can increase the purchasing power of consumers and stimulate their general buying behavior. Promotions are easily accessible to consumers under loyalty programs provided by hotels (Bolton, Lemon, Verhoef, 2004). Furthermore, it is advantageous for the hotel when the concern and preferences of individual consumers are addressed by organizations basing on the response which they receive (Wansink, 2003). This strategy also enables an organization to pay more attention to the comfort and interests of the clients. As a result, observing the positive attitude and a range of rewards provided, customers can decide to spend more ti me in a hotel or choose this hotel during the next journeys. Moreover, the individuals should have the opportunity to contact companies and hotels directly, if they are subscribed to the definite loyalty program. The customer’s interest in the services increases (Bolton, Lemon, Verhoef, 2004). Thus, individuals are attracted to the loyalty programs because this enables them to communicate their concerns directly to an organization and receive the feedback directly from the company. When customers are provided with a large set of loyalty rewards which are connected with the definite terms they can be oriented to use more guaranteed services at a time. Moreover, customers are often provided with the greater discounts proposed for the next comings and for the further usage of the hotel’s services (Wansink, 2003). This situation makes customers choose the definite hotel and stay there to use all the proposed benefits which are stated in relation to the developed loyalty p rograms. Challenges that Hospitality Industry Faces in Relation to Loyalty Programs The loyalty programs can be used ineffectively in relation to certain industries due to the nature of business, products, and services offered by companies. There are several challenges that organizations in the hospitality industry face in the process of developing and implementing a loyalty program to establish the customer loyalty and stimulate the buying behavior. The most common challenges are the irregular patterns of demand, the dynamic nature of the industry, and the lack of an appropriate program, the imbalance between the costs and outcomes of the loyalty program used (Wansink, 2003). The hospitality industry can face a challenge of the irregular demand pattern depending on the season factor or the region of the hotel’s location. It is rather difficult to establish an effective loyalty program due to the irregular demand patterns and the seasonal character of business. Providing the definite rewards and bonuses for customers, the hotel managers should take into consideration the fact of the season when the proposed rewards or premiums can be used. Wansink states that it is rather difficult to develop the effective loyalty program, concentrating on its possible outcomes from all the perspectives (Wansink, 2003). Thus, the dynamic nature and highly competitive atmosphere of the industry makes hotel managers create more effective loyalty programs which can satisfy the needs of the majority of clients and which can attract new customers. The focus on the loyal and profitable customers remains unchanged for the hospitality industry without references to the season or the industry tendencies. Moreover, considering the irregular demand patterns, organizations in the hospitality industry are not able to decide on an appropriate loyalty program to adopt. According to Berman, this situation often leads to changes in programs, therefore, confusing consumers (Berman, 2006) . The nature of services in the industry makes it difficult for organizations to develop effective loyalty programs also because costs of the loyalty programs are often higher than the real results. Some loyalty programs are highly costly, but they are not effective enough to attarct more customers (Berman, 2006). References Berman, B. (2006). Developing an effective customer loyalty program. California Management Review, 49(1), 123-148. Bolton, R. N., Lemon, K. N., Verhoef, P. C. (2004). The theoretical underpinnings of customer asset management: A framework and propositions for future research. Journal of the Academy of Marketing Science, 32(3), 1-20. Dekay, F., Toh, R., Raven, P. (2009). Loyalty programs: Airlines outdo hotels. Cornell Hospitality Quarterly, 50(3), 371-390. McCall, M., Voorhees, C. (2010). The drivers of loyalty program success: An organizational framework and research agenda. Cornell Hospitality Quarterly, 35(1), 35-52. Voss, G. B., Seiders, K. (2003). Explo ring the effects of retail sector and firm characteristics on retail price promotion strategy. Journal of Retailing, 79(2), 37-52. Wansink, B. (2003). Developing a cost-effective brand loyalty program. Journal of Advertising Research, 43(3), 301-309. 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), 229-240. This proposal on The Effectiveness of Loyalty Programs was written and submitted by user Al1a to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Free Essays on By Your Side

Free Essays on By Your Side BY YOUR SIDE It hurts to know you’re hurting Because you’re so special in my heart The pain that you are feeling Is tearing me apart But know that love has a way Of easing all that’s wrong Together we can make it If we hold on and just be strong Know that you’re not alone In all your adversity For by your side through and through Is where I’ll always be...

Personal and Personally

Personal and Personally Personal and Personally Personal and Personally By Maeve Maddox Among the most popular words in common discourse these days are personal and personally. A web search for personal brings up more than 900 million hits. Overused crazy, with 274 million, doesn’t come close. Bloggers and commenters use personal and personally with abandon: In my personal opinion, the reading comprehension section is the most difficult to study for and to succeed in. I personally don’t know why she went out with him in the first place. I personally find myself to be quite hilarious. This is just my own personal opinion so I am sorry if I offended you. Various businesses offer customers â€Å"personal diets,† â€Å"personal checks,† and â€Å"personal financial plans.† Experts of this and that encourage people to develop â€Å"personal strengths† and â€Å"personal styles.† So, when are the words personal and personally called for, and when are they redundant or incorrect? 1. Personally is used correctly when a person does something that ordinarily would be done by a minion: Eric Holder Personally Signed warrant to search James Rosen’s emails. Danny Zarka is first in line to collect his PS3 in Sydney, which was handed to him personally by Sonys local managing director. 2. Personally is redundant when used to modify an action that requires the presence of the person doing it: My son shook hands personally with Tony Danza. (The speaker’s son had to be present to shake hands.) 3. The expressions â€Å"my personal opinion† and â€Å"I personally think† are not only redundant, they weaken whatever statement they relate to and do nothing to mitigate the person’s responsibility for the opinion. Note: The only time â€Å"I personally† makes sense is when the speaker has acted in contradiction of his own views. For example, â€Å"I voted to permit drilling, but I personally believe that fracking causes dangerous earth disturbances.† 4. The phrase â€Å"my own personal opinion† piles redundancy upon redundancy. The adjective personal means â€Å"individual, private, one’s own.† The adjective own means â€Å"possessed or owned by the person or thing indicated by the preceding noun, pronoun, or possessive adjective.† It is sufficient to say â€Å"in my opinion.† 5. Personal is sometimes used where the word personalized would be more appropriate. A â€Å"personal trainer† makes sense. In the context of â€Å"personal trainer,† â€Å"personal assistant,† or â€Å"personal maid,† the personal designates an employee attached to someone in a close or exclusive subordinate capacity. In the case of â€Å"personal diets,† â€Å"personal checks,† and â€Å"personal financial plans,† however, the sense is that the diets, checks, and financial plans will be designed to meet individual requirements, hence personalized: â€Å"Identifiable as belonging to a particular person or organization, especially by being marked with a name or set of initials. Also: designed or produced to meet individual requirements; customized. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Expressions category, check our popular posts, or choose a related post below:36 Adjectives Describing LightUsing the Active Voice to Strengthen Your WritingLetter Writing 101

Quality Management in Business Essay Example | Topics and Well Written Essays - 3000 words

Quality Management in Business - Essay Example minimum errors in the operational procedures and improvising production services as per customers’ demand (Arab British Academy for Higher Education, n. d.). Specifically, in terms of hotels such as ‘The Rose and Crown’ that relies on customer service rather than selling products, errors can be of multiple forms. These can be providing the customers with inadequate levels of service or poor customer response time. All these forms of errors are normal in case of hospitality industry but the main concern lies on the management about how they deal with such issues and how fast they rectify them (Arab British Academy for Higher Education, n. d.). Quality, in terms of service in hotel industry is a process where the management team focuses on assessing the expectations of the customers for the services that they are offered with (AbuKhalifeh & Som, 2012). Customers’ expectations can be evaluated in terms of ‘reliability’, ‘assurance’ ‘responsiveness’ and ‘empathy’. In case of ‘The Rose and Crown’ hotel, the degrading quality of service towards customers can be stated as the cause of emerging major problems. Services provided by the hospitality organisations towards its customers can be segregated into multiple categories that together contribute towards the overall development of maintaining greater association with the customers (AbuKhalifeh & Som, 2012). Quality assurance and quality control are duly considered to be the subparts of total quality management (TQM). These two assessment tools provide both qualitative as well as quantitative data and thus play decisive roles in inspecting and assuring an organization’s quality service management. The data accumulated through these two processes eventually helps in developing and initiating strategies for improvising the quality of service and thus providing customer satisfaction (Shahin, n. d.). For bringing about improvement in ‘The Rose and Crown’ in terms of service, which is

Real Estate Principles Essay Example | Topics and Well Written Essays - 2000 words

Real Estate Principles - Essay Example Ethics in real estate One of the greatest obstacles that affect the growth of real estate industry is lack of ethics. This is based on the fact that most of the real estate buyers are not aware of the intention and operations of the realtors. In their efforts to get adequate information regarding the problems facing the real estate industry, most governments involve real estate institutes. However, most of these institutes are made up of real estate agents who are focused at exploiting consumers in their efforts to maximize profits (William and Donald, 1995). To ensure ethics are upheld during the transaction between the realtors and the property owners or buyers, National Association of Realtors has specified code of ethics that all its members are under obligation to follow. This course has widened my knowledge on how to uphold ethics during my future assignment as a real estate agent when dealing with my clients, public as well as other members of National Association of Realtors. Duties to clients Articles 1 to 9 of the National Association of Realtors code of ethics, regulates the way the real agents relate with their clients (William and Donald, 1995). ... Duties to the public Articles 10 of the National Association of Realtors code of ethics forbids agents from discriminating their clients on the basis of color, sex, religion, race or nationality. Other key aspects that are dealt with by articles 10 to 14 depicts that agents should not provide services that they are not competent in, contacting a lawyer in cases the agency has no authority to practice law and avoiding misleading advertisements. Duties to other members National Association of Realtors code of ethics depicts that agents should not make untrue statements about their competitors. In addition, it forbids agents from transacting business with clients who are exclusively owned by other agents. Legal Aspects of Real Estate Based on the fact that real estate covers immovable properties, minerals, bushes, water among others, real estate and property law covers wide range of aspects. It is worth noting that different countries have put in place various regulation that seek to co ntrol the operations of agencies and transfer of property. As a result of the inconsistency of the property laws, initiating legal procedure has become a complex practice that calls for proper coordination among all the stakeholders. This course has exposed me to major issues that are covered by real estate and property laws include purchasing of property, landlord issues, transfer of movable and immovable property, settlements of claims, property development, foreclosures, land use and zoning, home loans among others. This section discusses major aspects of property and real estate law adopted by various countries. Property and Real Estate Law adopted by US Real Property, Trust and Estate Law Sections Real Property, Trust and Estate

White People and American Citizen Essay Example for Free

White People and American Citizen Essay The short story â€Å" How it Feels to be Colored Me† was written in year 1928 by Zora Neale Hurston who grew up in Eatonville, Florida. Zora grew up in an predominantly all black town. She had begun to realize the differences between blacks and whites at the beginning of her teens. Zora only had contact with the white people who passed through her town. These people who passed through Eatonville, Florida usually were going to Orlando or coming from Orlando, Florida. I believe the main reason why the story was written was to focus on the differences between black and white people. The short story â€Å" How it Feels to be Colored Me† was written in year 1928 by Zora Neale Hurston who grew up in Eatonville, Florida. Zora grew up in an predominantly all black town. She had begun to realize the differences between blacks and whites at the beginning of her teens. Zora only had contact with the white people who passed through her town. These people who passed through Eatonville, Florida usually were going to Orlando or coming from Orlando, Florida. I believe the main reason why the story was written was to focus on the differences between black and white people. When Zora Hurston states â€Å" I have no separate feeling about being an American citizen and colored. I am merely a fragment of the Great Soul that surges within the boundaries. My country, right or wrong. † I believe she’s describing her feelings of being an American citizen and being colored. She does not have separate feelings of either. Zora seems to accept her identity for being colored and an American citizen. I think Zora is trying to achieve dignity/pride in America as an American. Zora doesn’t want to harp on the past Nor does she want the actions of others to affect her. Zora believes that she is an American citizen whether she’s black or white and everyone has the same rights. How It Feels to Be Colored Me Analysis by Terissa7.    N. p. , n. d. Web. 15 June 2014. . â€Å"How it Feels to Be Colored† The short story â€Å" How it Feels to be Colored Me† was written in year 1928 by Zora Neale Hurston who grew up in Eatonville, Florida. Zora grew up in an predominantly all black town. She had begun to realize the differences between blacks and whites at the beginning of her teens. Zora only had contact with the white people who passed through her town. These people who passed through Eatonville, Florida usually were going to Orlando or coming from Orlando, Florida. I believe the main reason why the story was written was to focus on the differences between black and white people. When Zora Hurston states â€Å" I have no separate feeling about being an American citizen and colored. I am merely a fragment of the Great Soul that surges within the boundaries. My country, right or wrong. † I believe she’s describing her feelings of being an American citizen and being colored. She does not have separate feelings of either. Zora seems to accept her identity for being colored and an American citizen. I think Zora is trying to achieve dignity/pride in America as an American. Zora doesn’t want to harp on the past Nor does she want the actions of others to affect her. Zora believes that she is an American citizen whether she’s black or white and everyone has the same rights. How It Feels to Be Colored Me Analysis by Terissa7.

Essay --

Introduction Apart we know, dividend payments had been conducted over 300 years ago and yet, it is still continue acceptable until now (Frankfurter, Wood, & Wansley, 2003). In the 19th century, the dividend had become a kind of symbolic liquidations. However, dividend policy is contradicting because the view of each researcher is different. According to Black (1976), he ever stated that â€Å"the harder we look at the dividend picture, the more it seems like a puzzle, with pieces that just don’t fit together†. From this statement, we can truly make an assumption that the researchers’ arguments on it never stop as the understanding from each of the researchers is different and it is still questionable among financial field. Plenty of answer show that why dividend policy should be made. However, many empirical studies have shown that the result is not standardized and yet, it is different as each of the researchers has their own opinion on it. But, it is undeniable that the div idend payments have become symbolic liquidations solely determined by the directors. The companies pay dividends i...