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Marketing Letters

, Volume 22, Issue 4, pp 341–356

First Online: 03 November 2010


The growing trend of networking in recent years has led to an increase in number of loyalty program partnerships, most notably multi-vendor loyalty programs MVLP. In an MVLP as in other types of LPs, cardholders frequently receive promotional mailings intended to increase sales at the participating vendors. This study examines individual vendor and joint multiple vendors promotions on the sales performance of five main vendors within an MVLP. Findings of the study indicate low responsiveness of cardholders to LP-induced promotions. The responsiveness may be improved if multiple communication channels are used jointly to present an individual-vendor promotion. Moreover, this is one of the first empirical studies to investigate potential networking benefits of coalitions in an MVLP. Empirical evidence of coalition benefits of promotions is lacking, because we find neither stronger effects for joint-relative to individual promotions nor significant spillover effects of promotions across vendors i.e., cross-vendor effects. The current study offers potential explanations for these findings.

KeywordsLoyalty programs Multi-vendor loyalty program Promotion effectiveness Joint promotions Cross-vendor effects  Download fulltext PDF

Author: Matilda Dorotic - Dennis Fok - Peter C. Verhoef - Tammo H. A. Bijmolt


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