Article: Frequent Buyer Programs Journal: Journal of Business and Management (JBM) 1993 Vol.1 No.1 pp.22 - 40 Abstract: Marketing premises, cost and reward structure issues, differential advantage considerations, and database benefits of frequent buyer programs are examined. Cost structure and differentiability are seen as the two key influencers of the potential efficacy of frequent buyer programs. It is proposed that frequent buying programs would be especially useful competitive marketing instruments for marketers in industries characterized by: (i) relatively undifferentiated competitive brands with low switching costs and associated low brand loyalty; (ii) overcapacity (especially on a seasonal basis) with low marginal costs associated with the prizes offered as rewards to frequent buyers. Inderscience Publishers - linking academia, business and industry through research

Title: Frequent Buyer Programs

Authors: Randall G. Chapman

Addresses: Author address listing can be found in the "About the Authors" section at the end of the article.

Abstract: Marketing premises, cost and reward structure issues, differential advantage considerations, and database benefits of frequent buyer programs are examined. Cost structure and differentiability are seen as the two key influencers of the potential efficacy of frequent buyer programs. It is proposed that frequent buying programs would be especially useful competitive marketing instruments for marketers in industries characterized by: (i) relatively undifferentiated competitive brands with low switching costs and associated low brand loyalty; (ii) overcapacity (especially on a seasonal basis) with low marginal costs associated with the prizes offered as rewards to frequent buyers.

Keywords: Frequent buyer programs; cost structure; differentiability; switching costs; brand loyalty.

DOI: 10.1504/JBM.1993.140989

Journal of Business and Management, 1993 Vol.1 No.1, pp.22 - 40

Published online: 05 Sep 2024 *

Title: Frequent Buyer Programs

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