Reply only needs to be 1-2 paragraphs and please use 1-2 references
RESPONSE:
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: 2024 – Do my homework – Help write my assignment online, 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.
References
Winer, R.S., & Dhar, R. (2016: 2024 – Do my homework – Help write my assignment online). Marketing Management. 4th Edition. Pearson Learning Solutions, 10/2016: 2024 – Do my homework – Help write my assignment online. 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
