Antitrust & Competition Policy Blog

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Levin College of Law

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Friday, June 20, 2014

Loyalty Programs : a study case in the Hospital Industry

Lubica Hikkerova (IPAG Business School) analyzes Loyalty Programs : a study case in the Hospitality Industry.

ABSTRACT: The widespread use of loyalty programs in the tourism sector raises questions about their differentiating capacity and more broadly about the real advantages they offer firms. We have chosen to focus on the hotel sector and propose a conceptual model on the determinants of loyalty to a hotel or a hotel chain. The subjacent hypothesis is to determine if a loyalty program and its associated advantages manage to take precedence over other factors which influence choice and thus modify the probability of the hotel being chosen. More precisely, we seek to better understand the antecedents of commitment and trust and look at how these factors influence customer loyalty and thus determine the impact of loyalty schemes. Our empirical study, carried out on a sample group of consumers, enabled us to identify the four antecedents of loyalty (economic value of the exchange, reputation in terms of quality of the firm, communication, ! and shared values) so as to make managerial recommendations concerning the effectiveness of loyalty programs.

http://lawprofessors.typepad.com/antitrustprof_blog/2014/06/loyalty-programs-a-study-case-in-the-hospital-industry.html

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