MRKT 310A - W3 DISCUSSION 4

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University of Maryland Global Campus (UMGC) *

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310

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Information Systems

Date

Dec 6, 2023

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docx

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2

Uploaded by JudgeFlowerZebra19

Topic 3: Loyalty Schemes Loyalty management can help increase lifetime customer value. As noted in this week’s reading, loyalty has two components (University of Maryland Global Campus, n.d.). The first is behavioral loyalty which is described as a customer consistently or habitually purchasing a particular product paying no mind to competitors’ products. Attitudinal loyalty is the second component. This is the level at which a customer prefers a brand. Loyalty programs fall under attitudinal loyalty. Examples of loyalty programs are points exchanged for free products, in-store credit and discounts, and early access to sales (University of Maryland Global Campus, n.d.). As noted by Jackson on CNBC.com, the top three brands with the highest customer loyalty are: Alphabet (Google), Lowes, and Intel Corporation with Apple falling in fourth place (Jackson, 2023). This is surprising as I thought Apple would have been in the top three. The loyalty program that I have found beneficial is one provided by Southwest. When traveling by air prior to Covid, I utilized and enjoyed Southwest’s reward program. I would use my Southwest card for all purchases to earn points to redeem for flights. Post Covid, I continue to use my Southwest card for purchases and redeem earned points for merchandise such as electronics and home goods. Earned points can also be redeemed for hotel stays, gift cards, experiences, and exclusive concerts (Southwest, 2023). Southwest has benefited from my membership in their reward program by producing a high customer lifetime value. Additionally, Southwest has created a competitive advantage by giving me satisfaction and developing an affinity for their rewards program (University of Maryland Global Campus, n.d.). By recommending the Southwest credit card to family members, I am also an advocate for their product e.g., the Southwest credit card.
References: Jackson, A (2023, September 6), These 10 brands have the highest customer loyalty-Apple isn’t in the top 3. CNBC, https://www.cnbc.com/2023/09/06/brands-with-top- customer-loyalty-says-report-alphabet-lowes-intel.html Southwest. (2023). [Southwest rapid rewards homepage] https://www.southwest.com/rapidrewards/about University of Maryland Global Campus. (n.d.). Customer Relationships and Loyalty in MRKT 310. Document posted in UMGC MRKT 310 7389 online classroom, archived at https://learn.umgc.edu
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