When loyalty programs work, they result in one or more of the four effects of loyalty.  Discuss three ways in which loyalty programs can enhance the sustainability and profitability of a company. Please use relevant examples to support your answer.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
Section: Chapter Questions
Problem 7CQ
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When loyalty programs work, they result in one or more of the four effects of loyalty.  Discuss three ways in which loyalty programs can enhance the sustainability and profitability of a company. Please use relevant examples to support your answer.

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