“Perceived Benefits of loyalty programs: Scale development and implications for relational strategies,” by Aîda Mimouni-Chaaban and Pierre Volle is an informative article which provides information concerning the perceived benefits regarding loyalty programs. The article offers discussions regarding managerial and theoretical implications of the perceived benefits in relation to marketing strategies. In accordance to the authors of this article, positive outcomes regarding loyalty programs are quite clear for many firms in the market place, but little consideration has been put in terms of research work in relation to customer perceptions regarding the issue. As a result, most firms are failing to achieve their goals due to the employment of poor strategies (Bolton, Kannan & Bramlett, 2000).
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In their bid to bring out their research accordingly, the authors have employed the use of multi-benefit framework which is based on hedonic, utilitarian, and relationship literature. In addition, the authors have based their research on two quantitative studies. This involves 658 French members that have been included in the loyalty programs. The quantitative studies provide 16-item scaling that helps in measuring five perceived benefit types which include exploration, monetary savings, entertainment, social benefits, and recognition. These dimensions have varied impacts on the program satisfaction, loyalty, and perceived relationship of the firm’s investment. It is critical to note that the authors have done well to provide vivid evidences to support their claims and studies by the use of proper references to the literature provided in the text. This offers proof to the reader that the evidence used is credible and reliable since the references can be verified for authenticity purposes (Gianni, 1990).
This article has been developed by Economics and Business Professionals whose knowledge in the field can be traced from the Universities in which they lecture. As a result, it should be noted that the qualification of the authors of this article gives this study credibility for adoption. The methodology employed by the authors of this article in their bid to perform the study consists of the use of survey technique. A total of 658 French members were involved in the loyalty programs in a bid to determine the measure of five perceived benefit types (Jöreskog, 1993). The decision to adopt the use of surveys by the authors of this article is significant since the population that was to be covered was large. This is a business and economics research which involves various sectors of the economy. As a result, survey method was appropriate in this case in terms production of accurate results.
This article also presents logical argumentation of facts. It can be observed that the authors have done exceedingly well to provide logical argumentation through the use of proper estimation and calculations regarding the exploratory and confirmatory factor analysis. The mathematical presentations in these segments clearly portray the proper use of argumentation with the intention to convince their readers. In addition, the authors of this article have relied on the use of diagrammatic methodology in terms of explaining various facts in the study. It is important to note that diagrams are significant learning aids which boost the information provided. As a result, it is evident that authors have based their research on logical argumentation which increases the credibility of the study (Rodolphe, 2007).
Critically analyzing this article leads to the realization that there has been a poor approach in terms of handling counter-arguments. The authors have failed to provide credible information to satisfy the curiosity linked to the various arguments presented in the study. This is a limiting factor since the readers are prevented from clearly verifying the perceived outcomes regarding the loyalty programs employed in the survey. There is lack of clarity in terms of determination of the percentages of the positive and negative outcomes within the loyalty programs. Consequently, the readers of this article are left to a lot of assumptions since the research lacks proper structures which can be used to build strong counter-arguments.
At this point, it can be noted that the strengths exhibited by this article are numerous. However, additional strengths of the article include proper layout and structure of the documentation. It can be observed that the authors of this article have done exceptionally well to organize the information in the documentation through the use of abstract, introduction, proper body layout, considerations of further research and conclusions. This is beneficial since the reader is given easy time to navigate through the article to find the information needed.
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On the other hand, there are other observable weaknesses that can be noted about this article. The study has failed to provide confirmation regarding the relevance of convenience dimension, even though it is an important factor that should be considered in relationships marketing field (Gordon, McKeage & Fox, 1998). Another observable weakness that can be witnessed in terms of the content of the article is related to the focus on the study. The authors have focused this study on perceived benefits related to loyalty programs. However, perceived value is generally composed of benefits and costs. This is a limiting factor in terms of comprehensively tackling the issue of perceive loyalties. As a result, it can be deduced that in as much as the authors of this article have done well to present their views on perceived loyalties, several inadequacies in terms of content of research are observable in the study. This means that further research to clear such gaps would be necessary.
In conclusion, I agree with the authors’ remarks that positive outcomes regarding loyalty programs are quite clear for many firms in the market place, but little consideration has been put in terms of research work in relation to customer perceptions regarding the issue. This is because of there is a lot of assumption in the marketing relationship fields leading to formation of poor strategies for sale of products.
- Bolton, R., Kannan, P. K., & Bramlett, M. (2000). Implications of loyalty program membership and service experiences for customer retention and value. J Acad Mark Sci; 28 (1):95-108.
- Gianni, V. (1990). Postmodern criticism: postmodern critique in David Wood. London: Wiley and Sons.
- Gordon, M. E., McKeage, K., & Fox, M. A. (1998). Relationship marketing effectiveness: the role of involvement. Psychol Mark, 55(5):443–59.
- Jöreskog, K. G. (1993). Testing structural equation models. In: Bollen KA, Long JS, editors. Testing structural equation models. New York: Sage Publications.
- Rodolphe, G. (2007). The honor of thinking: critique, theory, philosophy. New York: Prentice Hall Publishers.