Question

Loyalty programs are in the headlines frequently. Hotels, like Hilton and Marriott, or coffee powerhouses, like Starbucks, are constantly revamping their programs to keep their customers as connected as possible. These programs have proven to be a safeguard against disruption. Assume your firm wants to launch such a program but you don’t know much about them. How would you use external published sources to conduct an exploration of the topic?

Answer 1

Exploring loyalty programs involves studying existing ones from larger corporations, understanding ethical concerns about ambassador disclosure, examining the media's impact on public opinion, and delving into customer behavior. It also requires assessing information sources' credibility and the rationale behind customer loyalty to inform program design.

Step-by-step explanation:

The exploration of loyalty programs using external published sources involves a multi-step research process. Firstly, it is essential to examine case studies and reports from established loyalty programs, such as those from Hilton, Marriott, and Starbucks, to gain insight into various strategies and outcomes. This exploration can include market research reports, loyalty program rankings, and hospitality journal articles to understand industry standards and innovation. Secondly, the ethical implications of these programs need to be assessed, such as the necessity for paid ambassadors to disclose their relationships with companies. This assessment can be extended to the evaluation of the impact of brand ambassadorships on customer decision-making, especially on college campuses where peer influence is significant.

Moreover, the investigation should consider perspectives on homogenization and fragmentation, as suggested by McManus (1995), and the role of different media outlets in shaping consumer opinions. A detailed analysis of customer behavior and decision-making, such as where they prefer to shop or eat, will also provide valuable data. Understanding the rationale behind customer loyalty, such as the desire for quality assurance and reputation, will support the design of a successful program. Lastly, assessing information sources and the credibility of advisers, along with the associated trust issues, as highlighted by news anchors' credibility, should be part of the research to ensure reliable program endorsement. This comprehensive approach will allow for an informed creation of a loyalty program tailored to the firm's objectives.