Final answer:
Hilary aims to enhance her restaurant business with a customer reward and loyalty program, possibly through Resurgence Inc., to (a) increase perceived value, (b) build brand awareness, (c) manage customer relationships, and (d) ultimately boost reputation and (e) business profitability.
Step-by-step explanation:
Understanding Customer Reward and Loyalty Programs
Hilary, the manager of a restaurant, is considering a customer reward and loyalty program to enhance her business. This type of program, which can potentially be developed by a company like Resurgence Inc., aims to achieve multiple objectives such as increasing perceived value, building brand awareness, customer relationship management, building brand associations, and increasing brand equity.
The rationale behind implementing these policies is clear. Businesses seek repeat customers who are then more likely to recommend the restaurant to others. A good reputation is vital in this regard. Buyers less concerned with quality issues are willing to pay premium prices when they trust the reputation of a business. For instance, a grocery store with a strong reputation can charge more than a temporary market stand. This trust and perceived value are the cornerstones of customer loyalty programs.
Indeed, such reward systems create an ongoing relationship between the customer and the business, resulting in both immediate and long-term benefits. A successful loyalty program not only increases the likelihood of repeat patronage but can also boost the establishment's reputation, leading to a sustainable competitive advantage.