Award Miles

Amanda, you did a great job explaining the study that was conducted by Omar, Wel, Musa, and Nazri in your article summary. It seems that the bottom line is the study shows that customers who received rewards from the loyalty program are very happy and satisfied and would be loyalty to that brand or company.

To add to your paper in my opinion when I think of loyalty programs I think of airlines. I think of what they call frequent flier miles. A little history about that is American Airlines in 1981 was the first airline to offer this type of program. What American Airlines is they combined basic economics with simple psychology. The concept they had was very simple. Customers earn points according to the amount of money they spend and are rewarded not just tangible redeemable points or miles, but also with recognition and added comfort (Chong, Haridasani, p 57).

Frequent fliers that travel a great deal because of work usually have an airline that they preferred to travel with or on. With the loyalty programs in place like the frequent filers miles the traveler has more incentive to stay with that airline than just because of great customer services or comfort. This I believe helps the airline keeps its customer not just because of loyalty but because the customer would have something tangible to lose, which is there miles. No matter how loyalty someone is to their brand or sports team there are times they get upset and want to switch brands or even sports team. The loyalty program is just one more defender against that.

Another way loyalty programs keep their customer is by teaming up with other companies. I use the example of a person that travels a lot for business. Well if they are traveling they must need a place to stay. American Airlines teams up with the Hilton hotel chain, which has there own loyal program called HHonors. Now if you stay with Hilton you just don’t get HHonors points but you get to double up with miles with American...