Vol 9, No 4 (2021)

Raising the Value of Loyalty Program Databases

Ronald B. Larson


Many marketers have invested in loyalty programs to direct incentives at key buyers and to analyze customer transactions. Because many buyers do not join the programs, incomplete customer databases may result in poor business decisions. This research uses a literature review and two direct mail surveys to find options for encouraging people to join more programs. Prior literature was reviewed to identify challenges faced by loyalty programs and possible tactics for enhancing program participation. Direct mail surveys of consumers in the Midwest region of the US and ordered probit regressions were used to identify variables related to higher loyalty program participation by consumers. Education and income were positively linked to participation while technological anxiety was negatively related. If marketers can reduce customer technological anxiety and encourage more buyers to participate (especially less-educated and lower-income customers), database coverage and the quality of decisions based on the data would improve.

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Privacy concern, Technology anxiety, Information protection, Frequent customer program, Frequent shopper card.

Publication information

Volume 9, Issue 4
Year of Publication: 2021
ISSN: 1857 - 8721
Publisher: EDNOTERA

How to cite

Larson R.B.: Raising the Value of Loyalty Program Databases. Journal of Applied Economics and Business, Vol 9, No. 4, 21-39. (2021)