Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Actions Speak Louder than Words: Understanding the Meaning of Loyalty Program Building Blocks
Issue: Vol. 11, No 2, 2018
Published date: 06-2018 (print) / 06-2018 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Piotr Kwiatek
American University of the Middle East, Egaila, Kuwait

Zoe Morgan
American University of the Middle East, Egaila, Kuwait

Radoslav Baltezarevic
University College of Bahrain, Saar, Bahrain
Keywords: loyalty programs, international marketing, cultural adaptation
DOI: 10.14254/2071-789X.2018/11-2/21
Index PUBMS: a8ffbb08-cdef-11e8-92b1-901b0efa6e97
Language: English
Pages: 305-319 (15)
JEL classification: D02, O17, P31

Although the concept of a loyalty program has been widely adopted in business practice and researched by academics for decades, its efficacy is still disputable. Some researchers argue that studies on loyalty programs do not account for cross-customer effects and the simultaneous interplay of multiple psychological mechanisms with program delivery. Thus, the main aim of the study is to examine the meaning of marketing actions which form a “loyalty program” in an intercultural context. The authors argue that customers’ understanding of the meaning of marketing actions plays a crucial role in the effective planning of marketing activities. The study draws from Wittgenstein’s linguistic theory and investigates which marketing actions customers perceive as building their loyalty towards a company. The data was collected from over 300 customers in Poland, Serbia and Kuwait and analysed in a conjoint design. The study finds that intercultural differences do bring varying understanding of the same marketing activities which needs to be taken into account both in future studies and in business practice. This study provides guidelines for adaptation of marketing loyalty programs to specifics of culture which may go beyond country borders.


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