4 Questions
The spreader effect refers to the fact that loyalty program members are less likely to try related products offered by the marketer.
False
The accelerator effect in a loyalty program refers to consumers slowing down their purchases as they approach a higher award level.
False
Responsiveness is how well a company can take customer information and alter what they do to satisfy the customer.
True
Loyalty program members are less likely to try related products offered by the marketer due to the spreader effect.
False
Study Notes
Loyalty Program Effects
- The spreader effect occurs when loyalty program members are less likely to try related products offered by the marketer.
- This effect reduces the likelihood of customers experimenting with new products from the same marketer.
Accelerator Effect
- The accelerator effect in a loyalty program refers to consumers slowing down their purchases as they approach a higher award level.
- This effect causes customers to delay purchases in order to reach a higher reward threshold.
Responsiveness
- Responsiveness is a company's ability to take customer information and alter their actions to satisfy the customer.
- This involves using customer data to make changes that meet the customer's needs and improve their experience.
Test your knowledge of loyalty program effects with this quiz. Explore concepts like spreader effect, accelerator effect, and responsiveness in loyalty programs.
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