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The Impact of Loyalty Programmes on Repeat Purchase Behaviour

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Abstract:

The purpose of this research is to contribute to a better knowledge about the impact of retailing loyalty programmes on repeat purchase behaviour. It is based on the BehaviorScan single-source panel which has been crossed with the store data base of a French retailer. We implemented the multinomial Dirichlet model, in order to test the impact of loyalty programmes on the general market structure. The double jeopardy phenomenon is present and loyalty programmes do not substantially change market structures. When all companies have loyalty programs, the market is characterized by an absence of change of the competitive situation.

Keywords: CRM; DIRICHLET MODEL; LOYALTY PROGRAMME; REPEAT PURCHASE BEHAVIOUR

Document Type: Research Article

DOI: http://dx.doi.org/10.1362/026725706776022308

Publication date: February 1, 2006

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