Abstract
Considering the heterogeneity of customer purchase behavior in loyalty programs partnerships, in the asymmetric situation of enterprise A who joins the loyalty programs partnerships while enterprise B who implements customer loyalty programs alone, discussing the win-win mechanism of loyalty programs partnerships through the two stage game model, and providing equilibrium price and asymmetric equilibrium existence conditions of enterprise A and B. The results show that the profits of enterprise A who joins loyalty programs partnerships is higher than the profits of the two enterprises who don’t join loyalty programs partnerships, and the profits of enterprise B who doesn’t join loyalty programs partnerships is higher than the profits of the two enterprises who both join the loyalty programs partnerships.
Recommended Citation
Chunqing, Li; Junping, Ma; and Yi, Fan, "The Win-win Mechanism of Loyalty Programs Partnerships: Considering the Customer Heterogeneity" (2013). WHICEB 2013 Proceedings. 43.
https://aisel.aisnet.org/whiceb2013/43