Research On Coalition Loyalty Program Strategy Considering Of Consumer Strategic Behavior

In recent years,with the increasingly fierce industrial transformation and technological competition,the speed of product upgrading has been accelerating,and enterprises often fall into the dilemma of product homogeneity.As a result,consumers’ product switching costs are gradually reduced,and consumers will pursue low-priced products and lose their loyalty to the original brand.Especially when retailers start a price war,some consumers will immediately transfer,sometimes just new products,or the emergence of the concept,consumers will also try.Therefore,it is very important for enterprises to improve the loyalty of consumers and establish long-term interests with consumers.The airline industry,hotel industry,chain retail industry and many other industries have developed relatively mature loyalty programs.Enterprises have established their own membership loyalty programs to provide members with rewards,membership discounts,and high-quality membership benefits to improve consumer satisfaction to maximum customer retention.However,independent loyalty programs often have great limitations,so that most member points cannot be redeemed in time,and the role of the loyalty program itself cannot be well played.The Coalition loyalty program can not only provide users with richer usage scenarios and better leverage the potential synergies between partners,but also allow alliance retailers to achieve complementary resources,which has relatively broad development prospects and research value.Based on the realistic background,this paper firstly studies the consumer behavior and retailer decision-making under the independent loyalty program,and provides a benchmark for the research of the joint loyalty program,and then focuses on the research on the consumer behavior and the retailer’s decision-making changes under the joint loyalty program.At the same time,this paper considers the scenarios when two different types of retailers cooperate separately: two retailers with the same status producing unrelated products and two retailers with unequal status producing alternative products.Finally,the indicators to measure the effectiveness of the loyalty program,such as the retailer’s profit,membership ratio,and market size of the joint loyalty program and the independent loyalty program under different scenarios are compared and analyzed.At the same time,the focus of the research on the two scenarios is also different.The focus of the product-irrelevant retailer combination is the change of consumer behavior under the two stages and the specific decision-making of the two retailers under the joint loyalty program;product alternatives The focus of the retailer portfolio is how to effectively design the franchise program,under what conditions the retailer will carry out the joint loyalty program,and the specific decision-making of the retailer under different competition intensity.This paper finds that the existence of strategic consumers makes independent loyalty programs unable to increase the proportion of member consumers while guaranteeing retailers’ profits.Secondly,under the hypothesis of the article,the optimal profit and the proportion of consumers participating in the loyalty program when two retailers of unrelated products are launched are better than those of the independent loyalty program,and the appropriate loyalty card fee can be charged.Increase the ratio of members to consumers while ensuring profits;however,the decision of two retailers producing alternative products to launch a joint loyalty program is related to the intensity of competition between the two retailers,and the leader can only guarantee joint loyalty by charging a suitable franchise fee development of the plan.In addition,the research results show that the segmentation of products,membership levels,and consumers can further improve the effectiveness of loyalty plans.