Proceedings of 21st International Business Research Conference
10 - 11 June, 2013, Ryerson University, Toronto, Canada, ISBN: 978-1-922069-25-2
Loyalty Programs’ Effects on Market Basket Value:
The Moderating Role of Market Basket Types
Dalal Ahmad
The marketing literature shows contradictory results regarding
the importance and effectiveness of implementing loyalty
programs. This paper sheds light on that contradiction by
developing a theoretical framework proposing the construct
“market basket types” as a moderator that moderates the
relationship between market basket value and loyalty programs
in a retailing context. We argue that because “market basket
types” in their formation represent multi-category buying
decisions that allow for complementary effects, the coincidental
appearance of products, and a disaggregate level of consumer
heterogeneity. Market basket types will serve as a moderator
that explains the literature’s contradictory results. The
significance of the developed framework will contribute to
marketing managers effectively developing, managing, and
maintaining marketing-mix programs in retailing contexts.
Track: Marketing
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Ms. Dalal Ahmad, Department of Marketing, Texas Tech University, Lubbock, Texas,
United States, Email: dalal.ahmad@ttu.edu