Artificial Intelligence
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(A) critically describe loyalty programs and outline three examples. (B) Is customer loyalty ‘’Attitudinal’’ or ‘’Behavioral’’? Back your argument with examples from the Ghanaian context.


(A) Loyalty programs are marketing strategies aimed at increasing customer retention and building brand loyalty. They offer incentives and rewards to customers for making repeat purchases and engaging with a specific brand. Here are three examples of loyalty programs: 1. Starbucks Rewards - This loyalty program by the popular coffee chain offers customers free drinks and food items every time they accumulate a certain number of stars. The stars are earned by making purchases using a registered Starbucks card or through the Starbucks app. The rewards can be redeemed in-store or on the app, and customers can also earn bonus stars through special promotions and events. 2. Sephora Beauty Insider - This loyalty program by the cosmetics retailer rewards customers with points for every dollar they spend, which can be redeemed for free beauty products. Customers can also receive exclusive discounts, access to new products before they are released, and invitations to special events. The program has three tiers - Insider, VIB, and Rouge - each offering different benefits based on the customer's spending and interaction with the brand. 3. Amazon Prime - This loyalty program by the e-commerce giant offers free two-day shipping, access to Prime Video, Prime Music, and other benefits for a yearly subscription fee. It also has a loyalty program within the program, called Amazon Prime Rewards Visa Signature Card, which offers 5% cashback on all Amazon purchases. This incentivizes customers to continue shopping on Amazon, making it their go-to online retailer. (B) Customer loyalty can be both attitudinal and behavioral. Attitudinal loyalty refers to customers’ emotional attachment and positive feelings towards a brand, while behavioral loyalty involves the actual repeat purchases and engagement with a brand. In the Ghanaian context, we can see examples of both types of loyalty. For attitudinal loyalty, we can look at the telecommunications industry. In Ghana, there are three major telecom companies, and customers tend to have strong emotional attachments to their preferred provider. For example, customers who use MTN will often refer to themselves as “strong believers” or “die-hard fans” of the brand. This emotional attachment and positive sentiment towards the brand signify attitudinal loyalty. On the other hand, there are also examples of behavioral loyalty in the Ghanaian market. One example is the loyalty programs for major supermarkets in the country, such as Shoprite and Melcom. These programs reward customers for repeat purchases and offer exclusive discounts and promotions. Similarly, banks in Ghana also have loyalty programs that reward customers for using their services, such as cashback on certain transactions or points that can be redeemed for gifts. These programs incentivize customers to continue using these brands, which demonstrates behavioral loyalty.