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A Loyalty Program: а Connection between Personalized Marketing аnd the Points-Pressure Mechanism

Student: Karina Tiurina

Supervisor: Natalia Volkova

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Management (Bachelor)

Year of Graduation: 2020

While many studies have extensively investigated mechanisms influencing consumer behavior in terms of loyalty programs with thresholds, a better understanding of personalized marketing and points-pressure mechanism is lacking. In this regard, the purpose of this work is to study the impact of points-pressure mechanism, which is caused by time frame of points expiration, and personalized marketing, which is expressed in notifications about points expiration, on the participants' intention to make a purchase and redeem the accumulated points. Namely, this research is concentrated on examining customers attitude towards receiving notifications about reaching threshold, optimal time period between receiving such notification and points expiration and the channels of communication. To achieve stated goal, statistical method of data analysis is used, namely, frequency analysis, conditional logistic model, logistic regression and correlation analysis. The research is based on non-probability sampling method. Primary data was obtained by means of a survey. The study found that the way of communication and number of communication channels are significant factors that influence the intention to make a purchase. There also were identified additional significant factors that affect the intention to make a purchase such as the value of remuneration. As a result of this research recommendations on how companies can improve personalized marketing and points-pressure mechanism in their loyalty programs are provided.

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