Spill-over effects in multi-partner loyalty programs

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

This study analyses spill-over effects in multi-partner loyalty programs. In particular the effect of high prestige companies entering a multi-partner loyalty program on the initial individual partners is under examination. The effect of size (number of partners) is also examined. Results generally report a significant influence of the entrant on the other individual partners that ally; negative spill-over effects are observed. The study further shows that the strength of spill-over effects isn’t influenced by the size of the partner loyalty program. Results have been confirmed through a replication study.