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Essay text:
Earning points towards a reward of free or discounted product.
Such kind of approach is normally used in applications where there is high transaction frequency and moderate price points .However, such a kind of loyalty program increases functional loyalty rather then emotional loyalty ,for example a frequent flier program.
2. Allowing customers to redeem third party currencies such as airline miles for retail purchases.
These kinds of loyalty programs are successful but there are certain issues such as brand fit between two companies and a risk of brand dilution due to coalition partner's inefficiency...
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