Dynamics of loyalty programs in Malaysian retailing: a strategic marketing perspective

The purpose of this article is to consider the development of research in loyalty programs and relationship marketing in international retailing and review their application in specific retail stores in Malaysia, namely, AEON, Parkson, the Store Corporation, and Metrojaya. The article reviews the development of the relationship marketing and loyalty programs literature and its application in Malaysia and suggests how relationship marketing and loyalty programs have emerged over the years and their significance to retailing in Malaysia. The article also emphasizes the importance of relationship marketing and loyalty programs in retailing and discusses where research needs to go with respect to loyalty programs to enable them to continue to offer a competitive advantage to retailers. At the moment most loyalty programs are too similar to provide any real differentiation advantage to the retailer. Furthermore, the article highlights the loyalty programs that have been successful in Malaysia, why they have been successful, and their contribution to the success of the respective retail outlet. Finally, it explores the current understanding of relationship marketing and loyalty program activities and processes within the international retail firm in a developing country context. The achievements and limitations of loyalty programs in the area of international retailing are examined over the past 20 years and issues are addressed surrounding the future of loyalty programs in retailing that require further research.