Exploring the spillover effects in a multi-vendor rewards programme in South Africa

Abstract

The aim of this research is to explore what spillover effects are found among the stakeholders of a multi-vendor rewards programme belonging to a large financial institution within South Africa. The research aimed to understand how spillover effects created value for stakeholder of the multi-vendor rewards programme and how these spillover effects created competitive advantage The research employed a qualitative, exploratory research methodology. A total of 12 semi-structure interviews were conducted with senior managers, collaborators, and customers of the multi-vendor rewards programme. The results showed that spillover effects were found within the multi-vendor rewards programme. Additionally, these spillover effects were more apparent where the relationships between the stakeholder were close and where stakeholder cooperation was the highest. The key research outcome was the ‘Conceptual relationship of Spillover Effects within multi-vendor rewards programme framework’, which helped explain how each spillover effect had a multiplier effect creating additional spillover effects thereby increasing the value and the competitiveness of the multi-vendor rewards programme. The findings extend literature on stakeholder theory and loyalty programme theory.