Learn › Economics glossary › Firms and competition

Economics glossary · Firms and competition

Loyalty schemes

What loyalty schemes means in economics, as one of forms of non-price competition, with an example and a question to test yourself.

Definition
Loyalty schemes
Loyalty schemes reward repeat custom with points, vouchers or perks, which raises the cost to a buyer of switching to a rival.
Example

Can you think of an example of loyalty schemes?

Test yourself

Can you name the four forms of non-price competition?

Learn it properly: the module

Related terms