Loyalty programs as a tool for managing the foreign economic expansion of brands

Brovkina Yuliia
candidate of economic sciences, associate professor of the department of organization management, Odesa National University of Economics, Odesa, Ukraine, E-mail: browj2007@gmail.com, ORCID: https://orcid.org/0000-0003-0066-3560

Benderska Alina
graduate of the first (bachelor) level of higher education, faculty of management, accounting and information technologies, Odesa National University of Economics, Odesa, Ukraine, E-mail: alinabenderskaya0@gmail.com

Received: 09.06.2025    Аpproved: 19.06.2025    Рublished online: 25.07.2025

Cite this article:

Brovkina Y., Benderska A. (2025) Loyalty programs as a tool for managing the foreign economic expansion of brands. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Programy lojalnosti jak instrument upravlinnja zovnishnoekonomichnoju ekspansijeju brendiv.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 6 (331), pp. 59-66.

Abstract

This study explores the role of loyalty programs in supporting the international expansion of brands. The study aims to examine how loyalty programs can contribute to the international expansion of brands by achieving the following objectives: сlassify different loyalty program models (points-based, tiered, subscription, coalition programs) and assess their relevance to different industries; analyze how companies adapt loyalty programs to cultural values, legal norms and economic conditions of specific markets; identify key success factors such as personalization, omnichannel engagement, digital integration and rewards architecture. This study examines how companies adapt these programs to diverse cultural, economic, and regulatory contexts, ensuring their effectiveness across global markets. By focusing on cultural nuances and local consumer preferences, the research highlights the importance of tailoring loyalty initiatives to various regions. The work also addresses the financial and legal challenges businesses face, particularly concerning data protection and consumer rights. Through case studies of major companies, the study demonstrates how well-designed loyalty programs drive customer engagement and brand loyalty. Ultimately, it emphasizes the need for a flexible and culturally sensitive approach to successfully implement loyalty programs in international markets. The most effective programs combine personalization, localization, legal compliance and ease of use, while being based on deep cultural insights and supported by flexible technologies. However, creating a truly global loyalty strategy is not about duplicating one model in all markets. It is about projecting localized value within a single brand structure that reflects the emotional, behavioral and technological realities of each region.

Keywords

loyalty programs, globalization, foreign economic expansion, market study.

JEL classification: М100; М110; М310;DOI: https://doi.org/10.32680/2409-9260-2025-6-331-59-66

UD classification: 338.234:617

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