Cineplex Case Study

Register to read the introduction… Lewthwaite would need to prove that it was a worthy financial investment. Finally, the committee needed to consider the length of time required to establish a new database because most committee members believed that conclusive information on customer behavior could be drawn only from a minimum of 500,000 members.
Further, although they thought that an investment in such a program could be largely beneficial for
Cineplex, if implemented poorly, the organization’s image and its ability to deliver customer value could suffer widespread harm. Lewthwaite knew that although the following partner options might not meet all the committee’s criteria, she had to evaluate the most important considerations.
LOYALTY PARTNER OPTIONS
Internal Development

Under this option, Cineplex managers would develop and operate the program; they would then know their brand best and would have complete control over the direction of the program and the data ownership.
However, the organization would incur the entire cost estimated at $5.5 million in the first year with diminishing costs in subsequent years. The company would also be fully exposed to the financial risk …show more content…
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