Factors influencing supermarket store loyalty in brazil and their implications to loyalty programs. (original) (raw)
This paper proposed to study the relationship between loyalty program with customer satisfaction and customer retention. The data will be collected among final year students in Private Higher Educational Institution in Pahang, Malaysia. Reliability test using Cronbach Alpha and the correlation between variables will be tested using Pearson Correlation coefficient. Generally, this study aims to add several theoretical contributions to the loyalty program literatures, and provides some contribution to an organization in helping them to retain their customer and therefore sustain in the industry.
An Empirical Analysis of the Effect of a Retailers Loyalty Programme on Their Customers’ Loyalty
Global Business Review, 2017
Traditionally, marketing has focused on acquiring customers and gaining market share rather than on retaining existing customers. With increasing competition, there is a need for developing more sophisticated activities in order to retain the existing customers. Consequently, loyalty programmes (LPs) are being employed as a strategic business goal in order to gain customers’ loyalty. In this research, the main aim is to find whether these LPs affect customers’ loyalty towards the retailer by closely analyzing the loyalty card members of a leading Indian departmental store in Delhi. Quantitative research (regression and correlation) was conducted in the form of a questionnaire to test a model whereby the effect of value perception of the LP is tested on programme loyalty and the effect of programme loyalty is then tested on brand and store loyalty that together make the consumer a loyal customer. A total of 120 questionnaires were collected and the findings reveal that LPs do affect ...
The Effects of Loyalty Programs on Profits and Customer Retention
2018
The purpose of study is to do an empirical analysis of the effects of customer loyalty and how it relates to customer retention and increases overall profits, particularly in the hospitality industry. The hospitality industry is continually changing and is encompassed in a highly competitive environment. Loyalty Programs are a form of marketing strategies that are set to attract, maintain, and enhance customer relationships (Yoo, 2011). The discussion of the study indicates that there is a significant increase in company profits due to customer retention and loyal customers. In any business customer loyalty is a factor that drives the overall success of the company. It can be quite challenging because there are many other variables that affect customer loyalty which effects customer retention and profits. Variables that affect customer loyalty are increased competition and duplicate of products and services. Another variable is Customer relationship management, which is a strategic necessity for attracting and increasing loyal customers. This relationship encompasses every service related process and direct interaction ultimately enhancing the customer's overall experience.
The Impact of Customer Loyalty Programs on Customer Retention in the Retail Industry
2021
As the importance of the concept of customer loyalty increases, organizations are investing more towards loyalty programs for retaining their existing customers as well as attracting new customers. This study analyzes the literature to synthesize some debatable areas such as types of customer loyalty programs and their impact on customer retention. This research is carried out as a systematic review, evaluating ten recently published research articles due to their high relevancy. Our analysis identifies four major categories of customer loyalty programs in the retail industry namely, point system, rewarding system, loyalty card system and gift card system. Further, it is found that a rewarding system is the most effective type of loyalty program in the retail industry where retailers can be provided additional rewards based on the customers' loyalty levels. Through this study, it is found that all four types of customer loyalty programs are positively correlated with customer retention while the rewarding system has the highest co-relation with customer retention.
The Effectiveness of Loyalty Program Towards Customer Loyalty
ADVANCES IN BUSINESS RESEARCH INTERNATIONAL JOURNAL
In the business field it is very important to win the customer heart and the success of the loyalty program offered to the customers depends on particular rewards given by the service provider. Loyalty and customer loyalty in previous research has shown a significant relationship. There are problems occurs in loyalty program where the customers has a low awareness about the loyalty program, and the delayed in receiving the rewards. Loyalty program are divided into two parts. The first part is soft attribute loyalty program and second part is hard attribute loyalty program. Soft attributes loyalty program are ways of doing things or code of conduct that are intangible and was meant to give customer sense of recognition. Hard attributes loyalty program are basically tangible elements such as discounts card and free gift. A total of 100 respondents were chosen from one selected retailers in Penang and a purposive sampling technique was used. The result shown that both hard and soft att...
IMPACT OF CUSTOMER LOYALTY PROGRAMS ON CUSTOMER SATISFACTION AND LOYALTY
Marketing literature talks abundantly about the behavioral aspects of the consumer in terms of his satisfaction and loyalty. This research was undertaken in the apparel retail sector with the sole purpose of establishing a relationship between loyalty cards and its impact on customer satisfaction as well as loyalty. Prudently, there should be a positive relation between usage of loyalty cards and loyalty towards the store. This study however showed different results altogether. It was found that satisfaction and loyalty levels were same irrespective of customers using a loyalty card or not using a loyalty card. This inference signifies that there may be certain other factors which determine the loyalty of the customer other than loyalty cards.
Procedia - Social and Behavioral Sciences, 2014
Most businesses such as retail business implemented loyalty program to increase their customer's satisfaction and deter their customer from defecting to their competitors. However, the success of this program is not substantiated. The problem appears that supermarket chain loyalty programs are not successfully creating loyalty. All suffer from being too much alike and most loyalty programs feature membership card in the markets. These loyalty mechanisms are not creating ultimate loyalty to one supermarket because customers belong to more than one supermarket loyalty program in order to get special price and promotions. Thus, this study is intended to investigate the relationships among loyalty program, customer satisfaction and customer loyalty in retail industry. The findings indicate that there are positive and significant relationships among loyalty program, customer satisfaction and customer loyalty. The findings confirm that Shopping Partners' Program,
Loyalty program effectiveness: Theoretical reviews and practical proofs
Uncertain Supply Chain Management
Loyalty programs are widely used by organizations as a structured customer relationship management (CRM) tool to build and extend customer-supplier relationship. Although a large number of benefits are offered through them to both companies and consumers, loyalty programs face a set of planning and implementation pitfalls. Scholars or practitioners rarely discuss such pitfalls. Thus, this paper intends to add further values to the current literature by exploring/investigating the main loyalty scheme pitfalls, both theoretically and practically. The study explores a set of loyalty program planning problems and some of the execution's drawbacks, including clear aim need, loyalty program design, budgeting and experienced employee involvement. In addition to loyalty programs benefits and rewards offered, loyalty programs target customer selection problems using loyalty program promotional tools. For the study, 161 managers and employees who were involved in loyalty program planning and execution were surveyed. Smart-PLS was used to test the developed model and hypotheses. The study found that all studied loyalty program elements identified affected their planning and implementation. However, some of these elements where seen important to be considered when planning loyalty schemes, such schemes' benefits and rewards offered were still not planned properly and did not meet customer needs or even expectations and, in most cases, the loyalty programs' aims were not clear to all their stakeholders. The paper also provides additional discussion about additional issues of loyalty schemes planning and execution problems and proposes a set of solutions and recommendations, which might highlight some of the future venues with this regard. .
An empirical analysis of the components of retailer customer loyalty programs
International Journal of Retail & Distribution Management, 2008
Purpose -This paper sets out to determine the benefits offered to customers and activities taken by retailers, whether or not they have formal customer loyalty programs, whether there are differences in the benefits/activities of retailers with and without formal loyalty programs and finally, whether specific benefits/activities of retailers can predict whether or not they have formal loyalty programs. Design/methodology/approach -A questionnaire was sent to a random sample of retailers in one US state. In addition, respondents reporting that they had formal loyalty programs received a telephone call lasting less than ten minutes designed to gather further information regarding their loyalty program. x 2 , Kendall's W and logistic regression analysis were used to test the purposes of this study. Findings -The most used benefits/activities of participating retailers are: demonstrating having the customers' interests at heart, providing financial incentives to selected customers, sending thank you notes to customers, and identifying customer preferences and recording them to guide future actions. In addition, a model was developed that was used to predict those retailers that had formal loyalty programs.
The Relationship between the Loyalty Program Quality and the Consumer Loyalty Behavior
SSRN Electronic Journal, 2015
The literature review revealed the importance of relationship marketing to retain and maintain the most profitable customers (Customer Relationship Management). The Loyalty Program Quality (LPQ) will reinforce and consolidate the loyalty of customer to the brand. The objective of this study is to examine the relationship between LPQ and behavior of customer loyalty through: the word-of-mouth (WOM), the complaint and intend to repeat purchase. This study will be applied to the brand CARREFOUR MARKET in Tunisia.
2021
In the present world, organizations have identified customers as the foundation of the business‟ success. In marketing, finding customers who are willing to purchase goods or services is not enough to build a successful marketing strategy. More focus should be given to retaining a customer for so long as well as attracting a customer by utilizing marketing strategies. Hence the researcher has developed this study to find the impact between different customer loyalty program strategies with the customer retention in the textile industry in Sri Lanka. Point system, gift vouchers and gift items and discounts were taken as proxies for the independent variable and customer retention has been considered as the dependent variable. The researcher used five-point likert scale questionnaire to collect primary data from retail customers of textile industry and questionnaires were given to 160 people. The researcher has used Cronbach Alpha to find the reliability and KMO and Bartlett's Test...
The Effect of Customer Loyalty Programs on Customer Retention in Pakistan
Journal of Business & Tourism, 2021
The aim of our study was to build an extremely significant understanding of the influence of client's loyalty programs on buyer's retention. The context of the current study was set for Pakistani consumers. The current study inspects the key role of loyalty programs such as devotion programs, point framework, level reward framework and non-fiscal projects on the dependent variable: client retention. A quantitative analysis method was adopted to achieve the objective of the research. For the data collection, questionnaires were distributed randomly among customers. Our findings suggest that there is a significant impact of loyalty programs for retaining valuable customers. Evidently, a significant effect was noted for different types of loyalty schemes such as Tier reward, Point and Non-monetary schemes.
Customer Satisfaction with the Loyalty Programs in Retail
Acta Economica Et Turistica, 2017
The loyalty programs are often part of a comprehensive strategy for customer relationship and provide a good way to identify and maintain customers with greater value than others. The main objective of this paper is to show the role of loyalty programs affecting customer satisfaction in retail. The purpose of the empirical research was to discover the effects of loyalty programs on customer satisfaction. Research has shown (N= 53) that the loyalty program is not the determinating factor. All other examined factors such as product range, price, locationof the store and customers relationship proved to be the more relevant for consumer satisfaction.
Consumer Behavior and Customer Loyalty Program: Case of Tesco in Thailand
Proceedings of the 36th International Academic Conference, London, 2018
Loyalty programs (sometimes referred to as loyalty systems) are part of marketing communication, respectively one of the classic tools of sales promotion. Through this tool marketing can effect on customers in order to stimulate their loyalty. The basic principle of loyalty program is to motivate customers to more frequent purchases or multiple purchases whether of goods or services. The essence of this tool is to reward consumers for their behavior. The primary purpose of loyalty programs is to establish and maintain a loyal customer long term relationship (Zamazalova, 2010). If customers are involved in loyalty programs they can acquire various forms of rewards for their purchases. Various kinds of rewards (discounts, gifts or bonuses …) are key factors on which the loyalty program is built and which is the basic of the motivation. Loyalty marketing is based on the fact that 20% of customers at the company can create up to 80% of sales. Moreover the most loyal customers are most profitable for the company (O'Brien and Jones, 1995). Loyalty programs are regarded as a tool through which you can build long term loyalty. The essence of a functioning loyalty program is to provide rewards to customers who often buy in a certain. The paper introduces the partial results of the marketing research on Tesco loyalty programs in Thailand. The aim was to identify the reasons that lead consumers to participate in loyalty programs and the benefits that are the main motivators for participation in the loyalty program.
Consequences of customer loyalty to the loyalty program and to the company
Journal of the Academy of Marketing Science, 2012
Gaining customer loyalty is an important goal of marketing, and loyalty programs are intended to help in reaching it. Research on loyalty programs suggests that customers differentiate between loyalty to a company and loyalty to a loyalty program, yet little is known about the consequences of these two types of loyalty. Therefore, our study intends to make two main contributions: (1) improving our understanding of the constructs "program loyalty" and "company loyalty", (2) investigating the relative impact of the two types of loyalty on preference, intention, and purchase behavior for the case of a multi-firm loyalty program. Results indicate that company loyalty influences a customer's choice to visit a particular provider and to prefer it over competitors, but it is not a strong predictor of purchase behavior. Conversely, program loyalty is a far more important driver of purchase behavior. This implies that company loyalty primarily attracts customers to a particular provider and program loyalty ensures that once inside the store, more money is spent.
Does the Implementation of Loyalty Programmes Lead to Gaining a Loyal Customer?
AD ALTA: 11/01, 2021
An increasing number of retailers and service providers are aware of the importance of loyalty programmes as a tool to support sales. The aim of this paper is to evaluate the benefits of loyalty cards for sales support at three selected companies in the Czech market, especially Kaufland, Globus and Tesco, and to determine whether the implementation of the loyalty programme leads to gaining a loyal customer. The basic source of data is the data obtained through an interview and the CAWI method, which consists in collecting data using an online questionnaire survey. The obtained data are evaluated using a prognostic marketing and comparison method. In total, responses were obtained from 121 respondents. The results of the research show that the implementation of loyalty programmes does not lead to gaining a more loyal customer. If the customer does not have to register to join the programmer, he does not perceive himself as loyal to the brand. The Kaufland Card programme has become th...
The Effectiveness of Customer Loyalty Strategies in the Spanish Banking Sector
The present study sets out to analyze the implementation and effectiveness attached to customer loyalty strategies in the Spanish banking sector. Results of a survey completed by fifty-three Spanish financial institutions show that the implementation of customer loyalty strategies is widespread, with the exception of "scientific marketing" and "customer relationship management (CRM) tools", whose use is high but not widespread. Regarding the effectiveness of these strategies, are precisely those tools "scientific marketing" and "CRM", which suggest a greater positive effect on customer loyalty. Fainé and Tornabell (2001) indicate that survival in the financial sector is determined by the capacity to anticipate clients' needs and provide quality service, thereby increasing customer loyalty. In this paradigm, the traditional 'P's of the marketing mix: product, price, place, and promotion give way to the three 'R's of relationship marketing: relate, retain, and recovery. Numerous strategies have been developed in order to systematically encourage customer loyalty. As described in section 3, this paper studies how common these strategies are within the context of Spanish financial institutions, and their effectiveness ºin increasing customer loyalty. © Centre for Promoting Ideas, USA www.ijbssnet.com 2
The effects of introducing and terminating loyalty programs
European Journal of Marketing, 2015
Purpose – The goal of this paper is to empirically investigate the effects of an loyalty program (LP) introduction and termination, accounting for simultaneous effects of LP designs, cross-customer effects and competition effects. Despite firms across the globe spend billions of dollars on LPs, it is not clear: whether these programs enhance customer loyalty, what happens if a program is terminated and which LP design elements enhance effectiveness of LPs. Design/methodology/approach – The authors empirically investigate to what extent the effects of introducing and terminating a LP depend on: its monetary and non-monetary design elements, customer characteristics and competition. The empirical evidence is based on a bivariate hierarchical linear model, using a large-scale dataset involving 9,783 consumers rating 24 different LPs across eight industries. Findings – While the characteristics of LP are more important in influencing customer behavior when they join the LP, the competit...