Factors influencing supermarket store loyalty in brazil and their implications to loyalty programs. (original) (raw)
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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.
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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
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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
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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.