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The Role of Loyalty Programs in Behavioral and Affective Loyalty

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Essay title: The Role of Loyalty Programs in Behavioral and Affective Loyalty

Problem Definition

The aim of this paper is to analyze the behavioral and affective loyalty of retailer customers in order to establish the role played by loyalty programs in the development of these variables.

Research Design

Research data were taken from a survey carried out on 720 customers from a Spanish supermarket chain. A stratified selection by simple affixing was used. Out of the entire sample, 180 were participants in the retailer frequent shopper program that was in force at that moment, 180 in the card program and 360 were not participant in any loyalty program at that retailer.

Analysis of Data

Several ANOVAs are employed to compare the two loyalty dimensions among participants and non participants in loyalty programs.

Findings and Conclusions

The results show that participants in loyalty programs are more behavioral and affectively loyal than non participants. Nevertheless, most customers do not change purchase behavior after joining a loyalty program. The strategy is therefore to retain loyal customers and to achieve the reinforcement of affective bonds linking the customer to the retailer.

Companies should focus their efforts on developing a reward plan as adapted

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