| Summary: | Abstract
Studies investigating the effectiveness of loyalty programs are scarce and show mixed results. In fact, as described in this study, some research found that loyalty cards enhanced customer loyalty, whereas other research found no correlation between the two. Notwithstanding their general adoption and popularity, it is still an open question whether or not these programs affect loyalty (Noordhoff, Pauwels and Odekerken-Schroder, 2004).
The focus of this research is to examine whether or not, and how, a loyalty program adopted by a supermarket can influence the relationships between the company and its customers. In order to do so, a model is conceived (Figure 8), drawing on the extant literature, and then assessed through the administration of questionnaires to the supermarket customers. The analysis of the data highlights that the original model, based on four focal constructs (perceived value of the program, program loyalty, store satisfaction and store loyalty), actually oversimplifies two of them: perceived value of the program and program loyalty. A second conceptual model (Figure 14) is therefore presented and its underlying hypotheses tested through regression analysis. Beyond finding members to be more store loyal than non-members, this research also reveals the way a loyalty program can enhance loyalty. The major results of this study are summarised in the conclusion.
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