Naslov
Loyalty programs in grocery retailing: Do customers provoke a tiered rewarding system?

Autori
Dunković, Dario ; Petković, Goran

Izvornik
Poslovna izvrsnost (1846-3355) IX (2015), 1; 9-29

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
customer loyalty program ; retailing ; store image ; propensity ; two-tiered rewards

Sažetak
The concept of customer loyalty is inherently attractive to retail business. Stores are implementing and adopting loyalty programs to gain interest of the customers in maintaining relationship with the store. However, differentiation among programs of different retailers is poor. For this reason, an adequate conceptual model supporting different advantages in relation to established schemes, particularly in terms of profitability, is formed and tested. The aim of the paper is to determine the participation of “two-tiered rewards” in customer relationship management, where customers who buy less and buy cheaper are discriminated in relation to others. Programs should play the key role in creating a unique store image. However, to what extent can introduction of different schemes and technologies into the program create positive effects on the image? This is a sensitive issue for retail management as aspiration to increase profitability at the same time creates different perception among customers. To explore the conceptual model, a survey was carried out in six retail chains. There were 286 cardholders who participated in the survey whose perceptions and attitudes were ranked and they were divided in three age groups. The results show a propensity of customers toward two-tiered reward scheme ; however, also relevant contradictory tendencies were present. The managerial implications of the paper is to improve the understanding of the effects of multi-tiered rewards, thus helping the retailers who operatively use the programs to make a decision about how to best allocate marketing resources.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

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