An Investigation into a Grocery Store Loyalty Card and its Accompanying Promotional Benefits Effect on Service Loyalty

Sammanfattning: The purpose of this study is to investigate a loyalty card and its relation to accompanying promotional benefits, and their linkages to grocery retail service loyalty. Also, the aim sets out to find relationships between demographic variables and proneness towards the promotional benefits, the loyalty card, and loyalty. A quantitative approach has been assumed and empirical data has been collected through the use of questionnaires. The data has been analyzed through descriptive statistics, correlations, and regression analysis. An operationalization used to measure satisfaction of the loyalty card and attitudinal loyalty is also presented. Further, a literature review has been conducted and has resulted in an amalgamated conceptual framework, which is used to illustrate how the notion of loyalty, loyalty cards and its accompanying promotional benefits, and demographic variables are related. The empirical data has been collected by distributing questionnaires to members of a loyalty scheme at a grocery retail store in the south of Sweden. Results showed that a large proportion of the impact on satisfaction of the loyalty card was found to be derived from the loyalty cards promotional benefits. The loyalty card was also found to explain changes in both attitudinal and behavioral loyalty. However, promotional benefits provided a limited explanation of loyalty. Demographic variables are not found to have any direct relation with loyalty, however, linkages to promotional benefits and the loyalty card were found.