Perceived benefits of loyalty programs and relationship quality

Abstract

The aim of this article is to investigate perceived loyalty program benefits inherent in loyalty programs and how they might affect relationship quality, specifically in the South African FMCG sector. A quantitative study was undertaken where loyalty program members were approached via a national database. Hypotheses were individually tested by means of regression analysis. All three forms of perceived benefits exhibited positive relationships with each of the relationship quality constructs. Retailers that are considering which benefits to include in a loyalty program would find the results instructive. This article also adds to the international body of research in the field of relationship marketing, customer loyalty and retail loyalty programs. This study reiterates the importance of loyalty program design and the potential for attitudinal change towards the retailer.