The customers’ intention of using loyalty programs
University of Adelaide
Place of Publication
School of Business and Law
In an effort to overcome the competitive retail market, retail companies focus on increasing their number of loyal customers. To develop loyalty among customers, a range of loyalty programs have been implemented in the retail marketplace, which are typically designed based on the retailers’ perspectives, not the customers’. Despite the diversity of these programs, companies still struggle to ascertain whether loyalty programs are meeting the needs and requirements of their customers. Focusing on the customers’ perceptive, this research explores the major factors affecting the customers’ intention to use grocery loyalty programs. Qualitative research was conducted which involved collecting data from six focus groups. NVivo software was used to analyse data collected from the focus groups. This study contributes to the literature by establishing habit and crowd behaviour as factors impacting on customers’ use of loyalty programs in Australian grocery market.