IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v60y2021ics0969698921000163.html
   My bibliography  Save this article

Building chain loyalty in grocery retailing by means of loyalty programs – A study of ‘the Norwegian case’

Author

Listed:
  • Nesset, Erik
  • Bergem, Ola
  • Nervik, Bjørn
  • Schiøll Sørlie, Even
  • Helgesen, Øyvind

Abstract

The aim of the paper is to analyze chain loyalty effects of customers' perceived value of loyalty programs in grocery retailing. It contributes to filling a gap in the literature, as there has been little earlier focus on the links between customers' perception of loyalty program value and satisfaction, image, and loyalty, at the chain level. One main finding is that customers’ perceived value of a loyalty program has significant direct and moderating effects on chain loyalty, and the moderation effects are chain dependent. Managers should thus consider satisfaction creation, image building, and loyalty program value creation as parallel processes.

Suggested Citation

  • Nesset, Erik & Bergem, Ola & Nervik, Bjørn & Schiøll Sørlie, Even & Helgesen, Øyvind, 2021. "Building chain loyalty in grocery retailing by means of loyalty programs – A study of ‘the Norwegian case’," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:joreco:v:60:y:2021:i:c:s0969698921000163
    DOI: 10.1016/j.jretconser.2021.102450
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698921000163
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2021.102450?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Babin, Barry J. & Griffin, Mitch, 1998. "The nature of satisfaction: An updated examination and analysis," Journal of Business Research, Elsevier, vol. 41(2), pages 127-136, February.
    2. Demoulin, Nathalie T.M. & Zidda, Pietro, 2009. "Drivers of Customers’ Adoption and Adoption Timing of a New Loyalty Card in the Grocery Retail Market," Journal of Retailing, Elsevier, vol. 85(3), pages 391-405.
    3. Kumar, V. & Anand, Ankit & Song, Hyunseok, 2017. "Future of Retailer Profitability: An Organizing Framework," Journal of Retailing, Elsevier, vol. 93(1), pages 96-119.
    4. Gupta, Shruti & Pirsch, Julie, 2008. "The influence of a retailer's corporate social responsibility program on re-conceptualizing store image," Journal of Retailing and Consumer Services, Elsevier, vol. 15(6), pages 516-526.
    5. Nagengast, Liane & Evanschitzky, Heiner & Blut, Markus & Rudolph, Thomas, 2014. "New Insights in the Moderating Effect of Switching Costs on the Satisfaction–Repurchase Behavior Link," Journal of Retailing, Elsevier, vol. 90(3), pages 408-427.
    6. Filipe, Sandra & Marques, Susana Henriques & Salgueiro, Maria de Fátima, 2017. "Customers' relationship with their grocery store: Direct and moderating effects from store format and loyalty programs," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 78-88.
    7. Dorotic, Matilda & Verhoef, Peter C. & Fok, Dennis & Bijmolt, Tammo H.A., 2014. "Reward redemption effects in a loyalty program when customers choose how much and when to redeem," International Journal of Research in Marketing, Elsevier, vol. 31(4), pages 339-355.
    8. Nesset, Erik & Helgesen, Øyvind, 2014. "Effects of switching costs on customer attitude loyalty to an airport in a multi-airport region," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 240-253.
    9. Karande, Kiran & Lombard, John R, 2005. "Location strategies of broad-line retailers: an empirical investigation," Journal of Business Research, Elsevier, vol. 58(5), pages 687-695, May.
    10. Wolter, Jeremy S. & Bock, Dora & Smith, Jeffery S. & Cronin, J. Joseph, 2017. "Creating Ultimate Customer Loyalty Through Loyalty Conviction and Customer-Company Identification," Journal of Retailing, Elsevier, vol. 93(4), pages 458-476.
    11. Yoo, Jungmin & Park, Minjung, 2016. "The effects of e-mass customization on consumer perceived value, satisfaction, and loyalty toward luxury brands," Journal of Business Research, Elsevier, vol. 69(12), pages 5775-5784.
    12. Dowling, Grahame R., 1988. "Measuring corporate images: A review of alternative approaches," Journal of Business Research, Elsevier, vol. 17(1), pages 27-34, August.
    13. Minnema, Alec & Bijmolt, Tammo H.A. & Non, Mariёlle C., 2017. "The impact of instant reward programs and bonus premiums on consumer purchase behavior," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 194-211.
    14. Grohs, Reinhard & Reisinger, Heribert, 2014. "Sponsorship effects on brand image: The role of exposure and activity involvement," Journal of Business Research, Elsevier, vol. 67(5), pages 1018-1025.
    15. Bridson, Kerrie & Evans, Jody & Hickman, Melissa, 2008. "Assessing the relationship between loyalty program attributes, store satisfaction and store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 15(5), pages 364-374.
    16. Hwang, Jiyoung & Choi, Laee, 2020. "Having fun while receiving rewards?: Exploration of gamification in loyalty programs for consumer loyalty," Journal of Business Research, Elsevier, vol. 106(C), pages 365-376.
    17. Bombaij, Nick J.F. & Dekimpe, Marnik G., 2020. "When do loyalty programs work? The moderating role of design, retailer-strategy, and country characteristics," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 175-195.
    18. Hildebrandt, Lutz, 1988. "Store image and the prediction of performance in retailing," Journal of Business Research, Elsevier, vol. 17(1), pages 91-100, August.
    19. Walsh, Gianfranco & Shiu, Edward & Hassan, Louise M., 2014. "Replicating, validating, and reducing the length of the consumer perceived value scale," Journal of Business Research, Elsevier, vol. 67(3), pages 260-267.
    20. Yan Zhang & Leilei Gao, 2016. "Wanting Ever More: Acquisition Procedure Motivates Continued Reward Acquisition," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 43(2), pages 230-245.
    21. Shaikh, Aijaz A. & Karjaluoto, Heikki & Häkkinen, Juho, 2018. "Understanding moderating effects in increasing share-of-wallet and word-of-mouth: A case study of Lidl grocery retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 45-53.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Meyer-Waarden, Lars & Bruwer, Johan & Galan, Jean-Philippe, 2023. "Loyalty programs, loyalty engagement and customer engagement with the company brand: Consumer-centric behavioral psychology insights from three industries," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    2. Hallikainen, Heli & Luongo, Milena & Dhir, Amandeep & Laukkanen, Tommi, 2022. "Consequences of personalized product recommendations and price promotions in online grocery shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    3. Hu, Xin & He, Liuyi & Liu, Junjun, 2022. "Status reinforcing: Unintended rating bias on online shopping platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    4. Victor Ye. Kovalev & Kseniya V. Novikova & Ekaterina A. Antineskul, 2022. "Efficiency of customer loyalty programmes in the food retail industry," Journal of New Economy, Ural State University of Economics, vol. 23(4), pages 121-136, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    2. Alex Belli & Anne-Maree O’Rourke & François A. Carrillat & Ljubomir Pupovac & Valentyna Melnyk & Ekaterina Napolova, 2022. "40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 147-173, January.
    3. Helgesen, Øyvind & Ivar Håvold, Jon & Nesset, Erik, 2010. "Impacts of store and chain images on the “quality–satisfaction–loyalty process†in petrol retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 17(2), pages 109-118.
    4. Bombaij, Nick, 2021. "Effectiveness of loyalty programs," Other publications TiSEM 095c506d-5b5c-4ea3-9b41-a, Tilburg University, School of Economics and Management.
    5. Bombaij, Nick J.F. & Gelper, Sarah & Dekimpe, Marnik G., 2022. "Designing successful temporary loyalty programs: An exploratory study on retailer and country differences," International Journal of Research in Marketing, Elsevier, vol. 39(4), pages 1275-1295.
    6. Bies, Suzanne M.T.A. & Bronnenberg, Bart J. & Gijsbrechts, Els, 2021. "How push messaging impacts consumer spending and reward redemption in store-loyalty programs," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 877-899.
    7. Bies, Suzanne, 2022. "Examining the effectiveness of activation techniques on consumer behavior in temporary loyalty programs," Other publications TiSEM ade86df3-4846-4318-938f-a, Tilburg University, School of Economics and Management.
    8. Alina Nastasoiu & Neil T. Bendle & Charan K. Bagga & Mark Vandenbosch & Salvador Navarro, 2021. "Separating customer heterogeneity, points pressure and rewarded behavior to assess a retail loyalty program," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1132-1150, November.
    9. Nishio, Kazuki & Hoshino, Takahiro, 2022. "Joint modeling of effects of customer tier program on customer purchase duration and purchase amount," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    10. Bombaij, Nick J.F. & Dekimpe, Marnik G., 2020. "When do loyalty programs work? The moderating role of design, retailer-strategy, and country characteristics," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 175-195.
    11. Matilda Dorotic & Dennis Fok & Peter C. Verhoef & Tammo H. A. Bijmolt, 2021. "Synergistic and cannibalization effects in a partnership loyalty program," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 1021-1042, September.
    12. Li, Chen & Swaminathan, Srinivasan & Kim, Junhee, 2021. "The role of marketing channels in consumers’ promotional point redemption decisions," Journal of Business Research, Elsevier, vol. 125(C), pages 314-323.
    13. Atul Purohit & Urjita Thakar, 2019. "Role of information and communication technology in improving loyalty program effectiveness: a comprehensive approach and future research agenda," Information Technology & Tourism, Springer, vol. 21(2), pages 259-280, June.
    14. Zou, Fei & Yang, Mei & Zhou, Yanju & Deng, Yaling & Xie, Baiwei, 2024. "Goal-gradient point rewards can increase consumers' willingness to purchase poverty-alleviating products," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    15. Florez-Acosta, Jorge, 2021. "Do preferences for private labels respond to supermarket loyalty programs?," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 183-208.
    16. Lina Xu & Zhiqing Meng, 2024. "Optimizing Retailer Ordering Strategies: a Comparative Analysis of Membership and Non-Membership Systems," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13027-13048, September.
    17. Jisu J. Kim & Lena Steinhoff & Robert W. Palmatier, 2021. "An emerging theory of loyalty program dynamics," Journal of the Academy of Marketing Science, Springer, vol. 49(1), pages 71-95, January.
    18. Ricardo Montoya & Constanza Flores, 2019. "Buying free rewards: the impact of a points-plus-cash promotion on purchase and reward redemption," Marketing Letters, Springer, vol. 30(1), pages 107-118, March.
    19. Gabel, Sebastian & Guhl, Daniel, 2022. "Comparing the effectiveness of rewards and individually targeted coupons in loyalty programs," Journal of Retailing, Elsevier, vol. 98(3), pages 395-411.
    20. Rémi Mencarelli & Carole Lombart, 2017. "Influences of the perceived value on actual repurchasing behavior: Empirical exploration in a retailing context," Post-Print hal-01592035, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:60:y:2021:i:c:s0969698921000163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.