Rewarding as a relational driver of customer loyalty in the Finnish grocery trade
LAUKKANEN, MAARIT (2011)
LAUKKANEN, MAARIT
2011
Yrityksen taloustiede, markkinointi - Marketing
Johtamiskorkeakoulu - School of Management
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Hyväksymispäivämäärä
2011-06-01
Julkaisun pysyvä osoite on
https://urn.fi/urn:nbn:fi:uta-1-21472
https://urn.fi/urn:nbn:fi:uta-1-21472
Kuvaus
Julkaisuarkistossa on tutkielman rajattu versio. Täysversio on luettavissa Tampereen yliopiston kirjastossa. This is a limited version of the Master's thesis. The complete version can be viewed in print at Tampere University Library.
Tiivistelmä
The study addressed the phenomenon of rewarding that has become an essential element of customer loyalty programs. It was indicated that the area of rewarding driving customer loyalty lacked qualitative studies that stressed different life stages. Hence, the purpose of the study was to describe and analyze rewarding as a relational driver of customer loyalty at different life stages in the Finnish grocery trade. It was decided to study rewarding at three life stages: singles/dinks (people with double income, no kids), people with children and postfamily.
Literature review described rewarding as a driver of customer loyalty. Loyalty can be driven by habits, bonds, relational disadvantages and relational benefits. The present study concentrated on relational benefits, rewarding as a factor to drive loyalty through several rewards. The value of a rewarding scheme was addressed to be relative to type, tangibility and differentiation, and time of reward. Each of these themes was discussed and finally, the theoretical framework of the key concepts in this study was formed to indicate rewarding as a relational driver of customer loyalty.
Qualitative approach was adopted in an attempt to make sense of, and interpret how consumers view the area of rewarding. This approach was also decided to adopt, as it was stressed that there was lack of qualitative methods used in this area. It was determined that focus groups would be used for collecting data. Data was gathered in two different cities in Finland. Six groups were formed as homogenous as possible within the groups representing the life stages. Altogether 51 people participated in the discussions. Data was analyzed with content analysis that stresses finding themes in data. Interpretations were supported with the use of quotations and tables.
Loyalty is driven by habits, bonds and relational benefits. Rewarding is mainly perceived as monetary. Rewarding scheme is preferred to be customercentric that rewards not only based on the spending volume but on the longterm relations and purchase patterns to drive loyalty. Types of reward can be composed of the balance of tangibles and intangibles, soft and recognitionbased, direct and indirect rewards.Monetary rewards, to drive loyalty, are preferred to be relevant and predominantly personalized considering the life stage. Intangibles are stressed to be original, soft and recognitionbased, targeted and mainly personalized rewards. Delayed rewards are perceived important in driving longterm loyalty, whereas immediate rewards are needed to be customercentric to drive loyalty. It is proposed to emphasize recognitionbased rewarding in the grocery trade. Quantitative research and exploration of the impact of recognitionbased rewarding on loyalty are needed in the area of rewarding.
Key words: Customer loyalty, relational driver, reward, grocery trade
Literature review described rewarding as a driver of customer loyalty. Loyalty can be driven by habits, bonds, relational disadvantages and relational benefits. The present study concentrated on relational benefits, rewarding as a factor to drive loyalty through several rewards. The value of a rewarding scheme was addressed to be relative to type, tangibility and differentiation, and time of reward. Each of these themes was discussed and finally, the theoretical framework of the key concepts in this study was formed to indicate rewarding as a relational driver of customer loyalty.
Qualitative approach was adopted in an attempt to make sense of, and interpret how consumers view the area of rewarding. This approach was also decided to adopt, as it was stressed that there was lack of qualitative methods used in this area. It was determined that focus groups would be used for collecting data. Data was gathered in two different cities in Finland. Six groups were formed as homogenous as possible within the groups representing the life stages. Altogether 51 people participated in the discussions. Data was analyzed with content analysis that stresses finding themes in data. Interpretations were supported with the use of quotations and tables.
Loyalty is driven by habits, bonds and relational benefits. Rewarding is mainly perceived as monetary. Rewarding scheme is preferred to be customercentric that rewards not only based on the spending volume but on the longterm relations and purchase patterns to drive loyalty. Types of reward can be composed of the balance of tangibles and intangibles, soft and recognitionbased, direct and indirect rewards.Monetary rewards, to drive loyalty, are preferred to be relevant and predominantly personalized considering the life stage. Intangibles are stressed to be original, soft and recognitionbased, targeted and mainly personalized rewards. Delayed rewards are perceived important in driving longterm loyalty, whereas immediate rewards are needed to be customercentric to drive loyalty. It is proposed to emphasize recognitionbased rewarding in the grocery trade. Quantitative research and exploration of the impact of recognitionbased rewarding on loyalty are needed in the area of rewarding.
Key words: Customer loyalty, relational driver, reward, grocery trade