The impact of loyalty program on customer loyalty at retail supermarkets in Ho Chi Minh City: The role of perceived effectiveness

Abstract

In the context of increasing competitive pressure, retail businesses that want to survive and develop must have specific strategies to improve their competitiveness. Keeping people who already know and love your business is also important. To increase customer loyalty, one of the measures taken by many businesses is through a loyalty program. While there is a lot of research on loyalty programs, there are few studies looking at the benefits of loyalty programs especially in the retail market in Vietnam. “This study focuses on three main purposes: (1) To determine the benefits of loyalty programs affecting customer loyalty in supermarkets; (2) Assess the impact of the benefits of loyalty programs on customer loyalty in supermarkets; (3) Propose ideas to build loyalty programs that can meet the perceived benefits of customers, thereby improving customer loyalty in supermarkets.” “Based on data collected from 350 loyalty program participants at retail supermarkets, research shows that Perceived effectiveness of loyalty programs has a positive effect on customer loyalty behavior through benefits of the loyalty programs (program utilitarian benefits, program hedonic benefits and program symbolic benefits), and satisfaction with program. The research contributes to a deeper understanding of customer loyalty behavior and provides important insights for these service providers. Based on the research results, the researcher has proposed a number of administrative implications related to the benefits of loyalty programs on customer loyalty.”