As the usage of loyalty programs increases, this study takes a new approach to examine how these programs influence consumers’ attitudes toward brands. This paper is influenced by the recent findings that question the capability to create a clear picture of the effects of loyalty programs by conducting quantitative research. This is based of the differentiation between attitudes and actions, leading to the fact that quantitative research have only captured the actions of members of loyalty programs. In contrast to that, this paper uses qualitative interviews to create a more in-depth point of view.The paper immerses the reader in the theoretical viewings of what loyalty is and how it emerges from satisfaction. Aspects that make a consumer “loyal” are presented, as well as different degrees of loyalty. Furthermore loyalty is explained as a higher form of commitment, which is seen as an attitude towards a brand. The paper then discusses the possibility of looking at attitudes as relative, and as something used in different ways that can be constructed differently. We then examine the opposite of loyalty, which is inertia, which has similar aspects but is characterized on different grounds and emerges from switching costs and habitual behavior. The paper then creates a model of how loyalty programs affect the consumption process and creates either satisfaction or switching costs. The commitments of the consumers’ are then divided into either loyalty or inertia depending on the customers’ attitudes towards the brand with concern to the effect that the loyalty program has exercised.Our research has resulted in three different groups, each of which shows separate levels of commitment. The first group is labeled “loyal effect”. Through the loyalty program this group has developed satisfaction-based commitment towards the brand, hence loyalty. The second group consists of the informants that have not been influenced at all by the loyalty program, and is labeled “no effect”. The final group, “inertia effect”, shows that the loyalty programs have created switching barriers resulting in customer retention characterized by low commitment, hence inertia.The findings of this study highlight the fact that the commitment that is formed through loyalty programs has two sides to it rather than one, which has been claimed in previous studies. The results of the paper show that future studies and current brands need to change their current perspective. Instead of being concerned with whether loyalty programs have the capability to influence the consumers or not the real question is how it affects the customers and in what direction it influences an individual consumer’s commitment.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-89791 |
| Date | January 2014 |
| Creators | Wocalewski, Erik, Vahlund, Nils |
| Publisher | Umeå universitet, Företagsekonomi, Umeå universitet, Företagsekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
Page generated in 0.0018 seconds