The Influence of Perceived Benefits on the Satisfaction with the Loyalty Program
Keywords:perceived benefits, satisfaction, hedonic benefits, utilitarian benefits, symbolic benefits, loyalty program, grocery, retailing
Nowadays every loyalty program must have some value proposition, it becomes the main factor attracting customer to join the loyalty program. Value proposition, considered as a set of benefits customer receives being a member of the loyalty program relates to perceived benefits. Identifying the influence of perceived benefits becomes important to satisfy customers and can lead to greater loyalty to the program what can result greater loyalty to the store. The aim of the study was to measure the influence of perceived benefits on the satisfaction with the loyalty program in Lithuanian grocery retailing. 312 respondents took part in the research. A structural equation modelling using partial least squares path modelling methodology was applied in order to determine the impact of perceived benefits on the satisfaction with the loyalty program. The research findings indicate that the most important loyalty program benefits for the customer satisfaction with the loyalty program are monetary savings (as a part of utilitarian benefits), exploration (as a part of hedonic benefits), entertainment (as a part of hedonic benefits) and social (as a part of symbolic benefits). On the other hand, convenience (as a part of utilitarian benefits) and recognition benefit (as a part of symbolic benefits) are not important in the case of the satisfaction with the loyalty program in Lithuanian grocery retailing. The study findings imply that it is advantageous for Lithuanian grocery retailers to provide partly utilitarian, hedonic and partly symbolic benefits in their programs for gaining customer satisfaction through loyalty programs.