Developing a loyalty program for the online grocery business Assignment

Developing a loyalty program for the online grocery business - Assignment Example A primary study was conducted that refuted much of the psycho-social dimensions associated with loyalty studies. Findings indicated that the primary motivator for enrolment in loyalty programs was price, with no mention of psycho-social characteristics and implications. As such, recommendations founded on the research include rejection of tiered loyalty programs, targeting only relationship-centric promotions to the older consumer demographic, and using short-term pricing incentives. TABLE OF CONTENTS 1.0 Introduction................................................................................................ 1.1 Aim............................................................................................................. 1.2 Scope......................................................................................................... 2.0 Literature review........................................................................................ 2.1 The benefit of loyalty programs. ................................................................ ... ............................................................ 4.2 Relating results to theory............................................................................ 5.0 Conclusion.................................................................................................. 6.0 Recommendations...................................................................................... 7.0 References.................................................................................................. Consultant Report 1.0 Introduction This report provides consultant advice on the potential opportunities of implementing a customer loyalty program for the online grocer. Loyalty programs, in some industries, have a direct correlation to repurchase intention that is supported by research studies on the phenomenon of the linkages between consumer behaviour and their utilisation patterns associated with loyalty schemes. There are many implications for the issuer of the loyalty program, both adva ntageous and unfavourable, that include cost and management problems, abandonment strategies in the event of scheme failure, and the ability of the program to alter consumption behaviour. 1.1 Aim The aim of the study is to understand the theoretical versus practice-based underpinnings of loyalty schemes and their relationship to potentially coercing increased repurchase intention with desirable target markets and improving business profitability. 1.2 Scope To fully comprehend the potential success opportunities for launching a loyalty program for the online grocer, the report utilised a blend of secondary research on the phenomenon of consumer loyalty, consumer behaviour, plus control and management of loyalty schemes. Supplementing the aforementioned theory are findings from a primary