Supermarket Shopper Satisfaction of Loyalty Programs

Abstract

Contemporary retail sector in Sri Lanka is very competitive. Changing consumer lifestyle, limited growth beyond the Western Province and main urban centers, and increasing competition due to new supermarket chains are driving supermarket chains to focus on customer acquisition and retention programs. In this context, loyalty programs initiated by the supermarket chains are expected to play an important role to lure customers. This research aims to identify the drivers of supermarket shopper satisfaction of loyalty card programs. Anticipated benefits, privacy concerns, variety seeking, and customer involvement and commitment are the four key drivers identified through the extant literature. Data were collected from 100 shoppers visiting supermarket chains in the Colombo District using a questionnaire. Analysis was conducted using the multiple linear regression technique. Results revealed that anticipated benefits and privacy concerns have a significant impact on shopper satisfaction towards loyalty card programs of supermarket chains.