Consumer misbehaviour

Abstract

Customer loyalty schemes have been a major focus of retail marketing activity over the last 2 years, as established retailers have struggled to stem the flow of ‘defections’ to various discount formats. Many of these schemes are little more than expensive, short-term tactics. A more integrated abd longer-term approach requires a clear understanding of the concept and determinants of loyalty. This paper examines these issues, and presents results from a recently completed study of consumer behaviour within the increasingly competitive grocery market. The study compared the characteristics of ‘loyal’ and ‘promiscuous’ users of a major grocery superstore. Through a range of bivariate and logistical regression analyses, some major determinants of loyalty have been identified and modelled, notably, shoppers' travel times, age and income. The paper concludes with a series of propositions and guidelines for managers evaluating loyalty programmes.