Why Transparency Drives Trust, Engagement and Loyalty: Evidence from Scandinavian Grocery Retail
(A2026-132643)

AUTHORS

Gry Agerup, Kristiania University of Applied Sciences

ABSTRACT

This paper examines how transparency in grocery loyalty programmes shapes value perceptions, fairness, trust, engagement and loyalty intentions. While loyalty schemes aim to build long-term relationships, unclear or complex reward structures can weaken relational outcomes. Drawing on Service-Dominant Logic, Commitment–Trust Theory and Customer Engagement, the study conceptualises transparency as a relational mechanism that enhances clarity and predictability. Survey data from 392 loyalty programme members in Norway, Sweden and Denmark show that transparency strongly increases perceived value, trust and engagement, and directly supports loyalty intentions. Conversion fairness is the strongest fairness-related driver of trust, while price fairness plays a smaller role. Engagement emerges as a key predictor of loyalty and partially mediates the effect of transparency. The findings highlight transparency as a central mechanism shaping how customers interpret and engage with loyalty programmes in digitally mature and price-attentive markets. Keywords: Transparency; Relationship Marketing; Loyalty Programmes Track: Relationship marketing