A virtuous circle: the relationship between Loyalty and Loyalty programs in Brazilian retail
(A2022-107484)

AUTHORS

Luciana de Almeida, ESPM; Erica Ortiz, ESPM

ABSTRACT

The present study aimed to evaluate the role of consumer loyalty regarding the membership and use of Loyalty Programs (LP) in the context of Brazilian retail. A systematic literature review allowed to identify the main factors that influence LP’s adoption by both managers and consumers. Consumer loyalty emerged as a central factor in the LP debate. The study adopted a phenomenological approach interviewing 11 LP’s participants. Results indicated that there is a cyclical relationship between loyalty and membership in the LP. In other words, a behavioral loyalty must exist a priori to guarantee the consumer’s membership and use of brand’s LP. Also, personalization of offers and rewards leads to repurchases and increases the switching costs. Implications for marketing managers help to frame the LP type appropriate for the retail target audience, the use of offer personalization and extensive communication to increase participant’s engagement with LP.