Global loyalty challenge: generational perceptions of the influence of perceived benefits on satisfaction with loyalty programs

Abstract

Globalization impacts organizations and customers already a few decades. In the context of globalization customers have more purchasing choices than even before, customers buying behaviour changes, the abundance of buying options raises the questions how to keep customers loyal. Customer loyalty becomes a challenge for any organization. Organizations face the challenge to adapt loyalty programs to different needs and deliver desirable value. Generational aspect gets a special importance, because people born in specific time of period imprint a specific and common purchasing, which is common global. This paper examines generational perceptions of the influence of perceived benefits on the satisfaction with loyalty programs for generations X and Y in grocery retailing, having in mind that customers become more loyal if they are satisfied with the rewards obtained from loyalty programs (Demoulin and Zidda, 2009). The research findings indicate that the most important loyalty programs benefits for both generations are monetary savings, social benefits and entertainment. Exploration has the strongest impact for Gen Xers, but having no meaningful impact for Millennials. On the other hand, convenience and recognition benefits are not important for both generations. The study findings indicate directions for loyalty management in grocery retailing which can be adapted globally.