Building customer loyalty in Swedish pharmacy retail

Abstract: Thesis purpose: The purpose of this research is to extend the concept of customer loyalty by applying it to a pharmacy retail setting using the perspective and understanding of both pharmacy professionals and consumers in order to comprehend which factors influence loyalty construction in this sector as opposed to in other retail industries. Theoretical perspective: This study focuses on surveying previous literature on building customer loyalty in a general retail setting to establish the most utilized factors and determinants. Subsequently, through an abductive process, we develop a theoretical model that empirically portrays the viewpoints of both employees and customers of which factors are paramount in the process. Methodology: The paper holds an exploratory purpose and is designed as an in-depth qualitative study, guided by an abductive approach and the interpretation analytical methods explained in detail by Rennstam and Wästerfors (2018). Empirical data: The paper holds two separate studies performed consecutively. The first study included ten semi-structured interviews with pharmacy retail professionals working with multiple pharmacy chains, while the second study was conducted with fifty-two customers of different ages and backgrounds through qualitative surveys. All respondents were interviewed in relation to loyalty construction and were chosen for participation through the use of snowball and convenience sampling techniques. Originality: The present work provides a new perspective on customer loyalty within pharmacy retail, previously not discussed through the lens of pharmacy employees and their understanding of the concept. It provides valuable insight into the perceptions of employees as opposed to customers and their interaction. Thus, this paper provides a potential model representative of the factors that influence loyalty construction specifically in the context of Swedish pharmacy retail which stems from both the pharmacists’ and customers’ views. Conclusion: This research provides both theoretical and practical implications for the retail literature. In terms of theoretical contribution, we created a model that can be utilized as a steppingstone and first of its kind in pharmacy retail research. Our practical considerations link to the everyday functioning of pharmacy retail chains, and what factors and steps should practitioners undertake to build customer loyalty in their retail chains and understand better their customer needs.