Customers’ expectations and loyalty to their loyalty programs : How customers are reacting according to their socio-demographic factors.

University essay from Linnéuniversitetet/Institutionen för marknadsföring (MF)

Abstract: Background: Nowadays with the very competitive business environment, it is essential for companies to gain loyal customers. Loyalty programs are one of the tools at the disposition of companies to attract and retain their customers. The relationship between customer loyalty and some socio-demographics factors have been a subject of researches but the specific relationship between socio-demographics factors and customer loyalty programs has not been studied yet. This study is going to try to fulfil this gap. Purpose: To study the influence of socio-demographic factors on customers’ expectations of their loyalty programs and on their loyalty. Research questions: 1. Which socio-demographic factors are influencing customers’ expectations of their loyalty programs? 2. Which socio-demographic factors are influencing program loyalty and company loyalty? Methodology: Quantitative research. Conclusion: It is possible to say that all socio-demographic factors studied have an influence on at least one of the expectations of customers concerning their loyalty programs and on their loyalty too. Those factors are then really important for a company to look at when they start a loyalty program or when they try to improve it.

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