Socio-demographic and lifestyle determinants of loyalty program participation in the Czech Republic

• Main Authors: Formánek Tomáš, Tahal Radek
• Format: Article
• Language: English
• Published: Sciendo 2017-12-01
• Series: Management şi Marketing
• Subjects: Loyalty program; customer retention; market research; FMCG; product category; generational aspects
• Online Access: http://www.degruyter.com/view/j/mmcks.2017.12.issue-4/mmcks-2017-0031/mmcks-2017-0031.xml?format=INT

Loyalty programs are among the most frequently employed marketing tools used to minimize customer attrition rates. In this article, different aspects of consumer participation in loyalty programs for major product categories are analyzed with focus on generational differences. We use the time-proven segmentation of Baby boomers and generations X, Y and Z. Our analyses and findings are based on primary data (2016): the survey is formed by a representative sample of 585 respondents. A wide portfolio of statistical learning methods and tests is used for data analysis. The first segment of our analysis brings forward groups of product categories where consumers tend to use loyalty programs concurrently. This identifies opportunities and boundaries for establishing and managing co-branded loyalty programs. The second part of our quantitative analysis is based on generational, other socio-demographic and lifestyle factors influencing individual participation in loyalty programs. Here, the main focus is on four product categories where loyalty programs are used most often. Generational differences are well pronounced in fashion-related categories. On the other hand, loyalty program usage rates in product categories related to basic household operations show little generational differences.