CUSTOMER PERCEPTION AND ATTITUDE OF LOYALTY PROGRAMS IN CROATIA

Abstract

This paper explains the reasons for loyalty programs emergence in retail and their significance to retailers and buyers, as well as the components they consist of. Subsequently, customers’ attitudes on these loyalty programs components on the fast moving consumer goods (FMCG) market in Croatia have been analyzed. Aim of the study was to explore the antecedents of loyal customers and therefore only those respondents who participated in at least one loyalty programs were used for testing the research question of the paper. The results of the conducted research undoubtedly show that, customers appreciate the simplicity in loyalty programs and ask for their transparency. They want to be able to choose rewards within loyalty programs and prefer delayed, but more valuable rewards. It has also been confirmed that customers want to win points in innovative ways. The research results, in view of buyers’ priorities and the factors deemed crucial for the success of such programs on Croatian retail market, can be of use to retailers who wish to improve their loyalty programs. It is clearly evident from the research results on Croatian market what customers consider as important and what they want from a loyalty program.