Are supermarket shoppers attracted to specialty merchandise rewards?

Abstract

Purpose The aim is to examine whether supermarkets may be losing the opportunity to increase customer purchase outlays by means of loyalty points, convertible to acquire specialty goods and services provided by “bonus partners”. Design/methodology/approach Two econometric models were constructed from data collected from 470 supermarket shoppers in one major Australian city, to predict mechanisms for making shoppers aware of loyalty points accrued on their credit card purchases and for inducing them to pay for purchases with specific credit cards linked to loyalty programmes of which they were members. Findings Shoppers who are aware consider specialty merchandise in exchange for loyalty po..