Title: Loyalty programs in the pharmaceutical retail: the impact of a network loyalty program on the pharmacy loyalty

Authors: Helena Nobre; Catarina Rodrigues

Addresses: DEGEIT, University of Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal ' Economics and Management School, University of Minho, Campus de Gualtar, 4710-057 Braga, Portugal

Abstract: The paper aims to explore the role of network loyalty programs (LPs) in the pharmaceutical retail industry. A questionnaire, directed to the members of a network LP, was carried out in a community pharmacy, in order to test the various relationships in a conceptual model. Results indicate that the positive effect of program perceived value on store loyalty is strengthened by the existence of program satisfaction and program loyalty, suggesting that a network loyalty program may be a source of competitive advantage for pharmacies. However, due to its nature, a network LP may solely increase sales but not generate true loyalty toward the pharmacy. In that case, firms should rethink their efforts on the program. A clear strategy, consistent relationship marketing initiatives, and an effective communication on LP's value proposition are needed to generate differentiation advantages and commitment toward the program and the pharmacy. Contributions to pharmacy management are offered.

Keywords: loyalty program; community pharmacy; network loyalty program; program perceived value; store loyalty; program satisfaction.

DOI: 10.1504/IJBEX.2018.090312

International Journal of Business Excellence, 2018 Vol.14 No.4, pp.454 - 469

Received: 16 May 2016
Accepted: 17 Dec 2016
Published online: 12 Mar 2018 *

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