In the retail sector, consumers typically patronize multiple outlets for a variety of products, which raises the important issue of how outlets can gain a greater share of consumer expenditures. One such way is to increase repeat purchases through loyalty programs. This article examines the impact of loyalty programs, which target existing customers, on repurchase behavior in grocery stores. It finds that heavier, more frequent customers of a store enroll in the loyalty program earlier; that buying behavior changes only slightly after buyers join the program; and that small changes in loyalty appear to erode 6-9 months after buyers join.

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International audiencePurpose - This article aims to dwell on theoretical, managerial, and empirical knowledge to improve loyalty programme efficiency. Its intention is to try to understand how economic, hedonist, relational, convenience, informational rewards enhance or undermine customers' perceived programme benefits as well as subsequently loyalty according to individual shopping orientations (economical, hedonist, social-relational, apathetic, brand/loyal). Design/methodology/approach - The research uses self-determination theory (SDT) and purchase orientations to classify types of rewards in terms of their effect on perceived programme benefits and loyalty. Scales are developed through exploratory and confirmatory factor analysis. To validate the hypotheses, surveys in two retail chains (grocery/perfumery) are used. Structural equation modelling confirms the research model. Findings - Perceived benefits and loyalty vary according to purchase orientations, in line with the SDT. Intrinsic (extrinsic) rewards motivate customers to act to obtain a benefit within (apart from) the target of their purchase orientation and influences loyalty positively (have low impact on loyalty). Research limitations/implications - Further testing of reward types, in(ex)trinsic motivation, across multiple contexts is necessary for validity enhancement as it remains challenging to categorize purchase orientations and rewards. It is necessary to precisely define the degree of the relationship among an intrinsic purchase orientation and perceived loyalty programmes' benefits as orientations might be multidimensional. Practical implications - Differentiation through tailored rewards is necessary in markets with strong competition to appeal to different segments. Differentiation could be achieved through nonmonetary benefits. The principal role of loyalty programmes should be to identify and segment customers as a means to improve resource allocations. Originality/value - This is one of the pioneer articles in the use of SDT in marketing research. SDT provides a multi-benefit framework which identifies the different (non-) monetary rewards customers may value (in)extrinsically when participating in loyalty programmes. The development of scales which focus on rewards and the impact of purchase orientations on loyalty programmes' perceived benefits is another contributio

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