Loyalty to supermarkets

Weaving new retail and consumer landscapes in the Scottish Borders

“…Retailers are often engaged in the development of customer loyalty to try to prevent consumers switching their shopping amongst stores. However it has been shown (East et al, 1995; that switching occurs to some extent all of the time, but is associated in particular with changes in store operator or new developments. In some cases a new development could lead to a complete re-evaluation of all store attributes by consumers (Seiders and Tigert, 1997;Arnold et al, 1998).…”

Food store loyalty: Application of a consumer loyalty framework

“…10 Customer loyalty is a critical issue because consumers spend an average of 78 per cent of their food dollars at one primary store; 11 highly loyal supermarket customers spend an average of 32 per cent more than other customers. 12 Further, customer loyalty can yield favourable operating cost advantages for retailers, including streamlined inventory management, fewer markdowns and simplified capacity forecasting. Obtaining new customers costs five to six times as much as retaining current customers.…”

“Switched”: store‐switching behaviours

“…Demographics were also dismissed as a predictor by East et al (1995), though their later study did find that FSR rates increased with age (East et al 2000). Seiders and Tigert (1997) noted that switching rates were not constant amongst stores and that different switching motivations could be identified.…”

“…But, given the significance of market share changes over time, it is perhaps peculiar that more academic attention has not been paid to store-switching and store retention behaviour at the local and general level and over longer time periods. East et al (1995) quote previous commercial research as identifying a store loyalty rate of 72-75% per annum in grocery/food retailing in Great Britain. In their own mail survey they confirmed this level.…”