Loyalty programs in the pharmaceutical retail: the impact of a network loyalty program on the pharmacy loyalty. (2018)

• Record Type: Journal Article
• Authors: Nobre, Helena; Rodrigues, Catarina
• Is Part Of: International journal of business excellence. Volume 14:Number 4(2018)
• Page Start: 454
• Page End: 469
• Publication Date: 2018
• Subjects: loyalty program -- community pharmacy -- network loyalty program -- program perceived value -- store loyalty -- program satisfaction; Reengineering (Management) -- Periodicals; Benchmarking (Management) -- Periodicals; Performance -- Management -- Periodicals; 658.401305
• Languages: English
• ISSNs: 1756-0047

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.