Does card loyalty increase customer loyalty? : Evidence from a Swedish context with a regional focus.

Purpose: The aim of the study is to investigate if card loyalty increases attitudinal and behavioral loyalty of the customers, with a loyalty program (LP) membership. Theoretical approach: The thesis is based on previous literature on loyalty programs and customer loyalty. The conceptual model proposed in the study ties card loyalty to the two loyalty dimensions of customer loyalty: attitudinal and behavioral loyalty. Design/methodology: The study is conducted through a quantitative research design where data is collected through a survey. The self-reported questionnaires are sampled from social media users with active loyalty program membership with Coop. Findings: The empirical data from the 93 qualified questionnaires and the data analysis, indicate a significantly positive influence between both card loyalty and attitudinal respectively behavioral loyalty. Furthermore, the findings indicate that composite loyalty is present in the researched setting, since a strong correlation between attitudinal and behavioral loyalty was found. Although, the two-tailed correlation led to a revisiting of the conceptual model, since behavioral and attitudinal loyalty could also influence card loyalty. Practical implications: The findings of the study provide academic implications by showcasing LP effectiveness and create a methodology for regional LP research. The results also provide managerial implications for managers who contemplate updating or implementing a LP. Originality/value: The study adds to loyalty program literature by investigating how card loyalty influences customer loyalty, within a sparsely researched nation with a regional focus