Young South African consumers versus FMCG reward programs

Marius Potgieter and Thuto Mandlasi
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Marius Potgieter: North-West University, South Africa
Thuto Mandlasi: North-West University, South Africa

in ABEM Conference Proceedings from Academy of Business and Emerging Markets (ABEM), Canada, currently edited by Satyendra Singh

Abstract: and value demanding, especially young consumers. Consumer reward programs (CRPs) is a tool used in relationship marketing in an attempt to get a consumer to return to an outlet (a consumer behavioral tendency) in exchange for a reward, whilst the marketer obtains valuable marketing intelligence necessary for customized integrated marketing communication with the member consumer. The name of CRPs is a contentious issue as CRPs are often referred to as a ‘loyalty’ program whilst the concept loyalty is a psychological state of mind. This study is an initial study to understand the concept loyalty and the CRM practices of young South Africans, as well as their opinion of CRPs of FMCG outlets. A group of consumers ranging from 15 to 35 years of age participated in this study and their CRP membership is based on the rewards they get. Less than half of the consumers’ purchasing behavior is influenced by any CRP and nobody referred to loyalty in any form. Marketers need to reconsider the image of their CRPs and devise ways of getting especially male consumers interested in such programs. Consumer loyalty probably will remain a bone of contention for some time to come.

Keywords: young consumers; reward programs; South Africa (search for similar items in EconPapers)
Date: 2018
ISBN: 9780993734236
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Persistent link: https://EconPapers.repec.org/RePEc:ris:abemcp:023177

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