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Loyalty Programs Effect on Building Customer Loyalty in Coffee Shop Industry

Student: Zagorodnikova Ekaterina

Supervisor: Alexander Manin

Faculty: Graduate School of Business

Educational Programme: Management (Bachelor)

Final Grade: 7

Year of Graduation: 2018

Loyalty programs have become one of the most common marketing tools in the coffee business. However, do they always have a positive impact on consumer behavior? Information from various sources about this is contradictory. And meanwhile, coffee houses spend significant funds for their development and implementation. Thus, the issue of assessing the impact of loyalty programs on consumer loyalty in the coffee market in Moscow is extremely relevant. This final qualifying work is devoted to the study of loyalty programs for consumer loyalty in the coffee market in Moscow. In the first chapter, theoretical foundations of loyalty, as well as factors that could affect loyalty and loyalty programs, were considered. The second chapter reviewed the coffee market in Moscow, analyzed two quite successful companies in this market - Starbucks and Coffeshopcompany, which effectively implement their loyalty programs. In the last part of the work, a statistical study of significant factors that affect consumer loyalty is carried out. The sample consists of 152 valid questionnaires received from the target audience of Moscow coffee houses. The results show that the greatest contribution to the emotional loyalty of customers is made by such factors as product quality, good range and popularity of the institution in the market. Behavioral loyalty is influenced by such factors as a good image, the popularity of the institution and the work of the staff. The influence of loyalty programs on both behavioral and emotional loyalty was statistically insignificant.

Full text (added May 29, 2018)

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