Customer Loyalty Programs and Repeat Purchase Behavior of FMCG in Nigeria

Abstract

Customer loyalty programs have been a crucial strategy for fostering consumer retention and enhancing sales in the fast-moving consumer goods (FMCG) sector. This study examined the effect of reward incentives on repeat purchase behavior, specifically focusing on purchase frequency among FMCG consumers in Esan West Local Government Area, Edo State, Nigeria. A survey research design was adopted, with a population of 76 FMCG consumers, and the Krejcie and Morgan sampling technique was used to determine a sample size of 59 respondents. Primary data were collected using structured questionnaires, and the results were analyzed using percentage analysis and correlation analysis. Findings revealed that 80% of respondents agreed that reward incentives positively influenced their purchase frequency, and correlation analysis further established a significant relationship (r = 0.682, p < 0.01) between reward incentives and repeat purchase behavior. The study aligned with the Theory of Planned Behavior (Ajzen, 1991), which posited that consumers who perceived loyalty rewards as valuable were more likely to engage in repeat purchases. The study concluded that FMCG brands that invested in attractive and easily redeemable reward incentives fostered long-term consumer loyalty. Personalized and digital-based loyalty programs were also identified as effective strategies for increasing customer retention. The findings provided valuable insights for businesses seeking to optimize loyalty programs and enhance repeat purchase behavior in Nigeria’s competitive FMCG industry.