Loyalty Programme Effectiveness and Consumer Switching Behaviour in Nigerian Supermarkets: A Case Study in Ibadan

This study assesses the effectiveness of loyalty programmes in reducing consumer switching behaviour in Nigerian supermarkets, with a case study focus on selected outlets in Ibadan, Oyo State, South West Nigeria. As modern retail in Nigeria matures, supermarkets have adopted loyalty cards, point accumulation systems, and exclusive member discounts as retention tools. Despite these investments, switching behaviour among supermarket shoppers remains prevalent, raising questions about the actual effectiveness of such programmes. The research employs a cross-sectional survey design, targeting 290 shoppers who are enrolled members of at least one supermarket loyalty programme. Data are collected through a structured questionnaire that measures programme satisfaction, reward value perception, convenience, and switching behaviour. Multiple regression analysis is used to identify the strongest predictors of reduced switching. The study also examines whether perceived alternative attractiveness moderates the relationship between loyalty programme satisfaction and switching behaviour. Preliminary findings suggest that reward redemption ease and perceived value are the strongest deterrents of switching, while complicated point structures and limited reward options undermine programme effectiveness. The research contributes to retail marketing and consumer loyalty literature by providing Nigerian supermarket-specific evidence. Recommendations are directed at supermarket chains and their marketing departments seeking to design loyalty programmes that deliver measurable retention outcomes within the South West Nigerian consumer market. Keywords: loyalty programme, consumer switching, supermarkets, Ibadan, customer retention