Introduction
Theoretical, managerial, and empirical knowledge are investigated in order to improve loyalty programme efficiency and differentiation. To understand how economic, hedonist, relational, convenience, informational rewards increase or decrease customers’ perceived program benefits with loyalty based on individual shopping reference. From the loyalty programmes, the members may value from monetary and non-monetary rewards. This research is to investigate the influence of consumer’s action towards loyalty programmes. How rewards can affect the perceived benefits, and then loyalty. This research investigates on the two different sectors that is grocery and perfumery sectors. These sectors are varied in product involvement while for grocery retailing hypermarket are low involvement of products and high product involvement for perfumery chain. This is for identify the relationship between these two different spending areas.
Methodology
This research was investigated on two sectors scales including grocery retailing hypermarket and perfumery chain. To ensure the scales are relevant to the specific contexts of the two loyalty programmes, the authors using concept mapping and expert assessment. The research is also applying qualitative study to get the data. The authors pretest each scale with a random sample of loyalty programme holders from the grocery retailer and the perfumery to test the research instruments. The five-point of Likert scale are used and using exploratory (EFA) and confirmatory factor analysis (CFA) with three scales to built the measurement model. There are several factors used to determine the grocery retailing purchase orientation that is economic, brand/store-loyal, hedonist, social-relational, and a...
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...nist rewards and social relationship are related to the PI and RCP, the relationship should develop hedonist feeling.
Conclusion and Recommendation
Every customer has different purchase behaviours. Loyalty programme usage sometimes is not intrinsically stimulated by the same target. It only can encourage them to responds to purchase the goods or services. The loyalty programme influences the customers to choose but the factors (economic, brand/store-loyal, hedonist, social-relational, and apathetic) drive them to the services. They also positively correlated to intrinsic motivation and have a positive, long-term impression on purchase behaviour and loyalty. The findings have significant implications for loyalty programme managers to promote diverse rewards, segment their customer portfolios, and achieve differentiation through nonmonetary and monetary benefits.
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
Introduction. Customer loyalty is basically defined as a deep held commitment to re-buy or re-patronize a chosen product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior (Oliver, 1997). It is a main driver for customer retention, which, in its turn, represents a basic force that accumulates a customer base for the company. As the experience suggests, the presence of the customer base is a valuable asset, because a lot of statistical data and marketing researches have proved that it is harder and much more expensive to acquire a new customer rather than retain an existing one. In this aspect, any business without a focus on customer retention is left on market’s mercy: any market movements will affect the sales in a more intense manner. There is also a risk that your competitor may eventually satisfy the existing customer’s needs and take away a part of your market niche. Moreover, customer loyalty gives a sort of discretion to the company’s R&D policy and marketing strategy: you can try to introduce different features to your products, experiment with different types of ads, and no matter what the results would be, — the customers will stay stick to your production line. Of course, an organization does not have an absolute control over the loyalty of its customers, bec...
Loyalty, it comes in different shapes and is generally seen as a highly regarded human trait. It is defined as a commitment to consistently purchase preferred products or services over and over again (Oliver’s, 1999 p.34). A Loyalty Program (LP) is a marketing exercise designed to reward returning buyers (using discount cards; points cards; club cards / discounts; gifts and exclusive services). Some argue that LPs are only made to make consumers dependent on specific brands. This essay provides evidence that LPs mean to deliver benefits to consumers covering a multitude of their needs beyond mere financial advantage. Further, the paper argues that the choice to join or leave LP ultimately rests with the end users. Frequently multiple brands within one category of products are supported simultaneously.
In order to the buying of any merchandises or services. There is a wide range of differently balance features that influence each choice, and these balances are different through market segment, focussing on the significance of identifying the different consumer segments in terms of shopping orientations and particularly decision-making consumer styles (Mcdonald, 1994, p.552). Shopping orientation is concerned with behaviors, whether it is social and individual decisions (Darden and Reynolds, 1971 et al cited in Darden and Dorsch, 1990, p.297). However, two principal factors about visiting the store are to obtain info in terms of stores and their presents or demanded merchandise, for difference of shopping orientation would be made to accomplish the numerous shopping objectives of each personality. For instance, while some person obtains the information in terms of a store and their presents, it might assist to reduce the amount of future times of product searching when they demand to make a buying process. Anyway, Shopping behavior is several dimensional notions, and it is very significant to realize the meaning of shopping orientation as previous some researchers have found and developed it broadly to represent recognition of apparel and fashion shopping (Summers, Belleau, and Wozniak, (1992). The following table below will show,
Ninety percent of Canadians are enrolled in at least one loyalty program. Market research has shown that loyalty programs are growing to be very popular in today’s market. A loyalty program is a program offered by a company to customers, who make frequent purchases. Loyalty programs are of benefit to both the consumers and the business. The consumers benefit by receiving coupons, special access to sales and new products whereas the company benefits by gaining an abundance of knowledge about the consumers, through their purchasing habits. Loyalty programs have proven to be very successful for several companies such as Target, Starbucks, and Shoppers Drug Mart. The senior management in sales and marketing believe that initiating a loyalty program
Loyalty is considered as an important factor for each type of business because it helps a business in different ways such as loyalty of customers boost the growth of business, improve the reputation of company, enhance sale including rewards, loyalty would provide vital market research and the most important thing customers would be more happy. In the case of Starbucks that organizes different loyalty programs for its customers to increase the loyalty of customers. Basically Starbucks try to reward its customers if they visit their company for coffee. The criteria of reward depends upon the number of visits of customers not on how much a customer spent his money on company.
Furthermore, I will explain the application of theory relating to me and my purchase. I will also review the marketing activity of the organization where I purchased from. This is to explain how the two theories have been used in the marketing strategy. In addition, recommendations regarding how the marketing strategy could have been improved by applying the 2 buyer behaviour theories are given.
...ough quality or enough service, satisfaction will result. However, we have evidence to support that quality and service alone can not produce recurrent satisfaction. Satisfaction is a distinct and separate issue.
The quantitative approach is a research methodology that aims to quantify the data in order to use statistical methods for analysing and describing a data set (Malhotra & Birks, 2007). This approach enables a researcher to establish statistical evidence on the nature and strengths of the relationships between variables. Although quantitative methods are unable to provide in-depth explanations compared with qualitative methods, quantitative methods can be used to test hypotheses and determine the reliability and validity of the variable measurement (Malhotra & Birks, 2007). Moreover, quantitative research methodologies have widely and successfully been used in previous loyalty studies, particularly in the context of airline services(Chang & Chang, 2010; P.-T. Chen & Hu, 2012; Forgas et al., 2010; Park et al., 2006).
Considering the rise of relationship marketing and the increasing interest in customer’s loyalty, brand loyalty concept requires further research. The shift from the transaction-focused marketing to relationship marketing provides a clear evidence of the passage from traditional brands to lifestyle brands (Grönroos, 1994). There is a concurrence that loyal consumers is the key for the future of the brands. Having loyal consumers provides better profits, word of mouth and improves the overall image of the brand. Moreover, loyalty offers the basis for competitive advantage, an advantage that can be realized through marketing (Dick and Basu 1994). A research has deliberated the causal link between lifestyle brands and consumers loyal behavior
According to Martinez – Ruiz et al (2010) states, in this modern age customers are always on the look for their conveniences. For this the researcher has used some of the elements such as; membership card, parking lots, and children’s area. For example, the availability of parking lots in the hypermarket can provide convenience for customer who has a car thus leading to positive impact on the customer satisfaction. Membership card can provide customers with special promotions, offers and discounts.
Marketing and branding, two of the most common used words in the contemporary world, is closely linked to each other without doubts, but the importance of branding to successful marketing is enquired to measure in term of the question. In fact, various people have different ideas on marketing and branding. For most of people, or customers, the two are normally combined in their minds or even equal to each other. For example, people could raise Apple as the answer for both questions of "what is good branding" and "what is successful marketing". In fact, they are two separate topics on academic, and branding is just one of the numerous marketing activities apparently. However, the perception of consumers might be a good guide to answer the question.
The purchasing process is a highly complex organizational process with objectives that reach far beyond the traditional belief and primary role is to obtain goods and services in response to internal needs. In this course, we are studying the consumer behaviour, which is defined as” the process involved when individuals or groups select, purchase, ideas or experience to satisfy needs and desires. In the past four weeks, I recorded my purchase behaviour and experience to show what effect on the purchasing process and my behaviour. I found two of those purchasing behaviours can be significantly represented this concept.
Task 1: Critically evaluate the key concepts/theories on the topic of the effectiveness of loyalty programmes on customer loyalty
I understand the term customer value to define how customers weigh the benefits of individual purchasing decision against the costs of these products.