- Title
- An evaluation of loyalty programmes
- Creator
- Thaver, Aneshree Terrilla
- Subject
- Customer loyalty programs -- South Africa
- Subject
- Customer clubs -- Evaluation Customer relations -- Evaluation Customer services -- Management Consumer satisfaction -- Evaluation
- Date Issued
- 2019
- Date
- 2019
- Type
- Thesis
- Type
- Masters
- Type
- MBA
- Identifier
- http://hdl.handle.net/10948/43856
- Identifier
- vital:37062
- Description
- A Loyalty Programme, is the term most commonly used to summarise various Customer Relationship Management programmes instituted by companies, to endear and encourage loyalty from customers. In order to better understand the component of loyalty within the context of Loyalty Programmes, a dimensional approach has been suggested. The dimensional approach is based firstly, on behavioural loyalty theories, which focus on purchase patterns to qualify/quantify loyalty. Secondly, it included attitudinal loyalty measures to account for customer’s actions and feelings to aid in both the conceptualisation and measurement of loyalty. The need to understand and evaluate the effects of programmes specifically designed to promote loyalty from customers has prompted a surge in academic research, which has led to great debate over the effectiveness of these programmes. Previous empirical research has provided divergent findings and many polarised views abound. This is due in part to the lack of consistent research methodologies, concepts and measurements of previous studies, which has made the comparison of Loyalty Programmes increasingly difficult. However, despite these challenges, there remains substantial evidence in support of the overall effectiveness of Loyalty Programmes. The aim of this research has been to focus on developing a model to evaluate the components of Loyalty Programmes based on attitudinal and behavioural loyalty dimensions, with the view of recommending components that should be included in the design of Loyalty Programmes. An in-depth literature review was conducted and the two dimensions of loyalty (attitudinal and behavioural) were examined. Additionally, the following Theories were explored Social Exchange Theory, Equity Theory and the Theory of Planned Behaviour, to examine the interchange between participants of Loyalty Programmes. The review of literature further laid the foundation for the conceptual model that proposed purchase behaviour, trust, communication, personalisation, flexibility, rewards and methods of participation as components which influenced Loyalty Programmes. A multi-method study, with 1090 respondents, was conducted and a proposed conceptual model was compiled. An analysis was conducted through various descriptive and inferential statistical tests as well as Exploratory Factor Analysis and Confirmatory Factor Analysis. The results of the study identified the following factors Attitudinal loyalty (Attitudinal – Communication, Attitudinal – Flexibility, Attitudinal – General, Attitudinal – Rewards (Personal and Monetary) and Attitudinal – Trust) and Behavioural loyalty (Behavioural – Communication, Behavioural – Flexibility, Behavioural – General, Behavioural – Personalisation, Behavioural – Purchasing Behaviour, Behavioural – Rewards and Behavioural – Trust) to be of influence with regard to the effectiveness of Loyalty Programmes. The study concludes with managerial recommendations for the improvement in the design of Loyalty Programmes to enhance Attitudinal and Behavioural loyalty from participants. The recommendations from this study are based on the three strongest factor relationships identified through Pearson Product Moment Correlations. They are (a) Attitude – General and Behavioural – General (0.723), (b) Attitude – Communication and Behavioural – Communication (0.691) and (c) Attitude – Trust and Behavioural – Trust (0.595). Hence it is suggested that communication surrounding Loyalty Programmes needs to embrace new technologies and adopt a multichannel and multi-directional strategy to be more responsive to customers. Furthermore, trust was found to be influential in Loyalty Programme participation and how managers used the shared personal data, impacted customer willingness to participate in Loyalty Programmes. This study found that overall purchasing behaviour is poorly influenced by Loyalty Card/Programmes, as discounts and promotions did not sway shopper purchasing behaviour and that the most preferred rewards were monetary, free shipping and brand partnerships. In summary, consideration should be given to the type, flexibility and expiration of rewards offered. Further, a regular review of personalisation strategies, customer expectations and participation methods are recommended to bridge the mismatch between idle membership and active participation in Loyalty Programmes.
- Format
- xvi, 243 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | ANESHREE TERRILLA THAVER .pdf | 2 MB | Adobe Acrobat PDF | View Details Download |