Improving Loyalty Program Efficiency And Differentiation

700 words - 3 pages

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 apathetic. However, in determine the factors of perfumery sectors the researchers are using only four dimension excluding apathetic orientations. For perceived loyalty programmes’ benefits, this research is using five dimensions (economy, hedonist, convenience, information, recognition and social relationships) for both sectors. For assessing the loyalty scale of both sectors, two factors are applied that is purchase intensity (PI) and resistance against counter-persuasion (RCP). To assess the overall fit of the model, they investigated several fit indices. Thus, to measure of item reliability they are using Cronbach’s alpha. For the data collection, two samples of loyalty card members of the...

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