A Study Concerning The Effectiveness of Customer Loyalty Programmes Used by Indian Retail Brands

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International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 6 Issue 4, May-June 2022 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

A Study Concerning the Effectiveness of Customer


Loyalty Programmes used by Indian Retail Brands
Ms. Mantasha Rashid1, Er. Bijendra Kumar Pushkar2
1
Student, 2Assistant Professor,
1,2
Department of Humanities and Management Science,
Madan Mohan Malaviya University of Technology, Gorakhpur, Uttar Pradesh, India

ABSTRACT How to cite this paper: Ms. Mantasha


Retailers must devise particular strategies to keep their businesses Rashid | Er. Bijendra Kumar Pushkar "A
afloat when customer behaviour shifts. Some merchants utilize a Study Concerning the Effectiveness of
loyalty programme as a marketing tool, providing repeat customers Customer Loyalty Programmes used by
with additional incentives. This study aims to see how the loyalty Indian Retail
Brands" Published
programme affects store loyalty and how satisfied customers are with
in International
the programme. The information was gathered from 420 people who Journal of Trend in
filled out questionnaires. The findings showed that loyalty Scientific Research
programmes had a considerable impact on loyalty programme and Development
satisfaction. Store loyalty was significantly influenced by satisfaction (ijtsrd), ISSN: 2456- IJTSRD50129
with reward programmes. The loyalty programme has nothing to do 6470, Volume-6 |
with storing faith. The efficacy of a loyalty programme on store Issue-4, June 2022, pp.607-609, URL:
loyalty mediates satisfaction with the programme. The study www.ijtsrd.com/papers/ijtsrd50129.pdf
emphasizes the vital role of reward programme satisfaction in closing
the loyalty gap between loyalty programmes and shop loyalty. The Copyright © 2022 by author(s) and
store should boost the uniqueness and attraction of the programme to International Journal of Trend in
Scientific Research and Development
generate a loyal consumers. Customer retention will be improved by
Journal. This is an
providing a valued and appealing reward. Open Access article
distributed under the
KEYWORDS: Store loyalty, Retail business, Loyalty programme,
terms of the Creative Commons
Loyalty programme satisfaction Attribution License (CC BY 4.0)
(http://creativecommons.org/licenses/by/4.0)

INTRODUCTION
Simply focusing on customer acquisition is no longer programme. Customer loyalty programmes are given
enough to sustain market share in today's competitive in practically every firm to entice customers, yet none
economy. For firms to acquire a competitive have shown to be profitable.
advantage, customer retention has become just as
It takes money, time, and effort to build and expand a
important, if not more so. Loyalty programmes are
robust loyalty programme, and it must be tailored to
used by businesses to keep clients and develop long-
the behaviour and expectations of customers in a
term connections. Businesses must strengthen their
particular industry. As a result, businesses must
relationships with customers as loyalty programmes
continually monitor, analyze, and change customer
become ubiquitous across all industries (Leenheer &
loyalty programmes to satisfy their consumers'
Bijmolt, 2008). When clients see more excellent
requirements, wants, and expectations to achieve the
value in a program's advantages, it becomes more
most remarkable outcomes.
appealing, and they are more likely to participate
(Noone & Mount, 2008). The firm's reputation can also influence consumers'
responses to a company's loyalty programme in the
A well-crafted customer loyalty programme may
market and, as a result, the status those clients gain as
strengthen a company's perceived appeal, increase the
a result of being customers of that company
likelihood of repeat purchases from current
(Hallberg, 2003). Understanding the benefits that
consumers, and attract new customers (Erbschloe,
customers value and associate with loyalty
2017). Even though customer loyalty programmes are
programmes may assist marketers in creating a
getting more prevalent across all industries, most
compelling, engaging, and successful loyalty
businesses are still unsure how to create a successful
programme for their company. Customers will not

@ IJTSRD | Unique Paper ID – IJTSRD50129 | Volume – 6 | Issue – 4 | May-June 2022 Page 607
International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
engage in a company's loyalty programme if they do H6: The impact of reward programmes on customer
not view it as valuable since satisfaction with such preference is primarily driven by the positives of
programmes would be poor. As a result, the loyalty discovery and entertainment.
programme will have no impact on one's decision to
Research design
shop at a particular store (Omar, Ramly, Alam, &
The current study used a questionnaire-based survey
Nazri, 2015).
of consumers from four department shops as an
Objectives of the study effective data gathering strategy. Gender was utilized
The current study expands on Yi and Jeon's (2003) as a controlling factor in the sampling technique
work in India by including Mimouni-Chaabane and based on quota sampling. The personal interview
Volle's (2010) concepts for alternative benefit approach was used to get respondents to fill out a
systems and aims to: questionnaire. Responses to the criteria were recorded
Determine how perceived benefits affect using a 4-point modified Likert Scale, with
customer satisfaction with loyalty programmes; alternatives spread from strongly disagree to strongly
and agree. Exploratory factor analysis investigates and
Evaluate the implications of purported benefits on characterizes the underlying relationships between
shoppers' loyalty programme precedence while measured variables (EFA). Confirmatory factor
determining which department store to buy from. analysis (CFA) examined the connection between
observable parameters and their latent core
Theoretical Framework
A research model is suggested based on the preceding components (CFA). Structural equation modelling
constructs that link customer-perceived loyalty was used to study the structural links between latent
programme advantages to overall satisfaction and frameworks. EFA was used to examine 210 of the
importance. 420 responses, while CFA evaluated the remaining
210. The SPSS 21.0 network version was used to
The following is the present study's proposed analyze the study's data.
hypothesis:
H1: Financial reward systems have a substantial Data Analysis and Interpretation
impact on loyalty programme satisfaction. Cronbach's alpha model of internal consistency was
used to analyze the survey questionnaire's reliability.
H2: Financial incentives have a tremendous influence Cronbach's alpha values for excellent, decent,
on the perceived usefulness of loyalty programmes in acceptable, and erroneous are >.90,.9–.7,.7–.6, and
customer decision-making. less than Six, respectively (Kline, 2000; George &
H3: Social advantages have a substantial impact on Mallery, 2003). Cronbach's alpha for the 14
satisfaction with loyalty schemes. statements employed to measure customers'
H4: Social advantages significantly impact the value perceptions of loyalty programme advantages was
of loyalty programmes in consumer decision-making. 0.879, indicating that the scale used is entirely
H5: Satisfaction with loyalty programmes is affected reliable.
by the benefits of discovery and entertainment.
Table 1. Conclusion
S. No. Hypotheses Output
Financial reward systems have a substantial impact on loyalty programme
H1 Accepted
satisfaction.
Financial incentives have a tremendous influence on the perceived usefulness of
H2 Accepted
loyalty programmes in customer decision-making.
H3 Social advantages have a substantial impact on satisfaction with loyalty schemes. Accepted
Rejected
Social advantages significantly impact the value of loyalty programmes in
H4 (Accepted at
consumer decision-making.
10%)
Satisfaction with loyalty programmes is affected by the benefits of discovery and
H5 Accepted
entertainment.
The impact of reward programmes on customer preference is primarily driven by
H6 Accepted
the positives of discovery and entertainment.

For each one-unit variation in the factors predicting the endogenous variable (satisfaction calculated and
the endogenous variable (satisfaction calculated and priority given). According to these calculations, a
importance assigned), estimates show the change in one-unit rise in FB will improve pleasure by 28.3%

@ IJTSRD | Unique Paper ID – IJTSRD50129 | Volume – 6 | Issue – 4 | May-June 2022 Page 608
International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
and deliver 45.5 per cent more significance. Because Customers' opinions of the benefits of loyalty
all exogenous components had p-values less than programmes are likely to influence their level of
0.001 in both SD and IA, it is possible to deduce that satisfaction with them and the importance they place
FB has a considerable impact on customer happiness on loyalty programmes when picking which business
with LPs and the relevance of LPs to consumers when to patronize. Customers from other countries may
choosing a retail outlet. The first two hypotheses, H1 view their benefits differently. The new study will
and H2, are hence accurate. The impact of social help researchers better comprehend India's loyalty
advantages on enjoyment and importance was programmes.
studied. The SEM data were then examined to see if
References
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@ IJTSRD | Unique Paper ID – IJTSRD50129 | Volume – 6 | Issue – 4 | May-June 2022 Page 609

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