Investigating the structural relationship between loyalty programme service quality, satisfaction and loyalty for retail loyalty programmes: evidence from Malaysia

Omar, Nor Asiah; Wel, Che Aniza Che; Aziz, Norzalita Abd; Alam, Syed Shah

doi:10.1108/13683041311311356

Cited by 21 publications

(7 citation statements)

References 79 publications

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“…Ali & Karim (2011) recognized several industries like aviation, hotel and hospitality and retail businesses have implemented these programmes on a large scale. The use of loyalty programmes is a key strategy for building relationships with consumers and retaining them over time (Omar et al, 2013). Businesses that implement loyalty programmes have gained in the form of increased sales, profits, customer loyalty, the ability to fend off their direct rivals, customer networking and most importantly customer retention (Dowling & Uncles, 1997; Kumar & Shah, 2004;Ali & Karim, 2011).…”

Section: Loyalty Programmementioning

confidence: 99%

An Exploratory Study on the Scale Development for Perceived Attributes of Loyalty Programmes

2024

Journal of Informatics Education and Research

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Purpose of the study: The present study is aimed at developing the scale items for widely used loyalty programmes for customers i.e., membership programmes; reward-point system; and gift vouchers/coupons. Design/ Methodology/ Approach: A convenience sampling technique (197 samples) was utilized for data collection. The data has been collected through a well-structured questionnaire based on a five-point Likert scale. The relevant data was processed through exploratory and confirmatory factor analysis using IBM-SPSS 20 and IBM-SPSS AMOS 26 software.Research Type: Exploratory research study. Findings: The study explored and confirmed the selected loyalty programmes' attributes (scale items) perceived by the customers. All the attributes were explored according to the standard criteria and the items were confirmed well to their respective constructs. Also, these items held good to adequate values of various model fit measures. Originality/ Value: This is an original contribution of the authors. From a scholarly perspective, this study expands the existing body of knowledge about customer relationship marketing by outlining different attributes of the loyalty programmes that customers may perceive. The scale would assist marketers in designing and evaluating their loyalty programmes' performance with customers' needs and expectations, and identify the potential intensity and defects of the programmes. It would assist them in enhancing the effectiveness of customer relationships networking, designing a competitive edge over competitors, establishing intent for (re) purchase, building long-term loyalty and word of mouth publicity. Consequently, customers will benefit from better deal options from competitive marketers.

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Section: Loyalty Programmementioning

confidence: 99%

An Exploratory Study on the Scale Development for Perceived Attributes of Loyalty Programmes

2024

Journal of Informatics Education and Research

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“…The questionnaire comprised statements describing customers' attitudes and opinions on the three groups of perceived benefits from loyalty programs and the three relationship quality constructs. Statements were obtained from previously tested and validated questions from the literature (Amos et al, 2015;Bridson et al, 2008;Corbishley, 2017;Evanschitzky et al, 2011;Feiler et al, 2012;Garcia-Gómez et al, 2012;Kreis & Mafael, 2014;Liu et al, 2011;Mägi, 2003;Melancon et al, 2010;Mimouni-Chabaane & Volle, 2010;Omar et al, 2013;Vesel & Zabkar, 2010a;Vesel & Zabkar, 2009;White & Peloza, 2009;Winters & Ha, 2012). Statements were measured using a seven-point Likert-type scale, ranging from Strongly Disagree (1) to Strongly Agree (7), to measure statements related to the perception of benefits and RQ constructs.…”

Section: Questionnaire Developmentmentioning

confidence: 99%

“…Previous studies have examined the nature of relationships in various contexts and aspects, including those between salespeople and customers (Liu et al, 2011), between businesses (Chumpitaz, Caceres & Paparoidamis, 2007;Nyaga & Whipple, 2011), and between consumers and companies (Aurier & Séréde Lanauze, 2012). Only three studies have outlined the structural nature of LPs and examined how their three inherent benefits (altruistic, consumeristic, egoistic) connect with the relationship quality (RQ) constructs of commitment, satisfaction and trust (Omar et al, 2013;Ou et al, 2011;Wang et al, 2015). When customers perceive that they are receiving benefits from the transactions they participate in, they feel that the relationship is of value to them (Mimouni-Chaabane & Volle, 2010;Palmatier et al, 2006).…”

mentioning

confidence: 99%

Loyalty program benefits and their effect on relationship quality and loyalty to the retailer

Corbishley¹,

Meintjes²,

Mason³

2023

IJRBS

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Loyalty Programs (LPs) aim to increase profit by rewarding, with various benefits, customers who patronize the retailer. This study investigated the benefits LPs provide in the South African Fast-moving consumer goods (FMCG) marketplace and how these influence relationship quality and loyalty between retailer and customer. How the perceived benefits of LPs contribute to relationship quality (satisfaction, trust and commitment), and how they lead to loyalty are examined. To illustrate these relationships, a model showing three independent (perceived benefits, namely altruistic, consumeristic, and egoistic) and three dependent variables (relationship quality, namely trust, satisfaction, and commitment), plus customer loyalty, was developed. A quantitative survey was administered electronically over 11 days to a randomly selected sample of 5000 consumers per day from a commercial database, resulting in 1944 responses. After the deletion of incomplete or inappropriate responses, 479 usable replies remained. Since this sample was self-selected, it should be considered a convenience sample. Structural equation modelling (SEM) with confirmatory factor analysis (CFA) was applied to test the hypotheses and develop the model. SEM indicated that respondents consider egoistic and consumeristic benefits as the same. Furthermore, trust and satisfaction manifest as a single construct. Both consumeristic and altruistic benefits had a significant positive relationship with this unified construct of trust/satisfaction, and the relationship between altruistic benefits and commitment was also positive and significant. Finally, although neither altruistic nor consumeristic benefits appeared to contribute directly to loyalty, a positive relationship existed between the new construct of trust/satisfaction and those of commitment and loyalty. The pathway to loyalty is indirect, and to reach this sought-after goal, relationship quality constructs must first be achieved.

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“…Store loyalty will be enhanced with the help of loyalty program service quality consisting of factors such as reward, personalization, usefulness of information, quality of communication, courteousness and tangibility. Of these dimensions of quality, all dimension except personalization influence positively the store loyalty indirectly (Omar et al, 2013). Retailers' brand image is also one of the most important aspects in creating the loyalty towards retailers.…”

Section: Customers' Loyalty and Impulse Buyingmentioning

confidence: 99%

Drivers of Impulse Buying at Retail Stores: Mediating Role of Customers’ Loyalty

Hilal¹,

Gunapalan²

2019

ASS

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The major objective of this study was to examine the impact of drivers of impulse buying on the customers’ loyalty and to assess the mediating effect of customers’ loyalty to the impulse buying at the retail stores. In order to meet the objective, a questionnaire survey was conducted among 529 customers of retail stores. SMARTPLS3 was used to analyze the data collected from the survey. Findings suggest that CSR, store attractiveness and trust positively contribute to create loyalty of retailers and it positively impact on impulse buying at stores. The model tested in this study was significant and can be used by retailers to enjoy competitive advantage. Further, it was found that loyalty is mediating between these drivers of impulse buying and impulse buying. While loyalty positively mediating between all variables, loyalty negatively mediates between commitment and impulse buying. The model tested in this study is significant and useful for retailers to create loyalty and trigger impulse buying enabling to achieve competitive advantage in retailing. When retailers adopt this model in their business, retailers can establish loyalty and generate impulse buying. Therefore, retailers need to build up trust among customers, engaging in CSR activities, keeping their stores very attractive and having long term relationship to create commitment with customers.

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Investigating the structural relationship between loyalty programme service quality, satisfaction and loyalty for retail loyalty programmes: evidence from Malaysia

Cited by 21 publications

References 79 publications

An Exploratory Study on the Scale Development for Perceived Attributes of Loyalty Programmes

An Exploratory Study on the Scale Development for Perceived Attributes of Loyalty Programmes

Loyalty program benefits and their effect on relationship quality and loyalty to the retailer

Drivers of Impulse Buying at Retail Stores: Mediating Role of Customers’ Loyalty

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