scholarly journals Socio-demographic and lifestyle determinants of loyalty program participation in the Czech Republic

2017 ◽  
Vol 12 (4) ◽  
pp. 524-539
Author(s):  
Tomáš Formánek ◽  
Radek Tahal
Keyword(s):  
Generational Differences ◽  
Major Product ◽  
Consumer Participation ◽  
Loyalty Programs ◽  
Primary Data ◽  
Program Participation ◽  
Loyalty Program ◽  
Attrition Rates ◽  
Product Categories ◽  
Customer Attrition

Abstract Loyalty programs are among the most frequently employed marketing tools used to minimize customer attrition rates. In this article, different aspects of consumer participation in loyalty programs for major product categories are analyzed with focus on generational differences. We use the time-proven segmentation of Baby boomers and generations X, Y and Z. Our analyses and findings are based on primary data (2016): the survey is formed by a representative sample of 585 respondents. A wide portfolio of statistical learning methods and tests is used for data analysis. The first segment of our analysis brings forward groups of product categories where consumers tend to use loyalty programs concurrently. This identifies opportunities and boundaries for establishing and managing co-branded loyalty programs. The second part of our quantitative analysis is based on generational, other socio-demographic and lifestyle factors influencing individual participation in loyalty programs. Here, the main focus is on four product categories where loyalty programs are used most often. Generational differences are well pronounced in fashion-related categories. On the other hand, loyalty program usage rates in product categories related to basic household operations show little generational differences.

scholarly journals Brand importance across product categories in the Czech Republic

2016 ◽  
Vol 11 (1) ◽  
pp. 341-354
Author(s):  
Tomáš Formánek ◽  
Radek Tahal
Keyword(s):  
Customer Loyalty ◽  
Brand Loyalty ◽  
Product Category ◽  
Point Of View ◽  
Loyalty Programs ◽  
Primary Data ◽  
Empirical Estimation ◽  
The Czech Republic ◽  
Product Categories ◽  
Empirically Supported

Abstract This paper deals with customer loyalty to brands and provides an analysis of brand-related attitudes among Czech consumers. Brand loyalty is a very important aspect of competitive marketing and we contribute an empirically supported point of view on the topic. Based on primary data from a complex consumer survey carried out for the purpose of this study, we investigate the extent of brand loyalty across different product categories, mostly fast moving consumer goods (FMCG). For convenience, the analysis of our survey-data may be divided in two main areas. First, product categories are ranked according to their potential power to attract customers’ interest and loyalty towards brands. When loyalty programs are prepared, it is important to discern product categories where loyalty potential is weak from those categories that attract consumer loyalty. Second, sociodemographic features and lifestyle factors from the survey are evaluated with respect to different product categories, by means of logistic regression and subsequent average partial effect (APE) analysis. A detailed and practically oriented interpretation of the empirical results is provided by the authors. However, both corporate marketers and academic readers can use the tables with empirical estimation outputs that are provided in this article to draw their own conclusions, which may be focused on the product category of interest and/or focused on any specific consumer group that is of particular interest. Among other topics, this paper emphasizes the fact that brand loyalty is a highly complex phenomenon and that it can and should be analysed from different perspectives.

Loyalty program and communication effectiveness as drivers of store loyalty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aang Curatman ◽  
Agus Suroso ◽  
Suliyanto Suliyanto
Keyword(s):  
Small And Medium Enterprises ◽  
Loyalty Programs ◽  
Primary Data ◽  
Future Research ◽  
Communication Effectiveness ◽  
Store Loyalty ◽  
Loyalty Program ◽  
Content Type ◽  
Customer Perceptions ◽  
The Relationship

Purpose The purpose of this study is to determine the direct effect of a loyalty program on program loyalty and store loyalty and to determine the role of communication effectiveness as a mediating variable in moving customers from program loyalty to store loyalty in the context of micro, small and medium enterprises (MSMEs). Design/methodology/approach Respondents of this study were 100 customers of the MSMEs that sell Batik products in Cirebon, Indonesia who were selected by the purposive sampling method. This study focuses on primary data collected through a structured questionnaire. Data were analyzed using SmartPLS 3.0 to determine the causality relationship between variables and to test the communication effectiveness as a mediating variable. Findings The results of this study indicate that the loyalty program has a significant effect on program loyalty; program loyalty has a significant effect on store loyalty and communication effectiveness, and communication effectiveness has a significant effect on store loyalty. Other results indicate that communication effectiveness partially mediates the relationship between program loyalty and store loyalty. Research limitations/implications Despite the significant implications, this study has four limitations. First, the research results cannot conclude the store in general because the sampling of this study is limited to MSMEs only. Future research is needed to explore more deeply to compare store loyalty to MSMEs and non-MSMEs. Second, this research is only aimed at MSMEs that have loyalty programs. Future research can be carried out by comparing MSMEs that have loyalty programs and MSMEs without loyalty programs. Third, this study only uses two independent variables and one mediating variable. As is well known, there are many other variables that are antecedents of store loyalty. Future research needs to be done to explore the effect of other variables (mediating and moderating) on store loyalty, such as service quality, company image and customer satisfaction. Fourth, the research sample is only 100 respondents. Future research should use a larger sample as this research is customer-based. Practical implications This study has a significant impact on MSMEs management by providing strategies that can increase and retain customers who have high store loyalty. MSMEs need to design loyalty programs to influence customer perceptions of status, buying habits and relationships with companies. If a customer associates a high value with loyalty program membership, the customer is more likely to find the communication relevant and credible, leading to effective communication that can increase store loyalty. Social implications This study provides real strategies and opportunities for MSMEs to develop so that they can survive or compete with similar companies. It is hoped that MSMEs will be able to absorb more labor so that it can increase the contribution of MSMEs to the national economy. Originality/value This study addresses the inconsistency of various results from previous studies regarding the relationship between program loyalty, loyalty programs, communication effectiveness and store loyalty, both directly and indirectly. In addition, several studies have been carried out in large corporate contexts. However, according to the authors’ knowledge, this research is for the first time being conducted in the context of MSMEs.

Loyalty program in Africa: risk-seeking and risk-averse adventurers

2014 ◽  
Vol 69 (2) ◽  
pp. 137-157 ◽  
Author(s):  
Shogo Mlozi
Keyword(s):  
Consumer Behavior ◽  
Consumer Products ◽  
Loyalty Programs ◽  
Risk Averse ◽  
Loyalty Program ◽  
Content Type ◽  
Risk Seeking ◽  
Proposed Model ◽  
First Time ◽  
The Relationship

Purpose – This article aims to test the relationship between expected attractiveness-satisfaction-loyalty for international adventure tourists visiting Tanzania. The proposed model is based on travel consumer behavior theoretical constructs extracted from the literature. Design/methodology/approach – This article aims to test the relationship between expected attractiveness-satisfaction-loyalty for international adventure tourists visiting Tanzania. The proposed model is based on travel consumer behavior theoretical constructs extracted from the literature. Findings – The findings for overall model differed from the moderating factors of high risk, low risk, first-time visit and repeat visit. Also, the results are interesting when satisfaction is tested as a mediator. Practical implications – Practitioners could consider the fact that repeat visits may change tourists’ perceptions toward destination and may even increase their inclination to take on risks. This may impact innovation of consumer products in tourism. Also, policy makers could benefit on how loyalty programs can be developed to increase performance. Originality/value – The study offers specific strategic recommendations toward different groups of tourists (i.e. first-time, repeat visitors, risk averse, risk seeking) and proposes logic for setting up a loyalty program as a long-term strategy for success.

Inter- and Intra-industry Trade Relations between Bangladesh and India: Empirical Results

2018 ◽  
Vol 7 (4) ◽  
pp. 280-292
Author(s):  
Anisul M. Islam
Keyword(s):  
Comparative Advantage ◽  
Relative Position ◽  
Bilateral Trade ◽  
Trade Deficit ◽  
Major Product ◽  
Global Trade ◽  
Industry Trade ◽  
Product Categories ◽  
Trade Relations ◽  
Economic Ties

Bangladesh and India are two neighbouring countries in South Asia having strong political, diplomatic, trade and economic ties with each other. This article reviews and updates on the inter- and intra-industry trade relationship between these two countries using more recent data. More specifically, it examines the relative position of the two countries in global trade followed by trends and patters of bilateral trade using aggregative data. At a disaggregate level, the commodity composition of Bangladesh exports to and imports from India by major product categories is examined focusing on the revealed comparative advantage (RCA) to review and update the degree of inter-industry trade. Further, the Grubel–Lloyd index (GLI; Grubel & Lloyd, 1975 ) is examined to measure the degree of intra-industry trade by major commodity groups. The article finds that India has a much stronger relative position in the global trade vis-à-vis Bangladesh. India is also found to dominate Bangladesh in bilateral trade, resulting in a very large and persistent trade deficit of Bangladesh with India. At a disaggregated level, the article finds that India has a comparative advantage in more products than Bangladesh and that the GLI shows that the degree of intra-industry trade is almost negligible between the two countries.

scholarly journals Loyalty programs: the vital safety feature for airlines to survive COVID-19

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel E. Pascual ◽  
Lisa Nicole Cain
Keyword(s):  
Airline Industry ◽  
Loyalty Programs ◽  
Current Response ◽  
Long Term Effects ◽  
Loyalty Program ◽  
Case Study Methodology ◽  
Content Type ◽  
Hospitality And Tourism ◽  
American Airlines

PurposeThe airline industry has been severely impacted by COVID-19 due to widespread travel restrictions. Its current response is crucial to ensure continued operations after the global pandemic is resolved. One resource the airlines are leveraging is loyalty programs. This study aims to examine the viability of leveraging loyalty programs in times of crisis.Design/methodology/approachThis study employs a case study methodology to examine how one company, American Airlines, has used its loyalty program to survive a pandemic and alleviate the financial costs associated with limited and restricted travel.FindingsAmerican Airlines' AAdvantage loyalty program structure may be used as a benchmark to understand how airlines can anchor their loyalty base to reinvigorate travel interest and use these programs as safeguards in critical instances that may arise in the future.Research limitations/implicationsThe case was bound by the fact that the pandemic was still a threat during the time of analysis. The findings of this case study go beyond the airline industry and may inform other hospitality and tourism organizations on the benefits of loyalty programs in times of financial distress.Originality/valueThis is the first known case study examining the strengths and opportunities of the structure of the American Airlines' AAdvantage program as a means for surviving in a time of crisis. Moreover, understanding how to mitigate the long-term effects of crises may help to inform future short-term strategies of airlines and other hospitality and tourism organizations for navigating unexpected shocks to their ecosystem.

scholarly journals Motivation and consumer behaviour in the context of loyalty programs

2012 ◽  
Vol 60 (2) ◽  
pp. 211-216
Author(s):  
Klára Mrkosová ◽  
Ondřej Dufek ◽  
Luděk Majer
Keyword(s):  
Consumer Behaviour ◽  
Marketing Research ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Deferred Compensation

The paper introduces the partial results of the marketing research on loyalty programs. The aim was to identify the reasons that lead consumers to participate in loyalty programs and the benefits that are the main motivators for participation in the loyalty program. Respondents had the opportunity to create a loyalty program as they wish. The aim of this paper was also to prove the popularity of loyalty programs based on the principles of the deferred compensation.

scholarly journals Customer Retention Strategies Effectiveness in the Zimbabwean Medical Industry: Perspectives from Cellmed Health Fund

2019 ◽  
Vol 4 (6) ◽  
Author(s):  
Vingirayi Ishumael ◽  
Brighton Nyagadza ◽  
Mavhunga Charles ◽  
Nyasha Munjeri
Keyword(s):  
Market Share ◽  
Quantitative Methods ◽  
Customer Retention ◽  
Secondary Data ◽  
Customer Relationships ◽  
Retention Rates ◽  
Loyalty Programs ◽  
Annual Reports ◽  
Primary Data ◽  
Retention Strategies

The main objective of the study was to examine customer retention strategies at Cellmed Health, from the period 2012 to 2018. The focused was mainly on impact of customer retention strategies on market share, profit and sales turnover. A descriptive survey design was used with both qualitative and quantitative methods. Sixty participants from Cellmed Health were involved in the research. The study used both primary and secondary data where the primary data was collected using questionnaires and interviews while the secondary data was obtained from annual reports and magazines of the company. Descriptive statistics of mean, frequency and percentages were used to analyse demographic characteristics of the respondents. Regression analysis was used to measure and predict the relationship between the customer retention strategies and market share, profitability and sales turnover. Findings were that Cellmed used monitoring customer relationships strategies, market intelligence, loyalty programs and promotions to maintain its competitiveness. Furthermore, it also concludes that there was a significant relationship between customer retention strategies and profit as well as sales turnover that the company (Cellmed) was posting annually. In this light, the study recommendation was that customer retention strategies should be embrace in the decision making processes of the organisation covering products, price, services, responsiveness, tangibility and reliability of the brand name. The study also recommends that Cellmed Health should strengthen its customer bonds and moreover, in order to increase customer retention rates, Cellmed Health should provide extraordinary customer services.

scholarly journals Influence of Customer Attrition on Diffusion of Business Education Services

2017 ◽  
Vol 2 (2) ◽  
pp. 125-134
Author(s):  
Nitin Sachdeva
Keyword(s):  
Goodness Of Fit ◽  
New Product ◽  
Mean Value ◽  
Diffusion Models ◽  
Primary Data ◽  
Type I ◽  
Modeling Framework ◽  
Customer Attrition ◽  
The Impact

Innovation diffusion models have been developed by many researchers during the past few decades based on the famous Bass (1969) model. Several such diffusion models have been developed in consideration of price, marketing efforts etc., however, it is hardly seen that customer attrition (disadoption) can play a significant role in long term growth process of any new product or service. This paper defines two types of disadoption process, Type I disadoption and Type II disadoption process, representing disadopters from innovators and imitators, respectively. We illustrate that there is an increase in the market size along with the adoption of new product and this increase is addressed in this paper. The explicit mean value function for the two types of disadoption processes is derived in this paper. The thrust of the research is on studying the management educational services in the Delhi/NCR region of India and the impact of disadoption on the long term growth of such services. In order to validate the proposed modeling framework, we make use of different goodness-of-fit criteria on primary data collected from an institute in Delhi/NCR.

scholarly journals NECESSITY OF CUSTOMER LOYALTY FORMATION AND ITS PECULIARITIES IN THE TELECOMMUNICATION SERVICES

2019 ◽  
Vol 1 ◽  
pp. 142
Author(s):  
Iveta Linina ◽  
Velga Vevere ◽  
Rosita Zvirgzdina
Keyword(s):  
Customer Loyalty ◽  
Customer Relations ◽  
Loyalty Programs ◽  
Telecommunication Industry ◽  
Consumer Loyalty ◽  
Loyalty Program ◽  
Telecommunication Services ◽  
Corporate Loyalty ◽  
Time And Energy ◽  
To Receive

Everyday life is unimaginable without telecommunication services; they are the significant players in the national economy. All business activities, including the ones of telecommunication services, are directed towards the satisfaction of customers’ needs and wants, and hence towards the profit earning. This process, in its turn, entails the formation of different company/customer relations, where both parties want to gain something out of these relations. The company strives, first of all, to increase the turnover and profit, while the customer wants to receive the desired services, information and the proper attitude. These customer gains can be basis of the loyalty formation, that is very important for the company, because the process of attracting new consumers always involves spending money, time and energy. The goal of this work is to explore the loyalty formation process and its peculiarities in the telecommunication services. Based on the results of the study, it was found that the experts rated the offer of corporate loyalty programs at the lowest, then followed the service offer and the price, but slightly higher the service quality. The experts assigned the highest rating to the prestige of the service. Based on the low assessment of the experts in the telecommunication industry of the loyalty program offer, the authors propose the conceptual consumer loyalty model for the practical use.

Building an Effective Customer Loyalty Program

2018 ◽  
pp. 195-212 ◽  
Author(s):  
Kumari Smriti
Keyword(s):  
Customer Loyalty ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Targeted Marketing ◽  
The Right ◽  
Customer Loyalty Programs ◽  
A Company ◽  
Loyal Customers

Customer loyalty schemes is a practice, employed by retailers, to reward their loyal customers. It entails giving incentives such as loyalty cards, reward points, etc. These also serve as a repository of information about a customer which helps in targeted marketing. This chapter analyses some of the successful customer loyalty programs by companies, discusses some of the reasons of failures of such program and looks at what industry experts have to say in this regard. We then collate all this information to suggests a process to identify and choose the right customer loyalty programs for a company.

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