Big data for loyalty program management in hypermarket

Abstract

Loyalty programs lead to a natural split of a firm's customer base into members and nonmembers. To manage both groups effectively, it is essential to know how they concern about, such as services or promotions. This article, set in context of the second hypermarket density in Asia, examines the impact of satisfaction on store patronage and explores moderator roles of employee interaction and price sensitivity between members and nonmembers. Therefore, a survey was performed among 317 hypermarket members and nonmembers from top three settings in Taiwan. The study demonstrates that the satisfaction and store patronage behavior relationship of members stronger than nonmembers. And moderator of employee interaction and price sensitivity of members has stronger effect between satisfaction and store patronage than nonmembers. According to inconsistent relation between satisfaction and store patronage in past studies, the study extend existing theories of retention to incorporate contingency relationships, especially among members and nonmembers to manage retailer-both customer relationship better.