Customer Satisfaction with Loyalty Card Programs in the Austrian Clothing Retail Sector - an Empirical Study of Performance Attributes Using Kano’s Theory

Abstract

The popularity of relationship marketing has increasingly grown in the past couple of decades. Retailers recognize that satisfying and retaining consumers by building relationships is one of the most sustainable competitive advantages. Although the use of loyalty cards is popular in retailing, a lot of customer loyalty programs are virtually interchangeable, lacking in attractiveness and differentiation. Therefore, it is important to identify the determinants of customer satisfaction relating to these programs. Does aiming for customer satisfaction mean understanding and anticipating what customers want from a loyalty card program? A Kano model of customer satisfaction is investigated; and “attractive”, “must-be”, “one-dimensional” and “indifferent” requirements are identified based on a sample of 300 customers.