Moderation Effect of Perceived Benefits of Loyalty Programs on the Link between Store Attributes and Customer Loyalty

Santosh Kumar Alreddy,Dwarakanath Siriguppi,Mohandas J Menon

doi:10.4236/tel.2019.96133

Santosh Kumar Alreddy, Dwarakanath Siriguppi + Show 1 more

Open Access

https://doi.org/10.4236/tel.2019.96133

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Abstract

The objective of this paper is to examine the moderation effect of perceived benefits of loyalty programs on the link between store attributes and customer loyalty. This study uses data from loyalty program members covering different apparel retailers of Northern districts of Karnataka. In the first step variables were identified through literature review and interview method. In the next step, exploratory factor analysis was performed to identify the critical factors which measure customer loyalty in the apparel retailer’s context. Finally, moderation analysis was employed using SPSS and results indicate that perceived benefits of loyalty programs significantly moderate the relationship between stores attributes and customer loyalty.

Highlights

In retailing, relationship marketing has gained importance in both academics and industrial fields as a strategy to manage, develop, and evaluate the relationship between retailers and customers [1] [2] [3] [4] [5]
The objective of this paper is to examine the moderation effect of perceived benefits of loyalty programs on the link between store attributes and customer loyalty
The interaction term between store attribute and perceived benefits of loyalty program was added to the regression model, which accounted for significant amount of variance in loyalty, ΔR2 = 0.025, F (1, 536) = 21.20 (P = 0.000)

Summary

Introduction

Relationship marketing has gained importance in both academics and industrial fields as a strategy to manage, develop, and evaluate the relationship between retailers and customers [1] [2] [3] [4] [5]. Different stores differ in the combinations of store attributes, but previous studies have identified nine store attribute factors, i.e., store atmosphere (an in-store environment consisting of layout, visual display, colours, lightings, and sounds which create an image of the store in consumer’s mind), convenience (accessibility to a shopping mall or a store), merchandise (characteristics of products carried by a store or shopping mall such as quality, selection or assortment, and styles of products), promotions (activities a store undertakes to inform customers of its offerings and images), post-transaction service (physical services relating to products after transactions such as merchandise delivery and installation, product warranties, and exchanges or refunds), direct mail (activities performed by a store or a shopping mall to communicate directly with customers through mail brochures and pamphlets), interpersonal communication (employees interactions with customers in a friendly manner), preferential treatment (a customer’s perception that he/she receives special recognition from a store or a mall by means of better service which is unavailable to non-regular customers), and tangible rewards (such as discounts and rewards offered to customers in return for their business with a store or a shopping mall). Previous studies have shown that a quantitative study is needed to identify the suitable variables in the chosen retailing context

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Discussion

Conclusion