Loyalty Programs Research Articles

Modeling joint row- and column-wise correlation in air passenger seat selection: A cross-nested logit approach

Advance seat selection (ASS) fees have gradually become an important revenue generator for the carriers worldwide. In this study, we investigate air passenger seat selection behavior in the ASS service while quantifying spatial correlation structure among seats, which is novel to the literature. Specifically, we employ a Cross-Nested Logit (CNL) model that captures the joint row- and column-wise correlation among seats. The CNL model, together with the Multinomial Logit and Nested Logit models involved as benchmarks, are applied to a rich dataset of 321670 ASS records, extracted from the database of a Chinese regional carrier. The empirical results suggest that the correlation among seats arises from their similarities in both row and column dimensions, with a stronger correlation in the column dimension. And modeling such joint correlation can not only enhance the in-sample model fit, but also facilitate more accurate out-of-sample revenue prediction. Moreover, the utility parameter estimates reveal that passengers exhibit non-linear price sensitivity, representable by a power function with a rational exponent of 0.37. Additionally, passengers display heterogeneous willingness to pay influenced by their flight, booking, and personal characteristics. And seat preferences can be affected by participating in loyalty programs.

Analysis Of the Influence of Brand Image, Trust, E-Service Quality, and Loyalty Program on Customer Satisfaction and Customer Loyalty on E-Wallet Usage

Purpose — to discover the factors that influence the level of loyalty of e-wallet service users (customer loyalty) when using e-wallet services in Indonesia. Design/methodology/approach—This research uses primary data sources, namely survey data taken using questionnaires made in online media. The questionnaires were distributed to respondents who are active users of e-wallet payment channels via WhatsApp, social media, and personal and group networks. Findings — independent variables significantly affect customer satisfaction: e-service quality, trust, and brand image. The independent variables significantly affecting customer loyalty are e-service quality and customer satisfaction. The other independent variables, namely the loyalty program, have no significant effect on customer satisfaction, and the variables of trust and brand image do not directly and significantly affect customer loyalty of e-wallet users in Indonesia as a mediating variable, customer satisfaction is considered to be a mediating variable between brand image and customer loyalty. However, customer satisfaction cannot be a mediating variable between e-service quality, loyalty, and loyalty programs. Practical implications — The results of this study can provide a managerial basis for e-wallet services in Indonesia to improve its strategy for increasing customer loyalty to using e-wallet services in Indonesia. Originality/value — This research provides evidence that without any current program, customer loyalty is very high, e-wallet customers have 100% trust both when depositing funds in the e-wallet, the confidentiality of the data provided, as well as other legal aspects that can affect when using e-wallets. -wallets. Therefore, the company should continue to ensure security from a financial perspective and data from internal and external disturbances that will disrupt the company's operations. Paper type — Quantitative Research (Primary)

Analisis Strategi Usaha Frozen Food "Omahnong" Dengan 10 Types Of Innovation Dan Business Model Canvas

The frozen food business continues to experience an increase in transaction value from 2020 to 2022. However, it is different from the Omahnong, which has decreased from 2020 to 2022. In solving the problem, new business innovation is needed. The research aims to find out the business model canvas that will be applied after doing ten types of innovation, the ten types of innovation strategy that has been carried out and the new ten types of innovation strategy. This research uses qualitative research methods with a descriptive approach. The results of the study found nine elements of Omahnong's business model canvas after doing ten types of innovation. In addition, it was found that the ten types of innovation strategies that have been carried out by Omahnong are cost leadership, flexible manufacturing, superior product and community and belonging and the results of the new and appropriate ten types of innovation strategies for Omahnong are cost leadership, predictive analysis, superior product, loyalty program, and process automation. This research can be used as a reference for entrepreneurs in innovating business strategies and can help Omahnong in developing its business.

Customer Churn Prediction of Telecom Company Using Machine Learning Algorithms

We can’t escape the fact that using telecommunications has become a significant part of our everyday lives. Since the Covid-19 pandemic, the telecommunication industry has become crucial. Hence, the industry now enjoys growth opportunities. In this study, KNN, Random Forest (RF), AdaBoost, Logistic Regression (LR), XGBoost, and Support Vector Machine (SVM) are 6 supervised machine learning algorithms that will be used in this study to predict the customer churn of a telecom company in California. The goal of this study is to identify the classifier that predicts customer churn the most effectively. As evidenced by its accuracy of 79.67%, precision of 64.67%, recall of 51.87%, and F1-score of 57.57%, XGBoost is the overall most effective classifier in this study. Next, the purpose of this study is to identify the characteristics of customers who are most likely to leave the telecom company. These characteristics were discovered based on customers’ demographics and account information. Lastly, this study also provides the company with advice on how to retain customers. The study advises company to personalize the customer experience, implement a customer loyalty program, and apply AI in customer relationship management in retaining customers.

Strategi Relationship Marketing Yang Dilakukan Segmen Government PT Telkom Witel Yogyakarta dalam Mempertahankan Loyalitas Pelanggan

The trust, service and communication that exist between PT Telkom Witel Yogyakarta Government segment and its customers will make this relationship marketing strategy key in efforts to maintain customer loyalty. The purpose of this internship activity is to find out and learn good relationship marketing strategies in maintaining customer loyalty. The research method carried out by the author is a qualitative method, while the data used is primary data and secondary data. The descriptive data analysis technique used in this research is to produce a systematic, realistic and accurate picture of the relationship marketing strategy carried out by PT. Telkom Witel Yogyakarta Government Service segment in retaining customers. Results of interviews and observations of PT's Government Segment Relationship Marketing strategy. Telkom Witel Yogyakarta in Maintaining Customer Loyalty is a strategy of direct sales (direct marketing), customer service, loyalty programs, business visits and maintaining product quality.

DIGITAL TRANSFORMATION AND THE CUSTOMER EXPERIENCE: ENHANCING ENGAGEMENT AND LOYALTY

This study aims to identify the most basic things in digital transformation, namely what are the factors that can improve customer experience, enhancing engagement and customer loyalty. In an effort to offer in-depth insights on this topic, this research seeks to provide direction for companies focusing on important factors in leveraging digital transformation to create a better customer experience, which in turn will increase their engagement and loyalty. To achieve this goal, this research uses a qualitative approach and case studies from existing literature with the aim of knowing what factors in digital business transformation affect customer experience in order to increase engagement and customer loyalty. This study uses purposive sampling by deep interviewing 11 active consumers from the e-commerce platform under study. Factors such as ease of use, product quality, loyalty programs, exclusive offers, responsive customer support, and special incentives and rewards are key to creating a positive experience, increasing customer engagement and strengthening their loyalty. By understanding and managing these factors, companies can create strong customer relationships, improve customer retention and increase overall business growth.

Penerapan Customer Relationship Management Dalam Sosial Media Untuk Mempertahankan Loyalitas Pelanggan

MAPCLUB as loyalty program for customer of Pt. Mitra Adiperkasa has its main aims to maintain customer loyalty and provide rewards in the form of shopping points which can be redeemed for the next transaction. The research objective is to understand how Customer Relationship Management (CRM) increases customer loyalty through social media Instagram, using the analysis of the IDIC model from Peppers and Rogers. By using a qualitative descriptive method, researchers understand how MAPCLUB's activities manage relationships with their six million members, based on four steps of the IDIC model (Identification, Differentiation, Interaction, and Customizations) through communication in Instagram, to maintain the customer loyalty. The research’ results found several parts to improve on how they can communicate with customers based on the needs and behavior of each member. After this study of IDIC models and loyalty customer characteristics, the conclusion reveals that the optimal implementation of communication for the CRM through IDIC model to produce a better loyalty program experiences whether customers will repeat purchase, give retentions, or give referrals to other buyers.

The Impact of Brand Society and Narrative Branding on Brand Image and its Implications on Consumer Purchase Behavior: A Case Study of Luxury Fashion Brands in Jakarta

Objetive: This study delves into the fascinating world of luxury fashion, investigating the influence of brand society and narrative branding on brand image and consumer purchase behavior.
 
 Method: Through the analysis of data collected from 204 respondents via online questionnaires and employing Structural Equation Modeling (SEM) with Smart PLS software, the research uncovers valuable insights. Notably, the study introduces the novel concept of brand society, emphasizing the importance of fostering a sense of community and exclusivity among luxury fashion brand consumers. Additionally, it sheds light on the impact of narrative branding, highlighting the significance of storytelling techniques in shaping consumer perceptions.
 
 Implications: The interplay between brand society, narrative branding, brand image, and consumer purchase behavior is explored, leading to a comprehensive understanding of these relationships within the luxury fashion context. The implications of these findings for luxury fashion brands are substantial. To cultivate consumer loyalty and stimulate purchase intentions, brands are advised to establish a strong brand society through exclusive events, loyalty programs, and online platforms. Moreover, employing effective narrative branding strategies that forge emotional connections and effectively communicate brand values can enhance brand image and customer engagement.
 
 Results and conclusion: The study enriches our comprehension of the social dynamics and storytelling strategies within the luxury fashion industry. By providing practical guidance for brand managers and marketers, it aids in creating engaging brand experiences, strengthening consumer relationships, and driving purchase behavior in the highly competitive luxury fashion market.

Perspective of Environmental Turbulence as Sustainability on Relationship Quality, Trust and Satisfaction with B2B MSME Loyalty: Vosviewer Bibliometric Analysis

Objective: This study aims to focus on a literature review of factors that affect B2B customer loyalty by looking at the perspective on a Loyalty Program (LP). Measure how the level of customer loyalty follows the B2B system for MSMEs. Providing the benefits of partnering by establishing good quality relationships, providing a sense of igh trust and maximum satisfaction so as to create loyalty.
 
 Method: This study is bibliometric. This research analysis technique uses Vosviewer. Where this technique collects databases from electronic journals in accordance with the scope of discussion. Electronic journal data collection using Publish or Perish based on the year 2016-2022 of the journal publisher.
 
 Result: The result of this study, there is another perspective factor that indirectly affects increasing customer loyalty, namely environment turbulence. So it can be concluded, looking also from the conditions of the internal and external environment that customer loyalty can be formed if the B2B system implemented provides Environmental conditions are good and beneficial for both parties. Limitations in this study have not been held specifically related to the selected B2B objects and only reviewed according to the literature obtained through the electronic journal. The recommendation in this study is to develop B2B potential by linking environmental turbulence factors as factors indirectly strengthen customer loyalty. 
 
 Conclusion: This research is valuable because there is an update related to environmental turbulence variables that moderate the study of relationship quality, trust and satisfaction with B2B loyalty to MSMEs. Seeing that B2B conditions are still minimal in the MSME category as the main actor, especially in Indonesia. There needs to be a deeper study related to this research by adding the specifications of the MSME country and region

A study on relationship between youth’s perception and preference towards fast food restaurants in Bangalore

The study's goal is to learn how young people in Bangalore feel about and choose fast food establishments. Managers in today's complex business environment must constantly search for new ways to attract and keep consumers across all product categories. In light of the rising expense of acquiring new clients, many businesses are implementing loyalty programmes in an effort to keep their current clientele and strengthen their bonds with them. One industry that has thrived despite the recession is quick service restaurants (QSRs). A glance back at recent years is all it takes to get a sense of the fast food industry's meteoric rise. Fast food has become a staple of modern culture, and not only among the younger demographic. The fast food industry has become so ingrained in modern culture that its patrons' very act of ordering or patronising its outlets has come to represent a status signal for their social group. The Indian market for quick service restaurants has fierce competition amongst several major companies. Most consumers are prepared to pay extra for higher-quality cuisine and menu upgrades. Employee happiness is a top priority, thus restaurants are working to make their dining areas more spacious and welcoming.

Healthy foods, healthy sales? Cross-category spillover effects of a reward program promoting sales of fruit and vegetables

Introduction & BackgroundGlobally, consumption of Fruit and Vegetables (F&V) remains below nutritional guidelines. Marketing healthy products can be complex for retailers, and a key challenge is the design of strategies that benefit retailers, e.g., through improved loyalty, and deliver progress on societal goals.
 Objectives & ApproachThis study evaluates a point-plus-cash frequency reward program where participants received points by purchasing selected F&V, redeemable against a reward (plush toys in the shape of F&V). We estimate the impact of the program using a difference-in-difference-in-difference model, which compares expenditures in several categories before, during, and after the promotional period, across two different years, and separately for consumers who redeemed a reward and those who did not. Identification includes weighting for the propensity scores, and using an instrumental variable approach.
 Relevance to Digital FootprintsThe data refers to grocery expenditure in five categories in the focal retailer for over 268,000 consumers, over 27 weeks for 2 years, as recorded through their loyalty card.
 ResultsThe reward program significantly increased expenditures in F&V in the focal retailer during the promotional period. However, results differed depending on reward redemption. For reward-redeemers, the program increased expenditures in F&V as well as in other food categories, an effect that persisted – at a declining rate – after the program stopped. The program had a short-lived effect on non-rewards redeemers, who only increased F&V expenditures during the promotional period.
 Conclusions & ImplicationsResults indicate that a loyalty program promoting sales of F&V can create win-win benefits to both society and the retailer: it increases expenditures on healthy foods (F&V), while improving overall loyalty (i.e., expenditures) to the retailer.

Perception of Crisis Management, Service Quality, and Loyalty Programs on Airline Travel Intention: What Roles Do Fear of COVID-19 and Risk Attitude Play?

This research investigates the antecedents of airline travel intention, including the effects of crisis management, service quality perceptions, and loyalty programs, along with the fear of coronavirus disease (COVID-19) and risk attitude among individuals from different parts of the world during the peak of the pandemic. Its main objective is to assess how these variables impact passenger airline travel intention. Partial least squares structural equation modeling was used to assess the measurement model and test the hypothesized relationships on the sample of 944 travelers. Results indicated strong positive associations between fear of COVID-19, risk-averse attitudes, and service quality with respect to travel intention. On the other hand, perception of crisis management handling and loyalty programs did not have significant influence on travel intention during the global pandemic. Interestingly, the researchers found that risk-averse attitude positively influences both crisis management and service quality perception. Therefore, airline decision-makers need to consider the psychological aspect of fear of COVID-19 and other researched dimensions to regain passenger confidence and stimulate travel demand regardless of the risk-averse attitude.

A research study on customer satisfaction and loyalty in hospitality industry, Rajkot

This research paper explores the relationship between the customer satisfaction and loyalty in hospitality industry. It provides valuable insights into the factors that drive guest loyalty and offers practical implications for businesses aiming to enhance customer retention and overall profitability in this sector. In the realm of the hospitality industry, it becomes crucial to ascertain whether customers are content with the services and exhibit loyalty towards the establishment. Consequently, this research places its primary emphasis on gauging customer satisfaction and loyalty within the hospitality sector. The hospitality sector encompasses various businesses such as hotels, restaurants, and other service providers. This research study employs a descriptive research approach, utilizing a Convenience (non-random) sampling technique with a sample size of 100 customers from the hospitality industry Rajkot. Data collection involves the use of questionnaires, and subsequent analysis involves the application of Chi-square tests. The research is grounded in a conceptual model that demonstrates the interconnectedness of customer satisfaction, customer trust and customer loyalty. In summary, the data highlights the significance of various factors impacting customers' hotel choices. It emphasizes occasional visits driven by positive experiences and loyalty programs. To succeed, hotels must prioritize meeting customer preferences and providing enticing amenities.

An exciting new loyalty programme

An exciting new loyalty programme

State of Digitalization in Lifestyle Apparel Industry

Objective: The objective of this research study was to assess the extent of digitalization in the Lifestyle Apparel Industry and identify any loopholes in the ideal supply chain management. The study aimed to examine the integration of retailers with their partners, the understanding of key industry trends, and the decision-making process regarding the right retail format and digitalization level.
 
 Method: This research adopted a descriptive approach, combining quantitative and qualitative methods. A sample of 80 Lifestyle Apparel Retailers from the Mumbai region was selected using a simple random sampling procedure. Data was collected through surveys and interviews to gather insights into the utilization of technology platforms in the industry.
 
 Result: The findings of the study revealed that Universal Product Coding, Unified Payments Interface, E-Commerce platforms, ERP Solution, and Loyalty Programs are the most extensively used technology platforms in the Lifestyle Apparel Industry. These platforms have significantly transformed the supply chain process, enhanced customer experience, and improved operational efficiency.
 
 Conclusion: In conclusion, this research highlights the pivotal role of technology in shaping the Lifestyle Apparel Industry. The adoption of various technology platforms has empowered retailers to optimize their operations, enhance customer engagement, and remain competitive in the market. The study also points out the importance of integrating retailers with partners, understanding industry trends, and making informed decisions to achieve an ideal supply chain management in the digital era. These insights are valuable for industry stakeholders and policymakers to drive further advancements and growth in the Lifestyle Apparel sector.

Analisis Strategi Customer Relationship Management untuk Meningkatkan Loyalitas Pelanggan dalam Pembelian Suku Cadang Pada PT Trakindo Utama Cabang BSD

The intense competition within the industrial sector drives companies to be more proactive in creating innovations and continuously designing strategies to maintain their position in the market. This action is also implemented by one of the heavy equipment companies in Indonesia, namely PT Trakindo Utama. The company must have an effective customer relationship management strategy to enhance customer loyalty, thereby improving relationships with customers and retaining existing ones. This research aims to determine whether the implementation of customer relationship management strategies effectively enhances customer relationships, retains customers, and increases loyalty. The methodology used in this research employs a qualitative approach, involving data collection techniques such as observation, interviews with employees from the Sales division and the Parts Counter sub-division of PT Trakindo Utama's BSD Branch, who have direct and intensive communication with customers, as well as documentation. Therefore, the data obtained are accurate based on sources within the company related to the research. Through observations and interviews, it can be seen that the customer relationship management strategies implemented by the company have been effective in improving and maintaining customer relationships and increasing customer loyalty by offering loyalty programs, such as excellent and solution-oriented services, providing incentives, annual contracts, membership rewards, and conducting evaluations based on customer assessments.

ПРОГРАММЫ ЛОЯЛЬНОСТИ КАК ИНСТРУМЕНТ РАЗВИТИЯ ESG-ПРАКТИК НА ПРЕДПРИЯТИЯХ ГОСТЕПРИИМСТВА В СИТУАЦИИ ТРАНСФОРМАЦИИ РЫНКА

The article is devoted to the consideration of the importance of developing loyalty programs as a tool for the development of ESG practices at a hospitality enterprise. The authors focus on the study of factors of economic instability and market volatility and note that hospitality enterprises are forced to look for new ways to attract and retain customers in order to stand out from competitors and ensure their sustainability and growth. Special attention is paid to the principles of ESG as an integral part of modern business. It is concluded that the integration of ESG practices allows enterprises to increase their attractiveness to investors, improve their reputation and reduce the risks associated with climate change and social problems.

ANALISIS PENERIMAAN APLIKASI MYPERTAMINA MENGGUNAKAN METODE TECHNOLOGY ACCEPTANCE MODEL (TAM)

In an effort to protect and maintain customer loyalty, PT Pertamina introduced a loyalty program called MyPertamina. This application allows customers to make non-cash transactions through LinkAja! Meanwhile, the government is currently testing official transactions for fuel oil (BBM), diesel and pertalite subsidies, through this program. The objective of this research is to recognize the determinants that influence the public's acceptance of the MyPertamina application. In this study, the Technology Acceptance Model (TAM) approach is utilized to gauge the extent to which users accept technology based on their behavior. There are four variables in TAM that are used, namely Perceived Usefulness, Perceived Ease of Use, Behavioral Intention to Use, and Actual System Use. As many as 160 respondents who are users of the MyPertamina application are the subject of this study, selected using the Lemeshow formula. The results showed that after the primary data was processed using the SPSS application, hypothesis testing was carried out using Structural Equation Modeling (SEM). In addition, Perceived Ease of Use also has a positive and significant effect on Behavioral Intention to Use and Actual System Use. However, there is no positive and significant effect between Behavioral Intention to Use and Actual System Use.

Marketing Public Relations Starbucks Indonesia dalam Membangun Loyalitas Customer

In the Coffee Shop business in Indonesia, competition is becoming increasingly intense. The success of a company in competing with its rivals depends on the good relationship between the company and its customers through optimal service that meets their needs. To build customer loyalty, a crucial role is played inpublic relations. One of the strategies used by companies to build customer loyalty is through Marketing Public Relations. The purpose of this research is to determine how Starbucks Coffee Indonesia uses Marketing Public Relations strategies to build customer loyalty. A qualitative research method was used in this study with data collection techniques through literature review. The results of this research show that Starbucks Coffee Indonesia has successfully built customer loyalty through three main strategies: creating emotional connections with customers, using easily recognizable merchandise and branding, and implementing Customer Relations in loyalty programs. Starbucks Coffee Indonesia creates emotional connections with customers through comfortable store designs, serving quality coffee, and providing personal attention and rewards to customers. The company also uses easily recognizable merchandise and branding, with the Starbucks logo as a means to build customer loyalty. Lastly, the implementation of Customer Relations by baristas in the loyalty program is also an important factor in building customer loyalty. This research concludes that Starbucks Coffee Indonesia has successfully utilized Marketing Public Relations strategies optimally to build customer loyalty, as evidenced by the company's success in overcoming the increasingly intense competition in the Coffee Shop business in Indonesia. From an Islamic communication perspective, Starbucks' marketing public relations communication has also fulfilled the principles of communication in Islam: qaulan sadiddan, qaulan balighan, qaulan maysuran, qaulan layyinan, and qaulan kariman.

Does status demotion in hierarchical loyalty programs foster relationship fading?

PurposeStatus demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, existing research is relatively silent on whether HLP status demotion fosters service relationship fading by influencing demoted customers’ psychological disengagement and the likelihood of patronage reduction. Drawing on the relationship fading literature and the stimulus–organism–response framework, this study aims to examine these effects. It further investigates the moderating role of psychological ownership on the links of status demotion with psychological disengagement and the likelihood of patronage reduction.Design/methodology/approachTwo studies (Studies 1 and 2) were conducted in the context of airline HLPs. Study 1 was a structured survey conducted among 213 demoted airline HLP customers in Australia, and Study 2 was an experiment conducted among 178 executive MBA students in Bangladesh. The PROCESS macro was used to test the moderated mediation model.FindingsThe results of both studies show that HLP status demotion significantly influences customers’ psychological disengagement and the likelihood of patronage reduction. The findings also reveal that psychological disengagement mediates the relationship between status demotion and the likelihood of patronage reduction. Further, customers with high (low) psychological ownership feel high (less) psychological disengagement and show high (less) likelihood of patronage reduction due to their HLP status demotion.Originality/valueThis study extends the existing literature on relationship marketing and HLPs by offering a better understanding of how and under what conditions status demotion elicits customers’ psychological disengagement and the likelihood of patronage reduction.