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Determinants of loyalty programmes and their impact on store patronage

Ashutosh Kolte (Department of Management Sciences, Savitribai Phule Pune University, Pune, India)
Nitin Veer (Department of Management Sciences, Savitribai Phule Pune University, Pune, India)
Yogesh Mahajan (Symbiosis Centre for Management and Human Resource Development, Symbiosis International University, Pune, India)
Dario Siggia (Department of Agricultural, Food and Forest Sciences, University of Palermo, Palermo, Italy)

Journal of Asia Business Studies

ISSN: 1558-7894

Article publication date: 5 December 2022

68

Abstract

Purpose

The purpose of this study is to measure the impact of perceived benefits offered by loyalty programmes on store patronage behaviour and repeat purchase behaviour of customers. Another purpose of this study is to assess the impact of mediating and influencing factors on patronage behaviour and customer loyalty.

Design/methodology/approach

The convenience sampling method was adopted for the sample selection. Structured questionnaire instruments were distributed to subscribers who are enrolled or subscribed to any loyalty programme and asked them to mark their opinions about subscriptions to a loyalty programme and the benefits or perceived values that customers get from the subscribed loyalty program. To determine respondent responses, closed-end questions and Likert scales were used. A SmartPLS statistical programme was used to analyse the coefficient and p-value of the perceived value of the loyalty programme and its relation with patronage behaviour.

Findings

The study finds a significant impact of various loyalty programme determinants on store patronage behaviour, supported by hypothesis testing. Researchers have used variable commitment to the test with satisfaction and trust and found it supportive. Another hypothesis tested for the impact of satisfaction on trust shows a significant relationship. They found a significant relationship between the perceived benefits of a loyalty programme and satisfaction with the store and trust. Another hypothesis tested for the impact of satisfaction on trust shows a similar relationship. The impact of commitment on loyalty behaviour (store patronage) was analysed and found to be significant.

Originality/value

To the best of the authors’ knowledge, to date, this methodology has not been used to measure the influence of loyalty programme values on patronage behaviour in the present context. Based on the understanding that the measurement of the impact of perceived values of loyalty programmes on repeat purchase behaviour could be very useful in providing guidance for decision-making in consumer retention strategy, this paper contributes to the literature on the evaluation of store patronage behaviour with its influencing variables.

Keywords

Citation

Kolte, A., Veer, N., Mahajan, Y. and Siggia, D. (2022), "Determinants of loyalty programmes and their impact on store patronage", Journal of Asia Business Studies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JABS-05-2022-0170

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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