THE IMPORTANCE OF LOYALTY PROGRAMS IN BUILDING CUSTOMER SATISFACTION: A CASE OF FOOTWEAR BRANDS OF PAKISTAN.

##plugins.themes.academic_pro.article.main##

*Dr. Mohan a/l Rathakrishnan **Qaisar Mahmood

Abstract

In the current situation, there is an intense race of offering exclusive and creative forms of the loyalty programs. These unique programs are pressurizing the customers to show their loyalty towards the footwear brands. The purpose of this study is to explore the effectiveness of loyalty programs (perceived value, commitment, involvement and service quality) in building customer loyalty to the Pakistani footwear brands through customer satisfaction. Quantitative data is collected through using self-administered questionnaire. Data is collected from 300 female customers in our cross-sectional study. All the variables are examined by SPSS software. For examining the mediation effect AMOS software is used. By examining the outcomes of data displays that loyalty programs effects the customer loyalty but customer satisfaction as a mediator has more significant impact on customer loyalty. Data is collected only from the female customers of the footwear brands. Consideration of male customers may have disclosed fascinating results too. This study gives essential awareness to the retail brands in establishing several approaches concerning customer loyalty. Retail footwear brands of Pakistan should focus more on improving the loyalty programs.

##plugins.themes.academic_pro.article.details##

How to Cite
*Dr. Mohan a/l Rathakrishnan **Qaisar Mahmood. (2020). THE IMPORTANCE OF LOYALTY PROGRAMS IN BUILDING CUSTOMER SATISFACTION: A CASE OF FOOTWEAR BRANDS OF PAKISTAN. Multidisciplinary Journal of Instruction, 1(1), 1-17. Retrieved from https://journal.mdji.org/index.php/MDJI/article/view/6

References

Akbar, M. M. (2009). Impact of service quality, trust & customer satisfaction on customer loyalty. ABAC Journal, 29(1), 24-38.
Anderson, E. &. (1993). The antecedents and consequences of customer satisfaction for firms. Marketing Science, 12 (1), 125-143.
Anderson, E. F. (2004). Customer Satisfaction and Shareholder Value. Journal of Marketing, Vol. 68, 172–185.
Bam, K. (1992). Research methods for business and management.
B, L. (1991). Elements of experiential consumption: an exploratory study. Adv. Concum. Res, 18(1), 729-735.
Bagram, M. &. (2012). Attaining consumer loyalty. The role of consumer attitude and consumer behaviour. International Review of Management and Business Research, 1 (1), 1-8.
Bansal, H. S. (1999). The service provider switching model (SPSM): a model of consumer switching behavior in the service industry. Journal of service Research, 2 (2), 200- 218.
Barki, H. a. (1989). Rethinking The Concept Of User Involvement. MIS Quarterly, Vol. 13, No. 1, 53-63.
Beatty, S. K. (1988). The Involvement – Commitment Model : Theory and Implication. Journal of Business Research, Vol. 16, No. 2, 149 – 167.
Bolton, D. (1991). A Multistage Model of Customers’ Assessment of Service Quality and Value. Journal of Consumer Research, 374–84.
Cengiz, E. (2010). Measuring customer satisfaction: must or not. Journal of Naval Science and Engineering, 6 (2), 76-88.
Chen, S. C. (2015). Customer value and customer loyalty: Is competition a missing link? Journal of Retailing and Consumer Services, 22, 107–116.
Cox, D. F. (1967). The sorting rule model of the consumer product evaluation process.
Crucerua, A. F. (2014). Customer relationships through sales forces and marketing events. Procedia - Social and Behavioral Sciences, 155–159.
Deighton, J. A. (2000). Frequency programs in service industries. Handbook of Services Marketing and Management.
Demoulin, N. T., & Zidda, P. (2008). On the impact of loyalty cards on store loyalty: Does the customers’ satisfaction with the reward scheme matter? Journal of Retailing and Consumer Services, 15 (5), 386-398.
Dowling, G. R., & Uncles, M. (1997). Do Customer Loyalty Programs Really Work? Sloan Management Review , 38 (4), 71-82.
Dwyer, F. R., Schurr, P. H., & Oh, S. (1987). Developing buyer-seller relationships. Journal of Marketing, 51, 11-27.
Eakuru, N. &. (2008). The Business Review, 10(2), 129-139.
Eshghi, A. H. (2007). Determinants of customer loyalty in the wireless telecommunications industry. Telecommunications policy, Volume 31, Issue 2, 93-106.
Fornell, C. (1992). A national customer satisfaction barometer: the Swedish experience. Journal of Marketing, 56, 6-21.
Gable, M. F. (2008). An empirical analysis of the components of retailer customer loyalty programs. International Journal of Retail & Distribution Management.
Ganesan, S. (1994). Determinants of Long-term Orientation in Buyer-Seller Relationship. Journal of Marketing, Vol. 58, 1-19.
Griffin, J. (1996). The Internet’s expanding role in building customer loyalty. Direct Marketing, 59(7), 50-53.
Group, F. C. (2011). Loyalty programs gone wrong – Ten common mistakes to avoid.
Gustafsson, A. J. (2005). The Effects of Customer Satisfaction, Relationship Commitment Dimensions, and Triggers on Customer Retention. Journal of Marketing, Vol. 69, 210–218.
Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study. International Journal of Service Industry Management, 7(4), 27-42.
Hair Jr, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107-123.
Heskett, J. L. (1994). Putting the service-profit chain to work. Harvard Business Review, 72(2), 164–174.
Hsu, C. L. (2010). Effect of Commitment and Trust Towards Micro-blogs on Consumer Behavioral Intention: A Relationship Marketing Perspective . International Journal of Electronic Business Management, Vol. 8, Núm. 4, 292-303.
Irshad, M. A. (2015). Impact of Loyalty Programs on Customers' Loyalty: A Case Study of Shoes and Handbags Retail Outlets of Pakistan. Pakistan Journal of Psychological Research, 30(1), 95.
Jones, T. a. (2007). The nature and dimensionality of service loyalty: how many dimensions? Journal of Services Marketing, Vol. 27 No. 1, 36-51.
Juran, J. (1988). Juran’s quality control handbook. McGraw –Hill .
Keiningham, T. C. (2007). A longitudinal examination of ‘net promoter’ on firm revenue growth. Journal of Marketing (forthcoming).
Kim, H. Y. (2013). Perceived benefits of retail loyalty programs: Their effects on program loyalty and customer loyalty. Journal of Relationship Marketing, 12(2), 95-113.
Kotler, P. &. (2006). Marketing Management. Prentice-Hall.
Leenheer, J., van Heerde, H. J., Bijmolt, T. H., & Smidts, A. (2007). Do loyalty programs really enhance behavioral loyalty? An empirical analysis accounting for self-selecting members. International Journal of Marketing, 24 (1), 31-47.
Lewis, M. (2004). The influence of loyalty programs and short-term promotions on customer retention. Journal of Marketing Research, 41(3), 281-292.
Lewis, M. (2004). The influence of loyalty programs and short-term promotions on customer retention. Journal of Marketing Research, 41(3), 281-292.
Liang, C. J., & Wang, W. H. (2008). Do loyal and more involved customers reciprocate retailer’s relationship efforts? Journal of Services Research, 8(1), 63–90.
Liu CH, Y. L. (2010). The effects of service quality, tourism impact, and tourist satisfaction on tourist choice of leisure farming types. Afr. J. Bus. Manage, 4(8), 1529-1545.
Liu, Y. (2007). The long-term impact of loyalty programs on consumer purchase behavior and loyalty. Journal of Marketing, 71 (4), 19-35.
Mägi, A. W. (2003). Share of wallet in retailing: the effects of customer satisfaction, loyalty cards and shopper characteristics. Journal of Retailing, 79 (2), 97-106.
Medlin, C. J., Aurifeille, J. M., & Quester, P. G. (2005). A collaborative interest model of relational coordination and empirical results. Journal of Business Research, 58, 214-222.
Mehrabian, A. &. (1974). An approach to environmental psychology. the MIT Press.
Meyer-Waarden, L. (2007). The effects of loyalty programs on customer lifetime duration and share of wallet. Journal of Retailing, 83 (2), 223-236.
Morgan RM, H. S. (1994). The commitment-trust theory of relationship marketing. J. Mark, 58(3), 20-38.
Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of Relationship Marketing. Journal of Marketing, 58, 20–38.
Ograjenˇsek, I. (2008). Service quality. Statistical Practice in Business and Industry.
Oliver, R. (1997). Satisfaction: A Behavioral Perspective on the Consumer. McGraw-Hill.
Olsen, O. (2007). Repurchase loyalty: the role of involvement and satisfaction. Psychology & Marketing, 24, 315-341.
Olson, J. C. (1972). Cue utilization in the quality perception process. In SV-proceedings of the third annual conference of the association for consumer research.
Omar, N. A. (2011). Understanding the relationships of program satisfaction, program loyalty, and store loyalty among card holders of loyalty programs. Asian Academy of Management Journal, 16(1), 21-41.
Parahoo, S. K. (2012). Motivating Shoppers to Come Back: Modeling Consumer Behaviour In Retailer Loyalty Programs. Issues of Business and Law, 4(1), 106-118.
Pentecost, R. &. (2010). Fashion retailing and the bottom line: The effects of generational cohorts, gender, fashion fanship, attitudes and impulse buying on fashion expenditure. Journal of Retailing and Consumer Services, 43-52.
Priester, J. (2004). The ASC model: the influence of attitudes and attitude strength on consideration and choice. Journal of Consumer Research, 30, 574–597.
Rai, A. (2013). Customer Relationship Management: Concepts & Cases. 56-69.
Ramaseshan, B. E. (2008). Mediating effect of program loyalty on the relationships between value perception and relationship investment on customer loyalty. ANZMAC.
Reichheld, F. (2003). The one number you need to grow. Harvard Business Review, 2-10.
Rowley, J. (2007). Reconceptualising the strategic role of loyalty schemes. Journal of Consumer Marketing, 24 (6), 366-374.
Russell-Bennett, R. M.-K. (2007). Involvement, satisfaction and brand loyalty in a small business services setting. Journal of Business Research, Volume 60, Issue 12, 1253-1260.
RW, L. (2003). Customer loyalty program: strategic value to relationship marketing. University of Alabama.
Sondoh, S. L. (2007). The effect of brand image on overall satisfaction and loyalty intention in the context of color cosmetic. Asian Academy of Management Journal, 12(1), 83–107.
Sproles, G. B. (1979). Fashion: Consumer behavior toward dress. Burgess Publishing Company.
Tu, Y. W. (2012). Corporate brand image and customer satisfaction on loyalty: An empirical study of Starbucks coffee in Taiwan. Journal of Social and Development Sciences, 3(1), 24-32.
Turel, O. a. (2006). Satisfaction with mobile services in Canada: An empirical investigation. telecommunication policy, volume 30, issue 5, 6, 314-331.
Ullman, J. B., & Bentler, P. M. (2003). Structural equation modeling. Handbook of psychology, 607-634.
Vázquez-Casielles, R. (2009). Customer satisfaction and switching barriers: Effects on repurchase intentions, positive recommendations, and price tolerance. Journal of Applied Social Psychology, 39(10) .
Woodruff, R. (1997). Customer value: the next source for competitive advantage. Journal of the Academy of Marketing Science, 25(2), 139-153.
Yang, Z. &. (2004). Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psychology & Marketing, 21(10), 799–822.
Yi Y, J. H. (2003). Effects of loyalty programs on value perception, program loyalty, and brand loyalty. J. Acad. Mark. Sci, 31(3), 229-240.
Zaichkovsky, J. (1985). Measuring the Involvement Construct. Journal of Consumer Research, Vol. 12, No. 3, 341-352.
Zeithaml, V. A. (1988). Consumer Perceptions of Price, Quality and Value: A Means-end Model and Synthesis of Evidence. Journal of Marketing, 2–22.