Title: Examining the dynamics of customer adoption of retail loyalty programmes in India

Authors: Renu Bhardwaj; Pavleen Soni

Addresses: GGS Khalsa College, Sarhali, Tarn Taran, India ' University Business School, Guru Nanak Dev University, India

Abstract: In the present competitive global market retailers are striving for locking existing customers and hence, loyalty programmes are becoming increasingly common in India. In the light of this, the present study endeavours to shed light on customers' adoption of retail loyalty programmes in India. Data have been collected from 741 customers using structured questionnaire through proportionate sampling, by devising a sample proportionate to population proportion for each district of Delhi (Census, 2011). Data have been analysed through descriptive statistics, confirmatory factor analysis (CFA), structural equation modelling (SEM) and hierarchical binary logistic regression using SPSS 18.0 and AMOS 18.0 software. The findings of the study suggest that respondents' attitude is a key variable which significantly influences loyalty programme attributes and in turns play a pivotal role in the adoption of loyalty programmes by customers. Of three loyalty programme attributes - perceived advantage and perceived complexity have been found to have significant impact on loyalty programme adoption. The outcomes of the study highlight the need for communication campaigns which would increase customer participation in loyalty programmes.

Keywords: loyalty programmes; attitude; perceived loyalty programme attributes; adoption; India.

DOI: 10.1504/IJECRM.2020.113430

International Journal of Electronic Customer Relationship Management, 2020 Vol.12 No.4, pp.357 - 372

Received: 15 May 2020
Accepted: 02 Oct 2020

Published online: 01 Mar 2021 *

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