Title: Examining the attitude of Indian consumers toward retail loyalty programs: a cluster analysis approach

Authors: Renu Bhardwaj; Pavleen Soni

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

Abstract: In the current competitive retail scenario, managing relationships with customers is fundamental for the success of any business. Thus, retailers are striving for locking existing customers and hence, loyalty programs are becoming increasingly common in India. Therefore, the present study endeavours to touch the concerned phenomenon through the understanding of customers' attitude towards loyalty programs in the retail industry. In order to achieve the aforesaid objective, data have been collected from 741 adult Indian consumers through a structured questionnaire from Delhi region. Data have been analysed through confirmatory factor analysis (CFA), cluster analysis and chi-square test. The study revealed that customers overall demonstrated a positive attitude toward loyalty programs. More so, through the segmentation approach, three attitudinal clusters of respondents have been identified viz, 'relationship oriented', 'cherry pickers'.

Keywords: loyalty programs; customer attitude; retailers; India.

DOI: 10.1504/IJEBR.2022.125393

International Journal of Economics and Business Research, 2022 Vol.24 No.3, pp.425 - 440

Received: 02 Oct 2020
Accepted: 12 Jan 2021
Published online: 08 Sep 2022 *

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