Examining the dynamics of customer adoption of retail loyalty programmes in India
by Renu Bhardwaj; Pavleen Soni
International Journal of Electronic Customer Relationship Management (IJECRM), Vol. 12, No. 4, 2020

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.

Online publication date: Thu, 04-Mar-2021

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