Customer Loyalty in Loyalty Programs: A Study on the Effects of Discount and Ease-of-Use on Customer Loyalty through Loyalty Program Applications in Fashion Retail

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Journal Title

Journal ISSN

Volume Title

School of Business | Bachelor's thesis

Date

2022

Department

Major/Subject

Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

32 + 9

Series

Abstract

Objectives The main objectives of this study was to examine how ease-of-use and discount in loyalty program applications affect customer loyalty. Moreover, this study examined the effect of the discount, and ease-of-use factors in creating customer loyalty through loyalty programs. Summary Loyalty programs are an increasingly popular concept, and the number of consumers utilizing them in their purchases is constantly growing. In the case of fashion retailers’ loyalty programs have become a crucial tool in the aims of increasing customer loyalty towards the brand. Moreover, discount and ease-of-use have been found significant in creating successful loyalty programs, which is why understanding their effects in customer loyalty through loyalty program applications is crucial. Conclusions From the respondents in the survey, we found customer loyalty was affected positively through a straightforward ease-of-use experience in loyalty programs applications. However, the study showed that there was no significant difference in the level of customer loyalty between short-term and long-term rewards.

Description

Thesis advisor

Zdravkovic, Srdan

Keywords

customer loyalty, loyalty programs, Ease-of-use, discount, fashion retail, digitalization, customer relationships

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