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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School of Business |
Bachelor's thesis
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Authors
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, SrdanKeywords
customer loyalty, loyalty programs, Ease-of-use, discount, fashion retail, digitalization, customer relationships