Exploring the Effectiveness of Loyalty Programs: A Retail Perspective in Dhaka City
North South Business Review, Volume 5, Number 1, December 2014
13 Pages Posted: 20 Mar 2015 Last revised: 23 Dec 2015
Date Written: March 18, 2015
Loyalty programs are initiated to retain customers and as well as to maximize their lifetime value. However, controversies exist regarding the effectiveness of loyalty programs on the ground whether consumers really become loyal or simply take the loyalty programs as the short-term incentives. This study shows that consumers are interested to participate in the loyalty programs initiated by the retails stores in Dhaka city. However, the benefits of the program should be aligned with consumers’ expectations. It has also been found that loyalty status varies according to several demographic factors. The findings of this study are imperative for academic and practitioners in that area.
Keywords: Loyalty programs, consumer satisfaction, membership cards, retail, etc.
JEL Classification: M31
Suggested Citation: Suggested Citation