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Potential Outcome of Customer Promotion and Demotion in Customer Loyalty Programs from the Customers’ Perspective

Chakrapani, Unnimaya (2020) Potential Outcome of Customer Promotion and Demotion in Customer Loyalty Programs from the Customers’ Perspective. Masters thesis, Dublin, National College of Ireland.

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This dissertation aimed to explore the impact of promotions and demotions of consumers participating in loyalty programs run by various brands and companies. The study also wanted to examine what drove consumers to participate in such loyalty programs and how consumers react to being promoted or demoted. Ultimately the aim was to estimate the impact of consumers’ promotions and demotions in loyalty programs on the success of loyalty programs and on the overall revenues of a brand.

This research followed a positivist research philosophy and inductive approach. The primary research method and design adopted was a quantitative one where the data gathered through primary research was analysed statistically. The quantitative design helped to use a representative sample for the entire target population –consumers participating in loyalty programs. A total of 138 respondents participated in a survey. The respondents were selected using the purposive sampling method Statistical software SPSS was used for data analysis.

The study identified several perceived benefits that drive consumers to participate in loyalty programs which were classified under three categories – utilitarian, symbolic and hedonic benefits. The study also identified strong and opposite reactions of consumers being promoted and demoted. The research concluded that while promoted consumers can develop positive feelings towards a brand, the opposite can happen for demoted consumers. The demoted consumers may even consider quitting the loyalty program and even the brand. The study also found consumers demanding that their historical purchasing data and brand loyalty be considered for periods when they do not meet purchase targets set in loyalty programs before they are demoted.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce > Marketing > Branding
H Social Sciences > HF Commerce > Marketing > Consumer Behaviour
Divisions: School of Business > Master of Science in Management
Depositing User: Dan English
Date Deposited: 04 Feb 2021 11:47
Last Modified: 04 Feb 2021 11:47

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