Customer Loyalty Benefits
PERCEIVED BENEFITS OF CUSTOMER LOYALTY PROGRAMS: VALIDATING THE SCALE IN THE INDIAN CONTEXT
Rapid changes are taking place in the business environment. The competitive advantage that organizations achieved due to product differentiation no longer holds good due to a proliferation of similar looking and performing “me too” products. Most organizations today can mass customize products and services and make it very difficult for customers to distinguish between their product/ service and that of a competitor. In such an environment, having loyal customers is an ever increasing challenge for the marketer. The choice of products and services has increased so much that today’s customers are always having an alternative. It is therefore, of absolute
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However, not many attempts were made in the past to objectively measure benefits from such programs with respect to the loyalty program members. Mimouni- Chaabane and Volle (2010) (Exhibit 3 in appendices) attempted to address this void by developing an instrument that measures perceived benefits from customer loyalty programs. The researchers explain the scale to measure perceived benefits from customer loyalty programs as “a scale that measures the main benefits customers perceive when they participate in loyalty programs” (Mimouni-Chaabane and Volle, 2010). The instrument is a sixteen item scale that measures five types of perceived benefits namely, monetary savings, exploration, entertainment, recognition and social benefits from customer loyalty …show more content…
The general and more accepted view among the marketing scholars and practitioners alike is that customer satisfaction positively impacts purchase intentions as well as behavior. However, it has been found that customer satisfaction, in no way, can guarantee customer loyalty. Therefore, much research has been done in this area and with interesting results. Chandrasekaranet al (2007) mention that in a study for the U.S. Office of Consumer Affairs (Technical Assistance Research Program 1986) it is found that in households that face service problems, only 54% would maintain brand loyalty even after satisfactory resolution of the problems. They conclude that strongly held satisfaction will only lead to loyalty. In addition, prior relational experience with the service provider would also translate into
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