Factors Affecting the Buying Behaviour of an Individual Who Holds Several Loyalty Cards

Abstract

Recently many Supermarkets, Insurance companies, and similar products or service providers started giving loyalty cards to their consumers as a marketing strategy to retain their loyal customers, due to this reason a single customer holds several loyalty cards and the basic idea of retaining customers by issuing just a loyalty card has arrived in to a complex problem. Therefore, the objective of this research is to identify what other factors affect the customers buying behaviour even after obtaining a loyalty card, so that the marketers could focus on improving the findings on this research to retain their consumers within their business even though consumers have several loyalty cards. This study focused on fourteen factors affecting the buying behaviour of consumers who already have a loyalty card. A questionnaire was distributed randomly and 207 successful responses were coded and analysed using several statistical tests for their significance towards the goal of identifying what factors are prioritized the most by the consumers when selecting a good or service. The findings revealed that, Consumers who concern mostly about the budget prefer closer shops, low price products, free offers, and promotions and out of which male customers preferred buying free products and searching for discounts more than females. Consumers who like trendy and new products prefer to visit shops that show respect and friendliness on them and also concerns about the time factor. A customer with a single loyalty card prefer to move towards the shops where they spend less time during their transaction and where the needed items can be easily located provided that the other factors are similar. More generally a customer gives the priority to visit the shops that give many rewards for loyal customers, rather than shopping from a place where just a loyalty card was given. However, Company being famous, started issuing the loyalty card first or attendants concern on the consumers was not affected in a different manner. Finally card holders showed high interest on having discount on vegetables/fruits and grocery items compared to beverage, fish/meet or bath-ware.