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A cross-cultural study of the perceived benefits of a retailer loyalty scheme in Asia

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  • Steyn, Peter
  • Pitt, Leyland
  • Strasheim, Arien
  • Boshoff, Christo
  • Abratt, Russell

Abstract

The aim of this paper is to explore loyalty, loyalty schemes, and loyalty cards, as well as the internationalisation of loyalty schemes. We focus on loyalty schemes in Asia to define the primary objective of our study: to assess the impact of perceived benefits on the feelings of participants of a specific retailer's loyalty scheme, as well as customer loyalty towards the retailer. A literature review of loyalty schemes and loyalty cards is undertaken as well as the internationalisation of these cards. A survey was conducted in five Asian countries in which Toys’R’Us operates, namely Singapore, Malaysia, Hong Kong, Taiwan, and Thailand. Data was collected among members of the Toys’R’Us Star Card loyalty programme. Structural equation modelling was used to build a model that can be used to explain the simultaneous structural relations between perceived benefits, emotional feelings, and loyalty behaviours. Invariance testing was applied in order to test whether the model holds across the five countries. Our findings suggest that perceived benefits have a weak direct effect on loyalty behaviours. However, perceived benefits have a much stronger effect on feelings, which in turn have a strong effect on loyalty behaviours. We also found subtle differences between the countries in the study, which could either be attributed to cultural differences, to marketing practices, or to both, which can only be ascertained through further research.

Suggested Citation

  • Steyn, Peter & Pitt, Leyland & Strasheim, Arien & Boshoff, Christo & Abratt, Russell, 2010. "A cross-cultural study of the perceived benefits of a retailer loyalty scheme in Asia," Journal of Retailing and Consumer Services, Elsevier, vol. 17(5), pages 355-373.
    • Handle: RePEc:eee:joreco:v:17:y:2010:i:5:p:355-373
    DOI: 10.1016/j.jretconser.2010.03.017
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    References listed on IDEAS

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    2. Mojgan Bahrami Samani Author_Email: Samani_518@yahoo.com.sg & Ali Attafar & Naser Khani Khouzani, 2011. "A Conceptual Model For Iran’S Car Industry Customers’ Loyalty," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-184, Conference Master Resources.
    3. García Gómez, Blanca & Gutiérrez Arranz, Ana M & Gutiérrez Cillán, Jesús, 2012. "Drivers of customer likelihood to join grocery retail loyalty programs. An analysis of reward programs and loyalty cards," Journal of Retailing and Consumer Services, Elsevier, vol. 19(5), pages 492-500.
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    5. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    6. Agarwal, Reeti & Mehrotra, Ankit & Misra, Dheeraj, 2022. "Customer happiness as a function of perceived loyalty program benefits - A quantile regression approach," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    7. C, Deep Prakash & Majumdar, Adrija, 2023. "Predicting sports fans’ engagement with culturally aligned social media content: A language expectancy perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    8. Bombaij, Nick, 2021. "Effectiveness of loyalty programs," Other publications TiSEM 095c506d-5b5c-4ea3-9b41-a, Tilburg University, School of Economics and Management.
    9. Bombaij, Nick J.F. & Dekimpe, Marnik G., 2020. "When do loyalty programs work? The moderating role of design, retailer-strategy, and country characteristics," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 175-195.
    10. Meena, Purushottam & Kumar, Gopal, 2022. "Online food delivery companies' performance and consumers expectations during Covid-19: An investigation using machine learning approach," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    11. Wang, Ryan T. & Zhang, James J. & Tsuji, Yosuke, 2011. "Examining fan motives and loyalty for the Chinese Professional Baseball League of Taiwan," Sport Management Review, Elsevier, vol. 14(4), pages 347-360.
    12. Vilches-Montero, Sonia & Pandit, Ameet & Bravo-Olavarria, Renzo & Chao, Chih-Wei (Fred), 2018. "What loyal women (and men) want: The role of gender and loyalty program characteristics in driving store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 64-70.

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