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The Influence of Discount and Cashback Promotion Strategies on E-Wallet Customer Loyalty

In: Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)

Author

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  • Ina Yulianadewi

    (Dipa Makassar University, Digital Business Department)

Abstract

This study aims to analyze the influence of discount and cashback promotion strategies on e-wallet customer loyalty in South Sulawesi. The research method used is quantitative, with a Structural Equation Modeling (SEM) approach, which allows for the analysis of both direct and indirect relationships between the studied variables. The study also involves customer satisfaction as a mediating variable and user experience as a moderating variable. Data were collected from 300 respondents who are active e-wallet users in Indonesia and were then analyzed using SEM. The results show that discount and cashback promotions significantly affect customer loyalty, with cashback having a stronger impact on building long-term loyalty compared to discounts, which are more effective in increasing short-term usage. Customer satisfaction is proven to mediate the relationship between promotions and loyalty, while positive user experience moderates the effect of promotions on loyalty. These findings highlight the importance for e-wallet companies not only to rely on promotions but also to ensure customer satisfaction and a good user experience to strengthen customer loyalty.

Suggested Citation

  • Ina Yulianadewi, 2025. "The Influence of Discount and Cashback Promotion Strategies on E-Wallet Customer Loyalty," Advances in Economics, Business and Management Research, in: Mursalim Nohong & Fitra Roman Cahaya & Phung Minh Tuan & Arifuddin Mannan & Anas Iswanto Anwar & Ria (ed.), Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), pages 2870-2876, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-758-8_233
    DOI: 10.2991/978-94-6463-758-8_233
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