Sales Promotion and Consumer Loyalty: A Study of Nigerian Tecommunication Industry

In today’s competitive business world customers are considered to be kings. Customers have several choices to make among alternative products, and they exercise a high level of influence in the market with respect to product size, quality and price. Hence, it is important for producers to meet the needs of customers in order to stay competitive. One of the marketing communication tools that is used in attracting the attention of the customer and build their loyalty is sales promotion. The aim of this paper therefore is to determine the effect of sales promotion on customer loyalty in the telecommunication industry. In this study, the survey method was used in gathering information from the respondents. Simple random sampling was used to select a sample size of 310, while descriptive and inferential statistical analyses were conducted with the aid of SPSS software. Producers spend a large part of their total marketing communication expenses on sales promotion. Hence, this paper attempts to find the effect of sales promotion on customer loyalty using a sample of customers of mobile telecommunication services. The paper found that, there is positive relationship between sales promotion and customer loyalty. More importantly, it was discovered that non-loyal customers are more prone to switch to competing products as a result of sales promotion than loyal customer

Comparing Loyalty Program Tiering Strategies: An investigation from the gaming industry

Loyalty programs are popular marketing strategies developed for the purpose of attracting, maintaining, and enhancing customer relationships. Due to the explosive worldwide growth of, and increased competition within, the casino industry has compelled contemporary casino marketers to rely more heavily on loyalty programs to increase guest allegiance and the frequency of repeat visits from their customers. Despite the widespread usage of loyalty programs across various gaming businesses in Las Vegas, its effectiveness has not quite been validated. The purpose of this study is to examine customers’ behavioral loyalty within the Las Vegas gaming industry and examine the effectiveness of a specific loyalty program using secondary data obtained from a Las Vegas casino hotel. Specifically, this study segmented loyalty program members to investigate the effectiveness of a casino loyalty program’s tiering strategy on members’ purchase behavior. Further, this study employed Recency-Frequency-Monetary (RFM) analysis to examine two different types of tiering strategies

Rural consumers' adoption of CRM in a developing country context

This paper illustrates how understanding consumer preferences through market research may enhance CRM adoption among the rural customers of a developing country like Bangladesh. It presents the case of Community Information Centre (CIC) established by Grameenphone, a company owned by Telenor, the Norwegian telecommunications company and Grameen Bank, the Nobel prize winning micro credit organisation in the rural settings of Bangladesh. The paper shows that CIC is an innovative way of building and maintaining customer relationships and technological interface with the financially constrained consumers in a poor developing economy like Bangladesh

Influence of Brand Name in Variety Seeking Behavior of Consumers: An Empirical Analysis

The variety-seeking behavior and the brand choice among the consumers have been discussed extensively in the previous research contributions from the stochastic point of view. This study argues that although consumers are seeking novelty and unexpectedness in a brand that they have not bought before, their purchase will be selective, in reference to the empirical investigation. The study has been conducted in Mexican retail business environment with a focus to explore the tendency of decision making of consumers towards buying unfamiliar brands in considering the importance of brand name. The discussions in the paper have been woven around the issues of perceived risk, perceived brand difference, association of brand name and customer values as major influencing factors in making buying decisions towards unfamiliar brands. The study reveals that the perceptions on brand name in reference to brand risk and brand differences have been the prime factors in making buying decision for new brands among the consumers. Consumers also ascertain the brand name associated with the unfamiliar brands as they feel high risk averse and entangle in decision making with perceived brand differences.Cognitive behavior, personality traits, brand loyalty, brand perceptions, decision making, customer value

The effects of loyalty programs on customer satisfaction, trust, and loyalty toward high- and low-end fashion retailers

This study examines the differential effects of the benefits customers receive from a loyalty program (LP) on satisfaction with the LP, trust in the LP, and store loyalty for high- and low-end fashion retailers. With survey data from U.S. LP subscribers, the study tests the relationships using multiple regressions and analysis of covariance. The results show that symbolic benefits are more important for high-end fashion store consumers' satisfaction with the LP; conversely, utilitarian benefits increase consumers' satisfaction with the LP more in low-end fashion retailing, whereas hedonic benefits increase consumers' satisfaction with the LP in both types of retailers. All benefits in both types of retailers affect trust in the LP. Finally, satisfaction with and trust in the LP are important drivers of loyalty to the retailer. The findings have important implications on how managers of high- and low-end fashion retailing can effectively design their LP rewards to maximize loyalty

Do Loyalty Programs Really Enhance Behavioral Loyalty? An Empirical Analysis Accounting for Self-Selecting Members

One of the pressing issues in marketing is whether loyalty programs really enhance behavioral loyalty. Loyalty program members may have a much higher share-of-wallet at the firm with the loyalty program than non-members have, but this does not necessarily imply that loyalty programs are effective. Loyal customers may select themselves to become members in order to benefit from the program. Since this implies that program membership is endogenous, we estimate models for both the membership decision (using instrumental variables) and for the effect of membership on share-of-wallet, our measure of behavioral loyalty. We use panel data from a representative sample of Dutch households who report their loyalty program memberships for all seven loyalty programs in grocery retailing as well as their expenditures at each of the 20 major supermarket chains. We find a small positive yet significant effect of loyalty program membership on share-of-wallet. This effect is seven times smaller than is suggested by a naïve model that ignores the endogeneity of program membership. The predictive validity of the proposed model is much better than for the naïve model. Our results show that creating loyalty program membership is a crucial step to enhance share-of-wallet, and we provide guidelines how to achieve this.Attraction models;Endogeneity;Grocery retailing;Loyalty programs;Tobit-II model

Do Loyalty Programs Enhance Behavioral Loyalty: An Empirical Analysis Accounting for Program Design and Competitive Effects

This paper studies the effects of loyalty programs on share-of-wallet using market-wide household panel data on supermarket purchases.We find that loyalty programs relate positively to share-of-wallet, but the programs differ in effectiveness and some are ineffective.Both a saving component and a multi-vendor structure enhance the effectiveness of a loyalty program, but high discounts do not lead to higher share-of-wallets.Further, if households have multiple loyalty cards, the effectiveness of a specific loyalty program is much smaller.The positive loyalty program effects on share-of-wallet entail substantial additional customer revenues.However, given the high number of loyalty programs already available in the market, our model predicts that a new loyalty program introduction will only lead to small effects on share-of-wallet.loyalty;marketing;retailing

Point of Sales Promotions and Buying Stimulation in Retail Stores

This paper analyzes drivers of compulsive buying behavior induced by store based promotion through empirical investigation in Mexico. The buying behavior in reference to point of sales promotions offered by retailing firms and determinants of sensitivity towards stimulating shopping arousal and satisfaction among customer in building store loyalty have been discussed in the paper. This study also builds arguments around convergence of attractiveness of point of sales promotions and effectiveness of customer services as a tool for gaining competitive advantage in the retail business environment. The results indicate that point of sales promotion programs have become the principal tool of retailing in Mexico to acquire new customers and retain the loyal customers. It is also found during the study that loyal customers are attracted to the store brands during the promotional offers while new shoppers are price sensitive and are attracted by the in-store ambience of sales promotions and volume discounts.Sales promotion, shopping arousal, store loyalty, buying behavior, retailing, customer relations

Understanding Critical Variables for Customer Relationship Management in Higher Education Institution from Employees Perspective

The aim of this paper is to evaluate the critical success factors and investigate the benefits that might be gained once implementing Electronic Customer Relationship Management at HEI from employee perspective. The study conducted at Al Quds Open University in Palestine and data collected from (300) employee through a questionnaire which consist of four variables. A number of statistical tools were intended for hypotheses testing and data analysis, including Spearman correlation coefficient for Validity, reliability correlation using Cronbach’s alpha, and Frequency and Descriptive analysis. The overall findings of the current study show that all the features were important for staff and it was critical success factors, at the same time, websites were providing all the features discussed by the theory whereas staff showed their willingness to use those features if provided. It is also discovered that implementing Electronic Customer Relationship Management can cause staff retention, were provided efficiently and needed to be improved. Research limitations: The survey findings were based on QOU employee in Palestine, UAE and KSA branches not included in the study

Effects of Customer Services Efficiency and Market Effectiveness on Dealer Performance

Market orientation is positively associated with performance of dealers in terms of customer service quality, growth in sales and increase in market share. This paper aims at analyzing the impact of market orientation strategies and performance of customer services on customer acquisition, retention and sales of automobiles, which reveals overall performance of the automobile dealers in Mexico. Discussion in the paper also comprehends understanding on customer-dealer relationship in the automobile market segment referring to the key factors which establish services quality encompassing tangibility, responsiveness, trust, accuracy and empathy. The results of the study reveal that the customers perceive better quality of the relationship in a given frame of functions that are performed effectively by the dealer lowering the extent of conflicts thereof. High conformance quality services of dealers and value added customer relationship to offer high customer satisfaction develop life time customer value and strengthen the customer-dealer relationship.Market orientation, customer services, services quality, dealer performance, customer value, competitive strategies