Assessing the Relationship between Loyalty Program Attributes, Store Satisfaction and Store Loyalty

Subject Areas : Jounal of Marketing Management

P. Ghafari Ashtiani ¹ , A. R. Eskandary Mehrabady ²

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Received: 2013-09-01 Accepted : 2013-09-01 Published : 2011-04-21

Keywords: Loyalty Program, Store Satisfaction, Store Loyalty, Hard Attribute, Soft Attribute,

Abstract :

Chain stores as  one of distribution  system  rings, play  a  significant  role in controlling the prices  and  the  reduction of distribution  costs  at final  price;  therefore,   proper supply of  products  requires planning a number of  programs  which can persuade customers to do repeated purchases as  this  purchasing  is  advantageous to  both the chain store and  customers. The main purpose of   present study was  to investigate the relationship between loyalty program attributes and store loyalty; it also aimed  at examining mediating role of   store satisfaction in the chain stores. The study population consisted of the customers of Refah chain store. This research has taken six month at summer and autumn of 2009.   Methodology of this research is descriptive, and the simple regression was used to test hypothesis. In this research hard attributes are generally tangible elements such as discounts and gifts; whereas, soft attribute are such things as special communication and preferential treatment. Typically Soft attributes are more emotionally oriented. The findings of the study indicated that loyalty programs have a significant relationship with store loyalty and the mediating role of store satisfaction. Soft attributes in relation to hard attributes proved to be stronger predictors to store satisfaction through the application of the merchandize trading format and customer services. Therefore, soft attributes were of greater impact as compared to hard attributes.