A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in Strategic Marketing January 2016 / While there has been significant research on loyalty programmes in the last two decades, little has been done on the youth market in South Africa. Using the social exchange and relationship marketing theories, the study examines the mediating influence of customer satisfaction, trust and commitment in the relationship between loyalty programmes and repeat purchase behaviour of South African youth. The methodology involved a self-administrated questionnaire adapted from previous studies. Data was collected from 263 South African youth who are loyalty programme members. The study tested six hypotheses using Structural Equation Modeling. The software used was SPSS 22 for descriptive statistics and IBM Amos 22. The findings indicate that all six hypotheses are supported. They also suggest the significance of customer satisfaction as a strong mediator of loyalty programmes and repeat purchase behaviour. Moreover, the study reveals that the mediating influence of customer commitment on loyalty programmes and repeat purchase behaviour is the weakest. The findings reveal that by building customer satisfaction and customer trust amongst the youth, marketers can positively impact on the success of loyalty programmes and repeat purchase behaviour. This study contributes to the literature on loyalty programmes amongst youth within a developing market context. It can assist marketers in developing sound loyalty programmes aimed at the youth market in South Africa. Limitations and future research directions are discussed. / MT2017

In times of economic recession, retailers tend to focus particularly on creating consumer loyalty. Consumers with limited resources search for the best possible alternatives to save money. The latter makes it very difficult for retailers to keep consumers loyal. Marketers claim that successful loyalty programmes can assist retailers in creating consumer loyalty. Based on their structural similarities, Pick 'n Pay adapted the Smart Shopper loyalty programme from Tesco in the United Kingdom in May 2011. This study examined the influence of members' perceptions of the Smart Shopper loyalty programme on their loyalty to the Pick 'n Pay Family Store in George. It also investigated the relationship between consumers' sociodemographic characteristics and their loyalty to the store and to the Smart Shopper loyalty programme. The empirical data were collected by means of questionnaires distributed to Smart Shopper loyalty programme members who patronise the Pick 'n Pay Family Store in George. Three hundred and fifty usable questionnaires were received. Members' perceptions of the Smart Shopper loyalty programme had an significant relationship with their loyalty towards the store. Their perceptions were influenced by the Recognition, Convenience, Savings and exploration and Entertainment they experienced with the Smart Shopper loyalty programme. True and latently loyal consumers regarded Convenience as the most important Smart Shopper benefit, followed by Entertainment, Savings and exploration and Recognition. The distance members resided from the store and their ethnicity were two demographic characteristics that had a significant influence on their loyalty towards the store. However, it has to be pointed out the 58 percent of the respondents were coloured and could have skewed the results. The distance members resided from the store also influenced their loyalty to the Smart Shopper loyalty programme.

Submitted in fulfillment of the requirements for a Masters of Management Sciences: Tourism and Hospitality Management, Durban University of Technology, Durban, South Africa, 2016. / In the hospitality industry, the costs associated with promotions and advertising efforts are greater than those of maintaining relationships with existing customers. However, customer loyalty programmes have been discovered and promoted by different marketing managers and marketing experts in the different industries, as a most prominent and paramount business marketing tool in ensuring customer retention. The purpose of this research study is to assess the effectiveness of a Customer Loyalty Programme as a marketing tool in the Ezemvelo KZN Wildlife (EKZNW) Resorts. This study strategy is quantitative in nature because of its capability to attain a large number of respondents in a short space of time. The target population of this study is the customer loyalty members of EKZNW, in eight different resorts. Descriptive research was found to be relevant and appropriate for this study. A non-probability sampling, with a convenience sampling technique, was adopted for this research study, to recruit members of the EKZNW Rhino Club’s loyalty programme as participants. It was adopted because it allows for quick gathering of data and is also representative of the population. The sample size for data collection was conducted with 376 respondents that are loyalty programme members of EKZNW. A questionnaire was developed as measuring instrument, with the questions designed to be closed-ended. These questionnaires were personally distributed to the respondents in all the selected resorts of EKZNW. The findings of the study indicated that the majority of tourists holding EKZNW loyalty programme membership are happy with being Rhino Club members, however, some are not satisfied with the incentives provided. They recommend that the Rhino Card should be designed to allow them to also use it in other provinces’ game parks. / M

Submitted in compliance with the requirements for the Doctorate in Philosophy: Management Science (Marketing), Durban University of Technology, Durban. South Africa, 2017. / Loyalty programmes have become a popular marketing tool in marketplaces that are highly competitive and where differentiation is difficult. Although they are not new anymore, they continue to grow in popularity, particularly in South Africa where numbers are steadily increasing. The main aim of this study was to determine the influence of various types of perceived benefits from loyalty programmes in the South African fast moving consumer goods (FMCG) market with respect to their impact on relationship quality and loyalty towards the retailer concerned. The study reveals three forms of perceived benefits which are named as consumeristic, altruistic and egoistic benefits. In addition, the influence of socio-demographic characteristics are examined to ascertain any differences that might occur in the results. The study design was based on an exploratory sequential mixed methods approach and began with qualitative research before proceeding to quantitative data collection and analysis. The qualitative section of the research involved two in-depth interviews with managers of loyalty programmes at major retailers and two focus groups aimed at loyalty programme members. These assisted in the design of the quantitative data collection instrument. The quantitative data collection was aimed at a consumer database which incorporated those who were actively employed in the economy, resulting in a sample of 559 respondents. The initial findings of the study, revealed by means of regression analysis, were that all three forms of perceived benefits lead towards the three constructs that make up relationship quality, namely trust, satisfaction, and commitment with the retailer concerned. In addition, the same benefits were found to contribute towards customer loyalty. However, once structural equation modelling was employed, the results evolved. Firstly, the constructs of trust and satisfaction cross loaded onto each other and were therefore treated as a single construct named trust/satisfaction. Secondly, egoistic benefits were absorbed into consumeristic benefits and were therefore no longer featured as a separate item. Explanations are offered for this phenomenon. Consumeristic benefits still had a positive and significant relationship with trust/satisfaction, as did altruistic benefits. However, it was found that although altruistic benefits still enjoy a significant relationship with commitment, consumeristic benefits did not. A suggestion for this is that the perception of altruistic benefits has a greater attitudinal impact than consumeristic benefits do. Finally, neither altruistic nor consumeristic benefits showed a direct relationship with loyalty. The introduction of demographic variables established that only age affects the results, with older consumers being more receptive than others to altruistic benefits. However, findings revealed that a pathway to loyalty remains through the constructs of trust/satisfaction and commitment. This emphasises the importance of achieving trust and satisfaction first by means of the benefits offered. Finally, a new structural model is developed in line with the results of the structural equation model. The results from this study add to the body of research in the field, yielding both significant theoretical and practical contributions to the field of loyalty programmes, relationship quality and loyalty research, particularly in the South African FMCG retail marketplace. Retailers are advised to continue offering both altruistic and consumeristic benefits to customers, despite consumeristic benefits not necessarily creating a direct route towards loyalty. This is because once trust and satisfaction is achieved, loyalty will follow. In addition, loyalty programme providers should ensure that offerings provide both simplicity and transparency in order to create a positive relationship with trust and satisfaction. / D

The average South African tertiary student spends more than the average South African individual each month, making them a valuable market to be understood by retailers. One technique retailers use to differentiate themselves from the increased competition is by relationship marketing through loyalty programmes. Research on the topic of loyalty programmes increased rapidly over the last decade. The problem, however, is that the majority of past research on the subject of loyalty programmes only focused on what happens after customers have already joined a loyalty programme. Little research exists regarding the factors that influence subject participation in loyalty programmes. Furthermore, to date no research study has investigated factors that might influence loyalty programme participation among South African students. The purpose of this study was to understand the tertiary student market by building on the research of De Wulf et al. (2013:69-83) as a vital study to explore factors that might influence them to participate in retail loyalty programmes. An exploratory study was conducted, in which data was collected from students studying at Pearson Institute of Higher Education/ CTI Pretoria by means of self-administered questionnaires. The study followed a quantitative research approach, in order to satisfy the research objectives. The results of the study indicate that the top four characteristics most likely to influence students to participate in a retail loyalty programme, include: a loyalty programme where you receive immediate discounts on certain items at purchase; a loyalty programme that allows you to use your loyalty card at more than one retailer; a loyalty programme with unlimited duration on the usage of benefits or rewards; a loyalty programme that rewards you by giving immediate benefits. / Business Management / M. Com. (Business Management)

The primary purpose of this study was to determine consumers’ perceptions of loyalty programmes offered by cosmetic retailers in Durban and on the KwaZulu-Natal North Coast, South Africa. A broad and in-depth literature review of loyalty programmes as tools for retaining consumers, as well as the different types of loyalty programmes currently available in South Africa, was conducted. An empirical study was conducted by using an interviewer-administered questionnaire to collect data from consumers who were members of cosmetic retailers’ loyalty programmes. A quantitative approach was followed in order to satisfy the research objectives of the study. Loyalty programmes are an integral part of many retail businesses as they allow retailers to reward returning consumers with (amongst others) discounts or special promotional offers when the loyalty programme is used at the point of sale. The rapid advancements in technology has also enabled retailers to maintain databases containing valuable information on consumers’ spending patterns, which informs retailers about products consumers prefer buying. Retailers all over the world have been using loyalty programmes to retain existing consumers by rewarding loyalty and win over new consumers. Although many South African retailers have introduced loyalty programmes into their businesses, consumers’ perceptions of loyalty programmes offered by cosmetic retailers have not been investigated here. The results of this research study indicate that consumers perceived loyalty programmes as easy to use at the point of sale when making purchases. Consumers also felt that loyalty programmes helped them to save money through the redemption of vouchers or points. Overall, consumers were satisfied as members of cosmetic retailers’ loyalty programmes. / Business Management / M. Com. (Business Management)