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

Purpose: The aim of the study is to investigate if card loyalty increases attitudinal and behavioral loyalty of the customers, with a loyalty program (LP) membership.   Theoretical approach: The thesis is based on previous literature on loyalty programs and customer loyalty. The conceptual model proposed in the study ties card loyalty to the two loyalty dimensions of customer loyalty: attitudinal and behavioral loyalty.    Design/methodology: The study is conducted through a quantitative research design where data is collected through a survey. The self-reported questionnaires are sampled from social media users with active loyalty program membership with Coop. Findings: The empirical data from the 93 qualified questionnaires and the data analysis, indicate a significantly positive influence between both card loyalty and attitudinal respectively behavioral loyalty. Furthermore, the findings indicate that composite loyalty is present in the researched setting, since a strong correlation between attitudinal and behavioral loyalty was found. Although, the two-tailed correlation led to a revisiting of the conceptual model, since behavioral and attitudinal loyalty could also influence card loyalty.   Practical implications: The findings of the study provide academic implications by showcasing LP effectiveness and create a methodology for regional LP research. The results also provide managerial implications for managers who contemplate updating or implementing a LP. Originality/value: The study adds to loyalty program literature by investigating how card loyalty influences customer loyalty, within a sparsely researched nation with a regional focus.

Denna studie har undersökt hur digitaliseringen påverkar kundretention i dagligvaruhandeln vilket är ett intressant och aktuellt ämne. I dagens samhälle där det råder mycket osäkerhet kring världsekonomin vilket markant påverkar konsumenters privatekonomi och livsmedelsindustrin, har det varit intressant att undersöka konsumenters köpbeteende och reaktioner till ekonomikrisen. På grund av hur dagligvaruhandeln ser ut har det varit relevant att undersöka hur konsumenter svarar på företags tillämpning av digitala verktyg för att optimera kundretention.  För att besvara undersökningens syfte utfördes en empirisk studie. En litteraturstudie har utförts för att undersöka det studerande fenomenet samt vad tidigare forskning har resulterat i. Efter litteraturstudien tillämpades en enkätundersökning som vidare sammanställdes för att analyseras i statistikprogrammet IBM SPSS. I SPSS skapades bivariata analyser i form av korstabellsanalys, korrelationsanalys och regressionsanalys för att skapa och identifiera korrelationer och samband mellan de undersökta variablerna.  Studiens resultat visar att kombinationen av pris, geografiskt läge samt erbjudanden och rabatter är betydande faktorer för kundretention. Studien visar även att digitaliseringen har en betydande effekt på kundretention. Teknologins ständiga utveckling bidrar till implementering av nya verktyg som effektiviserar hanteringen av kunddata för att stärka kundrelationer och öka kundretention. / This thesis has studied how digitization affects customer retention in the grocery trade, which is an interesting and relevant topic. In today's society, where there is much uncertainty surrounding the world economy, which significantly affects consumers' private finances and the food industry, has it been interesting to examine consumers' buying behavior and reactions to the economic crisis. Due to the circumstances in the grocery trade, has it been relevant to study how consumers respond to companies' application of digital tools to optimize customer retention. In order to answer the purpose of the survey, an empirical study was carried out. A literature study has been carried out to investigate the studied phenomenon and what previous research has resulted in. After the literature study, a questionnaire survey was applied which was further set to be analyzed in the statistical program IBM SPSS. In SPSS, bivariate analyzes were created in the form of cross-tabulation analysis, correlation analysis and regression analysis to create and identify correlations and connections between the studied variables. The results of the study show that the combination of price, location, offers and discounts are significant factors for customer retention. The study also shows that digitization has a significant effect on customer retention. The constant development of technology contributes to the implementation of new tools that streamline the handling of customer data to strengthen customer relationships and increase customer retention.

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)

Denna språkvetenskapliga studie syftar till att synliggöra och diskutera kring hur olika genredrag, diskurser och identiteter tas i uttryck genom kundklubbars självpresentationer. Detta för att se på vilket sätt kundklubbar framställer sig själva i jakten på att värva, behålla och främja lojala kunder. I studien deltar åtta företag, vars kundklubbar har presenterats textuellt på respektive företags hemsida. För att hitta betydelsebärande moment i texterna har den systemisk-funktionella grammatiken tillämpats, och genom interpersonella och ideationella textanalyser har genredrag och diskurser synliggjorts. Det dras även paralleller till hur genredragen kan fungera identitetsskapande, och det diskuteras utifrån detta om hur kundklubben skapar en åtråvärd identitet både hos sig själv och sina medlemmar. Detta kopplas även till riktlinjer inom reklamgenren. Resultatet visar en tydlig struktur där kunder erbjuds exklusiva förmåner och en åtråvärd identitet i utbyte mot att registrera sig i klubben. Medlemmar intar en passiv roll som ansträngningslöst får eller tjänar på klubbens alla fördelar, medan kundklubbarna framställs som aktiva skapare och resursrika försörjare. Här framträder även en säljdiskurs, som ställs i kontrast till en dold konsumtionsdiskurs. Negativa aspekter, så som kostnader och villkor, osynliggörs och fokus ligger snarast på att beskriva den positiva upplevelsen och lönsamheten med att vara medlem i kundklubben. / This linguistic study aims to find, highlight and discuss how different genre features, discourses and identities are constructed in text based self-presentations of a customer club. The purpose is to see how these presentations are produced in the quest to recruit, retain and promote loyal customers. The study involves eight companies, whose customer clubs has been presented textually on each company's website. To find important features in the texts, the systemic-functional grammar is applied, and through interpersonal- and ideation text analyzes, the genre features and discourses can be identified. Parallels are also drawn to the genre features connection and creation in works of identity. A comparison to the advertising genre is also made. Based on this, a discussion of what linguistic methods customer clubs use to create a desirable identity both in themselves and their members, becomes a central part in the analysis. The result shows that there is a clear structure, in which customers are offered exclusive benefits and a coveted identity in exchange for enrolling in the club. In the presentations, members play a passive role that effortlessly gets or earns all the listed benefits while the customer clubs on the other hand, are portrayed as an active and resourceful distributor. A sales discourse also emerges here, which contrasts with a hidden consumption discourse. Negative aspects, such as costs and conditions, are made invisible and the presentation mainly focuses on describing the positive experience and all the benefits of being a member of the customer club.

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)

In der akademischen Fachliteratur existieren kaum Forschungsergebnisse zu One-to-One-Marketing, die auf Anwendungen im Einzelhandel ausgerichtet sind. Zu den Hauptgründen zählen, dass Ansätze nicht auf die Größe typischer Einzelhandelsanwendungen skalieren und dass die Datenverfügbarkeit auf Händler und Marketing-Systemanbieter beschränkt ist. Die vorliegende Dissertation entwickelt neue deskriptive, prädiktive und präskriptive Modelle für automatisiertes Target Marketing, die auf Representation Learning und Deep Learning basieren, und untersucht deren Wirksamkeit in Praxisanwendungen. Im ersten Schritt zeigt die Arbeit, dass Representation Learning in der Lage ist, skalierbar Marktstrukturen zu analysieren. Der vorgeschlagene Ansatz zur Visualisierung von Marktstrukturen ist vollständig automatisiert und existierenden Methoden überlegen. Die Arbeit entwickelt anschließend ein skalierbares, nichtparametrisches Modell, das Produktwahl auf Konsumentenebene für alle Produkte im Sortiment großer Einzelhändler vorhersagt. Das Deep Neural Network übertrifft die Vorhersagekraft existierender Benchmarks und auf Basis des Modells abgeleitete Coupons erzielen signifikant höhere Umsatzsteigerungen. Die Dissertation untersucht abschließend eine Coupon-Engine, die auf den entwickelten Modellen basiert. Der Vergleich personalisierter Werbeaktionen mit Massenmarketing belegt, dass One-to-One Marketing Einlösungsraten, Umsätze und Gewinne steigern kann. Eine Analyse der Kundenreaktionen auf personalisierte Coupons im Rahmen eines Kundenbindungsprogrammes zeigt, dass personalisiertes Marketing Systemnutzung erhöht. Dies illustriert, wie Target Marketing und Kundenbindungsprogramme effizient kombiniert werden können. Die vorliegende Dissertation ist somit sowohl für Forscher als auch für Praktiker relevant. Neben leistungsfähigeren Modellansätzen bietet diese Arbeit relevante Implikationen für effizientes Promotion-Management und One-to-One-Marketing im Einzelhandel. / Research on one-to-one marketing with a focus on retailing is scarce in academic literature. The two main reasons are that the target marketing approaches proposed by researchers do not scale to the size of typical retail applications and that data regarding one-to-one marketing remain locked within retailers and marketing solution providers. This dissertation develops new descriptive, predictive, and prescriptive marketing models for automated target marketing that are based on representation learning and deep learning and studies the models’ impact in real-life applications. First, this thesis shows that representation learning is capable of analyzing market structures at scale. The proposed approach to visualizing market structures is fully automated and superior to existing mapping methods that are based on the same input data. The thesis then proposes a scalable, nonparametric model that predicts product choice for the entire assortment of a large retailer. The deep neural network outperforms benchmark methods for predicting customer purchases. Coupon policies based on the proposed model lead to substantially higher revenue lifts than policies based on the benchmark models. The remainder of the thesis studies a real-time offer engine that is based on the proposed models. The comparison of personalized promotions to non-targeted promotions shows that one-to-one marketing increases redemption rates, revenues, and profits. A study of customer responses to personalized price promotions within the retailer’s loyalty program reveals that personalized marketing also increases loyalty program usage. This illustrates how targeted price promotions can be integrated smoothly into loyalty programs. In summary, this thesis is highly relevant for both researchers and practitioners. The new deep learning models facilitate more scalable and efficient one-to-one marketing. In addition, this research offers pertinent implications for promotion management and one-to-one marketing.