Impact of Loyalty Programs on Customers' Loyalty: A Case Study of Shoes and Handbags Retail Outlets of Pakistan

The aim of this research was to explore the impact and role of one of emerging techniques of customer relationship management in Pakistan. It was investigated that how the loyalty cards influence the loyalty of female consumers in the fashion retail-sector of Pakistan. Multi-item scales adopted from previous studies were used to measure affective and behavioural loyalty. The data were collected from 400 female customers of three branded outlets of Pakistan in three different regions of Pakistan by using convenience sampling method. The results showed that the card holders of a loyalty program had more favourable attitude towards retailer, higher level of trust in the retailer and retailer staff, commitment, and satisfaction than noncard holders. Compared to noncard holders, card holders also showed higher purchase behaviour in the retailer than its competitors. Overall, the findings showed that the loyalty card programs played an important role in building loyalty. These loyalty program are effective techniques and can be used by different companies to make long term relationships with the customers. However, the emotional bonding of customers is very necessary for any company to be successful, so the companies should focus a lot on affective loyalty.