There are different reasons of introducing the loyalty programs by stores. Uncles (2003) proposed two aims of customer loyalty programs. First is making a better relationship between the store and customer. So this is beneficial to sustain the current customer base in good position. The second aim is to rise a revenue by increasing purchase levels. The scholar believes that loyalty programs are popular because they can increase profits by reaching both of these aims. One view of a loyalty program is that, it works as a marketing tool targeted to build customer loyalty (Dowling & Uncles, 1997). Another view is that loyalty program is marketing plan constructed to give reward to customers (Liu, 2007). Jan Hillesland (2013) proposed that purpose …show more content…
The data gathered used to understand the customer insight and implement the Customer Relationship Management plan. Another view states that loyal customers are more beneficial to the company (Woolf, 1996) and profitability of one client raises frequently for the period of his relationship with the store (Reichheld and Sasser, 2000). The similar explanation was given by Worthington and Fear that loyalty program’s aim to gather a larger portion of the customer’s expenses (2009)The high profits came by loyal customer can be described, firstly, through their less price consciousness to the products of the store (Sharp and Sharp, 1997; Dowling and Uncles, 1997), secondly, in comparison to customers who do not have any previous involvements to the company the loyal customers need less expenses to communicate with the business (Rowley, 2000) and finally, the loyal customer are more willing to leave feedback on used service or product (Reichheld and Teal, 1996). The similar explanation was given by Mark and Uncles (2003), that there are two purposes of loyalty programs. One is boost sales profits by increasing buying or using …show more content…
These attitudes can be assessed by identifying how many customers like the store, have commitment to it, would recommend to others, and have good opinions and feelings about it. The summary of research conducted by Ahluwalia et al. (1999) shows that attitudinally-loyal customers have much attention to negative rumors about the store comparing to non-loyal customers. As a result, customers with positive attitude towards the store, suggested to form a relationship with their favor stores. Fournier (1998) says that positive attitude will be stronger when it is sustained by other members of the loyalty program. The good examples are: soccer team, Harley-Davidson bikers, Jeep brand fests. There are many store choices in order to do shopping there. Therefore, for achieving the customer to become part of a loyalty program there has been widely implemented customer satisfaction and service quality actions by retailers. As soon as customers become members of loyalty programs of a store, the negative sides will be minimized and positive sides will be strengthened (Mitchel,