CHAPTER I

Introduction

Background of the Study

Loyalty marketing is an approach to marketing, based on strategic management,

in which a company focuses on growing and retaining existing customers through

incentives. Branding, product marketing and loyalty marketing all form part of the

customer proposition – the subjective assessment by the customer of whether to

purchase a brand or not based on the integrated combination of the value they receive

from each of these marketing disciplines.

Many loyalty programs have changed the way consumers interact with the

companies from which they purchase products or services from and how much

consumers spend.

In recent years, the competition for high income customers has led many of these

loyalty marketing program providers to provide significant perks that deliver value well

beyond reward points or miles.

From a simple marketing approach in collecting data and creating good customer

relationships, companies came up with loyalty cards and made it as an important tool to

their loyalty programs. Policies and rewards systems are hastily amended due to rapid

changes in the market. These changes may, or may not, contribute to achieving

company’s goals or objectives and that is what we are to find out.

Statement of the Problem

Determine the efficiency of loyalty cards in selling a brand.

Statement of Objectives

General Objectives

• To determine the loyalty cards nowadays

Many say that loyalty card programs are becoming a trend the

market today. But we would like to confirm this assumption. We would

like to confirm the real status of loyalty card programs as a promotional

tool of a company.

• To understand how loyalty card holders came up with a decision

of availing a loyalty card

Customers have diverse views, personalities, culture and lifestyle in

which they often base their actions from. We would like to fully

understand the main reason why many customers these days had

begun to avail loyalty cards from the brand they patronize or the

brands they occasionally purchase.

Specific Objectives

• To evaluate the efficiency of the loyalty card program

There are different loyalty programs among different companies

from different industries. We would like to evaluate the efficiency of

their programs in attaining their company objectives.

• To assess the value of the loyalty card to a customer

Customers value things differently in the same manner how they

might value a simple plastic card as their connection towards a brand.

Scope and limitations of study

The research focuses on loyalty cards as an effective tool in selling a brand. The

study will be conducted with Cavite area. The study involves a field-work of interviews

and surveys with customers and loyalty card holders. An observation through simple

experiments will also be conducted to document their behaviour as customers when

given different loyalty program conditions and incentives. The study aims to understand

the value of loyalty cards as a customer of known or least known brands.

The selection of respondents are only limited to town residents, specifically,

people living in the area of Dasmarinas, Cavite. The respondents may refuse to give

information or accept invitations for interview. Companies would not be too transparent

about their loyalty programs as well. The information we may gather might be not

enough to answer our problem statement or conclude our findings.

The study will be conducted only for a month. During the four weeks, we will conduct

the research by asking people to answer our surveys and look for potential loyalty card

holders that are willing to sit for an interview. We will be formulating a couple of loyalty

programs that has different policies, incentive and reward systems wherein we will

observe their decisions towards the given guidelines.

The study will serve as an evaluation of existing loyalty programs in relations to

loyalty cards and may also provide new ideas in providing a better loyalty program for

existing card holders.

CHAPTER II

Review of Related Literature

General Objectives

To determine the loyalty cards nowadays

Every time you reach the checkout counter of in the two biggest supermarket

chains, they will ask you if you have got a card. It can get irritating sometimes. Call it the

loyalty craze. According to Jupiter Research, more than 75 percent of consumers now

have at least one loyalty card, and the number of people with two or more is estimated

to be one-third of the shopping population.

Loyalty cards, is first and foremost, a cheap way for businesses (large and small)

to start tracking their customers' shopping habits, more customers than ever now

consider themselves entitled to special treatment, a marketplace psychology spawned

in the 1970s. But does this really work? Some say it’s all in the execution. "Many

companies have figured out how to deliver satisfaction, but they've not yet figured out

how to earn loyalty anywhere near those levels," says Jeff Marr, group vice president for

Walker.

One of the big benefits of a successful loyalty card program is that stores can

quantify new-customer losses and introduce programs designed to retain or woo back

the most profitable. "Without a loyalty card, one has no clue about the size of the inflow

and outflow of new customers," says Woolf of the Retail Strategy Centre.

The clear message from Marr says that "It's not enough to have CRM. You need

the hearts and minds of the customers to close the loyalty gap." 

To understand how loyalty card holders came up with a decision of availing a

loyalty card

Customer Recognition

Inherent in the loyalty level tiers of private label programs is the idea of

recognition - "I'm a Gold customer." Customers wear their recognition badge with

honour. After all, it says that "I am important." Just look at frequent flyers. How many

brag about the fact that they are a Global Services member (United Airlines' top loyalty

tier) or a "1K" flyer? The fact that you flew one hundred thousand miles in a calendar

year, to us, is a badge of shame. But how many United Mileage Plus members wear

that badge with honour?

With each loyalty tier comes increased recognition. That recognition can be very

tangible e.g. bonus points or intangible e.g. early boarding on flights. For the frequent

flyer, being able to board an airplane and hog-up all of the overhead storage space

before any of the common travellers board, is nirvana. Or being able to go through an

expedited airport security line is heavenly. Don't underestimate customer recognition.

And here we are talking about the intangible.

What are you doing to address your customer's craving for recognition?

Remember, when airline Marketing folks said that they wanted to create a special line at

the airport for their best customers, the airline Operations folks balked and said they

were crazy. Don't take "no" for an answer.

http://www.crmtrends.com/loyalty.html

Experiential Awards

For loyalty programs, the communications used to focus on tangible benefits e.g.,

our program is: "bigger," "better," "faster," "easier." These words have ceased to have

meaning. Everything works now. These are the table stakes. Consumers are

demanding more. Consumers have shifted from where we were leading up to the

Internet boom; away from a desire for possessions to a desire for experiences or

services that enhance their experiences. Going beyond points, discounts and cash

back, many loyalty programs are incorporating experiential aspects into their program -

an idea we have been huge proponents of since the early 1990s.

The experiential takes many forms but the common thread is that programs,

whether this has been developed internally or through partnering with 3rd party

companies, deliver to its members unique lifestyle driven opportunities/access (many of

them, once in a lifetime events). Masters of this have been American Express with their

"Gold Card Events" and "Front-Of-The-Line" opportunities (advance ticket access,

complimentary tickets); Visa with their Signature events, such as Finish Line Suite

access at the Kentucky Derby; and now MasterCard Unique Experiences.

http://www.crmtrends.com/loyalty.html

Conclusion:

According to articles by CRM Trends about loyalty, consumers wanted

recognition. They want to be different from other consumers. They wanted to be

distinguished among other consumers of the product or brand. Another thing is that

according to them, consumers are now shifting experiential awards. Consumers wanted

to have an award in form of experience. Companies has been adopting to this trend by

giving experiential rewards to consumers. Like American Express with their advance

tickets access and complimentary tickets.

Because of these articles it showed us that recognition is a big factor for

consumers in deciding whether to avail a loyalty card or not. In line to this is the

recognition consumer gets every time they receive a reward in form of experiential

rewards which makes them unique among other consumers which leads to the 1st

factor, recognition.

Specific Objectives

To evaluate the efficiency of the loyalty card programs

Brand loyalty

There would be no point in spending marketing dollars building brand awareness

if customers don't buy the brand again after they've tried it the first time. Today's brand

marketers all have the same aim: to encourage brand loyalty - the situation where

consumers choose a brand over its competitors and private label equivalents because

they want to.

A good definition of brand loyalty is that given by Jan Hofmeyr and Butch Rice, in

their book 'Commitment-Led Marketing': "Brand loyalty is the tendency of someone to

buy a brand again and again because they prefer it over others."

Research shows that the brand loyalty of customers has fallen steadily over the past

two or three decades. Results vary, but it's probably fair to say that today's average

consumer is only 75% to 85% as loyal as the consumer of the 1970s or 80s. So why did

this happen? There are several reasons, just a few of which are:

There is much more choice today: the number of products and brands within

most categories has increased greatly.

The number of advertisements seen by consumers daily has increased

enormously, especially since new channels like the internet, email and SMS have

arrived on the scene.

Modern consumers are more sophisticated and more likely to think for

themselves and to try different products.

There is more comparative information available, on web sites and in consumer

magazines and the national press.

The standard of service (and of products) has in many cases improved to the

stage where there is not much difference between brands.

Price competition has increased.

Loyalty marketing... for real facts, figures, research, case studies, best practices,

practical how-to's, technologies & examples, The Loyalty Guide 4 is the world's most

complete report (1,000+ pages) that covers it all. Costing less than a conference pass,

details of this electronic report's contents, chapter samples, pricing, and ordering details

are online now at www.TheLoyaltyGuide.com.

It is estimated by Colloquy (2009) that there are 1.807 billion loyalty program

memberships in the US (a 25% increase from their 2006 census) - with the average US

household participating in 14.1 programs. Approximately 56% of those memberships

were inactive (defined as no engagement within a 12 month period), bringing the

average household active participation to 6.2 programs. That is a lot to compete with.

Not surprising, loyalty varies across industries. As reported in the New York

Times, Forrester Research found that across 12 industries, retailers inspire the most

loyalty while others, like TV service providers and internet service providers proved

more fickle. Most interesting is that "A whopping 98% of USAA's credit card customers

would consider the firm for another purchase, which ends up 24 percentage points

higher than the average across credit card firms." This research only reinforces the

critical importance of understanding the fundamentals of loyalty marketing.

Many confuse "loyalty" with "rewards." This is a fundamental mistake of many

marketers. Loyalty denotes advocacy and commitment not points. As such, let's start

with a primer on loyalty. Read through the embedded Power Point document as it is the

best explanation of loyalty marketing that we have ever run across and, surprisingly

enough, the fundamentals of which, are not well understood by the executioners of

some of the best known loyalty programs. This abridged Power Point presentation was

developed by Wunderman's Loyalty Marketing Practice. We strongly encourage you to

take a peek.

http://www.crmtrends.com/loyalty.html

Conclusion:

Based on the article by The Loyalty Guide, “Research shows that the brand loyalty of

customers has fallen steadily over the past two or three decades. Results vary, but it's

probably fair to say that today's average consumer is only 75% to 85% as loyal as the

consumer of the 1970s or 80s.” This could mean that the increasing number of

competitors of a brand affects the efficiency of loyalty programmes. And according to

CRM Trends, “Loyalty denotes advocacy and commitment not points.” This might mean

that consumers avail loyalty cards/programmes not because they are committed to that

brand/product, but they are only after the rewards and benefits of the programme.

To assess the value of the loyalty card to a customer

Here are six steps to help you assess the value of your loyalty program from a

customer’s perspective. 

Step 1: Research your customer base

Emotionless as raw data is, it can reveal some truths and trends about a

customer’s buying behaviour and inspiration. This requires effective database analysis

and segmentation. 

But companies often fail to ask their customers enough questions. Even a range

of traditional marketing research tools -- like focus groups, short online polls and

surveys -- fail. What customers say and do often don’t correlate. 

Step 2: Capture qualitative data

Examine your customers’ actual behaviour to determine relevancy and value.

Loyalty is not just transactional. Captured data must go beyond an analysis of sales

figures. The emotional triggers that lead to a particular buying decision are just as

important as the hard statistics.

Step 3: Maintain on-going dialogues

It’s not possible to know anyone well without having some form of continual

dialogue with them. Encourage your customers to interact with you frequently. They

might prefer to speak with a rep in a contact centre, or communicate with you via the

Web, or through a brick-and-mortar outlet. 

Each interaction presents an opportunity to gain more information about them, to

find out about their lifestyles and what they value. It helps you to personalize the

communication process. Indeed, the ideal discussion should feel like a one-to-one

dialogue. 

Step 4: Make program simple

Loyalty programs need to be easy to join and understand. They should be

accessible across all the relevant touch points with customers. 

The programs should encourage consumers to join and remain loyal to that

program only -- not several at a time.

Step 5: Reward (but not too much) 

Any loyalty initiative should be seen as a bonus. People generally like the idea of

being loyal to successful brands, but much depends on how value is delivered and

attained. Be careful -- rewards and incentives can also be seen as bribery.

Step 6: Monitor and review

Establish performance levels and targets, based on your customer information.

Needs and perceptions of value and expectations will change over time. Then stay

dynamic, innovative and in step with your customers.

Conclusion:

Following the steps to assess the importance of the loyalty cards to consumers, it

actually provides so many pros. Two of those are, it gives companies precise and

phenomenal statistical data as well as gaining concrete opinions on how they perceived

the loyalty cards offered to them.

F.P. Reichheld quoted that, "As a customer's relationship with the company

lengthens, profits rise. And not just by a little. Companies can boost profits by almost

100 percent by retaining just 5 percent more of their customers"

In the process of assessing current customers, there will come a time that

companies, unnoticed, tend to have an increase in their number of consumers as well

as the sales without spending too much. Because in assessing current customers, you

interact with them continually which makes the relationship grew longer. And, as they

share thoughts and opinions which gives the company an opportunity to show how

generous they are by providing them rewards/close to what they want. Probably,

customers would share it to their friends and that is where word-of-mouth enters. With

word-of-mouth, less costly but it provides greater portion on company`s income.

Therefore, investing much on providing benefits/incentives/and or rewards to

prospective and current customers with all understanding on all the key-drivers through

loyalty cards, it will surely largely contribute to the increase of sales.

Sources: http://www.crmtrends.com/loyalty.html

http://www.cardlogix.com/docs/whitepapers/CardLogix_WP_LoyaltyAndStoredValueCar

ds.pdf

CHAPTER III

Theoretical Framework

Selling brands in today’s world where competition is extremely high due to the

growing number of established brands and the emergence of new and upcoming brands

is quite frustrating. It’s like the survival of the fittest because of the tight competition.

Companies no longer depend on advertising, but they are now constantly developing

new marketing ideas, approach, and strategies to keep up with the competition in their

respective industries.

Companies nowadays are promoting loyalty cards to their customers to keep

them. These loyalty cards comes with many perks for these customers.

The figure above shows the variables that could be the basis of the customers in purchasing loyalty cards.

Trend

Recognition

Rewards and Incentives

Loyalty Cards

Assumption of the study

The world today has a lot of difference from the world before. We all know that

we are experiencing economic crisis which has a great effect on the market and the

companies in generating profits. It also affects how companies maintain their loyal

customers. Sustaining loyal customers is easier than attracting new ones. It only

becomes tough when the company is not able to survive from the tight competition

among competitors.

Our study assumes that the loyalty cards have a great positive effect in having

and maintaining loyal customers to come back to the same brand to purchase its

products. Loyalty cards have a lot benefits including discounts, points and other

incentives. This, in return, helps the company to determine who their loyal customers

are so that they not only know who they need to recognize but also to know whom and

what rewards are to be given.

Customers today want to be recognized and be valued by their favourite brands

or companies. They want to feel special. They want to feel important to the company.

Conceptual framework

This research gives emphasis on the connection among customers’ exposure to

loyalty cards which will act as the independent variable and the factors that affect their

decisions on availing one, which will be the dependent variable.

Independent Variable Dependent Variable

Hypothesis of the Study

This research intends to measure the efficiency of loyalty cards in selling a brand

and promoting brand loyalty.

HO: Customers avail loyalty cards or participates in the loyalty program schemes

only to earn points and get the equivalent rewards even though they are not regular

customers of the brand.

HA: Customers avail loyalty cards or participates in the loyalty programs schemes

because of the benefits they can get (aside from the rewards) for being a regular or

loyal customer of the brand.

Exposure to loyalty cards

1. Recognition One wants to be different from other consumers.

2. TrendOne wants to be up-to-the-minute

3. Rewards/ IncentivesOne wants to earn something while spending.

Definition of terms

Loyalty Marketing

An approach to marketing, based on strategic management, in which a

company focuses on growing and retaining existing customers through incentives

Incentives/Rewards

Bonuses in forms of cash, products, or in points given to loyal customers

Loyalty Programs

Marketing strategy/approach by companies, businesses, and

establishments to promote loyalty to their customers

This is also a way to measure the numbers of their frequent customers.

Selling a brand

Promoting the brand itself

Raising awareness of the target customers of a specific brand and affect

their purchase decisions.

Customer recognition

How companies show their customers their value and how important they

are to the company.

Experiential Awards

Type of benefit/incentives given to the customers as a type of reward to

them in forms of giving them a “VIP” treatment

Brand loyalty

The tendency of someone to buy a brand again and again because they

prefer that particular brand over other

CHAPTER IV

Methodology

This research was conducted in order to determine whether the Loyalty cards

affect the buying behavior of the consumers.

The intention of this research is to find out if loyalty cards have a great impact

on the purchasing decision of the consumers (teens 15-18 year old, young adults 19-25

years old, and adults 26-30 years old) on a brand.

Method of Data Collection

1. Online and Personal Survey

The researchers chose to conduct online survey to save time and money

and also for the convenience of both the researcher and respondent. However, some of

the researchers have made personal surveys for a better understanding of the answers

for the questions stated in their survey.

2. Interview

One of the researchers had an informal interview with a man she’s sitting

next to in a public transportation while on the way home. The interview was not planned

and only made because the researcher saw the man reading an application form for a

loyalty card of a well-known brand.

Research Instruments

The researchers used questionnaire, a common instrument in gathering data for

marketing researches.

The researchers agreed upon a set of questions to be presented to their

respondents. These questions were properly constructed and the researchers made

sure that the questions asked are consistent with their research objectives.

Method of Data Analysis

The researchers used quantitative research to acquire accurate results from our

specific research questions. After collecting standardized information via online survey,

we tallied all the data given. Then the researchers turned the data’s into graphs for them

to make easier explanation as well as conclusions and for the readers to easily

understand.

CHAPTER V

Results and Discussion

This chapter presents the finding, analysis and interpretation of data gathered in

relation to the researched entitled “Selling the Brand through Loyalty Cards”.

Yes

No

Figure 1: Are you encouraged to avail a loyalty card?

Most 62% of the respondents are highly encouraged to acquire a loyalty card.

EverydayOnce a weekTwice a weekDuring saleEvery weekendOthers

Figure 2: How often do you visit boutiques/shops that offer loyalty cards?

Surprisingly, 34% of the respondents often visit boutiques/shops once in a week

while 28% of them visit during sale.

Yes

No

Fairly

Figure 3: Are you aware of the benefits loyalty cards can give you as a consumer?

The data gathered shows that there is an equal result on respondents who are

well aware and those who have only a fair knowledge of the benefits loyalty cards offer.

1 2 3 40

2

4

6

8

10

12

DoDon'ts

Figure 4: What do and do not encourage you to be a loyalty card holder?

According to the data gathered, the discounts and points play an outstanding role

in encouraging customers to be a loyalty card holder. On the other hand, the additional

fee gives loyalty cards a big turn-off.

Yes No Sometimes0

5

10

15

20

25

Column1

Figure 5: As a holder of a loyalty card, or even a simple consumer, are you in any way, forced to buy a

product merely for points/rewards or you buy because of the brand itself?

50% of our respondents say that loyalty cards don’t affect their purchasing

behavior towards a brand. However, there is a close result of 38% which admits that

they are forced to avail products from a particular brand because of the loyalty card they

own.

CHAPTER VI

Summary, Conclusion, and Recommendations

Aaker (1991, p. 39) defines brand loyalty as the attachment that a customer has

to a brand. Loyalty cards or membership cards is an approach of organizations to build

loyalty among their consumers and prospective consumers. This is also a way to show

how organization value and appreciate their current consumers. In addition to that, it

shows that consumers stay loyal to them because of the so called “customer

recognition”.

Consumers avail loyalty cards for the reason that they want the perquisites,

rewards, and discounts from the points that they are getting every time they purchase a

product from their chosen shop/boutique. According to the article from

http://www.crmtrends.com which is entitled Customer Recognition, a consumer wants to

be distinguished from other consumers. They want to feel important and appreciated by

the store itself. And this is through loyalty cards, wherein a consumer with a loyalty card

gets something in return of their purchase unlike to the consumers who don’t have one.

This research wants to determine the efficiency of loyalty cards in selling a brand.

If consumers purchase a product because of the brand itself or because of the perks

that they could get from purchasing that certain brand. Based from the data that was

gathered by the researchers, it showed that most of the respondents purchase a

product not because of the influence of the loyalty cards but because of the product and

the brand itself.

Offering loyalty cards isn’t an effective tool to sell the brand either because the

customers don’t visit the store of the same brand that often or that they just purchase

during sale which makes loyalty card just another expense for them.

Nowadays, loyalty cards are not necessary a trend. Companies use loyalty cards

as a way to monitor the buying behavior of their consumers that is why they are offering

it to them. They do this to gain more information about their consumers and adapt to

their behaviors immediately.

After concluding, the researchers have come up with coherent proposals with

regard to the study of “Selling the Brand through Loyalty Cards”.

In the findings of the study, the researchers recommend that instead offering the

loyalty cards or membership fees separately, the company should make it look like that

it is free or of lesser value, since consumers are not fond of paying additional fees just

to have one. Respondents answered that the value they are getting does not equal to

the amount they invest to the product and the loyalty card itself. Furthermore, the

researchers add that companies or brands that offer loyalty cards should not only focus

on the rewards that they can give out to their loyal customers but also excellent

customer service and privileges to retain them. This way, consumers will feel cared and

special which will eventually make them loyal customers of the brand.

The companies should further appreciate their faithful consumers since their

sales are mostly coming from them. And once they lose one loyal consumer it will be

costly for them to gain another one. Lastly, consumers are grateful for the benefits they

are receiving. And they consider it as a return of investment.

APPENDICES

INFORMAL INTERVIEW

Scene: In a jeepney, route to SM Epza, Louise sat next to a guy reading the terms and

conditions of a Bench Loyalty Card Application Form.

Louise: Excuse lang po, pwede po ba magtanong?

Male: Ano yun?

Louise: Student po ako ng DLSUD, may research paper lang po kami tungkol sa loyalty

cards. Napansin ko lang po na binabasa nyo yan, hindi po ba, sa Bench Card po yan?

Male: Ah, ito ba? Oo, sa Bench nga.

Louise: Matanong ko lang po, mag aavail po kayo o nagplaplano pa lang?

Male: Pinaplano pa lang.

Louise: Pero gaano na po kayo kadesedido mag avail, in percent po?

Male: Mga 89% siguro.

Louise: Ah, matanong ko lang po ulit ano, ano po nag tulak sa inyo mag member

dyan?

Male: Loyal customer kase ako ng Bench.

Louise: Bakit ngayon lang po kayo nag avail? Ngayon nyo lang po ba nalaman?

Male: Matagal na ko nang alam ito. Kaso hindi ko naman naintindihan noon ang use

nito.

Louise: Ngayon po aware na kayo? Paano po kayo nagging aware?

Male: Bumili kasi ako kanina ng wax tapos nabanggit nung kahera na baka gusto ko

magpa-member for points. Kaya binabasa ko ngayon yung t&c. Naisip ko rin kasi, diba,

sayang naman yung points kung lagi naman ako dun bumibili.

Louise: Sabagay nga po. So bale po, ang after nyo ay yung points.

Male: Oo, tsaka yung announcements nila through e-mail tungkol sa mga promos nila.

Alam mo ba kung ine-email nila kung kalian sila nagsasale?

Louise: Ay hindi po eh.

Male: Yun lang naman. Baka kasi yung points na makuha ko ang equivalent na ay

isang pants. Sayang rin, diba. Hehe.

Louise: May ibang loyalty cards pa po ba kayo aside dyan sa balak nyong Bench?

Male: Oo, SM Advantage. Syempre, alam mo naman mga Pinoy, lagi nasa SM. Sayang

rin yung points na maaaring maredeem.

Louise: Sabagay nga po. Ay, pasensya na po kayo sa abala po. Maraming salamat po

sa information. Ingat po.

SAMPLE OF SURVEY QUESTIONAIRE

Name (optional): ________________________Age: __________________________________Occupation: ____________________________

1. Are you encouraged to avail a loyalty card? Yes No

2. How often do you visit boutiques/shops that offers loyalty cards?

Everyday Once in a week Twice a week During sale Every weekend

3. Are you aware of the benefits loyalty cards can give you as a consumer? Yes No Fairly

4. What do and do not encourage you to be a loyalty card holder?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5. As a holder of a loyalty card, or even a simple consumer, are you in any way, forced to buy a product merely for points/rewards or you buy because of the brand itself?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Name (optional): ________________________Age: __________________________________Occupation: ____________________________

1. Are you encouraged to avail a loyalty card? Yes No

2. How often do you visit boutiques/shops that offers loyalty cards?

Everyday Once in a week Twice a week During sale Every weekend

3. Are you aware of the benefits loyalty cards can give you as a consumer? Yes No Fairly

4. What do and do not encourage you to be a loyalty card holder?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5. As a holder of a loyalty card, or even a simple consumer, are you in any way, forced to buy a product merely for points/rewards or you buy because of the brand itself?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

ONLINE SURVEY

RESULTS (TALLY)

TOTAL: RESPONDENTS

1. YES |||| |||| |||| |||| |||| |||| | 31 = 62%

NO |||| |||| |||| |||| 19 = 38%

2. EVERYDAY 0

ONCE A WEEK |||| |||| |||| || 17 = 34%

TWICE A WEEK |||| || 7 = 14%

DURING SALE |||| |||| |||| 14 = 28%

EVERY WEEKEND |||| |||| 10 = 20%

OTHERS || 2 = 4%

3. YES |||| |||| |||| |||| ||| 23 = 46%

NO |||| 4 = 8%

FAIRLY |||| |||| |||| |||| ||| 23 = 46%

4. WASTE OF TIME |||| 4 = 8%

DISCOUNTS |||| |||| 10 = 20%

NOT THE SAME STORE |||| ||| 8 = 16%

BENEFITS |||| ||| 8 = 16%

JUST DON’T LIKE ||| 3 = 6%

POINTS AND REWARDS |||| || 7 = 14%

FREEBIES ||| 3 = 6%

PAYING ADDITIONAL |||| || 7 = 14%

5. YES |||| |||| |||| |||| 19 = 38%

NO |||| |||| |||| |||| |||| 25 = 50%

SOMETIMES |||| | 6 = 12%

BIBLIOGRAPHY

CRM Trends (2002). Retrieved Nov 19, 2011, from http://www.crmtrends.com

CRM Trends (2002). Retrieved Nov 19, 2011, from

http://www.crmtrends.com/loyalty.html

Cardlogix (2004). Retrieved Nov 19, 2011, from

http://www.cardlogix.com/docs/whitepapers/CardLogix_WP_LoyaltyAndStoredValueCar

ds.pdf

Clark, P. (2002). The Loyalty Guide. Retrieved Nov 19, 2011, from

www.TheLoyaltyGuide.com.