Exploring factors that influence South African tertiary students to participate in retail loyalty programmes

Abstract

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.