Siven Naicker

Topics: Loyalty program, Marketing, Research Pages: 54 (11936 words) Published: April 24, 2014
Factors Which Influence the Buying
Behaviours of Customers with Multiple Regular
Customer Cards

George Asamoah

Degree Thesis
International Business
2012

George Asamoah

DEGREE THESIS
Arcada
Degree Programme:

International Business

Identification number:
Author:
Title:

11380
George Asamoah
Factors Which Influence the Buying Behaviours of Customers
with Multiple Regular Customer Cards
Sveinn Eldon

Supervisor (Arcada):
Commissioned by:

Abstract:
The importance of loyal customers and their impact on business profitability is undisputable, but it is more difficult to build customer retention than it may appear. Marketers and for that matter retailers are doing so many things to establish strong relationships with their customers. Various strategies including loyalty schemes and discount cards are sometimes used in an effort to retain customers and also influence their buying behaviours, but their success is questionable. One particular practice commonly seen with most of the retailers in Finland is the issuance of customer cards serving as a strategy to identify and retain the customers. The end result of the implementation of this strategy is that many customers end up owning several customer cards of different shops with similar business line.

The main purpose of the study was to find out if the basic idea of issuing customer cards still holds in a situation where a customer owns two or more of such cards. Again, the study looked into factors which possibly influence the buying behaviour of such customers.

The theoretical study of the research examined customer relationship management in relation to customer retention, and customer buying behaviour. The answers to the stated research questions were obtained through the use of quantitative questionnaires which were handed out to customers at various schools and shopping centres. After this the research results were examined one after the other showing how the results were connected to the theoretical review. The items on the questionnaire which attracted the highest positive response were considered as key factors influencing consumers’ buying behaviours.

The results showed that customers mostly buy from their retail partners. However, in the case where a customer has multiple retail partners, the customer mostly buy from a shop which offers quality goods with fair prices. Other factors which are considered are proximity, convenient services among others.

Keywords:
Marketing strategies, Regular customer cards, Customer retention, and Customer buying behaviour. Number of pages:
74

Language:
Date of acceptance:

English

Table of Contents
1.0 INTRODUCTION .................................................................................................... 8 1.1 Introduction .......................................................................................................................... 8 1.2 Background of the study...................................................................................................... 8 1.3 Statement of the Problem.................................................................................................... 9 1.4 Purpose of the study ........................................................................................................... 9 1.5 Research Questions .......................................................................................................... 10 1.6 Description of Materials and Method ................................................................................. 10 1.7 Limitations and Scope ....................................................................................................... 11 1.8 Significance of the study ................................................................................................... 12

2.0 THEORETICAL FRAMEWORK............................................................................ 13 2.1 Introduction...


References: establish strong relationships with customers, however, most of the things that they do
end up destroying those relationships (Berry, 2001, p 134).
in use by the people in Finland (Boedeker, 1997). In marketing and in retailing most
especially, a customer card, loyalty card, rewards card, points card, advantage card, or
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