MBA Study: Pantaloons Consumer Loyalty
MBA Study: Pantaloons Consumer Loyalty
On
At
By
HARSHITA RAJ
MBA-II (Marketing)
Batch (2018-20)
Submitted to
ARIHANT INSTITUTE
NSTITUTE OF BUSINESS MANAGEMENT
INSTITUTE CODE-6626
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CERTIFICATE OF ORIGINALITY
HARSHITA RAJ
DECLARATION
I hereby declare that this project report on ““A study on Customer Loyaltyy in Pantaloons retail
outlet in Pune city” is the record of authentic work carried out by me during academic year
2018-2020.
This is to declare that all my work indulged in the completion of this project report is a profound
and honest work of mine and it does not form a part of any other work submitted to any other
institution or university.
All information
tion from the other sources has been duly acknowledged and that if any part of the
report is found to be plagiarized, I shall take full responsibility for it.
PLACE : PUNE
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ACKNOWLEDGEMENT
I take this opportunity to thank the management of Pantaloons for allowing me to be associated
with the organization and hence exposing me to its unique culture which has helped immensely
in enriching my knowledge and gaining a valuable insight into the practical aspects of customer
services and customer satisfaction. I am also grateful to Ms. Pallavi S. (HR), Mr. Saurabh
Singh (SM) and all the Department Managers and entire staff of Pantaloons, Pimple
Saudagar who had been extremely helpful and cooperative at every step throughout the project
period.
I would also like to extend my heartiest thanks to the customers of Pantaloons who spent their
precious time in filling my questionnaire.
This internship would not have been completed without the support of my mentor, Prof.
Swapnali Bhosale. I would also like to thank our Director, Dr. Kumendra Raheja for his
guidance and unflinching support throughout the internship.
Last but not the least, my endless appreciation goes to my family who has stood by my side and
given me moral support whenever I was low and boosted my willpower.
HARSHITA RAJ
PLACE : PUNE
TITLE INDEX
10 RECOMMENDATION 55
11 REVIEW OF LITARETURE 56
12 ANNEXURE 59
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INDEX OF TABLES/CHART
EXECUTIVE SUMMARY
This project report throws light on the various initiatives taken by the management of Pantaloons
in order to maintain relationship with their customers. This project report also throws light on the
reasons behind customer’s decision of choosing Pantaloons apparels and various other products
from Pantaloons. Pantaloons is oone
ne of the emerging player in Indian retail industry and offers a
deep insight into the industry.
For completion of this project, a sample size of 100 was selected due to limitation of time. The
sample interviewed consist of housewives, professionals and co college
llege going students. Though the
sample size considered was small but it was so varied in order to overcome all the odds. A
structured questionnaire was constructed in order to measure the responses of respondents on
suitable scale so that they can be anal
analyzed.
yzed. Primary data collection was done through
questionnaires and interviews and secondary data collection was done through company websites
and various previous research reports.
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6. Measures to improve the performance of loyalty program and make it more efficient
and updated.
Retailing in India is one of the pillars of its economy and accounts for 10 per cent of its GDP.
The Indian retail market is established to be US$ 500 billion and one of the top five markets in
the world by economic value. India is one of the fastest growi
growing
ng retail markets in the world. The
Retail Industry in India has come forth as one of the most dynamic and fast paced industries with
several players entering the market. But all of them have not yet tasted success because of the
heavy initial investments that are required to break even with other companies and compete with
them.
The India Retail Industry is gradually inching its way towards becoming the next boom industry.
The total concept and idea of shopping has undergone an attention drawing change in terms of
format and consumer buying behavior, ushering in a revolution in shopping in India. Modern
retailing has entered into the Retail market in India as is observed in the form of bustling
shopping centers, multi-storied
storied malls and the huge complexes th
that
at offer shopping, entertainment
and food all under one roof.
As of 2003, India's retailing industry was essentially owner manned small shops. In 2010, larger
format convenience stores and supermarkets accounted for about 4 percent of the industry, and
these
se were present only in large urban centers. India's retail and logistics industry employs about
40 million Indians (3.3% of Indian population).
Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand
retail, forbidding foreign groups
ups from any ownership in supermarkets, convenience stores or any
retail outlets. Even single-brand
brand retail was limited to 51% ownership and a bureaucratic process.
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likely to significantly delay if not prevent most single brand majors from Euro
Europe,
pe, USA and Japan
from opening stores and creating associated jobs in India.
On 14 September 2012, the government of India announced the opening of FDI in multi-brand
multi
retail, subject to approvals by individual states. This decision was welcomed by economists and
the markets, but caused protests and an upheaval in India's central government's political
coalition structure. On 20 September 2012, the Government of India formally notified the FDI
reforms for single and multi-brand
and retail, thereby making it effective under Indian law.
Food and beverage retail backed by huge potential and changing lifestyle, the food and beverage
retail market is growing at a robust 30
30-35 per cent year.
E-commerce or E-tailing
tailing the next big revolution with the advent of ee-commerce
commerce in retail
industry, retail stores are facing stiff completion from ee-stores.
es. The rising demand for e-shopping
e
has lead to new debate cropping up in the world.
On 7 December 2012, the federal government of India allowed 51% FDI in multi-brand
multi retail in
India.
India is the 5th largest market in the world. The country ranks fourth among the surveyed 30
countries in terms of global retail development. The market size of India retail industry is about
US$ 500 million (source: IBEF) and is expected to grow at the rate of 15
15-20%
20% p.a. the retail
industry is expected to increase to US$ 7750-850
850 billion by 2015 (according to a report by
Deloitte). Retailing has played a major role the world over in increasing productivity across a
wide range of consumer goods and services. In the developed countries, the organized retail
industry accounts for
or almost 80% of the total retail trade. In contrast, in India organized retail
trade accounts for merely 8-10%
10% of the retail trade. This highlights a lot of scope for further
penetration of organized retail in India.
EVOLUTION O
OF RETAIL IN INDIA
Emerging formats
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Factory outlets
(Source:Internet)
Pantaloons, one of the fastest growing, premium lifestyle apparel companies and retail
destination in India, is constantly innovating designs, concepts and products by infusing the
latest trends in fashion and clothing styles.
A chain of stores for every Indian, Pantaloons has a repertoire of lifestyle brand to cater to every
consumer needs across multiple occasions. The warm and personalized service offered by every
store truly brings out the unique value proposition of the format.
Pantaloons were launched amidst much fanfare in Gariahat, Kolkata in 1997. Over the years, the
brand has undergone several transitions therefore re
re-inventing
inventing it to bring forth compelling trends
and styles for men, women and kids. It started as a discount format, moving to a family concept
store and finally evolved into a fashion destination with a sharp focus on bringing the latest in
fashion.
Pantaloons retails over 200 brands which comprise a mix of exclusive brands, licensed brands,
br
international brands and more in apparel as well as accessories leaving the consumer spoilt for
choices. The greatest asset of pantaloons is our exclusive brands that keep customers coming
back to our stores. What sets these brands apart are that eac
eachh of the designs is crafted keeping the
consumers fashion sensibilities and fashion needs in mind.
Pantaloons previously controlled by the Future Group, but have now been taken over by Aditya
Birla Nuvo Limited (ABNL). According to the Brand Trust Report 22014,
014, a study conducted by
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Trust Research Advisory, Pantaloons featured among 100 most trusted brands in India. The
Aditya Birla Group ranks high in the league of fortune 500 corporations of the world with a
strong mix of talented and capable personnel com
comprising
prising 42 different nationalities, who are
credited with anchoring the organization and scripting one brilliant success story after another.
With a chain of 144 fashion stores across 85 cities (as per website) and towns with 5300 valuable
employees, Pantaloons are constantly extending its footprint into the rest of modern India.
Its spans a retail space of 1.7 million square feet which is amongst the largest in India.
Voted as India’s most trusted apparel retail brand in the prestigious brand equity survey 2014,
pantaloons continues to nurture trust and confidence.
Pantaloons is now an integral part of the prestigious Aditya Birla Group, a USD 40 billion Indian
multinational operating in 36 countries across the global with over 120000 employees.
All the
he stores are divided into four zones:
East zone
West zone
North zone
South zone
Each zone has their zones office, which takes care of the entire pantaloons store in the respective
zone.
3. Season mall
5. Baner store
6. SGS Mall
7. NIBM
Customer will earn 2 points on every Rs. 100 spent and sometimes its change different offer to
offer green card stars members. The card has 4 tires depending upon last 12 months of
purchasing/shopping.
/shopping. The 3 tires are 1 star 3 star, 5 stars and 7 stars. Shop and your card
upgrades while privileges and discount increases simultaneously. The benefits covers under
Green card includes discounts every time you shop, free enrolment, instant redemption
redempti in next
bill, relaxed exchange policy of 90 days, convenient mobile based program (card less program),
exclusive billing counters for 3/5/7* members, reimbursement of paper bags (as reward points
for 5/7* members), exclusive sales preview, complimentary home drop of altered apparels.
GREENCARD points awarded at Pantaloons may vary and may exclude certain range of
merchandise. To earn GREENCARD points on first bill, members need to shop for Rs. 2000/-
and above. GREENCARD benefits are applicable only for retail customers and not valid on bulk
purchases
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GREENCARD entitles for discounts as reward points on current purchases only. Purchases made
against exchanges or credit notes will not qualify fo
for discounts. Points are not applicable for
transactions made through credit note purchase.
GREENCARD discounts as points and offers are valid on payments made by cash/credit card
/debit card.GREENCARD Reward Points are not accrued on purchase of fine jwellery,
Pantaloons Gift Vouchers /Cards and carry bags except benefits available for certain customers.
Shop for Rs.8, 000,, Rs.20,000 or Rs. 40,000 within a span of 12 months and retain your 3, 5 or 7
star membership respectively. If these shopping limits are not maintained for 12 months from the
date of up gradation, the member will be assigned one tier below the existing tier after every 12
months:
Chalk
Honey Bare kids
John miller
Akkriti Poppers
Indigo nation
Rangmanch
Bare denim
Rig Jealous 21
Ajile Annabelle
Competitors
1. Shoppers Stop
2. CENTRAL
2. Westside
3. Wills lifestyle
4. Max
5. Reliance Trendss
Table 1
(Source: www.pantaloons.com )
From the day of tier assignment one need to maintain a minimum shopping account for the next
12 months. This account varies from the tiers to tiers and is as follows.
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Table No. 2
Company’s vision:
Future Group shall deliver Everything, Everywhere, Every t ime for Every Indian
Consumer in the most profitable manner.
Company’s Mission:
We share the vision and belief that our customers and stakeholders shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development.
We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments – for classes and for masses.
We shall ensure that our positive attitude, sincerity, humility and united determination shall be
the driving force to make us successful
A descriptive research design has been followed for this marketing research which highlights
both the qualitative and quantitative aspects of the identified problem.
PRIMARY DATA
SECONDARY DATA
Secondary data is collected from company websites and various Literature reviews. As
Pantaloon is daily in news because of its eexpansion
xpansion plans, so I benefited a lot from articles on
net.
Random stratified sampling was chosen for research. Mall was selected as the study area and
people from this area were selected for filling up of questionnaires and collecting responses due
to convenience of location.
SAMPLING PLAN:: Sampling plan for this research project is divided into following four steps:
Sample size: A sample size of 100 respondents was chosen because of time constraint. Though
small sample size but it consists of varied type of respondents so as to overcome any error at the
time of generalization of result. Sample un
unit:
it: Pantaloon store at Pimple Saudagar, Pune was
chosen as sample unit. Survey was conducted in May - July 2019.. Sample procedure: Due to
time and various other constraints convenience was restored. But efforts were made
mad to check the
accuracy of responses. Contact method: Questionnaire method was used to establish direct
contact with respondents.
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Limitation of study
Time constraints
Biasness – The respondents may give a biased view
Some respondents refuse to cooperate
Incomplete information
As the managers are busy in their daily schedule it is not possible for us to spend
more time in interactions and discussion with them.
By studying the importance of Loyalty program- Pantaloons green card, it helps the business to
gain competitive edge and can hence increase profitability. The Pantaloons can ensure that their
program offers both value and other customer benefits. Understanding the effectiveness of green
card option helps in customer retention. The modified upgraded program of pantaloons having
more benefits to the green cards loyal members of Pantaloons, earlier it was in collaboration with
payback but now has been separated and became a sole mode to loyal members There are few
changes made which are better than previous one. In case of further study, the new updates of
program can be studied.
The convenience sampling technique will be adopted. The data collected will be in the form of
structured questionnaire.
Data sources
Primary Data :-
The present study has used survey method for collecting the primary data by directly
direc with
questionnaire.
Secondary Data :-
Secondary data for the study were collected from the magazines, websites & other previous
studies.
Research Instrument :-
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Research format
The questions are a mix of open-ended, close-ended questions, binary, ranking and
multiple choice questions. They have been so inserted into the questionnaire, to get the
appropriate response for particular situation.
Limitation of study
Time constraints
Biasness – The respondents may give a biased view
Some respondents refuse to cooperate
Incomplete information
As the managers are busy in their daily schedule it is not possible for us to spend
more time in interactions and discussion with them.
Data Sources
Primary Data:-
Such data are mainly concerned with the first hand information. It consists of preparing the
questionnaire or by taking interview.
There was no specific questionnaire prepared but brief discussions were undertaken with the
personnel as and where required.
Secondary Data:-
This data is mainly collected from different types of sources such as official documents,
magazines, journals, pictorials, books, reports, and so on. During my project, I have mainly
utilized the latter kind of data. Like, secondary data for my research. I have referred to the
official site of FUTURE GROUP. Website of company and many more. Moreover, I have
applied both qualitative and quantitative sort off studies as research methodology for this project
QUESTIONNAIRE
NAME:
(b) Female
(b) 18-30
30
(c) 30-45
(d) 45-60
(b) Salaried
(c) Business
(e) Others
(d) 40,000
40,000-50,000 (e) More than 50,000
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(a) Weekly (b) Once in a month (c) Twice a month (d) Only during sales
(e) Occasionally
(3).What is the first thing that strikes your mind about Pantaloons Green card?
(a) Discount every time you shop (b) Exclusive sale preview (c) Cardless program
(f)altered apparel (g) Relaxed exchange policy (h) Exclusive billing counters
Yes No
(5).Which are the Pantaloons Green Card services you use mostly?
(11).Which part of Pantaloons GreenCard do you think needs the most improvement?
10. Any suggestion would you like to give about Pantaloons Green Card
Card?
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CHAPTER - 6
DATA ANALYSIS
(Source: survey)
Chart 1
(Source: survey)
Interpretation: According to survey conducted on 100 respondents, 50% people were between
the ages of 18-30 so we can see that most shopping is done by youth.
High School 10 10
Higher Secondary 11 11
Graduate/Diploma 48 48
Post Graduation 31 31
Total 100 100
(Source: survey)
Chart 2:
Title: Eduacation
60
48
50
40
31
30
20
10 11
10
0
High School Higher Secondary Graduate/Diploma Post Graduate
(Source: survey)
Page | 34
Student 29 29
Salaried 35 35
Business 14 14
Home maker 10 10
Others 10 10
Total 100 100
(Source: survey)
Chart 3:
Title: Occupation
40
35
35
30
29
25
20
15 14
10 10
10
5
0
Student Salaried Business Home maker Others
(Source: survey)
(Source: survey)
Chart 4:
25
20 20
20
15.56
15
11.11
10
0
Less than 15,000 15,000
15,000-25,000 25,000-40,000 40,000-50,000 More than
50,000
(Source: survey)
Interpretation: According
ording to survey conducted on 100 respondents, out of which 20 people are
students and home makers (which are not counted). 33.33% people have their monthly income
between 25,000-40,000.
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Table No.7
Chart: 5
Every week 24
Once in two week 28
Once in three week 12
Once in a month 36
Sales
24%
36%
Every weak
once in two week
Once in three week
28%
12% once in a month
Inference: from the pie chart depicted above, the frequency of shopping of respondent is
evident of the 100 respondent who answered ququestionnaires,
estionnaires, 24%respondent indicated that
they shopped every weak which is favorable for the business.28%respondent would like to
shop once in two weak and where as 36% respondent likes to shop once in the month. The
lowest percent is 12% which is once in the three weak. We can Conclusion that most people
of Guwahati would like to shop once in the month.
Frequency Percent
Yes 80 80
No 20 20
Total 100 100
(Source: survey)
Interpretation: According to survey conducted on 100 respondents, 80% people are aware
about Green card.
Chart:6
20%
Awareness
Not Aware
80%
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Table No. 9
What is the first thing that strikes your mind about Pantaloons?
C) Quality ( ) D) others ( )
8%
20%
Discount and offers
60% Assortment
12%
Quality
others
Inference:: when we say come to the mind discount and offers comes first. In Pantaloons family
centre most of the respondent like discount and offers about 60% of respondent perceived
discount and offer is the main attraction that pulls them to come into the store.20% respondent
liked quality in the Pantaloons. Thus we can conclude that discount and offers play a vital role in
retailing.
Table No:10
Yes No
Respondents whose purchasing choice is affected and not affected by the price of the product
RESPONDENT Percentage(%)
Male Female
YES 34 17 51%
NO 33 16 49%
Total 67 33 100%
Chart:8
40
34 33
35
30
25
20 17 male respondents
16
15 female respondents
10
0
yes no
Inference:We
We find those 34% males and 17% female respondent’s purchasing choice is
affected by the price of the product. And 33% male’s and 16% female’s purchasing
choice is not affectedd by the price of the product.
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Table No. 11 which is the Pantaloons green card services you use mostly?
Frequency Percent
Earn points at pantaloons 42 47.19
Reimbursement of paper bags 0 0
Instant point redemptions 34 38.20
Relaxed exchange policy 2 2.25
Exclusive sale preview 8 8.98
Exclusive bill counter 3 3.38
Total 89 100
(Source: survey)
Chart 9:
Which are the pantaloons green card services you use mostly
50.00% 47.19%
45.00% 38.20%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00% 8.98%
10.00% 2.25%
5.00% 0% 3.38%
0.00%
(Source: survey)
Interpretation: According to survey conducted on 100 respondents, 47.19% people have mostly
use Earn points at pantaloons.
Frequency Percent
Strongly agree 20 20
Agree 70 70
Disagree 9 9
Strongly disagree 1 1
Total 100 100
(Source: survey)
Chart 10:
40.00%
20.00%
20.00% 9.00%
1%
0.00%
Strongly agree Agree Disagree Stronglydisagree
(Source: survey)
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Table No. 13
Frequency Percent
Strongly agree 24 24%
Agree 47 47%
Disagree 16 16%
Strongly disagree 13 13%
Total 100 100
(Source: survey)
(Source: survey)
Interpretation: According to survey conducted on 100 respondents, 47% people Agree on they
shop at pantaloons because it offers price and quality of product.
Table:14
Excellent 56
Good 40
Average 4
Bad 0
Chart:12
0
4%
40%
Excellent
56% Good
Average
Bad
Inference: It is clear from the pie chart is that cleanliness and hygiene maintain in Pantaloons is
superb. More than 90% respondent marks it excellent and good .out of 56%respondant feels it
excellent and 40%respondanet mark it good. So we can conclude that cleanliness and hygiene is
awesome
me in Pantaloons family centre.
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Table No.15
Frequency Percent
Strongly agree 34 34%
Agree 56 56%
Disagree 6 6%
Strongly disagree 4 4%
Total 100 100
(Source: survey)
Chart :13
(Source: survey)
Interpretation: According to survey conducted on 100 respondents, 56% people Agree on they
shop at pantaloons because it offers customer service.
Table No :16
Which part of green card do you think needs the most improvement?
Chart:14
Title: which part of green card do you think needs the most
improvement?
33.33%
35.00%
30.00% 24.49%
25.00%
20.00% 14.29%
15.00% 12.93%
6.80% 8.16%
10.00%
5.00%
0.00%
(Source: survey)
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Table No:17
Frequency Percent
Excellent 17 17
Very good 53 53
Good 21 20
Average 6 6
Poor 3 3
Total 100 100
(Source: survey)
Chart 15:
(Source: survey)
Interpretation: According to survey conducted on 100 respondents, 53% people rated earn and
redeem system of green card very good.
Frequency Percent
Excellent 28 28
Very good 46 46
Good 17 17
Average 7 7
Poor 4 4
Total 100 100
Chart 16:
20.00% 17.00%
10.00% 7.00%
4.00%
0.00%
Excellent Very good Good Average Poor
(Source: survey)
Interpretation: According to survey conducted on 100 respondents, 46% people rate the
relaxed exchange policy is very good.
Page | 48
Frequency Percent
Excellent 31 31
Very good 45 45
Good 21 21
Average 3 3
Poor 0 0
Total 100 100
(Source: Survey)
Chart 17:
(Source: survey)
Interpretation: According to survey conducted on 100 respondents, 45%people were rate the
card less program very good.
Table No:20
Free enrolment
Frequency Percent
Excellent 41 41
Very good 30 30
Good 15 15
Average 11 11
Poor 3 3
Total 100 100
Chart 18:
(Source: survey)
Interpretation: According to survey conducted on 100 respondents, 41 % people were rate the
Free enrolment excellent.
Page | 50
Frequency Percent
Excellent 2 2
Very good 8 8
Good 26 26
Average 35 35
Poor 28 28
Total 100 100
Chart 19:
20%
10% 8.00%
2%
0%
Excellent Very good Good Average Poor
(Source: survey)
Interpretation: According to survey conducted on 100 respondents, 35% people were rate the
additional offer on Pantaloons green card is Average.
CHAPTER 7 - FINDINGS
o This research helped us identify following problems where Pantaloon has an immense
scope of improvement:
o Majority of respondents were found complaining about the variety of products, Different
sizes not available, footwear, and child section need improvement at Pantaloon.
o Some respondents’ complaint that there should be sitting space for ladies child and old
age people and it was worked out during the project itself.
o Parking is also a problem at Pantaloon and some of the customers were dissatisfied with
the parking, As it was hard to find two wheeler Parking
o Store is performing well in attracting the ccustomers
o People usually visit the store once in a week
o The main dissatisfaction for the customer is the paid carry bags.
o Discount and offers are doing well in the stores
o The promotional activities like free gifts card really attract the customer in the store.
sto
o Inside store employee interaction is average with the customer
o Location of Pantaloons is outstanding
o Most of customer belongs to high society and middle class
o Cleanliness and hygiene maintain in the store is superb
o Pantaloons provide value added servi
services
ces like, home delivery; alteration giftwrapping.etc
is up to the mark.
o Best Loyalty Program in India, like payback green card option.
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Time constraints
Biasness – The respondents may give a biased view
Some respondents refuse to cooperate
Incomplete information
As the managers are busy in their daily schedule it is not possible for us to spend
more time in interactions and discussion with them.
Budget constraints
Respondent was busy
CHAPTER 9 - Conclusion
This research report aims to study consumer attitude towards Pantaloons
Pantaloon and highlights
way. Nearly around 57% of the earnings come from loyal customers.
Page | 54
CHAPTER 10 - RECOMMENDATIONS
1. People suggested that at least carry bag must be offered free of charge.
3. It is observed that sales preview and use of promotional techniques should be improved that
will be helpful for increases customers frequency of visiting the store.
4. Pantaloons needs to improve so that it can accommodate more kinds of products and also
provide space for children coming with their parents to play and have fun so that for them
visiting Pantaloons becomes exciting
5. Staff should be trained properly to assist people and to make them understand the benefits of
green card membership, it will strengthen Customer loyalty
6. Other Recommendations include introduction of a Book corner for the book lovers and
making shopping more joyful.
CHAPTER
PTER 11 - REVIEW OF LITERATURE
Good customers are an asset which, when well managed and served, will return a
handsome lifetime income stream for the company
Philip Kotler
Today’s successful retailers recognize the importance of customer retention in their efforts to
grow operational profits. to achieve this, more and more retailers are implementing loyalty
programs as a competitive marketing strategy to build long
long-term relationships
tionships with customers,
allocate marketing rupees based on the customer’s value and derive as much as revenue as
possible from them over a lifetime. Of course, loyalty is more than a business strategy. It is an
ongoing, two-way
way relationship based on resp
respect, trust and commitment – a relationship in which
the customer feels all-important.
important. A successful loyalty program builds and nurtures such a
relationship by accomplishing two critical tasks. The first is to gather information that will help
retailers understand
rstand their customers’ tastes, needs and expectations. The second is to offer
recognition and rewards (loyalty card, rewards card, points card, advantage card, or club card)
card that are
relevant to their customers as a reward for their loyalty – and as a trade
de for the personal and
transactional data that starts the loyalty cycle and keeps it going. By tracking members’
transactions, companies can identify the various segments of their customer base to create
strategies that keep their customers coming back fo
for more.
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Today’s consumers are more savvy and sophisticated than ever. They expect loyalty programs to
offer:
Easy participation
Instant rewards
Flexible rewards
Fast accumulation of rewards
Rewards claimed at any participating establishment
Special offers
Instant win opportunities
Membership cards
Greetings on special occasion
Gifts
Coupons/ vouchers
Loyalty programs attempt to reward customers (and business) for sustaining such a relationship
by providing clear incentives for patronage. In fact, successful loyalty programs can even
accelerate the frequency of customer visits and volume of purchases, strengthening the
connection.
Sharp, Byron and Anne sharp. (1997) - In their paper titled “Loyalty programs and their impact
on repeat purchase loyalty patterns”. They said currently popular marketing tools for developing
relationship, stimulating product usage, and retaining customers, loyalty programs can take
different forms, but one of the most common involves card-based programs that enable clients to
become members of the program and requires them to self-identify at every purchase occasion. 1
Boltan, Ruth N., P.K. Kannan and M.D Bramlett. (2000) - In their titled “Implications of loyalty
program membership and services experiences for customer retention and value.” They said
although loyalty program have attention prominent positions, empirical evidence about the
managerial question of interest, that is the strength and direction of their effects on customer
behavior, remain limited and contradictory. Loyalty program positively influence company
Michael Lewis (2004) - In his titled “The influence of loyalty programs and short-term
short
promotions on customer retention” they said despite the proliferation of loyalty programs in a
wide range of categories,
ories, there is little empirical research the focuses on the measurement of
such program. The key to measuring the influence of loyalty programs is that they operate as
dynamic incentive schemes by providing benefits based on cumulative purchasing over time.
tim As
such, loyalty programs encourage consumers to shift from myopic or single period decision
making to dynamic or multiple period decisions making. In this study, the author models
customer response to loyalty program under the assumption that purchases represent the
sequential choices of customers who are solving a dynamic optimization problem. Through
simulation and policy experiments, it is possible to evaluate and compare the long-term
long effects of
the loyalty program and other marketing instruments on customer retention.
Singh Roopa, Khan Imran Akhtar (2012) - In their titled “An approach to increase customer
retention and loyalty in B2C world.” They said customers are always been important for the
business. With the high rate of competition in every market, it is critical to retain the customer /
loyal customers. The purpose
rpose of the paper is to highlight how short term actions with bit
compromise with the profit will turn into long term customer loyalty and hence long term
benefit. After analyse the importance of benefits, we will understand the approach of how to
increasee customer retention and customer loyalty towards business.
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CHAPTER 12 - ANNEXURE
QUESTIONNAIRE
NAME:
(b) Female
(b) 18-30
(c) 30-45
(d) 45-60
(b) Salaried
(c) Business
(e) Others
MONTHLY INCOME: (a) Less than 15,000 (b) 15,000-25,000 (c) 25,000-40,000
(a) Weekly (b) Once in a month (c) Twice a month (d) Only during sales
(e) Occasionally
(3).What is the first thing that strikes your mind about Pantaloons Green card?
(a) Discount every time you shop (b) Exclusive sale preview (c) Cardless program
(f)altered apparel (g) Relaxed exchange policy (h) Exclusive billing counters
Yes No
(5).Which are the Pantaloons Green Card services you use mos
mostly?
(8)Location
Location cleanliness and hygiene maintained in Pantaloons
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(11).Which part of Pantaloons GreenCard do you think needs the most improvement?
10. Any suggestion would you like to give about Pantaloons Green Card?