Chapter I2
Chapter I2
Chapter I2
Caloocan Campus
Submitted to:
Submitted by:
Rhein Eisma
Sharmaine Placer
Ivan Matias
Shane Sy
CHAPTER I
INTRODUCTION
loyalty programs to retain customers Ervin et al. (2023). This study delves deeply into
the retail industry to determine these reward programs' true, quantitative impact. Like a
friendly handshake in the shopping world, these programs offer discounts, points, and
special perks to encourage customers to stick around. But here is the big question: do
these programs create lasting loyalty, or are they just momentary attractions? This study
looks closely at real-world data, customer stories, and feedback to determine if loyalty
programs truly make a difference in keeping customers committed. The study aims to
To get to the bottom of it all, the proponents are not just talking to customers but
are also crunching the numbers. This research is all about analyzing sales data,
and their favorite retailers with the use of statistical tools and meticulous analysis.
Knowing the ins and outs of loyalty programs becomes essential for businesses trying
to deepen their relationships with customers as the retail landscape changes, and that
loyalty," conducted by Fazila Faiz and colleagues. The report indicates that companies
are working harder to keep their present customers and draw in new ones by offering
loyalty programs. The study demonstrates how businesses aim to preserve and expand
their client base through loyalty programs. The study sheds light on the continuing
discussions in this field by examining several loyalty programs and their effects on
customer retention.
published research articles known for their relevance. The findings categorize customer
loyalty programs in the retail sector into four main types: point system, rewarding
system, loyalty card system, and gift card system. Interestingly, the research unveils
that the reward system is the most effective among these programs. This particular
approach allows retailers to sweeten the deal by offering additional rewards based on
the loyalty levels of their customers. The study concludes that all four loyalty programs
positively correlate with customer retention, with the reward system exhibiting the
highest correlation. This insight sheds light on the nuanced dynamics. In the retail
sector customer loyalty programs, offering valuable guidance for businesses seeking to
In the research conducted by Fook et al. (2021), the efficiency of loyalty schemes
for keeping clients in the Malaysian national car sector was explored. Through a
programs for keeping customers. The study, which employed a quantitative technique
and a questionnaire as a survey instrument, included 313 drivers who are citizens of
Malaysia. The study examined the mediating roles of brand association and customer
satisfaction on the link between loyalty programs and customer retention by employing
review of ten recently published research articles, the study identified four major
categories of retail sector customer loyalty programs: point system, rewarding system,
loyalty card system, and gift card system. The research highlighted that the reward
system emerged as the most effective type of loyalty program, allowing retailers to offer
This study aims to analyze the effectiveness of loyalty to that customer in the
To look at the socio-cultural elements that affect how loyalty programs are
seen and work in the retail industry, consider how social norms and cultural
This study aims to investigate how loyalty programs affect client retention in the
dynamic retail industry is worthwhile. This study aims to determine how loyalty
programs impact retail enterprises' customer retention rates. To delve more into this
broad matter, the study will particularly address the following questions:
1. How do loyalty programs affect the retail industry's ability to retain customers,
2. What part do psychological aspects play in how well loyalty programs work in the
3. How much do sociocultural elements affect how store loyalty programs are
a. Loyalty programs
b. Consumer behavior
4. How much do loyalty programs impact retail companies' ability to retain customers?
Hypothesis
In the retail industry, the existence of loyalty programs has a significant effect on
noticeably higher frequencies of repeat purchases and a larger propensity for persistent
purchase behaviors and levels of engagement with the brand between customers
Theoretical Framework
Our research is based on Social Comparison Theory, which says people judge
better. We see social media use as what goes in (input). It includes how often teens use
it and how long they stay on it daily. Then, these inputs go through a process of
people doing better than them (upward), feeling better by comparing to those less
successful (downward), or comparing to others who are similar (lateral). Comparing the
parts is like the middle step (process). Finally, what comes out (output) is how teens feel
about themselves, like how they see themselves, value themselves, and are confident.
How teens compare themselves on social media affects how they feel about
themselves. Using this way of thinking and the IPO model, we want to understand more
about how social media use and comparison affect teens' feelings about themselves. It
can help us understand better how social media affects teens' mental health.
associates (2022). They stress that we constantly evaluate ourselves against others,
understand better who we are. Even in circumstances where the comparison does not
directly impact us, we naturally desire to compare ourselves to others. It's significant
because these parallels can evoke powerful feelings such as pride, adoration, or
jealousy, demonstrating how deeply embedded they are in our existence. For this
reason, social comparison has gained much attention in social psychology, with
scholars delving into issues such as why we compare ourselves, to whom we compare,
Conceptual Framework
Figure 1. Conceptual Framework of the Study
To demonstrate the complex dynamics at work, our study uses the Input-
retail industry. During the input step, we consider how retail businesses implement
loyalty programs, including their structure, design, and the kinds of customer incentives
that reflect the initial interest and continued involvement, like enrollment rates and
engage with loyalty programs, including how often they purchase through the program,
how they use rewards, and how valuable they think the products are. It entails
evaluating satisfaction with the rewards obtained by contrasting the loyalty program
experience with other buying options. Finally, in the output stage, we examine
outcomes such as customer retention rates, continued patronage, brand loyalty, and
processes influence various outcomes in the retail sector, shedding light on effective
The study is limited to gathering responses from 100 respondents who own sari-
sari stores within the CAMANAVA Area. This restriction helps obtain a focused
However, it may only capture the full diversity of experiences and opinions across some
types of retail businesses in the area. Furthermore, the results could only apply to other
This study especially looks at the CAMANAVA retail industry to see how loyalty
programs keep consumers returning. It explores several topics, including the kinds of
loyalty programs available, how they are implemented, and how they affect customer
retention. The study aims to shed light on how well these initiatives work in the
Retail establishments had always look for innovative ways to keep their
customers with a happy feeling and returning. Customers who participate in loyalty
programs enjoy rewards for their regular purchases. This study examines who benefits
Firstly, determining if loyalty programs are effective helps stores know how to
keep their customers. By learning what makes these programs work, stores can
improve them. It means they can spend their money wisely and get more from their
loyalty programs.
Also, in a world with many stores, loyalty programs can help stores stand out.
When stores offer good rewards, they get new customers and keep them around for
longer. So, this study helps stores create loyalty programs that make them special so
with their customers. By understanding how loyalty programs keep customers, stores
can make their marketing more personal. It makes customers happier and more likely to
Additionally, the study isn't just good for stores. Companies that work with
stores, like suppliers or marketing agencies, can also benefit. They can use what
they learn from this study to help stores do better. By knowing what works with loyalty
programs, they can offer services that match what stores need, helping everyone
succeed.
Overall, this study is like a guidebook for stores and others involved in retail.
Showing how loyalty programs help keep customers happy and coming back helps
stores build stronger connections with their customers and stand out in a busy market.
Definition of Terms
or plans to reward and retain customers; these tactics frequently involve providing
Businesses use loyalty programs to ensure that customers continue to select them.
Influence. This research aims to determine the precise effects of loyalty programs on
consumers and whether they encourage customers to remain loyal to a specific retailer.
Psychological Factors. These feelings and thoughts influence how customers see and
interact with loyalty programs, like how much they trust or emotionally connect with the
program.
Discounts. When stores lower their prices for customers in loyalty programs, giving
Rewards System. It is like a game within a loyalty program. Customers earn points or
benefits based on their purchases, which can lead to future discounts or even free stuff.
Exclusive Perks. The special advantages or treats only customers in loyalty programs
actively involved in their loyalty programs, trying to make them feel a strong connection
and commitment.
Socio-Cultural Factors. These are the social and cultural things that can affect how
customers behave. It includes shared beliefs, norms, and values that can impact how
Quantify Impact. It is about putting a number on how much loyalty programs affect
This chapter delves into a comprehensive review of relevant foreign and local
studies and both foreign and local literature. By examining these diverse sources, we
perspectives, and ultimately synthesize key findings, all to build upon existing
Foreign Studies
Customer Retention
This literature review explores the connection between customer retention and
components in driving customer loyalty and repeat business. Studies emphasize the
significance of customer retention in the dynamic retail industry. Artha et al. (2022)
highlight the vital role of customer retention in building strong customer relationships
and achieving a competitive advantage. They further emphasize the extensive research
By establishing emotional ties and trust with customers, these elements hope to
improve customer satisfaction and encourage repeat business (Artha et al., 2022).
Businesses must assess the success of their loyalty programs to maximize client
retention and return on investment. The present study investigates diverse approaches
rebates, reward structures, special privileges, and consumer interaction tactics (as
delineated in the research inquiries). Businesses can learn a lot from analyzing how
highlighting the critical role of customer retention in retail and the potential of loyalty
programs in achieving this goal. The identified research questions delve deeper into
specific aspects of loyalty programs and their impact on customer retention. They
the efficacy of different program components. This research seeks to shed light on
these particular issues and advance our understanding of loyalty programs in the retail
industry. It does this by expanding on prior research. In today's very competitive retail
review looks into the connection between loyalty programs and client retention,
particularly emphasizing the effects of these initiatives on customer loyalty and repeat
Research indicates that consumer retention plays a crucial role in the ever-
changing retail sector. Alkitbi et al. (2020) stress the importance of keeping current
clients and point out that doing so is more economical than finding new ones. Their
Retailers frequently use loyalty programs as a tactic to keep customers loyal. These
customers. This literature review establishes the importance of customer retention and
the possibility of loyalty programs in accomplishing this objective, forming the foundation
for the proposed study. This research intends to provide important insights into the
cutthroat retail landscape. This literature study investigates the relationship between
loyalty programs and client retention, particularly emphasizing how these initiatives
affect consumer loyalty and repeat business in the retail industry. Studies highlight the
significant role of customer retention in the dynamic retail landscape. While the study by
Sabri et al. (2019) explores customer retention in the car loan industry, its core principle
of retaining existing customers through value and trust holds across various sectors,
including retail. Their findings highlight that customer satisfaction, although not directly
behavior. Retailers frequently use loyalty programs as a tactic to keep customers loyal.
special advantages, and customer engagement activities, that are designed to draw in
and keep customers. The effectiveness of these programs, however, extends beyond
Firms must focus on keeping their current clientele in today's competitive retail industry.
With a focus on how these activities impact customer loyalty and repeat business in the
retail sector, this literature study explores the relationship between loyalty programs and
client retention.
Studies highlight the critical role of customer retention in the dynamic retail
landscape. While the study by Almohaimmeed (2019) explores customer retention in the
restaurant industry, its core principle of retaining existing customers holds for various
sectors, including retail. Their findings indicate that customer satisfaction positively
loyalty and profitability. It emphasizes the important role of keeping customers satisfied.
Studies highlight the significant role of customer retention in the dynamic retail
landscape. While the study by Adela-Llaura et al. (2021) focuses on customer lifetime
generally more profitable than acquiring new ones, and loyalty programs aim to foster
this loyalty. This study provides insightful information about the layout and optimization
of loyalty programs in the retail sector, ultimately helping businesses achieve higher
customer retention rates and maximize their overall customer lifetime value.
In the current competitive retail environment, keeping current consumers is quite
important. Customer lifetime value (CLV) is used in studies such as Gao et al. (2023) to
underscore the significance of retaining customers. Since attracting new clients usually
costs more than keeping current ones, keeping consumers is essential to a company's
loyalty. These programs use a variety of incentives, like refunds, point-based prizes,
special benefits, and entertaining activities, to draw in and encourage users. For these
sociocultural factors ensures programs are tailored to resonate well with different
customer groups. By delving deeper into these areas, this research aims to offer
valuable insights into optimizing loyalty programs to maximize their impact on customer
common tactic to increase customer lifetime value and encourage repeat business is
accomplishment of loyalty programs is the customer lifetime value (CLV), which (CLV),
which stands for the entire amount of money a client makes in a relationship with the
brand. Dandis et al. (2022) explored the factors influencing CLV in fast-food restaurants,
including relational benefits, brand experience, service quality, satisfaction, trust, and
commitment. Their findings suggest that building strong connections with customers
through various tactics directly impacts their long-term value to the business.
This existing research serves as a valuable foundation for this study, which aims to
delve deeper into the effectiveness of loyalty programs in the retail sector. By
investigating specific program features, customer psychology, and their impact on CLV,
this study hopes to offer insightful information to companies looking to maximize their
Retail Sector
While existing research provides valuable insights, it's crucial to acknowledge the
unique challenges and opportunities the retail sector presents. Studies like "Rapidly
highlighting factors like growing consumer demands and new technologies that
contribute to this dynamic landscape. This study emphasizes how crucial it is to look at
This study highlights the significance of looking at loyalty programs in the specific
context of the retail business by drawing on the body of prior research. This emphasis
challenges within this dynamic sector. With the support of prior research, this study aims
to investigate loyalty program efficacy in the retail industry in greater detail. To help
retailers optimize their loyalty programs and achieve sustainable customer retention in
the ever-changing retail environment, this study will examine the effects of specific
competitive and lucrative retail sector. This is because loyalty among customers is
with a company amidst many options. It's critical to comprehend the subtle effects of
investigated how the retail industry changed during the turbulent COVID-19 pandemic.
Their analysis, which examined a wide range of empirical and nonempirical research
publications, provided insight into the sector's changing trends and new issues. The
Local Studies
Customer Retention
relationships and providing top-notch customer service are highly valued by clients. This
study aims to clarify how well loyalty programs work in the Philippine retail industry to
keep clients. "Effective customer retention strategies from top Philippine founders" is a
study by Alea Lagada (2023) that emphasizes the importance of client retention for
Philippines due to the cultural emphasis on customer service and personal connections.
The panel discussion explored strategies and trends for maximizing customer retention
within the Philippines' B2C (Business-to-Consumer) market. The present Local Study is
an initial investigation into the pivotal function of customer retention within the Philippine
retail sector. Businesses may improve customer relationships and achieve greater
success and growth by learning how loyalty programs and other customer-centric
tactics work.
Being active and well has become a major concern for many Filipinos.
Consequently, there has been a notable expansion in the fitness sector, especially in
Iloilo City. But even with their recent popularity boost, gyms and fitness facilities still
need help keeping members regularly. This study aims to investigate the relationship
between customer satisfaction and customer retention in a few Iloilo City fitness clubs.
Important information on this subject may be found in the study "Customer Satisfaction
commitment to their fitness journeys depend on customer satisfaction. This local study
provides valuable context for understanding customer retention challenges in the Iloilo
identifying key satisfaction factors, and exploring whether they directly translate to long-
additional variables would be crucial to draw conclusive findings and inform effective
strategies for promoting member retention within Iloilo City gyms and fitness centers.
in the banking sector. It aligns well with several existing studies emphasizing the value
of putting the customer at the core of business strategies. These related studies,
alongside the research by Torres et al. (2022), emphasize the growing understanding of
including the retail sector. Businesses can create satisfied and loyal clients by
The study by Lansangan et al. (2020) covers data mining strategies for
consumer behavior about loyalty program elements like points, discounts, and special
offers. Retailers can create initiatives that optimize spending from valuable customers
by evaluating this data. The study highlights the significance of modeling and validation
in CLV forecasting. Similarly, retailers can track the effectiveness of their loyalty
programs with various metrics. These include the average order value, program
participation rate, and customer acquisition cost. By analyzing these metrics, retailers
can measure the program's impact on retaining high-value customers and adjust
strategies accordingly.
In conclusion, studies like Lansangan et al. (2020) provide valuable insights into
effectiveness of loyalty programs in the retail sector. By leveraging data and analytics,
retailers can design and refine programs that attract and retain customers with high
Regarding your research on the efficacy of loyalty programs in retail, the study
Modelling in Automobile Insurance" by Baravante et al. (2022) that you supplied has
some pertinent insightful information. Although the study focuses on customer churn in
the insurance business, the retail industry can also benefit from understanding attrition.
Baravante et al.'s study from 2022 emphasizes how crucial client segmentation is
to accurate churn forecast. This idea works well for retail loyalty programs. Retailers can
create customized loyalty programs that address each client segment's unique
requirements and interests by dividing their customer base into groups according to
insurance industry, their methodology and findings offer valuable insights into customer
churn and retention strategies applicable to the retail sector. By understanding the
concept of churn and utilizing data-driven approaches, retailers can design effective
loyalty programs that target at-risk customers, segment effectively, and ultimately retain
success.
Retail Sector
The study by Barrio et. al. (2023) on life insurance agents' persuasive techniques
offers valuable insights relevant to the effectiveness of loyalty programs in the retail
sector. Both situations involve building long-term relationships with customers through
influencing their behavior. Similar to how life insurance agents tailor their approach to
encouraging repeat business. Like the "Building Customer Relations" technique life
insurance agents use, loyalty programs foster a connection with customers. Offering
exclusive benefits and engaging them through various channels creates a sense of
Retail Asia (2023)" offers valuable insights into the context of your study on "The ability
of loyalty programs to keep customers in the Retail Sector. The report highlights a
consumer spending. It is relevant because loyalty programs are often most effective
when consumers have the financial resources to make additional purchases. Despite
Consequently, knowing the current status of the Philippine retail industry, particularly the
impact of inflation and recovering but cautious consumer spending, offers an important
background for assessing how well loyalty programs retain customers. By tailoring
loyalty programs to address these specific economic realities, retailers can increase
The study titled "Increasing Competition in the Retail Trade Sector" by PIDS
(2020) provides valuable insights into the context of your research on "The
Effectiveness of Loyalty Programs in Retaining Customers in the Retail Sector. The
study highlights the increasing competition in the Philippine retail sector, both from local
players and potentially from foreign investment in the future. It heightens the pressure
on retailers to differentiate themselves and attract customers. The increased need for
The loyalty programs must adapt and provide seamless connectivity with mobile apps
and web platforms. Therefore, assessing how well loyalty programs work to retain
from the competition and retain customers by providing distinctive value propositions
Foreign Literature
Customer Retention
Volume Service Context: Evidence from the Mobile Service Industry" by Cheng et al.
(2020) provides valuable insights into your research on "The ability of loyalty programs
to keep customers in the retail sector" specifically through the concept of perceived
value. Cheng et al.'s study focuses on the mobile service industry. There is a clear
contrast in the retail sector in the study "The Impact of Perceived Value on Customer
By examining both studies to determine how perceived value affects customer loyalty in
diverse industries, you can use this knowledge to create consumer-friendly reward
programs in the retail sector. alue influences customer loyalty in various industries.
AND VIRTUAL MARKETS IN TURKEY" by Ferman et al. (2019) offers valuable insights
for your research on "The effectiveness of loyalty programs in retaining customers in the
online and offline channels. Many retailers operate in physical stores and online
platforms, especially in the clothing sector. This study looks into the customer retention
tactics used by Turkish ready-to-wear retailers that operate in both online and brick-and-
mortar sectors. Given that your research is probably concentrated on the retail industry
in a particular area, Ferman et al.'s (2019) study—which was carried out in Turkey—
results, you can investigate how variables impacting client retention vary by region.
Therefore, you may create and manage efficient loyalty programs that accommodate a
channel nature of retail and how customer retention techniques differ across online and
offline locations.
Equity Literature" by Munawar et al. (2021) provides valuable insights for your research
highlighting the connection between loyalty programs and lifetime value of a client
(CLV). CLV calculates the revenue a client is anticipated to bring for a business
throughout their relationship. This metric is crucial because it helps them determine their
clients' possible lifetime value and decides how best to allocate resources and execute
marketing campaigns. You can research how successful loyalty programs in the
particular retail industry you are investigating can improve customer lifetime value,
relationship between loyalty programs and CLV. Munawar et al.'s (2021) study, which
offers a useful perspective for your research, highlights the strategic significance of
The study "Customer Lifetime Value as the 21st Century Marketing Strategy
"The ability of loyalty programs to keep customers in the retail sector" by emphasizing
the strategic importance of Customer Lifetime Value (CLV). Karlíček argues that CLV
positions customers as a company's key asset and highlights the need for marketing to
resonates with your study as loyalty programs aim to achieve similar goals. Businesses
should prioritize initiatives that foster long-term relationships and repeat business by
considering their customers' overall lifetime worth. With their emphasis on incentives
and prizes, loyalty programs play a vital role in achieving this goal. Karlíček's analysis
offers a more comprehensive understanding of the significance of loyalty programs in
the retail industry by emphasizing CLV as a primary marketing technique. Scholars may
optimizing lifetime value, thereby playing a role in the company's sustained prosperity.
This link demonstrates how loyalty programs are a strategic component of a larger
marketing strategy that emphasizes building long-term connections with customers and
optimizing their lifetime value inside the company's ecosystem rather than only serving
Retail Sector
programs to keep customers in the retail sector" and the study "A RESEARCH PAPER
Hamal et al. highlights how the retail industry constantly changes due to rapid market
changes and evolving consumer preferences. It emphasizes the need for effective
strategy within this larger framework of customer-centric retail management in the ever-
evolving retail landscape. Therefore, while Hamal et al.'s focus is broader than just
loyalty programs, it offers valuable context for understanding how your research
and strengthen its relevance to the ongoing conversation within the retail industry.
Local Literature
Customer Retention
and your research on the effectiveness of loyalty programs in the retail sector.
Researchers could briefly mention how specific loyalty programs in the retail sector
address the reliability and empathy highlighted by Balinado et al. (e.g., loyalty points for
retaining customers within the retail sector, connects interestingly with the findings of
intention" specifically, it directly translates to customer retention in the long run. Bastasa
fast-food industry. This finding resonates with the potential effectiveness of loyalty
programs in retail. When customers feel valued and satisfied with their shopping
experience, coupled with rewards and incentives offered by loyalty programs, they are
While the studies on PESONet (Moron, 2020) and retail customer loyalty
programs might seem unrelated at first glance, they hold an interesting potential
connection when considering the evolving landscape of retail payments and the role of
technology in customer engagement through this lens; your study can offer valuable
insights into how retailers can leverage the growing trend of digital payments to optimize
their loyalty programs and foster stronger customer relationships in the evolving retail
landscape. This FinTech service highlights the increasing adoption of digital payment
connections to your research on predicting customer behavior and loyalty in the retail
sector. Wang et al. use historical data to predict customer demand for sporting goods.
Similarly, your research can leverage historical purchase data from loyalty programs to
predict customer behavior and identify factors influencing loyalty in retail settings. The
study by Wang et al. segments customers utilizing the k-means method depending on
their attributes. This method may also apply to your research. By dividing the customer
according to how they make purchases, loyalty program engagement, and other
relevant data points, you can develop targeted strategies for different customer groups
Retail Sector
retailers to online retailing in the Philippines, highlighting the increasing trend of online
shopping. This research connects to your study on loyalty programs in the retail sector
face the challenges as the online purchasing gains of popularity. Retailers need to
modify their tactics to accommodate this change in consumer behavior if they want to
stay competitive.
The study by Karol K. (2019) on the retail payments landscape in the Philippines
might not directly connect to your research on loyalty programs in the retail sector.
However, you can gain valuable insights by understanding the payment environment
within your research context. Loyalty programs can incentivize specific payment
methods. Some programs might offer additional rewards or benefits for using specific
payment methods, like loyalty-linked credit cards or digital wallets. Your research can
Karol K.), your research can explore how loyalty programs can integrate seamlessly
Synthesis
The relentless pressure of customer retention in today's highly competitive retail
landscape demands creative solutions. This literature review delves into the
effectiveness of loyalty programs in driving customer loyalty and repeat business within
the Philippine retail sector. Studies consistently emphasize the crucial role of customer
retention, highlighting the potential of loyalty programs to offer enticing incentives like
points, rebates, and exclusive privileges. Building strong customer relationships through
important indicator that helps retailers determine the long-term profitability of devoted
programs worldwide, the Philippine setting offers particular opportunities and problems.
Studies emphasize the cultural appreciation for building trust and delivering exceptional
customer service, highlighting how loyalty programs can further strengthen these crucial
flexibility and adaptation from retailers. Loyalty programs must integrate seamlessly with
evolving landscape. Insights from related studies, such as those focusing on customer
behavior and digital payments, offer valuable guidance toward optimizing loyalty
retail industry and the potential for loyalty programs to increase repeat business and
measurements rather than just participation rates. Retailers must ensure their loyalty
programs adjust and integrate seamlessly as the Philippine retail landscape embraces
online purchasing to sustain client involvement in this changing climate. Retailers may
fully utilize loyalty programs, build enduring customer relationships, and succeed
sustainably in the cutthroat retail industry by utilizing the insights gained from this
RESEARCH METHODOLOGY
This chapter aims to gain insight and explore the effectiveness of Loyalty programs in
Retaining Customer within CAMANAVA Retail Sectors. It includes the sources of data,
design, instrument, data collection, and the statistical treatment used by the researchers
in this study.
The study will be conducted around areas within CAMANAVA (Caloocan, Malabon,
selected for the main reason of having a wide range of potential respondents and each
area has its uniqueness making it best for comparative analysis as CAMANAVA is
cities.
These said respondents represent those individuals who are availing different
loyalty programs and how it affects their buying decisions. This research requires one
hundred (100) respondents, male and female as its survey participants in CAMANAVA.
address “what” and “how” questions. Qualitative research allows the researcher to gain
everyday life (Corbin and Strauss, 2008). In qualitative research, through an interpretive
point of view and their institutional and social contexts (Corbin and Strauss, 2008).
data was collected using the Likert Scale, the researchers used different themes like
frequency, quality, likelihood, and importance. This approach was used to conclusively
determine whether the respondents have different point of views with the statements
concerning the age and gender differences on loyalty programs and customer retention.
3.5 DATA COLLECTION
A team of researchers worked together to develop a research topic that was pertinent to
their field of study. Once the researchers had formulated the topic, they identified the
specific research objectives and the location where the study was conducted. The team
then used the internet to gather relevant articles, both local and international literature,
as well as studies that were in line with their chosen topic. To collect data, the
research professor for approval. After the formulation of the survey questionnaire, the
in different kinds of loyalty programs like Aling Puring card holders, once accepted, the
group proceeded posting, asking consent for possible respondents concerning their
study and lastly, the researchers disseminated the questionnaires to different group of
prospect respondents.
The researchers used the Likert scale as their statistical method to accurately interpret
the data. This method enables accurate analysis of data interpretation. The following
statistical tools below are also utilized in interpreting the gathered data from the survey
respondents:
Weighted Mean
The weighted mean was utilized to adjust the survey questionnaire responses,
assessing the impact of the provided statement on loyalty programs and customer
retention.
x̄ Is the mean
PEARSON CORRELATION
two variables:
Range Interpretation
Likert Scale
Likert scale was utilized by the researchers to classify the values of the formula
based on the level of the respondents. The following chart provides a comprehensive
Descriptive
Range of Values
Equivalent
Descriptive
Range of Values
Theme: Likelihood
Equivalent
Descriptive
Range of Values
Equivalent
Descriptive
Range of Values
Equivalent
Theme: Frequency
4.01 – 5.00 Always
1. How often do you use loyalty programs offered by retail stores for the following
purposes?
Rebates and
special deals
Points-based
reward
systems
Exclusive perks
and benefits
Customer
engagement
strategies
much importance do you place on earning points or rewards that can be redeemed for
products or services?
1 2 3 4 5
3. How likely are you to remain loyal to a store that provides a tiered loyalty program with
Unlikely Likely
a. How important
do you think
perceive loyalty
programs(e.g., Are
they valuable? Do
them?)
b. To what extent
do you feel
emotionally
connected loyalty
programs?
Unlikely Likely
c. On a scale of
"Extremely
Unlikely" to being
"Extremely Likely,"
trust in loyalty
programs to fulfill
their promises?
d. From “Never”
To “Always” what
degree do you
engage with
loyalty programs
cultural
influences?
important.’’
1 2 3 4 5
a. My cultural
background
affects how I
perceive
store loyalty
programs.
b. I feel more
loyal to
stores that
align with my
cultural
preferences.
c. The social
environment
influences
my decision
to use store
loyalty
programs.
Disagree Agree
a. Loyalty
programs
effectively
enhance my
shopping
experience.
b. Loyalty
programs
encourage
me to make
repeat
purchases.
c. I feel more
inclined to
shop at
stores that
offer loyalty
programs.
d. I actively
participate in
loyalty
programs to
receive
rewards and
benefits.
References
https://journals.sagepub.com/doi/10.1177/22786821211000182.
https://www.researchgate.net/publication/356986047_The_Impact_of_Customer_
Loyalty_Programs_on_Customer_Retention_in_the_Retail_Industry.
Lakshman, D., & Faiz, F. (2021). The Impact of Customer Loyalty Programs on
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https://www.proquest.com/openview/edc87ace46909fd215a67ae2131a8e42/1?
pq-origsite=gscholar&cbl=55395.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10682604/.
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