Impact of Customer Loyalty Programs in Influencing Consumer Decision in Fashion Retail Industry

Chapter 1

Introduction

Apparels manufacturing or fashion industry is one of the most desired businesses today. With the advancements in the technology, there is a huge scope for the apparel industry to make great advances soon and reap in rich rewards. India ranks among the top target countries for any company sourcing textiles and apparel. Indeed, apart from China, no other country can match the size, spread, depth, and competitiveness of the Indian textile and apparel industry. Moreover, the global elimination of quotas at the end of 2004 has greatly enhanced the opportunities for sourcing from India. It identifies those which offer the greatest scope for sourcing from India. (Dr.K.Arunmuhil and Dr.A.Arumugam, 2013).

The topic taken into consideration is to find out the effectiveness of measurement of loyalty schemes on consumers and compare purchase behavior before and after loyalty card subscription. Also, it is to determine whether these kinds of programs induce a positive and durable effect. (Leenheer, Bijmolt, van Heerde, and Smidts 2007).

It has been seen today that many brands are offering loyalty programs. This is seen to very helpful in gaining customers and also increases the customer retention. Loyalty programs are everywhere in business. Customers interact with them multiple times almost every day—whether shopping at a grocery store, buying a cup of coffee, flying on an airline, staying at a hotel, or paying a cell phone bill or be it in apparels shopping. In other words, companies have become convinced that it is possible to buy customers’ loyalty. However, the major question arises that whether these programs actually work or not or it’s just a botch in the budget by companies. This report attempts to answer these questions and takes a detailed look at the current environment for loyalty programs and the strategies businesses are using in implementing these programs. (Dr.K.Arunmuhil and Dr.A.Arumugam, 2013).

Loyalty and loyalty programmes...