Influence of special treatment benefits on Generation Y students’ attitude towards retail point-based loyalty programmes

Abstract

The number of loyalty programmes has increased rapidly, becoming one of the most used marketing practices in the global retail market today. The primary objective of this study was to determine whether special treatment benefits influence Generation Y students’ attitudes towards retail point-based loyalty programmes and usage behaviour in South Africa by extending the theory of planned behaviour and adding unique treatment benefits and consumer satisfaction factors to propose a model for this study. The study employed a quantitative method, where a self-administered questionnaire was used to collect data from a non-probability convenience sample of 388 students (aged 18 to 24 years), across two public higher education institutions’ campuses in the Gauteng province. The collected data was examined using descriptive statistics, exploratory factor analysis, reliability, correlation analysis multicollinearity and structural equation modelling (SEM). The study results indicate that subjective norms, unique treatment benefits and perceived behavioural control positively influence consumer satisfaction. The results also indicate that consumer satisfaction has a positive influence in shaping consumer attitudes towards retail point-based loyalty programmes which in turn influence usage behaviour of Generation Y students.