Impact of loyalty programmes on brand loyalty (With special reference to Dialog Axiata and Mobitel Company in Badulla District)

Abstract

In present society, Loyalty programmes regard as major variable to build up relationship with customers. The firms are highly concerned about the loyalty programs. This article investigates various perceived benefits of loyalty programmes using a multi-benefits framework based on utilitarian benefit, hedonic benefit and symbolic benefit. The objective of this article is to examine the effect of the loyalty programs benefits on the brand loyalty. And to evaluate the extent to which loyalty programmes benefits are highly affect brand loyalty. In addition, to determine significant differences among usage duration with, related to brand loyalty. Sri Lankan mobile communication industry offer undifferentiated services for the customers and customers switching cost is very low or few rather than other industries. Dialog and Mobitel Company considers as research context. The population was the all the dialog and mobitel connection users in Sri Lanka. The convenience sampling approach was used. A questionnaire used to collect data. Questionnaire distributed in the Badulla district. Data was analysed using SPSS. It was found that there was a significant relationship between loyalty program benefits and brand loyalty. Symbolic benefits affected brand loyalty in strong positive level. Utilitarian benefits and hedonic benefits affected brand loyalty in moderate positive level. Firms can use these findings as a marketing strategy, when firms introduced or modify loyalty programs