Loyalty programmes as a predictor of customer retention in retail banking sector : a multiple mediation analysis of brand association and customer satisfaction

dc.contributor.advisorFourie, Sonja
dc.contributor.emailichelp@gibs.co.zaen_US
dc.contributor.postgraduateNkosi, Xolani Mfundo
dc.date.accessioned2025-04-15T07:57:57Z
dc.date.available2025-04-15T07:57:57Z
dc.date.created2025-05-05
dc.date.issued2024-11
dc.descriptionMini Dissertation (MBA)--University of Pretoria, 2024.en_US
dc.description.abstractLoyalty programmes have made significant inroads in the retail banking sector and companies have reported spending billions of rands on these programmes since inception. Despite this popularity, their effectiveness in driving customer behaviour, such as customer retention, remains divergent among both academics and practitioners. Studies are being pursued to discover what differentiates successful ones from unsuccessful ones. Purpose This study aimed to determine whether loyalty programme perceived benefits predict/drive customer retention and assess the mediation effect of overall customer satisfaction and brand association in South Africa’s retail banking sector. Design/Methodology/Approach The study used a descripto-explanatory research approach where data was collected using electronic self-administered surveys comprising a sample of 205 banked, adult individuals who are using loyalty programmes. Structural equation modelling (SEM) through IBM SPSS AMOS29 was used to analyse the data in the hypothesis testing. Findings The empirical analysis using SEM confirmed that only exploration and recognition of perceived benefits of loyalty programmes have a significant impact on customer retention. However, the impact of both these perceived benefits were negative with a very small correlation to customer retention, indicating that the impact can is negligible. Moreover, monetary savings, social benefits, and entertainment were found not to have any significant predictive power on customer retention. Furthermore, mediation analysis was performed and established that only brand association fully mediates the relationship between loyalty programmes’ perceived benefits and customer retention.en_US
dc.description.availabilityUnrestricteden_US
dc.description.degreeMBAen_US
dc.description.departmentGordon Institute of Business Science (GIBS)en_US
dc.description.facultyGordon Institute of Business Science (GIBS)en_US
dc.description.sdgSDG-09: Industry, innovation and infrastructureen_US
dc.identifier.citation*en_US
dc.identifier.otherA2025en_US
dc.identifier.urihttp://hdl.handle.net/2263/102068
dc.language.isoenen_US
dc.publisherUniversity of Pretoria
dc.rights© 2024 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.
dc.subjectUCTDen_US
dc.subjectLoyalty Programmeen_US
dc.subjectPerceived Benefitsen_US
dc.subjectBrand Associationen_US
dc.subjectConsumer Satisfactionen_US
dc.subjectCustomer Retentionen_US
dc.titleLoyalty programmes as a predictor of customer retention in retail banking sector : a multiple mediation analysis of brand association and customer satisfactionen_US
dc.typeMini Dissertationen_US

Files

Original bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
Nkosi_Loyalty_2024.pdf
Size:
1.78 MB
Format:
Adobe Portable Document Format
Description:

License bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description: