Assessing the Impact of Loyalty Program on Consumer Purchasing Behavior in Fine-Dining Restaurant

Abstract

This study explores the influence of loyalty program on customer purchasing behavior in fine-dining restaurant. It examines the factors that motivate customers to enroll on the program and loyalty rewards customers’ prefer. Questionnaires were administered to 172 guests to solicit views on how loyalty programs impact on their purchasing behavior. The respondents were selected at random upon request to answer the questionnaires. Data was analyzed using SPSS version 16. The findings revealed that members of the loyalty programs showed positive attitude towards patronizing other restaurant products thereby increasing sales margin of the restaurants. Majority of the customers expressed the desire for immediate rewards such as discount. Food quality emerged as the major motivational factor to enroll on loyalty programs followed by environment and brand. The study concludes that, loyalty programs that are designed to match the target groups influence consumer-purchasing decision. The implication is that restaurant managers should continue to seek customers’ views on loyalty rewards as customers’ expectations change overtime. Furthermore, food quality should not be overlooked as customers begin to consider it as a motivational factor to enroll on loyalty programs in fine-dining restaurants.

Keywords: Loyalty programs, Consumer Behavior, Fine-Dining Restaurant