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Customer Loyalty During COVID-19 Pandemic: Evidences From The Home Appliances Retail Industry

Student: Uwais al qarni bin ghulam hussain

Supervisor: Irina N. Shafranskaya

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Management and Analytics for Business (Master)

Final Grade: 7

Year of Graduation: 2021

This paper aims to examine if there was any motivation due to the loyalty system for customers to purchase more home appliances during the COVID-19 pandemic. Based on four loyalty metrics we worked with sales data of an identified company and made a survey through its customers about usage loyalty programs, frequency of purchases, activity by customers, preferences, awareness, amount of purchases and other important factors for business. According to the results of data, we found a relationship between factors, which influence on customers and motivates them to make a purchase and become loyal. Our methodology was designed to test and explore certain subject matters related to the loyalty of customers and attempt to classify customers to segments according to recency, frequency, and amount spent, their level of awareness, interest, involvement with bonus during purchases during the period under examination. Data collection involved a secondary data and questionnaire under a simple random sampling. Multiple Logistic Regression, Ordinal Regression, Chi-Square and Pearson Correlation was utilized for analysis. We proved that customers are more likely to use their bonus based on the RFM metric, which leads to loyalty in the home appliances retail industry. So we can say that basically the Point share system motivates customers to become loyal based on the RFM model. Customers also had a high level of awareness and usage of home appliances’ loyalty’s system for their shopping during Covid-19. Stockpile of bonus behavior is highly prevalent when the amount spent during purchases is low during Covid-19. In our research, we expect to show the importance of loyalty reward programs for business and customers during specific periods from the home appliances retail industry. To segment customers according to their involvement and activity, to examine the bonus redemption behaviour during each purchase of customers and influence on their repeat-buying behaviour, to examine the relationship between the customers’ and their use of bonuses, and to investigate customers' awareness and usage of home appliances’ loyalty’s system during Covid-19.

Full text (added May 14, 2021)

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