From Transactions to Loyalty: Examining the Influence of Retail Loyalty Card Programs on Consumer Buying Behaviour

Abstract

The Indian organized retail sector has undergone a remarkable transformation over the past two decades due to rapid urbanization, increasing disposable income, changing lifestyles, and technological advancements. One of the most widely adopted customer relationship management (CRM) strategies in organized retail is the implementation of loyalty card programs. These programs are intended to strengthen customer relationships, improve retention, encourage repeat purchases, and generate valuable customer data for targeted marketing. Retail chains such as Big Bazaar and Ondoor Superstores have extensively employed loyalty cards to attract and retain customers by offering reward points, discounts, cashback, personalized offers, and exclusive promotional schemes. The present study investigates the influence of loyalty cards on consumer buying behavior with special reference to Ondoor and Big Bazaar Superstores in Bhopal City. The study examines how demographic characteristics, shopping frequency, reward perceptions, customer satisfaction, and loyalty programs collectively affect consumers' purchase decisions. Primary data are proposed to be collected through a structured questionnaire from 300 respondents who regularly shop at organized retail stores in Bhopal. Descriptive statistics, reliability analysis, Chi-square tests, correlation analysis, regression analysis, and hypothesis testing are employed to analyze the collected data. The findings are expected to reveal that loyalty cards significantly influence purchase frequency, customer retention, average spending, and brand preference. Customers are likely to perceive loyalty programs positively when they offer tangible rewards, ease of redemption, and personalized benefits. The research further suggests that loyalty cards not only encourage repeat purchases but also enhance long-term customer relationships through improved satisfaction and trust. The study contributes to existing literature by comparing two organized retail formats operating in central India and provides practical implications for retail managers seeking to optimize customer loyalty strategies. The results may assist retail organizations in designing more effective loyalty programs to improve customer engagement and business profitability.