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What drives Indian consumer credit card loyalty? The perspective of involvement in reward programmes

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This study, from the customer involvement perspective, looks at the impact of reward point programmes on the purchasing behaviour of Indian credit card users. A total of 125 valid responses were collected using an online survey of Indian credit card users. The study found that customers’ involvement is not only low, but also does not affect their loyalty (frequency of card use and usage expenditure). As for redemption behaviour, usage frequency and numbers of credit cards showed significantly positive effects. This study has important implications for both scholars and credit card issuers. Consumers’ responses towards loyalty programmes need more evidence from developing markets and companies should dedicate more resources to understand the involvement process of their targets, as well as the design of programmes.
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Keywords: India; credit card; involvement; loyalty programme; reward programme

Document Type: Research Article

Affiliations: 1: Marketing Department, FBA, University of Macau, Luso Building, Av. Padre Tomas PereiraTaipa,Macau SAR, China 2: Marketing Department, Business School, Pacific Lutheran University, 12180 Park AvenueS. Tacoma,WA, USA 3: Marketing Department, Indian Institute of Management, New Teaching Block, Joka, Diamond Harbour RoadKolkata, India 4: Chinese Marketing Research Center, Fudan University, Shanghai, China

Publication date: 2012-09-01

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