The value of loyalty programs in marketing of services

Abstract

This paper explores the application of loyalty programs in Malaysian as a representative sample of the Asian and South East Asian consumer. This is primary attributed to the multi-culturalism and ethnic composition of the Malaysian society. This research concludes that the Malaysian consumers like most Southeast Asian consumers, is price sensitive, and motivated to utilize any form of loyalty program that enhances saving and increase value of purchase. Findings of this research concludes that consumers are increasingly price sensitive across Southeast Asia and Malaysia. Analysis further shows that higher fuel and general increases in the consumer price index (CPI) directly corelated to place of shopping. Analysis of secondary data further shows that consumers prefer to go to one stop shopping canter to get all their shopping needs done in one place, which often has all the facilities needed such as post office, banking services, food courts, and telecommunication services. Such one stop shopping canters provides convenience to consumers, and as a result, developers in the city of Kuala Lumpur are participating in the creation of such space and experience. Although this will create more commercial space and creation of jobs, yet the consequence of such demand and preference is over supply of retail centres that provides such shopping convenience. An efficient regulatory framework then must be in place that assesses population growth, demand and regulates supply of such retail space. Failing to adequately regulate supply of retail space would have a negative impact on zoning, the banking sector that is tied to the construction industry and developing companies of such retail space.