Factors That Influence Patronization of Buy more Loyalty Cards by University Students in Kenya

A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA)The general objective of the study was to establish factors that influence patronage of Buymore loyalty cards in Kenya. The study was guided by the following specific objectives, to determine the influence of type of rewards offered on patronage of Buymore loyalty cards by university students in Kenya, to establish the influence of benefits on patronage ofBuymore loyalty cards by university students in Kenya, and to examine the influence of promotion on patronage of Buymore loyalty cards by university students in Kenya. The study used descriptive method for data collection as well as summarizing data. The target population of this study was Buymore loyalty card patrons who are University students from Nairobi County. Stratified random sampling techniques were used to select a sample of 84 students from Universities in Nairobi County. Structured email questionnaire were used to collect data. To establish the relationship of the variables used by the study regression analysis was applied. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS (Version 20) and presented through percentages, means, standard deviations and frequencies. The information will be presented using bar charts, graphs and pie charts and in prose-form. Content analysis was used to test data that is qualitative in nature or aspect of the data collected from the open ended questions The study revealed that majority of the respondents were in agreement that a chance to win a luxury gift would make them use my Buymore card more often, 73.4 percent of the respondents also agree that anopportunity to win random gifts would make me use my Buymore card at shops.Additionally, 80 percent of the respondents were in agreement that Collection of points encourages them to make repeat purchases at shops. On the other hand, 78.3 percent of the respondents agreed that aas a Buymore cardholder they are able to collect point that can be used on a later occasion when they revisit. The study further revealed that 85 percent of the respondents agreed that cash rewards would make them useBuymore card more often and finally 83.3 percent agree that recognition on social media would encourage them to use Buymore card. The study further revealed that majority of the respondents agreed with the following statement on benefits of Buymore loyalty. Additionally, 95% of the respondents agree that cashless (MPESA) payment options make them buy items on the Buymore website more often. 90.3 % agreed that free delivery options make me buy items on the Buymore website more often, increases knowledge acquisition and utilization. It was revealed that majority of the respondents agreed that discount benefits on products make them use Buymore card more (95%), preferential treatment as a benefit at the movie theatres makes them use Buymore card to buy more movies through Buymore (87%). Finally the study revealed that majority of the respondent agree that discountsales will make them to use Buymore cardmore (91%), Free merchandise to are good waytoincrease loyalty to Buymore (93%), Sales in the partner stores will make them use Buymore card more (92%), Point of purchase sales promotions will make me use your Buymore card more (99%), Display sales promotions will make them use Buymore card more (93%) and finally Branded gifts will make them use Buymore card more (92%). The study concludes that the type of reward influences patronage of Buymore products. The study further concludes that Cashless (MPESA) payment options make them buy items on the Buymore website more often. Finally, the study concludes that the following sales promotion methods influence patronage of Buymore products The study recommends the need for enhance organizations to ensure that the overall value-proposition of the product or service. This in turn will help to motivate buyers to make the next purchase of a product, and therefore support other aspects of the firm’s offensive and defensive marketing strategy. It also recommended that organizations need to ensure that a rewards are made more efficient in building customer loyalty since it increases the value for the product. The study recommends the need for organizations to put in place loyalty schemes in the given that they are today seen as necessary in most sectors