CUSTOMER LOYALTY IN THE SMALL MEDIUM SIZED RETAIL JEWELLERY FIRMS WHAT EXTENT DOES LOYALTY SCHEMES HAVE AN IMPACT ON REPEAT PATRONAGE? WHAT OTHER FACTORS CAUSE REPEAT PATRONAGE?: A DYADIC EXPLORATION

ABSTRACT This study looks at the post-purchase evaluation stage of consumers and what causes loyalty. The industry under investigation is Small Medium Sized Jewellery Retailers. The purpose of this study is to develop a deeper understanding of how customer loyalty is developed. To reach this aim the study focuses on the impact of loyalty schemes on repeat patronage. This paper aims to contribute to the existing literature on repeat patronage and factors that lead to customer loyalty. A wide body of existing literature focuses on large super markets or airlines that have loyalty schemes like plastic cards (to get discounts on purchases) by which customer data with the use of CRM tools to meet specific needs and wants. The aim of this paper is to attempt to understand how loyalty schemes in this industry differ in terms of its implementation and usage, and how loyally is developed. To address this purpose two research questions were approached to each the consumers and retailers. What extent do loyalty schemes build repeat patronage? What other factors contribute to repeat patronage? In order to reach our purpose semi-structured interviews were used, which comprised of interviews with both consumers and retailers. The conclusions in this study presented that loyalty schemes did not impact repeat patronage and were merely a differentiation technique of firms. Factors such as customer service, customization, and communication trust commitment were factors that had big contributions to repeat patronage. These efforts were built to create RM and in turn to foster trust and commitment to a store and in turn create customer loyalty. The main objectives of these activities are customer retention