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oa Journal of Contemporary Management - South African fuel industry, customer perceptions and satisfaction, and their impact on customer loyalty and repurchase intention

Volume 17 Number 1
  • ISSN : 1815-7440

 

Abstract

Loyalty programmes are widely used in many industries, including the fuel industry in South Africa. The relationship between loyalty programmes, customers’ value and satisfaction perceptions, and customers’ ultimate behavioural intentions within the fuel industry have not received much academic attention. This study undertook to research South African students’ perceptions of: the value of rewards for loyalty membership, how their perceptions affect their satisfaction with the fuel brand, how their satisfaction affect their loyalty to the fuel brand, and how their perceptions and loyalty impact their intention to continue buying from the same brand. Study participants were selected by using convenience sampling method. About 316 senior students from a South African university in Gauteng participated in the study. The study used a quantitative methodology approach, and adopted Structural Equation Modelling for data analysis. The SPSS 25 and AMOS 25 statistical packages were used for data analysis. The outcome of the study showed that customers’ perceptions of the rewards offered by loyalty programmes have direct positive effects on customer satisfaction, which positively influence their loyalty to the fuel brand. In addition, their perceptions also have a direct effect on their loyalty to the brand. Their loyalty to the brand ultimately positively influences their intention to repurchase from the same brand. Building from the underpinning theories (Social exchange theory and Equity theory), the study proposes a theoretical model whose usefulness is highlighted under managerial and academic implications subsection of the study.

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/content/journal/10520/EJC-1bee62aa35
2020-07-01
2020-03-29

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