The loyalty program emphasizes services and products that can be easily customized and to be effectively marketed the products according to customers’ needs and wants.
Malaysian automotive industry is the third largest in Southeast Asia, and the
25th largest in the world, with an annual production output of over 500,000
vehicles. The automotive sector contributes 4% or Malaysia ringgits (RM) 40
billion to Malaysia’s GDP and employs a workforce of over 700,000 throughout a
regional ecosystem. The automotive industry in Malaysia primarily serves domestic
demand, and only several thousand complete built-up (CBU) vehicles are exported
are many ways to formulate loyalty programs. A typical approach uses platinum,
gold, and silver tiers, typically based on purchase volumes. Fifty-seven
percent of airlines and 41% of hotel chains reward consumers for a range of
engagement behaviors. Some other examples are offering discounts, resale
assistance, free services, etc.
market approach had transformed to customer-centric approach from
product-centric approach due to highly competitive market and varieties of
services offered to customers, hence, marketing strategy to prioritize to grow
a sustainable business and to increase customers satisfaction. This study aims
to assess the impact of loyalty programs on customer retention. It then seeks
to investigate the mediating effect of brand association and customer satisfaction
in three ways, viz., in parallel, distinct, and sequential.