Project Report

A
PROJECT REPORT
ON
A Study Of Impact Of Loyalty Program On Consumer Purchase Behavior

With Pantaloons
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

POSTGRADUATE DIPLOMA IN MANAGEMENT (PGDM)
SUBMITTED BY:
SUMIT RAWAT
Enrollment No. 19A1016435
Project Code: IMTC642
Under Supervision
Of
Rahul Sharma
Date: 28th July, 2021
Session: January 2019
SUBMITTED TO:
Institute of Management Technology, Centre for Distance Learning
A-16, Site-3, UPSIDC Industrial Area, Meerut Road, Ghaziabad – 201 003,
Uttar Pradesh, India
A study of impact of Loyalty Program on Consumer Purchase Behavior with Pantaloons
DECLARATION CERTIFICATE
I SUMIT RAWAT certify that this project work titled “A study of impact of loyalty
program on consumer purchase behavior with Pantaloons” submitted by me for the
partial fulfillment of the requirement for the award of Post Graduate Diploma in
Management is my own bonafide work and carried out by me under the supervision of
Mr. Rahul Sharma.
The work embodied in this project report has not been submitted for the award of any
other degree or diploma to any Institute or University.
I hereby declare that I have faithfully acknowledged and given credits to published work
that I have referred from other published sources, by citing and mentioning the credits in
bibliography. I further declare that the work presented in this report is original and has not
been copied from any other sources. If my work is found copied or plagiarized, the
institution holds the right to reject my submitted project report.
Dated: 28th July, 2021 Sumit Rawat

Enrollment No. - 19A1016435
ii
CERTIFICATE FROM GUIDE
This is to certify that Mr. SUMIT RAWAT a student of IMT- Centre for Distance
Learning, Ghaziabad has completed the project work on “A study of impact of Loyalty
Program on Consumer Purchase Behavior with Pantaloons” under my guidance and
supervision up to my satisfactory level.
I certify that this is an original work and has not been copied from any source. On the basis
of the declaration made by him I recommend this project report for evaluation.
Date: 28-07-2021 Rahul Sharma

Director, Port Learn
Email: rahulresponsible@gmail.com
iii
ACKNOWLEDGEMENT
I have prepared this project report titled, “A study of impact of Loyalty Program on
Consumer Purchase Behavior with Pantaloons” as a part of my PGDM Program. I
whole heartedly express my sincere gratitude to MR. RAHUL SHARMA who guided
me throughout the project. It was a pleasure to learn from him the critical aspects of some
topics related to the project.
I have drawn the contents and approach of this study through various discussions with my
colleagues, friends as well as with the help of various procurement centric websites and
course material. I am really fortunate that, I had a kind interaction with the customers
during the survey time. It took a lot of efforts and time to successfully complete the project
on time. So, I hope this Project report would motivate others to have discussions on topics
like this & make further analysis. In the interest of health & safety around the Coronavirus,
I dedicate this project to all the people who helped me in this during these tough times.
Last but not the least I would like to thank my parents, who are an inspiration for me.
Sumit Rawat
Enrollment No. - 19A1016435
iv
TABLE OF CONTENTS
Page No.
Cover page ...........................................................................................................
Declaration Certificate ............................................................................................. ii

Certificate from Guide ............................................................................................. iii
Acknowledgement .................................................................................................... iv
List of Tables ............................................................................................................. v
List of Graphs ........................................................................................................... vi
List of Figures & Images .......................................................................................... vii
Executive Summary ................................................................................................. viii
Chapter-1: INTRODUCTION 1-11

1.1 Introduction of the Study ................................................................................... 1
1.2 Industry Profile ................................................................................................... 2
1.3 Company Profile ................................................................................................. 4
Chapter-2: OBJECTIVES AND SCOPE OF STUDY 12
Chapter-3: REVIEW OF LITERATURE & THEORETICAL CONCEPTS 13-23
Chapter-4: RESEARCH METHODOLOGY 24-27

4.1 Research Methodology: An Introduction ......................................................... 24
4.2 Legitimacy & Reliability .................................................................................... 26
4.3 Questionnaire Design .........................................................................................
27
Chapter-5: ANALYSIS AND INTERPRETATION 28-45

4.1 Analysis of Questionnaire .................................................................................. 28
Chapter-6: CONCLUSION & RECOMMENDATIONS 46-47
Chapter-7: LIMITATIONS OF THE STUDY 48

REFERENCES 49-51
APPENDIX 52-56
A. Questionnaire ....................................................................................................... 52
B. Scanned Certificate from Guide ......................................................................... 56
LIST OF TABLES: Pg. No.
TABLE 1.1 Pantaloons Green Card Membership Upgrade…...................................... 9

TABLE 1.2 Pantaloons Green Card Tier Maintenance…............................................ 10
TABLE 3.1 For & Against of point-based loyalty program…..................................... 17
TABLE 3.2 For & Against of cashback loyalty program…......................................... 18
TABLE 3.3 Pros & Cons of Tier-based loyalty program…......................................... 18
TABLE 3.4 Pros & Cons of Coalition loyalty program…............................................ 19
TABLE 3.5 Pros & Cons of Fee based loyalty program…........................................... 19
TABLE 5.1: Duration of Being a Pantaloons Customer…........................................... 29
TABLE 5.2: Pantaloons Green Card Holders…........................................................... 30
TABLE 5.3: Customers visiting frequency at Pantaloons…........................................ 31
TABLE 5.4: Amount spend on purchase within 6 months…....................................... 32
TABLE 5.5: Understands need & expectations…........................................................ 33
TABLE 5.6: Loyalty Rewards desirability…............................................................... 34
TABLE 5.7: Time taken by Pantaloons to address Questions & Concerns….............. 35
TABLE 5.8: Quality of services & products as compared with price …..................... 36
TABLE 5.9: Green Card Loyalty Program Offers rating from Member customer …. 37
TABLE 5.10: Pantaloons taking care of life during covid-19 …................................. 39
TABLE 5.11: Recommend Pantaloons to others …..................................................... 40
TABLE 5.12: Green card holders’ recommendation to non-card holders for
membership .................................................................................................................. 41
TABLE 5.13: Overall Loyalty Program Feedback ….................................................. 42
TABLE 5.14: Non-card Holder’s willingness to take membership …......................... 44
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LIST OF GRAPHS: Page No.
GRAPH 5.1: Duration of Being a Pantaloons Customer….......................................... 29

GRAPH 5.2: Pantaloons Green Card Holders….......................................................... 30
GRAPH 5.3: Customers visiting frequency at Pantaloons…........................................ 31
GRAPH 5.4: Amount spend on purchase within 6 months…...................................... 32
GRAPH 5.5: Understands need & expectations…....................................................... 33
GRAPH 5.6: Loyalty Rewards desirability…............................................................... 34
GRAPH 5.7: Time taken by Pantaloons to address Questions & Concerns…............. 35
GRAPH 5.8: Quality of services & products as compared with price …..................... 36
GRAPH 5.9: Green Card Loyalty Program Offers rating from Member customer …. 37
GRAPH 5.10: Pantaloons taking care of life during covid-19 …................................. 39
GRAPH 5.11: Recommend Pantaloons to others ….................................................... 40
GRAPH 5.12: Green card holders’ recommendation to non-card holders for
membership .................................................................................................................. 41
GRAPH 5.13: Overall Loyalty Program Feedback ….................................................. 42
GRAPH 5.14: Non-card Holder’s willingness to take membership …........................ 44
vi
LIST OF IMAGES: Page No.
IMG 1.1 Official logo of Aditya Birla Fashion and Retail ……………………….. 4
IMG 1.2 Pantaloons logo & tagline……………………………………………….. 5
IMG 1.3 Current Loyalty Program scenario ……………………………………… 6
IMG 1.4 Pantaloons Green card world of Privileges ……………………………... 7
IMG 1.5 Pantaloons multi-partner loyalty program with Payback ……………….. 8
LIST OF FIGURES: Page No.
FIG. 3.1 Loyalty Program impact on buying……………………………………… 21
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EXECUTIVE SUMMARY
The context of this study states that customers are the most important piece of the business.
The more loyal the customers feel towards the brand, the more likely they are to recommend
others. To gain highest profits businesses are more focusing on its customer satisfaction and
have increased their prominence on long-term customer relationships because loyalty gives
stronger relationships. This makes customer retention rates and customer share of category
purchase- an important metrics in customer relationship management. To maximize these
numbers, many firms use relationship marketing techniques, and loyalty programs or
frequency reward programs. This report emphasizes that Loyalty Program brings a drastic
change in customer purchase behavior. Retail Industry is generating huge profits with the
help of these Loyalty Programs. The study examines the effectiveness of the Loyalty Program
adopted by Aditya Birla Fashion and Retail Limited (PANTALOONS).
Thus, the project was set out to find out at what spread the Loyalty Program attracts
customers purchases and what changes it brings in their buying behaviour at Pantaloons and
to know the satisfaction level of customers & whether loyalty program increase the sales of
pantaloons or not. In this study, the literature review chapter reviews studies on customer
buying behaviours who are using customer loyalty program. Various metrices that have been
widely used to measure success of Loyalty Programs and the outcome results of having loyal
customers are presented. The study presents best practices and the relevant recommendation
on how to improve Pantaloons Loyalty Program. The results were accomplished using the
quantitative research methods by questionnaire as a medium. The questionnaire contained
three different parts, MCQs (Multiple choice questions), open ended questions and
customer’s recommendations in the end.
This study helped to find out the current Loyalty Program of Pantaloons can be marked as
positive as customers are satisfied with the rewards & offerings of the program. With a
loyalty card program that rewards customers — with monetary or non-monetary gifts,
customers of Pantaloons feel obliged to keep coming back as their purchase behavior is more
frequent than non-cardholders. However, some improvement is required on certain things to
increase the level of profits & attract other customers to enroll in the Loyalty Program. It is
recommended that the company should increase its engagement level with customers & keep
the active rate high on the portal. Pantaloons should conduct regular advertising campaigns to
attract new customers and inform existing customers about upcoming events.
viii
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION OF THE STUDY
Any business success or failure depends on the satisfaction gained from the services offered
to its customers. When an organization comes into existence, customers are the priority &
then the profit. The business can survive some loss at initial stage to gain the loyalty of its
customers.
Customer loyalty is an extremely treasured strength of any business. To win the heart of the
customers and create attachments, the top successful businesses decide on implementation of
Loyalty Programs. Thus, customer satisfaction becomes important to gain the top position in
the market especially in Fashion Retail. Customers build a positive attitude towards the
product when they are satisfied with the services offered by the business organization and this
enables repurchase of the products & services in future. This creates a positive relationship
between the customer satisfaction and the customer loyalty and hence it becomes the most
important factor to consider for favorable profit building.
When a customer is satisfied it encourage him /her to recommend other potential customers
about the products & services offered. Customers keep reviewing the services offered with
others on a consistent basis. This only happens when the customer feel content as they get
what they desired. It is believed that there exists positive relationship between loyalty & high
profits. To keep maintaining a strong foot in the market place, competitors keep trying on
building their loyalty programs more attractive from others.
The most important trait to attract more customers is to promise a good quality service &
product offering and this makes sure that customer loyalty will come along with it. Fashion
retail is very dynamic industry & being so competitive it keeps fighting for customer
retention. They keep implementing new and attractive reward programs for its customers to
encourage repeat purchases. Here, Loyalty Program generate good value & if these programs
get implemented well it will increase sales & customer lifetime value. By boosting customer
satisfaction, customer feels comfortable & secure while making purchases.
Customer loyalty is an unending constructive relationship between a customer and a business.

It's what drives recurrent purchases and stimulates existing customers to choose your
1
company over a competitor offering alike benefits. Loyalty has various meanings &
explanations and it all refer to way of services. In the context of Business Development and
Retention of Customer - customer loyalty is when a person executes with a brand on an
ongoing basis. However, loyalty can hold many different structures and forms.
This project report consists of seven chapters, the first chapter provides the general
introduction about the study background & research. The concerned company industry & its
profile is discussed in the second part. The second chapter deals with the objective & the
need of the study. In the third chapter the concepts of loyalty programs, customer satisfaction,
customer purchase behavior is defined and explained grounded on literature review. Other
than that, the factors influencing Loyalty Programs, customer purchase behavior, measuring
successful loyalty programs, approaches & metrices are discovered. The fourth chapter
describes the research methodology – reliability. Fifth chapter analyses the viability of
current loyalty program adopted by concerned company based on the data collected through
questionnaires and interpret the results derived. Further, the sixth chapter gives the
conclusions & recommendations based on the analyses made in the previous chapter. Lastly,
chapter seven describes the limitations of the study.
The study is conducted by survey method to the customers of Pantaloons, a unit of Aditya
Birla Fashion and Retail Limited. The research has been conducted in Delhi, Karol Bagh
area. A survey by designing a questionnaire with both open & close ended questions has been
conducted & 150 responses have been collected with judgement sampling method.
Through this project, it would help Pantaloons in the improvement of its Loyalty Program
and gain more customer confidence.
1.2 INDUSTRY TYPE: FASHION RETAIL
Indian Fashion Retail segment is undoubtedly the largest & fastest growing industry. There
has been an increase in purchasing power of the consumer because of easy availability of
credit which has given a push to higher value items and encouraged repeat purchases.
It is an Industry which is heavily dependent on consumer spending. In this segment,
consumers are the king & certainly plays the crucial role.
Retail sales are largely driven by individuals’ capability and readiness to buy goods and
services.
2
India has developed among the most desired terminus in the world. However, meanwhile the
past five years, it has become more organized and dignified and is moving towards
international standards. Thus, retailing entails all types of activities included in selling goods
or services directly to final consumers for personal, non-business use. And this aim of
customer satisfaction gives birth to Loyalty Programs. Aditya Birla Fashion and Retail
Limited (PANTALOONS) spans a retail space of 2.3 million square feet which is amongst
the largest in India. (ABRFL,2016). Being a retail industry, it gives the detail about how these
industries are generating profits from loyalty programs.
In current years, one of the biggest wonders has been the spectacular success of Pantaloons
and H&M in particular. Both these brands have seen robust approval from Indian consumers
across all the geographies that they are currently functioning in.
1.2.1 APPAREL RETAIL INDUSTRY IN INDIA:
The clothing sector is one of the oldest industries in India. According to the Indian Brand
Equity Foundation (IBEF), “The close linkage of the textile industry to agriculture (for raw
materials such as cotton) and the ancient culture and traditions of the country in terms of
textiles make the Indian textiles sector unique in comparison to the industries of other
countries”.
“Brands like Benetton, Zodiac, Z3, Zara, Vero Moda, Calvin Klein, Diesel and Tommy
Hilfiger have experienced good sales growth in the country, while names like Zara, Armani,
Forever21 or Uniqlo appeal to the Indian audiences, attracting higher per square foot sales
compared to the departmental or hypermarket stores”. (Gunjan Nanda, 2019)
“On the other hand, Indian companies like the Arvind group, Madura Fashion and Lifestyle,
Raymond Apparel, Trent Retail, Reliance Retail and Future Group has launched their own
fashion labels”. (Manasi Sawant, 2019)
3
1.3 COMPANY PROFILE:
1.3.1 PANTALOONS (Aditya Birla Fashion and Retail Limited):
“Aditya Birla Fashion and Retail Limited, formerly Pantaloons Fashion & Retail Limited, is a
fashion and lifestyle company. The Company is engaged in providing branded fashion
apparels and accessories, and the retail sale of clothing, footwear and leather articles in
stores. It operates through two segments: Madura Fashion & Lifestyle, and Pantaloons. Its
Madura Fashion & Lifestyle segment is engaged in manufacturing and distribution of
branded fashion apparel and accessories, and comprises over 1,800 exclusive brand outlets
(EBOs) and approximately 150 value stores. Its Pantaloons segment is engaged in retailing of
apparel and accessories, and comprises over 160 stores, including one Pantaloons Kids store
and approximately 30 Factory Outlets”. (Reuters). The Pantaloons segment has a diversified
customer base with men, women, kids and non-apparels. The Company's brands include
Louis Philippe, Van Heusen, Allen Solly and Peter England.
Website: www.pantaloons.com
IMG 1.1 Official logo of Aditya Birla Fashion and Retail

Source: Aditya Birla Fashion & Retail Ltd. official website (Jan2016)
4
IMG 1.2 Pantaloons logo & tagline

Source : Fibre2fashion (2015)
History:
Pantaloons was incorporated in October 1987 and ranks amid the top five retailers in India.
and was known as ‘Manz Wear’ Private Limited under the regulation of Mr. Kishore Biyani.
In 2013, Aditya Birla Nuvo Limited (ABNL) acquired Pantaloons. Then, ABFRL came into
form after the consolidation of the apparel businesses of the Aditya Birla Group, consisting of
ABNL's Madura Fashion division and ABNL's subsidiaries- Pantaloons Fashion and Retail
Ltd (PFRL acquired in 2013) and Madura Fashion & Lifestyle (MFL established in1988) in
May 2015. After the consolidation, PFRL was renamed as Aditya Birla Fashion and Retail
Ltd. (ABFRL).
“As on 31st March, 2020, ABFRL has a network of 3,031 brand stores across the country. It
is present across 25,000 multi-brand outlets and 6,514 SIS across departmental stores across
India.” (Wikipedia)
“Voted as 'India's Most Trusted Apparel Retail Brand,' (Brand Equity Survey 2014/2015),
Pantaloons, a division of ABFRL has always been one of the most loved large format fashion
retailers in India. Pantaloons is today the fastest growing large format retailer in the country.
The rate of new store openings has increased from one every two months to one every two
weeks. The brand is now present in 78 Indian cities / towns. The company offers a wide
range of brand offerings across apparel and non-apparel categories and across varied price
points.” (About us, n.d.)
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LEADING BRANDS AT PANTALOONS:

“Pantaloons today retails over 200 licensed and international brands, including 24 exclusive
in-house brands. The Pantaloons exclusive brand bouquet includes:
Rangmanch, Ajile, Honey, Akkriti, Chalk, Annabelle, Trishaa, Alto Moda, Poppers, Chirpie
Pie; besides, it also features brands licensed on a long- term basis: Bare, Rig, SF Jeans,
Byford, JM Sports and Lombard. The company launched six new brands in FY'15,
including Alto Moda, SF Jeans, Byford, Poppers and Chirpie Pie.” (About us, n.d.)
“Catering to the discerning and trendy consumer, Pantaloons is a power house of fashion and
innovation. With a range of clothing from diverse sub brands that combine elegance and
freshness, the unparalleled options are fashion forward and on trend. The collections cover a
gamut of ready-to-wear western wear and ethnic wear for men, women and kids, in addition
to a stunning range of accessories for women and men. Pantaloons houses a repertoire of
lifestyle brands that cater to all consumers across a range of multiple occasions. The family
concept store has evolved into a fashion destination with a focus of delivering the latest
fashion”. (Pantaloons- style your change, n.d.).
1.3.2 PANTALOONS LOYALTY PROGRAM:
IMG 1.3 Current Loyalty Program scenario

Source: Capillary Tech (2008)
6
Due to emerging trends in fashion and shopping being an online trend, current services
provided by Pantaloons are both at store & at websites. Over the years, Pantaloons Loyalty
Program have shown a major progress in customer retention. It provided 'reward & retain'
facilities earlier and now made it a major component of the customer experience and
commitment cycle.
Pantaloons Loyalty Program is also focused on individual customer touch points that
provides customers with a fully-integrated shopping experience by merging customer
experiences from traditional to mobile-browsing (online services) and much more in
between.
As a brand, Pantaloons made their target to be present wherever their customers are.
They are also deeply analyzing the large amount of customer data to personalize customer
experience through their loyalty program. Research says that a personalized Loyalty Program
are more impactful in achieving customer satisfaction.
To increase its Customer Lifetime Value Pantaloons launched the GREEN CARD loyalty
program.
IMG 1.4 Pantaloons Green card world of Privileges

Source: Official website of Pantaloons
The GREEN CARD Program is a card less loyalty program wherein the customer becomes
the member right from the time he/she starts to shop for apparels.
On 15th June 2016 Pantaloons joined Payback as its key partner in the fashion retail category.
Now Pantaloons Green card will become Payback Green card, rewarding the Pantaloons
customers with Payback points as well as discounts. “Payback is India’s first multi-partner
loyalty program that presents many advantages over the traditional, stand-alone customer
7
loyalty schemes restricted to one brand or company only. The power of Payback stems from
pooling loyalty benefits from many attractive partners and such a program packages customer
benefits into a single customer loyalty program. Future Group and Payback India have been
strategically associated since August, 2011 and Pantaloons is the latest partner to join the
Payback Loyalty Program”. (ET Bureau, 2012).
IMG 1.5 Pantaloons multi-partner loyalty program with Payback

Source: Payback news room (2012)
PAYBACK GREEN CARD MEMEBERS BENEFITS:

• Special offers
• Additional Discounts
• Bonus Points
• Customized product information
and many more benefits are provided by pantaloons in association with PAYBACK
for retaining the customer.
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1.3.3 WHAT IS PAYBACK GREEN CARD?
It is a loyalty program that lets a customer to earn & redeem points on every shopping.
Customers can collect & accumulate shopping points & then redeem these points for free
shopping & some other benefits. Some relevant information regarding the PAYBACK
GREEN CARD is:
• The GREENCARD membership is meant for Pantaloons Customers only and can be
used at Pantaloons online & offline stores.
• Registering into the GREENCARD program will take minimum of 24 hours from the
time of enrolment.
• To earn GREENCARD points on first bill, members need to shop for Rs. 2000/- and
above.
• Points will get credited in GREENCARD within a maximum period of 15 working
days from the date of transaction.
• The value of 1 GREENCARD reward point is 25 paise.
• Customers will earn 4 PAYBACK points on every Rs.100 spent.
GREEN CARD FEATURES:

The previous 12 months shopping is taken into account to upgrade. The Table below
illustrates the same.
TABLE 1.1 Pantaloons Green Card Membership Upgrade

Source: www.pantaloons.com
AMOUNT SHOPPED FOR IN LAST 12
TIER CASHBACK AS REWARD POINTS
MONTHS
0-7999 1-STAR 1% Cashback as reward points
40000+ 7-STAR 7% Cashback as reward points
From the day of tier assignment, one needs to maintain a minimum shopping account for the
next 12 months. This account varies from tier to tier and is as follows:
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TABLE 1.2 Pantaloons Green Card Tier Maintenance

Source: www.pantaloons.com
AMOUNT SHOPPED FOR IN LAST 12 MONTHS TIER CASHBACK AS REWARD POINTS
40000+ 7-STAR 7% Cashback as reward points
1-STAR TIER BENEFITS:
• 1% cashback as reward points

• Instant Redemption on next bill
• Convenient Mobile based program

• Exclusive VIP Sale Preview
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• Exclusive Billing Counters
• Reward points on returning paper bags

• Exclusive Billing Counters
• Reward points on returning paper bags
By providing several benefits to the customers through its Loyalty Program, Pantaloons is
trying to attract its potential customers.
Lets’ dig deep in further chapters & know how PAYBACK GREEN CARD Loyalty Program
Impact customer purchase behavior & does it really increase its sales?
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CHAPTER 2: OBJECTIVE & SCOPE OF THE STUDY
2.1 OBJECTIVE
This project aims at providing a theoretical outlook on various approaches on loyalty

programs derived from literature review and identifying the factors which lead to success of a
company. The aim of this study is to understand the impact of customer loyalty program
adopted by Pantaloons on customer purchase behavior. To know whether the Loyalty
Program of Pantaloons is better than its competitors or not and the Payback Green Card
Program is launched by the company in order to increase customer satisfaction & purchase
experiences. Greater the customer satisfaction greater the chances to create customer loyalty.
The objective further emphasizes on how the sales of Pantaloons impact when loyalty
program members shop & how hard is it working to retain its customers. Whether Pantaloons
stand by its promise which has been made to the customers when they enrolled for their
Loyalty Program. Overall, the target is how Loyalty Programs provided by Pantaloons & its
competitors impact customer purchase experiences & satisfaction level and at what level
Pantaloons succeed in retaining its customers.
2.2 SCOPE OF THE STUDY:
The study is done on Pantaloons; an apparel unit of Aditya Birla Group and it compile with
the research started on 11th March, 2020. This study was carried out at Karol Bagh, Delhi
area and respondents were majorly from West Delhi.
This report majorly concentrates on how the customer purchase at Pantaloons using their
Loyalty Program Green Card. The survey was done on 150 customers & the criteria was set
that the respondents must have shopped at least 2 times at Pantaloons and some must be using
the Pantaloon’s Loyalty Program. Various statistical tools were used to analyze the
questionnaire collected from the respondents. At the analysis point the questionnaires will be
the major part of the results acquired which will directly impact the Loyalty Program success
at Pantaloons.
The study concerns about those factors impacting customer purchases due to loyalty
programs adopted by Pantaloons. However, it does not cover the factors (price, emerging
trends, income level, etc.) that impact consumer satisfaction & experiences.
The whole study is centered around Customer Loyalty Programs & what impact they put on
the customer purchasing patterns that drive sales.
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CHAPTER 3: REVIEW OF LITERATURE & THEORETICAL

CONCEPTS
3.1 LOYALTY PROGRAM
According to Sharp Byron; Sharp Anne (1997), a loyalty program is a marketing

strategy designed to encourage customers to continue to shop at or use the services of
a business associated with the program. Loyalty programs encourage customers to return to
stores where they frequently make purchases.
Michael Barnard (2019) states that a loyalty program should be described as a structured
customer strategy to help build a stronger relationship between the customer and the brand.
A successful Loyalty Program is one where:
• Customer is not actively searching for different brands & service providers
• Customers are not getting attracted towards the rewards & offers from competing
companies
• Customers understand when issues occur and trust in the brand to fix them
A loyalty program usually involves giving customers free rewards, early access to future
sales, great products and exciting coupons. Loyalty programs demonstrate that they tend to be
extremely successful in driving repeat sales. Loyalty programs have become a great
marketing strategy majorly focused on offering several benefits to achieve loyal customer
retention.
A loyalty Program is “a combined system of marketing actions to create attachments with the
customer & make them loyal. Firms are keen in creating a long-term relationship with its
customers for a long-term business & recurrent sale”. (Gro’nroos, 1995).
3.1.1 KEY COMPONENTS OF AN EFFECTIVE LOYALTY PROGRAM:

• The main component of a successful Loyalty Program is the aim of the Program.
Businesses starts Loyalty Program with several intentions of boosting sales, increasing
profits, generating brand value, etc. All this can be achieved when a goal is set by the
organization before launching its Loyalty Program.
• ‘Action’: Interpreting how a customer can help the organization achieve its goals is the
other key component. Through repurchases, refer & earn approaches, discounts, multiple
cash coupons, etc. are the techniques included in the action component.
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• When business achieve its goal through its various action, its last job is to reward those
customers who helped them in achieving its targets on time. These things can be in the
form of free gifts, free trials of new product launch, loyalty points, etc. which makes the
customer more loyal towards the brand & he/she has no intentions to change the product
or service in future.
3.2 CUSTOMER LOYALTY
Customer loyalty is a customer's readiness to frequently return to a company to purchase the

products & avail the services due to the delightful and noteworthy experiences they have with
that brand. Customer loyalty is something all companies should implement and enjoy the
long-term business with a customer. The point of starting any business is to attract and keep
customers delighted who buy the products to drive sales. Sophia Bernazzani (2020).
Buttle (2013), says that customer satisfaction, loyalty & business performance
have a great correlation among them.
Gaining customer loyalty cannot be a one-off thing. A brand needs a unified plan
implementation to retain its best customers – Simply it just needs a customer loyalty
program. “Customer loyalty can be said to have established if people choose to buy from a
same shop a particular product multiple times, rather than purchase from other shops to buy
products made by other companies.”
Loyalty is the result of customer satisfaction, positive customer experiences, and the inclusive
value of the goods or services a purchaser receives from a business. Customer satisfaction
is important because it provides service providers & business owners with a metric that they
can use to administer and expand their businesses. Customer satisfaction measures how
products or services provided by a company meet or outdo a customer's expectation.
Impact of loyalty program on consumer purchase behavior (Payments Journal October 25,
2019) established the fact that consumers who have the membership of loyalty programs will
shop from one store more often and spend more. With the digital revolution well proceeding,
companies need to boost-up their digital offerings and consumer insights to remain
competitive. That means knowing and understanding what customer want from the loyalty
experience & service offered, in order to create incentives programs that helps in retaining
customer.
14
Today’s markets are more customers focused and businesses primarily focus on long term
perspective relationship with the customers since the loyalty, relationships and the long
customer life span are related to cross-buying, due to which consumer goes for high
transaction and hence they earn more profit. (Meyer-Waarden, L.,2008).
3.2.1 CUSTOMER LOYALTY PROGRAM APPROACH AND ITS NEED:

When a customer is loyal to one company, they aren’t easily influenced by price or
accessibility of other. They would rather pay more and ensure the consistency of quality
service and product they purchase and love.
Keeping customer satisfaction in mind businesses also needs to focus on customer retention
& profits maximization and that can be achieved with:
• Reward for loyalty should be quantifiable and instant.
• Generating more trust towards the brand through marketing.
• Focusing on customer retention increment.
Gaining customer loyalty cannot be a once-in-a-lifetime thing. A brand needs a motivated

and incorporated plan to retain its ultimate customers – that is why it needs a customer
loyalty program.
3.2.2 BENEFITS OF CUSTOMER LOYALTY PROGRAM:

The first & foremost objective of a loyalty program is to retain standing customers and
encourage recurrent purchases. An Amazon Report found that 68% of American customers
spent more on brands that they are emotionally coupled or reliable to. (Schwager, A., &
Meyer, C. 2007, February).
The power of Loyalty Programs can bring in the following:
• Majority of members consider Loyalty Programs to be part of their association with
an organization.
• Brand market share can be increased up to 20% with effective Loyalty Programs
• High percentage of consumers said that they feel comfortable to visit online website
with loyalty programs.
Customer loyalty programs have a variety of benefits for businesses, but also as they have
become a required part of the consumer experience. There are various benefits of
implementing Customer Loyalty Programs:
15
• Appeal to new customers: A good loyalty program can attract new customers in several
ways by offering points or discounts for enrolment, businesses will automatically be able
to add new customers to its list simply because customers want to take advantage of
discounts.
• Boost in Repeat Sales: This is the primary system of measurement on which the success
of a loyalty program is being examined. When implemented an effective loyalty program
it surely brings a major portion of profit to the total revenue of business.
• Escalate revenue: Intensifying customer retention helps increase profits simply
because loyal customers have trust in the brand and therefore, they tend to spend more.
• Well-brought up communication: Loyalty programs provides a great & efficient way to
connect to customers. By their sign-ups, a relationship is built with the brand & customer
feel comfortable in sharing his/her ideas about improvements to be made in the services
offered.
• Gather valuable information: With efficient loyalty programs businesses can ask or
encourage its customers to fill out profiles for achieving greater experience, this way
companies get the data so one can not only personalize the customer experience but also
create targeted marketing strategies, increasing bond with customers helps in
referring brand to others.
3.3 TYPES OF LOYALTY PROGRAMS:
Each loyalty program for different customers is different. Businesses can choose what
rewards to offer, the actions to be stimulated or the method of the program itself. There are
some wide categories in which loyalty schemes can be grouped.
Picking & designing a great loyalty program is the most crucial factor for its success or
failure. And making the choice depends on several factors of the business – industry type,
customer base, target audience, business style & brand alignment. So, all these factors must
be kept in mind before launching any kind of Loyalty Program. (Paul Wolfer, 2021)
▪ Point-based Loyalty Program

▪ Cashback Loyalty Program
▪ Tier- based Loyalty Program
▪ Coalition Loyalty Program
▪ Fee based Loyalty Program
16
▪ Point based loyalty program: This program is the most frequent & simplest type of
Loyalty Program which work great for short term purchases & regular purchases. It
follows the principle of as you spend more so you will earn more points which can be
further redeemed for discounts, gifts, products or services.
Example: H&M follows point- based loyalty program
TABLE 3.1 For & Against of point-based loyalty program

For Against
▪ Takes time for customers to
▪ Widely used & easily
collect thousands of points
accessible
▪ Customer can redeem at
▪ Involves high exit cost
any time
▪ Timely fulfilment of reward
becomes more expensive
▪ Maintains price reliability
▪ Higher management &
▪ Ease in collecting
customer service is required
customers data
▪ Cashback loyalty program: These programs are very simple to apply. Just spend
some amount & get some amount of discount on the product purchased or service
received.
Example: Goibibo & Make my trip are some travel companies which uses cashback
Loyalty programs.
17
TABLE 3.2 For & Against of cashback loyalty program

For Against
▪ Low cashback rate results in
less purchases
▪ High customer retention rate
▪ Less visit makes it less
▪ Never confuses customer
appealing
unlike point system
▪ Competitors can easily replicate
▪ Gives customer excess
such program
spending flexibility
▪ Less customer satisfaction
▪ Increase repeat sales
▪ Tier-based loyalty program: This program rewards customer on the basis of their
levels of loyalty towards the brand. The more the customer shop, the more rewards
he/she will get. This is the most effective type of loyalty program as it effects the
purchase behaviour of a customer with change in the level & increment the rewards.
Example: Pantaloons uses tiered loyalty program.
TABLE 3.3 Pros & Cons of Tier-based loyalty program

For Against
▪ Lower tier customer engagement
▪ Increase in revenue due to high-
is low
value customer focus
▪ Demotivates customer when
▪ Encourage customers to level up -
downgraded
their tier
▪ Require timely & complex
▪ Easy segregation of rewards at each
communication
tier
▪ Not attractive for instant reward
▪ Improves customer engagement &
customers
services
18
▪ Coalition loyalty program: This program involves forming alliance with other
brands to offer rewards to a shared group of loyal customers. This program is also
known as the reward program.
Example: PAYBACK loyalty program is the most widely used coalition program
TABLE 3.4 Pros & Cons of Coalition loyalty program

For Against
▪ Improved customer experience due
▪ Difficulty in collecting data
to wide collection of data
▪ Individual retailer failing to
▪ Ease in generating brand awareness
differentiate their loyalty program
due to broad customer base
▪ Risk of redeeming points at
▪ Less time consumed in getting
competitor desk
rewards
▪ Fee based loyalty program: This program is majorly for big & recognizable brands
as the customer already makes in mind what services or rewards, he/she wants from
the loyalty program. It is a kind of paid program which must include exclusive
benefits to its members otherwise, it can lose its value. The customer pays a fixed
basic amount in advance to get entitled to the exclusive benefits of the loyalty
program.
Example: Amazon prime is a classic example of this kind of loyalty program
TABLE 3.5 Pros & Cons of Fee based loyalty program

For Against
▪ Engaged customers refer the
▪ Limited customer engagement
loyalty benefits to other individuals
due to advance cost factor
very frequently
▪ High maintenance
▪ Simple & easy to understand
▪ Concerns of customers regarding
this program are comparatively
▪ Gives insights of high-value
higher than other programs
customers
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3.4 CUSTOMER PURCHASE BEHAVIOR:
Customer Purchase behavior is the general action that any customer makes while purchasing
any product or service. The customer finds out various sources which can impact his/her
buying decision. These sources could be consulting a friend, search engines, asking for
feedback from old buyers of the product or service, etc. Thus, it is valuable for organizations
to understand their customer and their buying patterns & behavior because it will ultimately
help them to achieve better performance.
3.4.1 IMPACT OF LOYALTY PROGRAMS ON CUSTOMER PURCHASE

BEHAVIOR:
When firms employ loyalty programs, they expect them to be profitable. They compete with
branded products & services with the help of Loyalty Programs. Loyalty Programs brings
repeat purchases, thus putting a strong impact on consumer purchase behavior. When a
consumer gets attached to a Loyalty Program, he/she will immediately spend more by a
multiple of 2-3 times of what they were spending before enrolling in the loyalty program.
20
Customer not in A loyalty

the loyalty program
Program customer
Fig. 3.1 Loyalty Program impact on buying
In Fig. 3.1, the impact on buying is clearly shown that when any customer opts for the loyalty
program, he/she tends to buy more because of the lucrative discounts & benefits offered in
the program. Customer purchase increases a lot higher than that of the previous purchases
when he/she was not a loyalty program member.
Lars Meyer-Waarden, and Christophe Benavent (2006) in their research analysed the effects
of loyalty programmes on repeat purchase patterns using the Dirichlet model. They
confirmed that loyalty programs have put strong impact in repeat purchase behaviour of
existing customers but had a little impact on recruiting new customers. Customer purchase
behaviour changes with loyalty programs but due to a lot of loyalty schemes being present in
the market competition situation remains unchanged.
21
Every firm focuses on increasing profits through new customer entrance or increasing
purchases of existing customer. While loyalty programs help in sustaining existing customers
& helps in generating huge profits through repeat purchases it becomes also important to
make its Loyalty Program more successful than from its competitors. If the loyalty program
will be successful, it will also put a strong impact on potential customers.
3.5 MEASURING SUCCESSFUL LOYALTY PROGRAMS:

The key to successful loyalty programs is to make full use of the data collected from the
customers during enrolment. This data collected can be used in many forms to attract existing
customers for new product purchase & increase sales. (Annex cloud blog, n.d.). There are
several metrices that are used by various firms to measure the success of their loyalty
program & they are:
• Enrolment Rate: When a customer enrols for a loyalty program, it doesn’t imply that
that customer will now purchase more. Customer starts to discover the loyalty program &
and check how can the program is beneficial to them. At the starting phase of joining the
loyalty program a customer may drop if the channels used to market the program or the
offers provided doesn’t excite the customers. So, the first thing any firm can do is to have
a check on its enrolment rate & maintain that rate. If there will be more deviation in
customers drop-out from the loyalty program, it will simply state that the program is
going to be unsuccessful.
• Customer activation score: Every firm having its loyalty program in the market must
have a check on its activation rate. It should keep on checking how many customers
whether member or non-member know about their program & how active their member
customers are in the program. Engagement rate helps in making the customer active on
the loyalty program. Since, there are several loyalty programs in the market, customers
might take a membership but they forget about it if the firms will not engage with its
customer after transactions. Thus, there should be steadiness in keeping the customer
active.
• Conversion rate: The third metric used to measure a successful loyalty program is
customers conversion rate. Businesses should keep on checking whether the customer
made a repeat purchase after enrolling in the program, or all the different aspects that
businesses consider conversions. Marketing of loyalty program benefits also makes non-
22
members entice to enrol for the program. This could be also considered as a conversion
of a non-member to a member.
• Spend rate per customer: A loyalty program can only be successful if the customers are
making repeat purchases. When a member customer is happy with services offered in the
program, he\she develops a habit of purchasing more. Thus, firm must analyse how often
a customer is making a purchase on an average in a particular time frame.
• Customer Lifetime Value: Shaw, R. and M. Stone (1988). Database Marketing, Gower,
defines customer lifetime value as a prophecy of the net profit contributed to the whole
future relationship with a customer. Customer lifetime value is how much investment a
customer does to your brand during their absolute time as a paying customer. CLTV is a
master metric to measure the success of any Loyalty Program. It gives insights about the
overall value of a customer to the brand & how long is the customer’s worth to the brand.
As a result of evolving Loyalty Programs, companies are not just confined to customer
retention. A well-run loyalty program can do wonders & increase the economic value of the
organization. Loyalty programs that are more customers focused can significantly accelerate
the company's growth & revenue.
23
CHAPTER 4: RESEARCH METHODOLOGY
4.1 RESEARCH METHODOLOGY: AN INTRODUCTION

Research methodology is about how a researcher solves a problem systematically and ensures
valid & reliable results are generated that addresses the aim & objectives of the research.
More specifically, it can be understood as a science of studying how research is done
scientifically. In it, we study the methods & steps followed by the researcher needed to solve
his research problem along with the facts & logic behind it. A researcher must focus not only
on the research methods & techniques but also the approach, i.e., methodology.
The researcher decides about which research design to choose from the following ways:
• What data to collect for his research (what data to ignore)
• How sampling is to be done (source to collect data from)
• How to collect it (different data collection methods)
• How to analyse it (data analysis methods)
A good research methodology provides scientifically thorough findings as it is a systematic
process, whereas a weak research methodology may increase experimental errors.
4.1.1 METHODOLOGY: It is the systematic, theoretical analysis of the methods employed

to a field of study. It includes the theoretical analysis of the group of methods and principles
associated with a domain of knowledge. Normally, it encompasses concepts such as
paradigm, theoretical model, phases and quantitative or qualitative techniques. (Irny and
Rose, 2005). Methodology can be defined as:
• "The analysis of the principles of methods, rules, and postulates employed by a
discipline"
• "The systematic study of methods that are, can be, or have been applied within a
discipline" (entry at Merriam–Webster)
Sources of Data: Gathering data for this research is done through primary source (where
researcher is the first person to obtain the data). Primary data is factual & original and is
collected with an aim to get desired conclusions of the problem statement at hand. Primary
data sources include surveys, questionnaires, photograph collection, etc. This research uses
Questionnaire method of collecting data from the population. It is the main instrument for
collecting data in a survey study. The questionnaire has both open and closed ended questions
24
which gives the opportunity to the customer to have their feedback for the improvement in
the future.
Secondary data: Secondary data have been collected through means such as journals,
articles, magazines, internet, books, etc.
Type of Research: This topic describes the approach followed for the research to collect the
data & derive accurate results. Quantitative methods of collecting data are used in this
research work. It is all about numbers and figures. It is used to measure opinions, attitudes,
actions, and other defined variables with the goal to possibly relate the results from the study
sample in a wider population (or specific groups). Quantitative data collection methods are
much more structured than qualitative data collection methods. Quantitative techniques
typically contain various forms of questionnaires and surveys, structured interviews as well
as a behavioral observation based on explicit coding and categorization schemes. (Imotions,
2019). To gather the quantitative data for this research, the technique used is the
questionnaire method.
Target Audience: The target audience for this study were the respondents who has shopped
at least three times at Pantaloons or has Pantaloons green card.
Sampling Plan:
Population & Sample: Population is a collection of all items of interest to our study. It is
crucial to have a group of people selected must represent the whole target population. This
group of people is called a sample. The population in this study is the customers who
purchase or shop in Pantaloons Karol Bagh, Delhi. Sampling is one of the basic steps in
conducting surveys to determine the right kind & number of participants to be
included. Sarah Mae Sincero (May 10, 2012). For this research, the sampling technique used
is judgment sampling. Judgment sampling is also known as purposive sampling or
authoritative sampling, in which the researcher sets the criteria to choose the survey members
based on his knowledge & judgment.
Sample size: 150. The questionnaire was distributed among 200 people to collect the
responses for this study. Out of 200 only 150 responses were collected & found suitable for
the aimed research.
25
Type of Survey: Questionnaires were collected & distributed by hands & the questionnaires
were self-administered.
Statistical Tools: This study makes use of statistical techniques such as measures of central
tendency, (mean, median & mode) bar charts, pie charts, frequency distribution to analyze
and interpret the results. This study has used various statistical tools for the analysis of data.
They are:
1. Percentage analysis: It deals with the number of respondents response to a particular
question is percentage arrived from the total population selected for the study.
2. Cross tabulation: Cross tabulation is a method to quantitatively analyze the relationship
between multiple variables. Also known as contingency tables or cross tabs, cross tabulation
groups variables to understand the correlation between different variables. It also shows how
correlations change from one variable grouping to another.
4.2 RELIABILITY & LEGITIMACY

A questionnaire is one of the most commonly used tools to collect data in especially social
science research. The main intention of a questionnaire in research is to obtain relevant
information in the most reliable and valid manner. Thus, the accuracy and consistency of the
questionnaire form a significant aspect of research methodology which are known as
legitimacy and reliability. Often new researchers are confused with selection and conducting
of proper legitimacy type to test their research instrument (questionnaire). (Hamed
Taherdoost, August 2016)
Reliability involves the extent to which a measurement of an incident provides a stable and
consistent result. Reliability is also related to repeatability. For e.g., a scale or test is said to
be reliable if repeat magnitude made by it under invariable conditions will give the same
result (Moser and Kalton, 1989).
Legitimacy is fundamental in evaluating measures in the research. This research is valid
because the collected data and the research questions are systematically and all the things that
needed to be measured has been measured. The responses collected from the customers are
truthful & is useful derive accurate results. Additionally, the purpose of the research was to
know the impact of loyalty program on consumer purchase behavior with Pantaloons. To
ensure the validity of research, a survey with questionnaire has been conducted. However, the
26
validity will determine whether the research truly measures the exact thing which is intended
to measure or how truthful the research results were.
This research work is reliable because the results were an authentic reflection of what the
customer felt. It is difficult to derive the same results at same situations as respondents will
be different. The questionnaire was conducted between July-Sep, 2020, by distributing the
paper to customers of Pantaloons of Karol Bagh, Delhi. The number of the respondents
within that time frame was very high therefore the time frame in collecting and analyzing the
data was perfect for reliable results.
4.3 QUESTIONNAIRE DESIGN:

A questionnaire is an organized set of questions to be asked from respondents in a survey or
interview, with proper instructions specifying which questions are to be enquired, and in what
order. Questionnaires are employed in various areas of research like survey research and
experimental will. A questionnaire serves four meanings—
• permits data collection from respondents
• offers a structure to surveys
• provides a standard way for filling up responses
• help in administering collected data.
(S. Sreejesh, Sanjay Mohapatra, M. R. Anusree, 2014)
A researcher has to do some groundwork before framing the questionnaire. This work
includes the type of respondents to be chosen, type of questions to be asked & choice of
distributing the questions.
While designing the questionnaire the recommendations were received from the Pantaloons
store manager about the questions to be included so as to avoid any cost it might cause to the
image of the brand. Poorly formulated and phrased questions or problematic answers may
cause falsification between the parties, which means that the parties do not fully understand
each other and thus this affects the research reliability of the judgements made between
respondents and answer. (A. Wilson 2003.)
In total 15 questions were designed where the respondents can pick from the alternatives in
14 questions and 1 question was designed as an open question where respondents can give
the conceivable recommendations and feedbacks to improve the service quality of Pantaloons
Loyalty programs.
27
CHAPTER 5: ANALYSIS & INTERPRETATION
Analysis helps the reader comprehend the data by explaining general trends in the data and
indicating outliers and similarities among various data points. Interpretation relates data to
the purposes they are assumed to measure, discovers the relationships between multiple
measures of an objective, draws inferences, and assess.
Whenever research is being conducted in real-time, availability of genuine data is inadequate

and therefore, it turns out to be necessary to collect the type of data that are relevant. There
are various methods of collecting data and the resources to collect it also varies. The time,
money costs, and other resources also considerably changes as per the data collection
method.
After collecting all the responses from the customers of Pantaloons (most of them holding the
Green Card), a deep analysis of the Questionnaire was done & several interpretation was
drawn out which helped a lot in reaching out to the conclusion.
QUESTIONNAIRE ANALYSIS
A form containing both open-ended & closed ended questions was provided to the
respondents who have at least shopped for 3 times at Pantaloons or holding the Green Card.
The reason to include open-ended question in the questionnaire was that respondents can
provide suggestions & how much the Loyalty Program is helping them with their preferences
& expectations.
Different age and gender group people were targeted containing a mix of respondents.
Around 200 forms with the questions were distributed through google forms, WhatsApp,
Instagram, Facebook but due to COVID-19 pandemic, it was difficult to get the answers from
the respondents. Later on, when the situation became a little normal, a printed version of the
form was distributed & then 150 responses were collected.
The questions are listed in the Appendix.
The graph & interpretations drawn from the questionnaire are represented in detail further:
28
TABLE 5.1: Duration of Being a Pantaloons Customer
Duration Of being a Number of Customers Percentage (%)

customer
3-5 years 57 38
1-2 years 64 43
New (Less than 3 months) 29 19
TOTAL 150 100
19%
38%
3-5 years
1-2 years
43% New (less than 3 months)
Graph 5.1: Duration of being a Pantaloons customer
Interpretation:
The first question was asked about the duration of being a Pantaloons Customer.
Graph 5.1 clearly depicts that majority of the customers are purchasing from Pantaloons in
the last 3-5 years. It shows that people are inclined towards Pantaloons for apparels shopping.
• 43% customers are purchasing from 1-2 years
• 38% customers are purchasing from 3-5 years, which shows they are very old
customers and also state the fact that they might be using the green card program.
• 19% customers are new and it shows Pantaloons is able to build new customers with
the help of its Loyalty Program.
It shows Pantaloons is providing great products to its customers as customers are loyal and
also new customers shows that the company is effectively attracting new customers. Hence
no changes are required.
29
TABLE 5.2: Pantaloons Green Card Holders
Green Card Member No. of Customers Percentage
Yes 113 75%
No 37 25%
Total 150 100%
No
25%
Yes
Yes No
75%
Graph 5.2: Pantaloons Green Card Holders
Interpretation:
Since, to check the impact of Loyalty Programs on the customers purchase behaviour, it was
essential to know how many customers are having the green card membership.
• Graph 5.2 shows that out of 150, 113 customers have enrolled for the GREENCARD
Program, i.e., 75% customers use the Loyalty Program of Pantaloons.
• 25% customers do not have the GREENCARD membership and they are majorly new
customers or who have been a customer from 1-3yrs or less.
• The good number of card holder clearly states that Pantaloons is able in customer
retention by proving Loyalty Program services.
It is inferred that Pantaloons can interact with the non-card holders and ask their expectations
from the Green Card. If relevant information is received it should start applying the same, if
found viable so that the non-card holders’ interest could be drawn towards the loyalty
program.
30
TABLE 5.3: Customers visiting frequency at Pantaloons
Visiting frequency No. of Customers Percentage
Once in a week 49 33%
Once in a month 21 14%
Once in 3 months 20 13%
As per needs 60 40%
150 100%
33% Once in a week

40%
Once in a month
14% Once in 3 months
13%
As per needs
Graph 5.3 Visiting frequency
Interpretation:
Whether customer holds the green card or not, it is relatively important to know how often a
customer purchase from Pantaloons. Tracking visit frequency can help a business to
understand the trends in customer behaviour, and how much they spend their income on
apparels shopping.
Here, according to graph 5.3;
• Nearly 40% customers shop as per the needs.
• 33% visits once in a week & 14% visits once in a month. It implies customers are
spending a good amount of their income at Pantaloons.
• 13% customers visit only once in 3 months.
It could be concluded that the customers are not frequent shoppers and they purchase as per
their needs or also due to the COVID-19 pandemic situation customers have limited their
purchase.
31
TABLE 5.4: Amount spend on purchase within 6 months

Green Card Member Not a member
Purchase Limit
(INR) No. of
No. of Customer % %
Customer
below 4000 0 0% 8 22%
above 4000 0 0% 22 59%
below 10000 0 0% 7 19%
above 10000 13 11% 0 0%
below 20000 11 10% 0 0%
above 20000 89 79% 0 0%
113 100% 37 100%
TOTAL
above 20000
below 20000
above 10000
below 10000
above 4000
below 4000
0% 20% 40% 60% 80% 100%
Not a Member % Green Card Member %
Graph 5.4: Amount spend on purchase within 6 months
Interpretation:
Graph 5.4 describes how much money customers spend on apparels purchase from
Pantaloons. It shows:
• Out of 150 customers 89 customers are there who spend more than 20,000 INR/- on
shopping with Pantaloons within a time span of 6 months. These customers also hold
the Green Card, which states that the company is able to satisfy the needs of majority
of their customers through the Loyalty Program.
• 29 out of 150 customers shop between 4000-10000 INR /- and they do not hold the
green card which clearly shows that the customers should be encouraged to enrol for
the Loyalty Program to boost the company’s sales.
On an average approximately 75% customers shop for more than 10,000 INR and it states
the fact that Loyalty Programs have high impact on customers spending limit.
32
TABLE 5.5: Pantaloons understands need & expectations
Pantaloons Understands the needs & expectations No. of customers Percentage

Strongly agree 106 71%
Agree 27 18%
Neutral 15 10%
Disagree 2 1%
Strongly disagree 0 0%
TOTAL 150 100%
1%
10% 0%
Strongly agree
18% Agree
Neutral
71%
Disagree
Strongly disagree
Graph 5.5: Pantaloons understands need & expectations
Interpretation:
When a business focus on understanding the needs of the customer, success certainly appears
to its doorstep. Lacking in recognizing the needs & failing to understand the expectations of
the customers also leads to business failure. Thus, it becomes important to check through the
survey whether the customer is satisfied as per the needs & expectations or not.
Here according to graph 5.5,
• 71% of the customer strongly agree that Pantaloons understand their needs.
• Similarly, 18 % of customer agree Pantaloons understand the needs whereas 10% are
neutral.
• From the graph we can see there is no customer who thinks Pantaloons doesn’t
understand their needs; 1% on disagree and 0% strongly disagree.
The study clearly implies that the customers believe in Pantaloons services & are happy
to shop in there. Their basic expectations of timeliness, flexibility, variety of products is
fulfilled.
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TABLE 5.6: Loyalty Rewards desirability
Green Card Member Not a member TOTAL

STAR
RATING No. of No. of No. of
% % %
Customer Customer Customer
5 78 52% 10 7% 88 59%
4 21 14% 15 10% 36 24%
3 14 9% 7 5% 21 14%
2 0 0% 5 3% 5 3%
1 0 0% 0 0% 0 0%
Total 113 75% 37 25% 150 100%
60%
52%
50%
40%
30%
20% 14%
10% 9%
10% 7%
5%
3%
0% 0% 0%
0%
5 4 3 2 1
Green Card Member Not a Member
Graph 5.6: Loyalty rewards desirability
Interpretation:
It costs a lot less to offer to existing clients than acquire new ones that is why companies
invest in loyalty & rewards programs.
Graph 5.6 shows,
• 59% customers gave 5-star rating to the current loyalty rewards provided by
Pantaloons and out it 7% customers were non-card holders, which indicate that these
customers are interested in getting loyalty rewards however the company needs to put
some extra effort to make these customers their Green Card Member.
• Only 1-3% customers among the respondents are not so happy with the loyalty
rewards. Since, these customers are non-card holders which certainly gives the idea
that they are unaware about the benefits of the loyalty program.
The case company should find innovative ways to build reward programs & inspire customer
royalty so that potential customers can enroll for the same.
34
TABLE 5.7: Time taken by Pantaloons to address Questions & Concerns
Time taken to address questions & concerns No. of customers %

Shorter than expected
133 89%
About what I expected
15 10%
Longer than expected
2 1%
Did not receive a response
0 0%
Total 150 100%
10% 1% 0%
Shorter than expected
About what I expected
Longer than expected
Did not receive a response

89%
Graph 5.7: Time taken to address questions & concerns
Interpretation:
The above graph represents the positive results about Pantaloons response level towards
customers questions & concerns. All the customers are getting timely response from
Pantaloons.
• 89% of the respondents’ states that Pantaloons is very responsive towards the
questions & concerns about the services.
• About 10% respondents believe that Pantaloons response time matches their
expectations.
• Only 1% of the respondents feel that Pantaloons took longer time to revert about the
questions & concerns with the services.
• Overall, Pantaloons is at the success spot to solve about the questions & concerns of
the customers.
35
TABLE 5.8: Quality of services & products as compared with price
Rating scale (1-5) star No. of customers %

5-star 123 82%
4-star 22 15%
3-star 2 1%
2-star 2 1%
1-star 1 1%
Total 150 100%
4 star
15% 3 star
1%
2 star
1%
1 star
1%
5 star
82%
Graph 5.8: Quality of services & products as compared with price
Interpretation:
The above graph illustrates the Quality of services & products as compared with price.
Respondents have rated it on a 1–5-star rating-scale. Pantaloons provides all the services to
its customers but it is also necessary to check whether the customers are satisfied with the
quality of it or not.
• From the above graph, we can see that 82% of the respondents are highly satisfies
with the quality & price.
• 15% of the respondents have rated 4-star, which means they are too satisfied with the
quality & services as compared with the price.
• Only 3% of the respondents have rated below 4-star
• Overall, the graph illustrates that Pantaloons service & products are parallel in
relation to the price.
• Similarly, there is no respondent who responded that Pantaloons products & services
are poor in respect to the price.
36
TABLE 5.9: Green Card Loyalty Program Offers rating from Member customer
Particulars 5-star 4-star 3-star 2-star 1-star
Discounts on high-spending 73% 22% 4% 1% 0%
Free items on multiple purchase 60% 20% 11% 9% 0%
Free trial on new products 54% 23% 14% 8% 1%
Cash back offers 91% 5% 4% 0% 0%
Free home delivery 98% 2% 0% 0% 0%
120%
100%
80%
60%
40%
20%
0%
Discounts on Free items on Free trial on new Cash back offers Free home
high-spending multiple products delivery
purchase
5 star 4 star 3 star 2 star 1 star
Graph 5.9: Green Card Loyalty Program Offers rating from Member customer
37
Interpretation:
Graph 5.9 illustrates that how satisfied are the Green Card Members from the various type of
offers included in the Loyalty Program by Pantaloons.
• The highest satisfaction among the respondents is on Free home delivery. 98% of the
Green Card Members are highly satisfied with free home delivery offer. This shows
that Pantaloons need no changes in this offer. There is no customer who is dissatisfied
with the offer.
• Similarly, 91% of the Green Card holders are very delighted with the cash back
offers. Cash back program encourages customer to buy more as giving back a certain
percentage of the amount spent & helping customers save some money on their next
purchase.
• 60% and 20% of the Green Card holders are much delighted & delighted with the free
items on multiple purchase reward. Around 20 % Green card members rated below 4-
star, which shows they are not interested in the offered reward and need some other
offers to encourage repeat purchase.
• Pantaloons succeed in encouraging people to spend more by offering heavy discounts
on high-spending. Above graph clearly states that customers are attracted towards
Discounts & they likely spend more to reach the threshold of discounts. 73% & 22%
of the green card member respondents are very satisfied & satisfied with the offer of
Discounts on High-spending. While only 4% & 1% respondents not often feel like to
spend more for discounts.
• Free trial on new products offer is less famous among the other rewards & offers in
loyalty program. We can see from the graph that around half of the respondents are
delighted with the offer & 23% of the respondents rated below 4-star, which indicate
that Pantaloons should replace the existing offer with another exciting offer.
The percentage of Green Card holder respondents who feel that the current loyalty rewards
are not satisfactory is comparatively small. This graph states that Pantaloons is doing well in
gaining customer loyalty and it needs few adjustments to make it more successful.
38
TABLE 5.10: Pantaloons taking care of life during covid-19
Particulars No. of customers Percentage

Great Precautions 137 91%
Moderate Precautions 13 9%
Negligent 0 0%
Total 150 100%
Moderate
Negligent
Precautions
0%
9%
Great Precautions
91%
Graph 5.10: Pantaloons taking care of life during covid-19
Interpretation:
In a business it is very important to understand the needs of the customer. Safety is a major
part of concern every individual think of. Many businesses have faced dire consequences
of the COVID-19 pandemic, they are all taking all the necessary measures to avoid any
complication that would hurt the reputation of their property. So, it is very important to
know how Pantaloons is making shopping easy for the customers during the Pandemic.
The above graph indicates:
• 91% of the respondents are highly satisfied with the precautionary measures followed
by Pantaloons during the Pandemic.
• 9% respondents believe that the safety measures followed are of moderate level.
• We can clearly see in the Graph that there is no customer who believe that Pantaloons
is negligent about customers life safety.
Pantaloons intended to keep their customer safe & satisfied which certainly helped it in
retaining all of its customers.
39
TABLE 5.11: Recommend Pantaloons to others
Particulars No. of customers Percentage

Definitely will 89 60%
Probably will 50 33%
Might or might not 11 7%
Definitely will not 0 0%
Total 150 100%
7% 0%
33%
60%
Definitely will… Probably will Might or might not Definitely will not
Graph 5.11: Recommend Pantaloons to others
Interpretation:
A satisfied customer is always believed to recommend the products & services to their
friends, relatives and the persons that they meet. The purpose behind this question was to
figure out the inclination of the customers to recommend Pantaloons to others. If the
customers are highly satisfied with Pantaloons services, then it establishes that there is the
possibility of growing the marketing paths.
The graph states that:
• 60% of the respondents (more than half of the whole respondents) are very likely to
recommend Pantaloons to others.
• 33% respondents probably will recommend Pantaloons products to others.
• 7% of the respondents are in dilemma of giving recommendations.
• There were no customers that answered that they will not recommend Pantaloons to
others, but Pantaloons needs to add the value to the service so the customers feel like
they would like to recommend the particular service or product to their loved ones.
40
TABLE 5.12: Green card holders’ recommendation to non-card holders for membership
Particulars No. of customers %

Definitely will 93 82%
Probably will 20 18%
Might or might not 0 0%
Definitely will not 0 0%
Total 113 100%
82%
0% 0%
18%
Definitely will… Probably will Might or might not Definitely will not
Graph 5.12: Green card holders’ recommendation to non-card holders for membership
Interpretation:
To know the success of the loyalty program, it is necessary to know whether the green card
holders willing to recommend the loyalty program of Pantaloons to the non-card holders or
not. If the customer is happy & satisfied with the loyalty program, he/she will undoubtedly
suggest others to enroll for the Green Card.
The above pie chart shows:
• Out of 113 green card holders 93 respondents are definite to recommend the non-card
holders to enroll for the membership. This indicates that Pantaloons is at the point
where all of its loyalty program customers are quite satisfied with the services offered
in the green card.
• 18% are almost certain to recommend green card membership to others
• There is no loyalty program member who is dissatisfied & not willing to recommend
green card membership to others.
41
TABLE 5.13: Overall Loyalty Program Feedback
Green Card Member Not a member TOTAL

STAR
RATING No. of No. of No. of
% % %
Customer Customer Customer
Excellent 87 58% 18 12% 105 70%
Above Average 21 14% 10 7% 31 21%
Average 5 3% 9 6% 14 9%
Below Average 0 0% 0 0% 0 0%
Poor 0 0% 0 0% 0 0%
Total 113 75% 37 25% 150 100%
58%
60%
50%
40%
30%
20% 12%
14%
10%
7%
6%
3%
0% 0% 0% 0%
0%
Excellent Above Average Average Below Average Poor
Green Card Member Not a Member
Graph 5.13: Overall Loyalty Program Feedback
42
Interpretation:
The sticks of the bar chart in Graph 5.13 compares overall feedback about the Green Card
loyalty program of Pantaloons.
This reveal:
• 70% of the customers’ respondent are highly satisfied with Pantaloons loyalty
program out of which 12% are non-member who rated it Excellent. This shows that
non-member customers are showing interest towards Green Card program & willing
to enroll soon.
• 21% of the respondents rated the overall program above average out of which 7%
were non-card holders, it states that the customers may get inclined to join the loyalty
program if Pantaloons addresses their concerns & feedback honestly.
• 9% of the respondents rated the program as average & out of it 6% were non-card
holders. It shows Pantaloons need to focus on this 9% customer category & identify
those issues which the customers are facing due to which they passed an average
rating.
• It is clearly visible in the graph that none of the respondents rated the overall program
as below average or poor. All the respondents are quite happy with the loyalty
program adopted by Pantaloons.
To sum up, the services in the loyalty program still needs to be developed in such a manner
that every customer rate it excellent.
43
TABLE 5.14: Non-card Holder’s willingness to take membership
Particular No. of customers %

Yes 31 85%
No 6 15%
Total 37 100%
15%
85%
Yes No
Graph 5.14: Non-card Holder’s willingness to take membership
Interpretation:
To make the loyalty program more successful & to know its impact on non-card holders it is
necessary to know their customers willingness to enroll for the Green Card membership of
Pantaloons.
Graph 5.14 displays that:
• 85% of the customers’ respondent are highly interested to take the Green Card
membership & receive the benefits attached to it.
• 15% of the customers are not willing to register for the Green Card loyalty program. It
signifies that the customers are not happy with the services provided in the program or
they fell them insignificant.
• Although the percent is less but Pantaloons need make contact with these 15% of the
customer & discuss the problem that they are facing.
44
Open ended question Interpretation:
The 15th question in the questionnaire asked was about the suggestions that could improve the
loyalty program services & what other rewards should be presented in the loyalty program to
aid extra satisfaction. In the light of this question, various suggestions about the services &
rewards of the loyalty program were provided by the respondents.
The responses concluded:
• Majority of the respondents were happy with the current rewards provided in the
Loyalty Program & do not need any changes in the same
• Some customers asked to increase the communication channels with Pantaloons staff
& need quick redressal.
• Respondents who have shopped less at Pantaloons suggested to add more variety of
products & brands so that they can increase their spending at Pantaloons.
• Male respondents suggested to expand men’s collection in terms of ethnic wear.
• Some respondents suggested to include ‘Refer a friend’ and more monetary benefits
programs apart from tier based & point based loyalty program.
• All the card members respondent were very happy with Pantaloons decision to join
Payback as its key partner in fashion retail. It added extra benefit of earning exclusive
benefits at any Pantaloons store.
It can be concluded from the feedback question that majority of the respondents feel
satisfied with Pantaloons products & services. Pantaloons succeeded
45
CHAPTER 6: CONCLUSION & RECOMMENDATIONS
6.1 Conclusion
Every business aims to maintain a long-term relationship with its customers & its
organization. With the aim of achieving potential customers, customer satisfaction puts a
great impact on customer purchase behavior. The reason so many companies turn to loyalty
programs because the impact of it is significant on customers visiting frequency & spending.
Loyalty program members frequently visit the stores and websites and this implies direct
correlation with spending. This means as store & website visitation goes up, spending tends
to escalate as well.
This project has gone in-depth to understand the impact of loyalty programs on consumer
purchase behavior. The findings & questionnaire analysis shows that loyalty programs have
the power to influence consumer buying decisions & develop customer loyalty with the
brand. The covid-19 Pandemic has also challenged customer loyalty & increased the value of
Pantaloons loyalty program as they do it right. The study carried out for this project helped to
analyze customer satisfaction with loyalty programs. Pantaloons is succeeding in attracting
new customers because of its services & great tier-based loyalty program. Pantaloons
engagement is seen remarkable with member customer & none of the respondent customer
reviewed Pantaloons loyalty program as poor. 79% of the member customer respondent
spend more at Pantaloons than any other customer, this signifies Green Card loyalty program
is effective in bringing more sales. The study also revealed that majority of the customers
joined the loyalty program as they want to save more money & earn reward points. It could
be said that Pantaloons loyalty program is effectively increasing sales & revenue.
With the help of the questionnaire a lot of things can be concluded which need to be
progressed in future. Altogether 15 questions were designed to study the impact of
Pantaloons loyalty program on consumer purchase behavior. It seems all the customers are
satisfied with Pantaloons loyalty program & their spending increases as they enroll for the
loyalty program. However, though the loyalty program is putting significant impact on
customer purchases, the organization still needs some modifications & improvements in the
tier-based loyalty program to keep the positive impact above what is usual.
It could be concluded that as customer loyalty is one of the main important factors for the
organization, if the loyalty programs are well designed and implemented like Pantaloons it
can help in building a competitive edge & increasing revenue.
46
6.2 Recommendations:
• Pantaloons should keep the discounts & offers more lucrative than its competitor as
some customer intend to purchase at stores where good discounts are available
regardless of having a loyalty card of the same.
• It should maintain the attention towards customer satisfaction because a satisfied
customer is the only one who can recommend the brand to others and increase its
sales.
• Feedback should be taken from every customer; this will help the business to
understand the current status of customer satisfaction & choices and act according to
their wants.
• Increasing competition is one the most important threat for any business. It is
important to get information about the competitor loyalty program & changing trends
in the type of rewards offered.
• Pantaloons should encourage its staff to get to know the customers personally and
make member customers feel that they value their businesses & respect their right to
restrict access to their personal information.
• Pantaloons should conduct regular advertising campaigns to attract new customers
and inform existing customers about upcoming events.
• Every business success & failure depends upon the satisfaction level of the customers.
Thus, Pantaloons should understand their needs, wants and encourage customers to be
more loyal. It should provide customers the opportunity to present their personal
thoughts about their needs & wants.
• To make the loyalty program more effective, Pantaloons should conduct monthly
meetings with its marketing & sales team to make some strategies to attract more
customers attention towards the Green Card Membership.
47
CHAPTER 7: LIMITATIONS OF THE STUDY
The following difficulties were faced during this study:
• Difficulty in data collection.

• Limited knowledge about the Pantaloons store in the initial stage of the study.
• This report is subject to the preconception of the respondents; hence 100% accuracy
cannot be assured.
• The crisis created by the coronavirus pandemic has hit people’s income level severely,
which affected respondents purchasing at Pantaloons.
• Limited area of study may affect the validity of the findings.
• Many of the respondents were not willing to respond to the questionnaire.
• Limitations were also concerned with concentrating the behaviour of customers of a
particular branch.
48
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https://www.pantaloons.com/?
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https://www.reuters.com/companies/ADIA.BO
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(n.d.). [Photograph]. https://www.adityabirla.com/media/downloads
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Customer Behavior, International Journal of Business and Social Science Vol. 5, No. 6, 276-
282
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loyalty-program
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citation-generator/
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❖ Capillary Technologies. All rights reserved. (n.d.). Current Loyalty Program

Scenario [Illustration]. https://www.capillarytech.com/products/loyalty-plus/
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(n.d.). [Photograph]. https://www.behance.net/gallery/23685265/Pantaloons-India
❖ Copyright Aditya Birla Fashion & Retail Limited. All rights reserved. (n.d.). Pantaloons
green card world of privileges [Photograph].
Green Card membership upgrade [Table]. https://www.pantaloons.com/content/greencard
Green Card Tier Maintenance [Table]. https://www.pantaloons.com/content/greencard
❖ Customer think (2019). What is a customer loyalty program?
https://customerthink.com/what-is-a-customer-loyalty-program/
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❖ Grönroos, C. 2007. Service management and marketing. Fourth edition. John Wiley & Sons
Ltd. (0-470-02862-9). https://www.pantaloons.com/c/women/25?source=menu
❖ Schwager, A., & Meyer, C. (2007, February). Understanding Customer Experience. Hbr.Org.
https://hbr.org/2007/02/understanding-customer-experience
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purchase behavior. European Journal of marketing, 42(1), 87-114. doi:
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❖ Pantaloons joins Payback. ET Bureau (2012).

https://economictimes.indiatimes.com/industry/cons-products/fashion-/-cosmetics-/-
jewellery/pantaloons-joins-indias-largest-multi-partner-loyalty-program-
payback/articleshow/14235629.cms Accessed 28th April 2021.
❖ Pantaloons- style your change. (n.d.). Www.Pantaloons.Com. Retrieved July 27, 2020, from
https://www.pantaloons.com/
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Pantaloons-Payback-India_Republic
❖ Paul Wolfer. (2021). 7 Types of Loyalty Programs: Which is Right for Your Brand? Clarus
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your-brand/
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Behavior. https://www.paymentsjournal.com/quantifying-the-impact-of-loyalty-programs-on-
consumer-behavior/.
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https://www.iknockfashion.com/the-outlook-of-fashion-in-india
❖ Sreejesh S., Mohapatra S., Anusree M.R. (2014) Questionnaire Design. In: Business
Research Methods. Springer, Cham. https://doi.org/10.1007/978-3-319-00539-3_5
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https://www.statista.com/topics/5922/retail-market-worldwide/
❖ Steven M. Shugan Journal Article. Editorial: Brand Loyalty Programs: Are They Shams?
Marketing Science Vol. 24, No. 2 (Spring, 2005), pp. 185-193 (9 pages)
https://www.jstor.org/stable/40056949
❖ Taherdoost, Hamed, (August 10, 2016) Validity and Reliability of the Research Instrument;
How to Test the Validation of a Questionnaire/Survey in a Research.
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❖ Uncles, M.D., Dowling, G.R. and Hammond, K. (2003), "Customer loyalty and customer
loyalty programs", Journal of Consumer Marketing, Vol. 20 No. 4, pp. 294-
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❖ Books studied: Research Methodology-Kothari C.R., Marketing Management-Philip Kotler,
Marketing Management-Maheshwari S.C., Marketing Research-Gupta S.L.
51
APPENDICES
Appendix A: Questionnaire
I am Sumit Rawat, student of IMT-CDL, Ghaziabad. I am doing a study on Pantaloons Green
Card Loyalty Program effectiveness, in order to analyze some facts, your satisfaction and
loyalty feedback need to be conducted. You are kindly invited to take a part in this
evaluation. Here, you will be asked questions about the products, services & loyalty rewards
provided by Pantaloons. Response to this questionnaire is voluntary.
Thanks for the cooperation and the response.
Name: ____________ Age: _________
Gender: ____________ Place: __________
Email: _______________________________
1. If yes, how long have you been a customer of Pantaloons?
o 3-5 years
o 1-2 years
o New (less than 3 months)
2. Are you a member of Pantaloons PAYBACK GREEN CARD loyalty program?
o Yes
o No
3. How frequently do you visit Pantaloons for shopping?
o Once in a week
o Once in a month
o Once in 3 months
o As per needs
52
4. Within 6 months, how much do you spend on shopping at Pantaloons?
o below 4000
o above 4000
o below 10000
o above 10000
o below 20000
o above 20000
5. Does Pantaloons understand your needs & expectations?
o Strongly agree
o Agree
o Neutral
o Disagree
o Strongly disagree
6. Please rank how desirable do you find the current Loyalty Rewards?
o 5-star
o 4-star
o 3-star
o 2-star
o 1-star
7. How much time does Pantaloons team take to address your questions & concerns?
o Shorter than expected

o About what I expected
o Longer than expected
o Did not receive a response
8. Overall, rate the quality of services & products of Pantaloons as compared with the
price.
o 5-star
o 4-star
o 3-star
o 2-star
o 1-star
9. If holding the GREEN CARD, how satisfied are you with the current loyalty program,
based on the following points?
53
(5-Delighted | 4-Satisfied | 3- 2- Somewhat satisfied | 1- Not at all satisfied)
Particulars 5-star 4-star 3-star 2-star 1-star

Discounts on high-spending
Free items on multiple purchase
Free trial on new products
Cash back offers
Free home delivery
10. How well is Pantaloons taking care in COVID-19 to make the premises & online
shopping safe?
o Great Precautions
o Moderate Precautions
o Negligent
11. Based on your experience with Pantaloons, will you recommend this to other
individuals?
o Definitely will
o Probably will
o Might or might not
o Definitely will not
12. If holding the GREEN CARD, would you recommend non-card holders to enrol for
its membership?
o Definitely will
o Probably will
o Might or might not
o Definitely will not
13. How would you rate Pantaloons Green Card Program, overall?
o Excellent
o Above Average
o Average
o Below Average
o Poor
54
14. If not holding the GREEN CARD, are you willing to enrol for the membership?
o Yes
o No
15. Please tell us what Pantaloons should do to improve the quality & services and other
rewards to be included in the Loyalty Program.
55
Appendix B
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A

A Study Of Impact Of Loyalty Program On Consumer Purchase Behavior

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

Institute of Management Technology, Centre for Distance Learning

Dated: 28th July, 2021 Sumit Rawat

CERTIFICATE FROM GUIDE

Date: 28-07-2021 Rahul Sharma

Enrollment No. - 19A1016435

Cover page ...........................................................................................................

Declaration Certificate ............................................................................................. ii

Chapter-1: INTRODUCTION 1-11

Chapter-2: OBJECTIVES AND SCOPE OF STUDY 12

Chapter-3: REVIEW OF LITERATURE & THEORETICAL CONCEPTS 13-23

Chapter-4: RESEARCH METHODOLOGY 24-27

Chapter-5: ANALYSIS AND INTERPRETATION 28-45

Chapter-6: CONCLUSION & RECOMMENDATIONS 46-47

Chapter-7: LIMITATIONS OF THE STUDY 48

LIST OF TABLES: Pg. No.

TABLE 1.1 Pantaloons Green Card Membership Upgrade…...................................... 9

LIST OF GRAPHS: Page No.

GRAPH 5.1: Duration of Being a Pantaloons Customer….......................................... 29

LIST OF IMAGES: Page No.

LIST OF FIGURES: Page No.

FIG. 3.1 Loyalty Program impact on buying……………………………………… 21

1.1 INTRODUCTION OF THE STUDY

Customer loyalty is an unending constructive relationship between a customer and a business.

1.2 INDUSTRY TYPE: FASHION RETAIL

1.2.1 APPAREL RETAIL INDUSTRY IN INDIA:

1.3 COMPANY PROFILE:

1.3.1 PANTALOONS (Aditya Birla Fashion and Retail Limited):

IMG 1.1 Official logo of Aditya Birla Fashion and Retail

IMG 1.2 Pantaloons logo & tagline

LEADING BRANDS AT PANTALOONS:

1.3.2 PANTALOONS LOYALTY PROGRAM:

IMG 1.3 Current Loyalty Program scenario

IMG 1.4 Pantaloons Green card world of Privileges

IMG 1.5 Pantaloons multi-partner loyalty program with Payback

PAYBACK GREEN CARD MEMEBERS BENEFITS:

1.3.3 WHAT IS PAYBACK GREEN CARD?

GREEN CARD FEATURES:

TABLE 1.1 Pantaloons Green Card Membership Upgrade

0-7999 1-STAR 1% Cashback as reward points

8000-19999 3-STAR 3% Cashback as reward points

20000-39999 5-STAR 5% Cashback as reward points

40000+ 7-STAR 7% Cashback as reward points

TABLE 1.2 Pantaloons Green Card Tier Maintenance

8000-19999 3-STAR 3% Cashback as reward points

20000-39999 5-STAR 5% Cashback as reward points

40000+ 7-STAR 7% Cashback as reward points

1-STAR TIER BENEFITS:

• 1% cashback as reward points

3-STAR TIER BENEFITS:

• 3% cashback as reward points

5-STAR TIER BENEFITS:

• 5% cashback as reward points

7-STAR TIER BENEFITS:

• 7% cashback as reward points

CHAPTER 2: OBJECTIVE & SCOPE OF THE STUDY

This project aims at providing a theoretical outlook on various approaches on loyalty

2.2 SCOPE OF THE STUDY: