South African fuel industry, customer perceptions and satisfaction, and their impact on customer loyalty and repurchase intention

Abstract

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

Customer Loyalty Programmes in South Africa

“…These findings support previous studies conducted by Thakur (2018), Herjanto andAmin (2020, p. 6), Van Tonder andPetzer (2018), Rather and Sharma (2016), Zakaria et al (2014, p. 28) and Mgiba and Madela (2020). In addition, this study concluded that FMCGs customers expect utilitarian, hedonic and symbolic values as loyalty programme benefits.…”

Reinforcing purchase behaviors through CSR and ethical practices

“…Consumers repurchase the product or services due to quality, attributes or price. Researchers also examined that repurchase behavior exists due to identification or loyalty (Mgiba and Madela, 2020). But when an individual motivates through the CSR, ethical or green strategies, and purchases the product of that firm impulsively whether they intent to repurchase or not?…”

Exploring Tourists’ Intention to Visit a Heritage Destination

“…Customer loyalty is proven by repeat purchases, purchasing frequency, recommendations to other potential customers, price tolerance and a positive review (Stylidis et al, 2020). Therefore, loyalty is defined as a commitment to rebuy or repatronise a preferred product or service consistently in the future, leading to repetitive same-brand or the same brand set purchasing (Bahtiar & Zaini, 2014;Mgiba & Madela, 2020;Mohamad, 2020). Even though loyalty has been discussed from behavioural and attitudinal approaches, they argue that these approaches are inadequate in explaining and measuring the truth of loyalty, including the behavioural of repurchasing, revisiting and recommending.…”