Abstract:
In today's dynamic and competitive retail environment, customer satisfaction is
crucial for customer retention and long-term business success.
The objectives of this study are to identify$ the levels of loyalty card programs
(Customer Commitment and Involvement, Variety Seeking , Privacy Concerns and
Anticipated Benefit ) and Customer Satisfaction, to identi$r the relationship between
loyalty card programs (Customer Commitment and Involvement, Variety Seeking ,
Privacy Concerns and Anticipated Benefit) and customer satisfaction, and to identify
the impact of loyalty card programs (Customer Commitment and involvement,
Variety Seeking, Privacy, Concerns and Anticipated Benefit) on customer satisfaction.
A quantitative research approach was employed using structured questionnaires to
gather data from 392 loyalty cardholders across leading supermarket chains in
Badulla and Monaragala clistricts. Respondents were selected using satisfied random
sampling to ensure diversity in consumer demographics and loyalty card usage
behavior. The collected data were analyzed using univariate analysis, bivariate
analysis and rnultiple regression analysis to test the strength and significance of the
relationships between variables. The findings reveal a strong positive correlation
between the effectiveness of loyalty card programs and customer satisfaction. Among
the loyalty card features examined, Customer Commitment and Involvement, Variety
Seeking, Privacy Concerns and Anticipated Benefit had the highest influence on
customer satisfaction.
Furthermore, the study found that customers who frequently used their loyalty card
reported higher satisfaction level than occasional users, indicating a behavioral
dimension to loyalty effectiveness. This research provides actionable insights for
supermarket retailers in Uva province, suggesting that well designed loyalty programs
can substantially improve customer satisfaction and, by extension, customer loyalty.
Keywords: Customer Commitment and Involvement, Variety Seeking, Privacy
Concerns, Anticipated Benefit, Customer Satisfaction.
