IMPACT OF INCENTIVE CHANGES ON CUSTOMER RETENTION: A COMPARATIVE STUDY OF 10% DISCOUNT VS. POINT SYSTEM AT ZOYA JABABEKA

Abstract

Purpose - This study evaluates at how changing from a 10% discount incentive to a point system affects customer loyalty and buying behaviour at Zoya Jababeka. Furthermore, it aims to examine the impact of new incentives to drive sales. It is believed that the findings of this study will help Zoya Jababeka make better decisions and add to understanding of loyalty and retention of customers in the Muslim fashion sector. Methodology - The study employs a combination method approach, integrating quantitative experiments and qualitative interviews. The sample comprises 90 respondents over two months, divided into control, 10% discount, and points system groups. Quantitative instruments derive from point-of-sale sales data, while qualitative tools consist of questionnaires and interviews. Findings - Changes in incentives between the control and the discount group, as well as the control and the point group, had no significant impact on visit frequency or purchases amount. However, there was a significant difference in the number of purchases between the discount and the point group, but not in the frequency of visits Practical Implications - The study provides insights for retail store in managing the transition from discount to points to enhance customer satisfaction and sales. Effective communication about point incentive benefits, regular program evaluations, and customer service improvement are crucial for sustaining it. Original/Value - This research serves as the first model to evaluate the impact of incentive changes on customer satisfaction and retail fashion store sales.