THE EFFECT OF LOYALTY CARD ATTITUDE, STORE SATISFACTION AND STORE LOYALTY ON PURCHASE INTENTION: THE CASE OF COSMETICS RETAILERS

Purpose- The purpose of the study is to see if the attitude towards loyalty card programs, store satisfaction and store loyalty create purchase intention in the cosmetics industry. More specifically, two cosmetics retailers –Gratis and Sephora – which are supposed to apply different loyalty programs are selected to examine if there are differences regarding consumers’ purchase intention for the two.Methodology- This research applies PLS-SEM to test the proposed model with the data obtained from 200 respondents who use loyalty cards of Sephora or Gratis.Findings- The results of Multi Group Analysis reveal that loyalty card attitude and store loyalty create purchase intention for the consumers of Gratis, but not for Sephora. On the other hand, loyalty card attitude exerts more influence on the store satisfaction and loyalty for Sephora than does for Gratis.Conclusion- Cosmetics retailers should design loyalty programs depending on the expected returns.

Keywords:

Loyalty card attitude, store satisfaction store loyalty, cosmetics retailers,

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