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- All Subjects: Loyalty
- All Subjects: PCM Framework
- Creators: Kellogg, Preston
- Status: Published
Description
Commitment to an activity is widely studied in leisure research. Serious Leisure Perspective (SLP) describes characteristics a committed activity participant possesses. The Psychological Continuum Model (PCM) describes the psychological process a person goes through to become committed to a leisure activity. Awareness, attraction, attachment and loyalty make of the four stages of PCM. Both perspectives have been used to describe committed leisure activity participants and commitment to organized recreational events. Research on leisure activity has yet to determine how the individual becomes loyal. Therefore, the purpose of this study is to determine the process in which recreation activity participates becomes loyal and to identify who can be labels as serious within the PCM Framework. Data was obtained from an online electronic survey distributed to participants of four U.S. marathon and half marathon events. A total of 579 responses were used in the final analysis. Path analysis determined the process in which a runner becomes committed. MANOVA is used to determine difference between leisure groups in the four stages of PCM. Results indicate that activity participants need to go through all four stages of PCM before becoming loyal. As knowledge increases, individuals are more motivated to participate. When the activity satisfies motives and becomes a reflection of their identity, feelings become stronger which results in loyalty. Socialization is instrumental to the progression through the PCM Framework. Additionally, attachment is the "bottleneck" in which all loyal activity participants my pass through. Differences exist between serious leisure groups in the attachment and loyalty stages. Those that are `less serious' are not as committed to the activity as their counterparts.
ContributorsMurphey, Elizabeth M (Author) / Lee, Woojin (Thesis advisor) / Hultsman, Wendy (Thesis advisor) / Larsen, Dale (Committee member) / Chisum, Jack (Committee member) / Arizona State University (Publisher)
Created2014
Description
Research has shown that acquiring a new customer is between 5 and 25 times more costly than retaining existing customers and that a 5% increase in customer retention can increase profits anywhere between 25% and 94%, (Gallo, 2014). In part because of these statistics, many businesses utilize loyalty rewards programs to both incentivize potential customers into trying their business and to retain their existing customers. Once a customer has joined a loyalty rewards program, they will bring in more revenue than those outside the program. For example, in the retail industry, members of loyalty rewards programs generate between 12% and 18% more revenue than their counterparts not participating in the loyalty rewards program, (Accenture, 2016). Creating an attractive loyalty rewards program can greatly boost a business’s revenue – if done correctly.
This Thesis proposes a business plan for a cross-business loyalty rewards program. There are two target markets for this business - small to medium sized business (specifically businesses that attract large numbers of repeat customers) and the customers they seek to attract. This cross-business loyalty rewards program will be made possible through management software that will allow these businesses to both manage their rewards programs and have access to tools that will allow them to collect data on their consumers’ habits, manage marketing campaigns, and allow them to better connect with their consumers. The aspect of this management software that will differentiate it from competitors will be the cross-business nature of the program. Points earned by a customer frequenting one business (e.g. restaurant) can be used in other businesses using the same program (e.g. hairdresser). By “sharing” consumers in this way, businesses will incentivize customers to try new businesses, greatly reducing the cost these businesses will invest in acquiring new customers while also helping to retain both existing and new customers, thus increasing revenue.
This Thesis proposes a business plan for a cross-business loyalty rewards program. There are two target markets for this business - small to medium sized business (specifically businesses that attract large numbers of repeat customers) and the customers they seek to attract. This cross-business loyalty rewards program will be made possible through management software that will allow these businesses to both manage their rewards programs and have access to tools that will allow them to collect data on their consumers’ habits, manage marketing campaigns, and allow them to better connect with their consumers. The aspect of this management software that will differentiate it from competitors will be the cross-business nature of the program. Points earned by a customer frequenting one business (e.g. restaurant) can be used in other businesses using the same program (e.g. hairdresser). By “sharing” consumers in this way, businesses will incentivize customers to try new businesses, greatly reducing the cost these businesses will invest in acquiring new customers while also helping to retain both existing and new customers, thus increasing revenue.
ContributorsKellogg, Preston (Author) / Eaton, John (Thesis director) / Schlacter, John (Committee member) / Department of Marketing (Contributor) / Barrett, The Honors College (Contributor)
Created2020-05