Effect of Customer Loyalty Programs on Consumer Purchasing Behavior in Organized Retail Stores of Bhopal City

Abstract

India's retail industry is experiencing steady growth, with retail markets continuing to expand beyond expectations. As the fifth most favored shopping destination globally, India is witnessing increased participation from both international and domestic players, intensifying competition among retailers. In cities like Bhopal, the retail sector, particularly shopping malls, is expanding rapidly. To succeed in this competitive environment, malls and retailers must implement effective strategies to attract and retain customers.

This study explores consumer behavior in response to the presence of organized retailers in Bhopal, focusing on the impact of customer loyalty programs on retail buying patterns. The research aims to assist organized retail stores in developing a more effective retail mix strategy to attract customers and ensure long-term sustainability. Secondary data and relevant literature were analyzed to achieve the study's objectives. Findings from the research indicate that consumers in Bhopal are drawn to organized retail outlets by various factors, including product diversity, ambiance, discounts, loyalty programs, efficient payment processes, customer service, parking facilities, and systematic product displays.