The impact of loyalty programs on repurchase behavior: a case study of online retail

Abstract

Repurchase behavior plays a significant role in the sustainable success of businesses, especially in the context of online retail. This study was conducted to elucidate the factors driving repeat purchase behavior among Generation Z. Data was collected from 406 respondents through an online survey (Google Form) and analyzed using SmartPLS software. The results indicate that relationship quality is strongly influenced by customer experience and, in turn, plays a crucial mediating role in transforming the impact of customer experience into repurchase intention. Additionally, the study reveals that loyalty programs are less effective when relationship quality is high but positively complement customer experience improvements. These findings provide a foundation for businesses in the online retail sector to develop comprehensive customer management strategies aimed at fostering repurchase intention, particularly among Generation Z, a group of potential consumers.