The effect of perceived benefits of loyalty programs on Gen Z’s customer retention in Ho Chi Minh City convenience stores: The moderating role of ai experience

Abstract

In the current context, study has found that there is a notable increase in customer engagement with convenience stores through loyalty programs in Ho Chi Minh city. However, the factors driving customer satisfaction and customer retention through these programs still remain partially understood. This study delineates three perceived benefits of loyalty programs (symbolic benefits, utilitarian benefits, and hedonic benefits) and their impact on customer satisfaction and customer retention. Additionally, the role of AI experiences in moderating relationships between perceived benefits and customer satisfaction is also examined. Data were collected from Gen Z customers of convenience stores in Ho Chi Minh City, with a sample size of 400 suitable questionnaires selected for variable analysis. The conceptual framework posits that perceived benefits of loyalty programs positively influence customer satisfaction, which subsequently drives customer retention. The results showed that Hedonic Benefits had the most substantial impact on customer satisfaction, followed by Utilitarian Benefits, while Symbolic Benefits exhibited a weak relationship. The analysis also revealed that AI experience had no moderating effect on the perceived benefits of loyalty programs, as evidenced by non-significant coefficients across all categories. Using Smartpls 4.1.0.9, the findings underscore that enhancing the hedonic and utilitarian aspects of loyalty programs can significantly improve customer satisfaction and retention. Furthermore, focusing on customer satisfaction serves as a crucial pathway to fostering loyalty, as evidenced by its robust correlation with retention outcomes. In the current context, study has found that there is a notable increase in customer engagement with convenience stores through loyalty programs in Ho Chi Minh city. However, the factors driving customer satisfaction and customer retention through these programs still remain partially understood. This study delineates three perceived benefits of loyalty programs (symbolic benefits, utilitarian benefits, and hedonic benefits) and their impact on customer satisfaction and customer retention. Additionally, the role of AI experiences in moderating relationships between perceived benefits and customer satisfaction is also examined. Data were collected from Gen Z customers of convenience stores in Ho Chi Minh City, with a sample size of 400 suitable questionnaires selected for variable analysis. The conceptual framework posits that perceived benefits of loyalty programs positively influence customer satisfaction, which subsequently drives customer retention. The results showed that Hedonic Benefits had the most substantial impact on customer satisfaction, followed by Utilitarian Benefits, while Symbolic Benefits exhibited a weak relationship. The analysis also revealed that AI experience had no moderating effect on the perceived benefits of loyalty programs, as evidenced by non-significant coefficients across all categories. Using Smartpls 4.1.0.9, the findings underscore that enhancing the hedonic and utilitarian aspects of loyalty programs can significantly improve customer satisfaction and retention. Furthermore, focusing on customer satisfaction serves as a crucial pathway to fostering loyalty, as evidenced by its robust correlation with retention outcomes.