The Impact of Information Benefits on Confirmation of Digital Loyalty Programmes in a Developing Economy
Keywords:
Technology continuance theory; social exchange theory; retail; mobile applicationsAbstract
The rise of the internet and smartphones has enabled retailers to integrate loyalty programmes into mobile applications, allowing consumers to store loyalty cards digitally. This study investigated the impact of information benefits on the confirmation of digital loyalty programmes by township retail shoppers in a developing economy. While prior research had examined the impact of confirmation on information benefits, this study reversed the relationship, exploring the impact of information benefits on confirmation. Following a positivist and deductive methodology, the study employed a survey to collect data from 516 Black South African township retail shoppers who used digital loyalty programmes. Data were analysed using SmartPLS 4 for structural equation modelling. Results indicate that information benefits have a positive but weak impact on confirmation, suggesting that retailers should prioritise information benefits when designing and marketing digital loyalty programmes. The study contributed new knowledge by addressing a previously unexplored relationship through integrating technology continuance and social exchange theories – two theoretical lenses not previously integrated into this setting. Its originality lay in its focus on township shoppers, an underrepresented segment, therefore it enhanced theory and provided actionable guidance for retailers.
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