A STUDY OF CONSUMER’S INTENTION TO CONTINUE TO USE OR APPLY FOR THE DEPARTMENT STORE CO-BRANDED CREDIT CARD－THE MODERATING ROLE OF LOYALTY PROGRAM

• Main Authors: Chih-hao Chiang, 姜智豪
• Other Authors: Mei-fang Chen
• Format: Others
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/57k7de

碩士 === 大同大學 === 事業經營學系(所) === 102 === Marketers in Taiwan commence to use types of brand alliance strategies, especially co-branding. The big success of co-branded credit cards introduced by both the banking industry and the retailing industry in Taiwan to increase revenues and expand the market shares. In order to promote the volume of department store co-branded credit cards, each department stores launch kind of product combination and loyalty program to attract more consumer visit and expand their money in the department stores. According to Taiwan Industry Economics Services (2013), among the department stores issuing the department store co-branded credit card, the first two leading enterprises are Shin Kong Mitsukoshi and Pacific SOGO department store and the market share of the former is 36.68% and the latter is 20.76%, respectively. Co-branding strategy can bring a lot of benefits to enterprises, thus department store co-branded with commercial bank. Such as: Shin Kong Mitsukoshi co-branded with Taishin International Bank and Shin Kong Bank; Pacific SOGO department store co-branded with Cathay United Bank respectively. Many previous studies focused on the strategic performance of the co-branded credit card or loyalty programs. Few studies explored co-branded credit card and loyalty program at the same time. This study aims to investigated (1) consumer who have the department store co-branded credit cards of the first two leading department store, whether or not consumer’s affective loyalty to the bank and affective loyalty to the department store will influences consumer’s attitude toward the department store co-branded credit card. Whether or not this attitude will influence consumer’s intention to continue to use the department store co-branded credit card. (2) Consumer who had only applied credit card issued by the bank which cooperated with the first two leading department store rather than department store co-branded credit card, whether or not consumer’s affective loyalty to the bank and affective loyalty to the department store will influences consumer’s attitude toward the department store co-branded credit card. Whether or not this attitude will influence consumer’s intention to apply for the department store co-branded credit card. And (3) the participants who have experiences shopped in these two department stores despite they neither apply the credit card issued by the bank which cooperated with the department store nor the department store co-branded credit card before, whether or not consumer’s affective loyalty to the department store will influences consumer’s attitude toward the department store co-branded credit card. Whether or not this attitude will influence consumer’s intention to apply for the department store co-branded credit card. Besides, department stores face fierce competition, thus these department store push many loyalty programs to attract consumers. This study will explore whether the loyalty program will interrupt the relationship between consumer's attitude towards the department store co-branded credit and intention to continue to use or apply for the department store co-branded credit card. The results indicate that for those who had applied department store co-branded credit card and those who had only applied credit card issued by the bank which cooperated with the department store rather than department store co-branded credit card, both consumer’s affective loyalty to the bank and affective loyalty to the department store indeed exert positive impacts on his/her attitude toward department store co-branded credit card, which in turn influence his/her intention to continue to use and/or apply for the co-branding card. Loyalty program will not enhance the positive relationship between consumer’s attitude toward the department store co-branded credit card and intention to continue to use or apply for the department store co-branded credit card. In addition, for those who neither apply the credit card issued by the bank which cooperated with the department store nor the department store co-branded credit card, consumer's affective loyalty to the department store can induce his/her attitude toward department store co-branded credit card, which in turn influences his/her intention to apply for department store co-branded credit card. Furthermore, loyalty program will enhance the positive relationship between consumer’s attitude toward the department store co-branded credit card and intention to apply for the department store co-branded credit card. Based on results of this study, the practical implications and suggestions for both the banking industry and the retailing industry are also provided in this study.