Abstract:
Nowadays, with the fast growing technologies and strategies the business environment
has become so complex. It has become very difficult for the marketers to make place in
the fast growing markets. So in order to survive in the dense competitive environments,
companies must compete on one or the other factors; otherwise there is no need for the
companies to enter as they longer can stay there. Everyone wants their business to be
successful but it’s not as easy as it looks. Placing your product in the top of the mind for
your customer needs certain techniques and one of the techniques used by marketers in
offering the customer rewards and incentives.
This present study has attempted to empirically examine the influence of rewards and
incentives on repeat customer purchase and hence leading to consumer extravagance.
The study is based on how actually the customer’s perceptions are influenced and how
the marketers play with their mind sets. It also explains that how rewards and incentives
incite the customers buying behaviors and motivates them to make purchase decisions.
The purpose of the study is to explain the relationships between the variables that are
rewards, incentives, repeat purchase behavior and consumer extravagance. Rewards and
incentives play the role of dependent variables and the other two being the dependent
variables.
The study is estimated by the regression model, correlation models to assess the
variations and significance among the variables. The method recommended by Baron &
Kenny (1986) is used to estimate the results of 245 respondents from the twin cities of
Pakistan. It has been found out that rewards and incentives have a positive impact on
repeat customer purchases.
As individuals are incited by getting something in return of an action, the rewards or
incentives offered on a product or service motivates them to make a purchase decision.
This is also been discussed that this repetitive customer behavior leads to consumer
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extravagance. People tend to buy more than required or needed when offered by such
instruments. The particular study is focused more towards the clothing segment of
Pakistan. Females play a more dominant role in this field. But nevertheless, customers as
whole are attracted by such offers.
Finally, the existing study has highlighted its part in the present field of inquiry. The
conceptual and methodological limitations and the directions for future work are also
been mentioned.
