EFFECTS OF LOYALTY CARD PROGRAMS ON CUSTOMER BEHAVIOR AT SELECTED GASOLINE STATIONS IN FAIRVIEW, QUEZON CITY

Abstract

In the highly competitive fuel retail market, customer loyalty and brand retention are essential for sustaining business success. As vehicle ownership continues to rise, the steady demand for fuel has prompted gasoline stations to implement loyalty programs as a strategy to retain customers and increase satisfaction. This study examines the relationship between customer behavior and fuel retail strategies, focusing on the impact of loyalty card programs at selected gasoline stations in Fairview, Quezon City. It aims to assess how such programs influence customer satisfaction, loyalty, and purchasing decisions, with an emphasis on the role of service quality in fostering long-term customer relationships. The study applies the Technology Acceptance Model (TAM) to evaluate the effectiveness of loyalty card programs in shaping customer behavior and retention. Key constructs include perceived usefulness, perceived ease of use, customer attitudes, and behavioral intention. Loyalty cards commonly offer discounts, reward points, and easy registration and redemption processes that encourage continued use. Other engagement drivers include promotional visibility, peer influence, and accessible service information. A quantitative-descriptive research design was employed, using purposive sampling and structured survey questionnaires. Data were analyzed through frequency distribution, weighted means, and the Kruskal-Wallis H-test. The results showed that loyalty card programs positively influenced customer satisfaction and increased repeat visits. The most responsive demographic consisted of male customers aged 46 and above, many of whom use tricycles for transport. Rewards such as food, beverages, and basic car services were identified as key motivators for customer loyalty. However, certain limitations were observed, including unclear communication about rewards, registration issues, and the lack of appealing incentives, all of which hindered full customer engagement with the loyalty programs. To address these challenges, the study recommends the installation of interactive kiosks at participating gasoline stations. These kiosks would allow customers to view promotions, track reward points, redeem incentives, and access transaction histories. By enhancing information access and reward visibility, this initiative aims to improve customer engagement and satisfaction. Ultimately, the implementation of such systems could strengthen customer loyalty and increase retention in an increasingly competitive fuel retail environment.