Essential For Measuring Our Variables

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Operationalization is essential for measuring our variables of interest in order to test our hypothesis and obtain the answers to our questions (Sekaran 197). Our variables are more difficult to measure since they consist of subjective characteristics rather than objective. When looking at our hypothesis: customer loyalty programs do not serve the primary purpose of increasing customer loyalty, it is first important to consider the objects of interest, their attributes and consider an adequate judge. Attributes are important because you cannot measure an object itself, you need to measure the attributes of an object. In this case, the objects of interest are customer loyalty programs, the attributes are their ability to influence customer…show more content…
Once the dimensions are defined, its important to break them down further into elements. Independent Variable: Customer Loyalty Programs The first dimension to look at is how many people sign up for customer loyalty programs. The element of this dimension is if these programs are properly designed to attract customers to sign up, then most often then not, they will. If people are not enticed to sign up, the program may need to be revised. Customers also need to understand clearly the perks of the program in order to evaluate whether or not the program is worth joining. The second dimension is to look at the benefits of the program to see if they outweigh the cost. This can be assessed by using different types of rewards. For example, most customers may want to accumulate a cash value they can put towards a next purchase (such as a Shoppers Optimum Card) vs. a points program where they can trade their points for mini product samples or receive a free birthday gift every year (such as the Sephora Beauty Insider Card). The element can consist of assessing different types of program structures to see what motivates clients to become a member. The third dimension can consider if there is a cost associated upon registering or maintaining a member of a loyalty program. The element may consider that the benefit has to largely outweigh the cost to become a member. For example, Sally’s Beauty Supply membership is free to sign
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