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The Impact of Customer Retention Programs on Individuals and an Adaptation of the Technology Acceptance Model

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The purpose of this report is to provide insight into the customer loyalty program, Flybuys, and to evaluate the impact it has had on individuals in terms of the function of its business model, its integration into society, and its innovation. The scope and limitations of the technology acceptance model (TAM) is explored, as well as the relevance of customer retention programs, such as Flybuys, to individuals in the customer loyalty marketplace. A proposal for the integration of additional elements into TAM for improved accuracy and predictability is also presented. Product Background Flybuys is a customer loyalty service owned by the coles division of Wesfarmers limited, which is known to be one of the most prevalently traded public companies in Australia. Flybuys was developed as a collaborative effort between Shell, NAB and Wesfarmers predecessor, Coles Myer, in an overwhelmingly successful attempt to gain public interest in their services to boost customer loyalty and ultimately in