SUMMARY: LITERATURE REVIEW There is no one-size fits-all loyalty program concept and that customers are heterogeneous in their

preferences for loyalty program designs and identified three archetype loyalty program concepts appealing to unique customer segments. The customers in this segment are sensitive to price and promotional activities by companies in the segment. The findings of the study also showed that customers are driven to loyalty programmes due to rewards and points offered in the loyalty programme. Statistical tests were used to ascertain whether there were any significant differences amongst the demographic variables and the perception of Loyalty Cards. The demographic variables studied are gender, age, marital status and income group of respondents. Loyalty programs were found to help in reducing the competitors promotion, helped to form exit barrier, good word of mouth, and also helped to form good relationship with the customer as well which finally resulted to low switching and increased profit.