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Teresa Hurley

DBA Graduate - 2015

Thesis title

Incentivizing and re-activating lapsed consumers: empirical studies in the fitness industry


Corinne Faure

Teresa is the head of the School of Management at Dublin Institute of Technology,where she manages a range of undergraduate and postgraduate programmes across a variety of business disciplines, including
technology and innovation management, human resource management, logistics and supply chain management, business studies, business computing, and business software development. Her research interests lie in the marketing domain.

This quantitative study examines factors influencing the re-engagement intentions and re-engagement behaviour of lapsed health club members and identifies which sales promotion incentives are most effective in re-engaging this lapsed member market. While previous studies have examined re-engagement intentions in isolation, no research could be located which examined re-engagement intentions and actual true re-engagement behaviour and the impact of promotion incentives in the service sector. The study was composed of Study A, a mail survey to gauge re-engagement intentions of lapsed members and Study B, an experimental field study to measure actual true re-engagement behaviour using price and gift token as incentives to re-engage lapsed health club members. The results are highly significant with the survey indicating that price was the most influential incentive in promoting re-engagement intentions of lapsed members, while the experimental field study tested this survey finding and reported that although incentives were more effective than non-incentives in terms of re-engagement behaviour, price played a far greater significant role than gift token in actual re-engagement behaviour of lapsed members. The results also indicate that highly satisfied customers are likely to have stronger re-engagement intentions. Frequent attendees were also found to be more influenced by price in terms of re-engagement intentions, while those who lapsed most recently demonstrated stronger re-engagement behaviour. Health clubs should therefore seek to keep members satisfied, increase frequency of attendance and commence the re-engagement process prior to the membership expiry so as to maximize re-engagement and customer retention using price discount as an incentive. A guide to the terminology used in this study is provided in Appendix D and keywords are outlined below: Consumer re-engagement: lapsed members: re-engagement behaviour/intentions: sales promotion: relationship marketing: customer relationship management: service recovery: health and fitness.