A Study of Consumer Awareness of Blockchain-Based Loyalty Programs
DOI:
https://doi.org/10.53983/ijmds.v15n04.004Keywords:
Blockchain, Loyalty Programs, Consumer Awareness, Chi-square Analysis, Cross-tabulation, Digital AdoptionAbstract
The increasing digitization of business ecosystems has significantly transformed the way organizations interact with customers, leading to the widespread adoption of loyalty programs aimed at enhancing customer retention, engagement, and long-term value creation. However, traditional loyalty programs continue to face several structural and operational challenges, including lack of transparency, fragmentation across multiple platforms, low redemption rates, and vulnerability to fraud and data security breaches. In this context, blockchain technology has emerged as a transformative solution with the potential to address these inefficiencies. By offering a decentralized, secure, and transparent framework, blockchain enables real-time tracking of transactions, eliminates intermediaries, and enhances trust among stakeholders. Despite these advantages, the successful implementation of blockchain-based loyalty programs is highly dependent on consumer awareness, understanding, and acceptance of the technology. This study investigates the level of awareness of blockchain-based loyalty programs among consumers. A structured questionnaire was administered to a sample of 500 respondents, and the collected data were analyzed using descriptive statistics, Chi-square tests, and cross-tabulation techniques. The findings reveal that awareness levels are moderate, with significant variations across demographic factors such as age, education, and occupation. These findings offer valuable insights for businesses and policymakers to design targeted awareness initiatives and develop user-friendly systems to enhance adoption of blockchain-based loyalty programs.
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