This study examines the effect of selective promotion and assortment based on customer relationship management (CRM) data as well as reward points on share of wallet (SOW), expenditure, and customer satisfaction, coupled with the moderating effects of customers’ brand loyalty and variety-seeking behavior in retail.

This study adopts a two-stage, multi-method research design using a qualitative study followed by a quantitative study to construct a theoretical framework on the hypotheses. The results show that reward points directly enhance SOW whereas assortment based on CRM enhances customer satisfaction. Additionally, the effect on expenditure by reward points is strengthened by brand loyalty, whereas selective promotion is strengthened by variety-seeking behavior.

Although existing research indicates the CRM effect that leads to effective communication with customers and more efficient merchandising, previous research mainly examined the effect of CRM implementation or reward points. Therefore, the difference between the effect of reward points and other CRM activities remains unclear. This study verifies the different effects of multiple CRM activities in retail, identifies brand loyalty and variety-seeking behavior as original contingent factors of CRM, and verifies their influence on respective CRM activities.