An Empirical Study On The Effects Of Consumption Behavior Of Yoga Enterprises In Shanghai On Continued Rate

Consumer loyalty, which has a great significance for enterprise survival and development, is one of the main market issues. The academe and practitioners have paid extensively and highly attention to this issue for a long time. It’s generally accepted that there is a positive relationship between customer loyalty and corporate profits. Meanwhile, a variety of activities are designed to increase customer loyalty in business practices, for example, the frequent flyer program, membership, points rebate. Among them, the membership has been adopted by more and more enterprises in recent years, and most of fitness clubs have put this kind of customer attraction method and consumption mode into practice. After20years of development, the number of brands in Chinese fitness industry rapidly grow, coupled with the constant competition with the well-known fitness brands abroad. The revenues of the clubs highly depend on customers’ renewal membership rates according to the experience of the western countries. However, there are two separate processes including purchase process and consumption process in the pre-paid membership model. Renewing card, as a kind of repeat purchase behaviors, generally is regarded as a behavioral indicator to measure customer loyalty in previous studies. Customer consumption is also an indicator to measure customer behavioral loyalty. Then in the pre-paid membership system, what’s the relationship between the two indicators? What’s the relationship between these two behavioral indicators of customer loyalty and corporate income? This paper does a empirical study on purchase and consumption data of a Chinese yoga club, illustrating the importance of renewal behavior, evaluating the impact by consumption frequency on the renewal rate. The data were analyzed and fitted by liner regression and descriptive statistic analysis. The result indicates that consumption frequency has a positive influence on the renewal rate of membership. It’s also found that there is an absolute renewal threshold for the first year customers, and there is a glass ceiling effect for old customers. Finally, formula derivation further proves the importance of customer behavior on profit gains for the yoga center.