UNDERSTANDING THE RELATIONSHIPS OF PROGRAM SATISFACTION, PROGRAM LOYALTY AND STORE LOYALTY AMONG CARDHOLDERS OF LOYALTY PROGRAMS

Nor Asiah Omar · Norzalita Abd Aziz · Muhamad Azrin Nazri

24 citations0/0 files storedAsian Academy of Management Journal

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Customer Service Quality and Loyalty Consumer Market Behavior and Pricing Consumer Retail Behavior Studies

Abstract

Loyalty programs have increasingly attracted interest in both academic marketing research and practice. One major factor that has been increasingly discussed is loyalty. In this study we examine the influence of cardholders' satisfaction on loyalty (program loyalty and store loyalty) in a retail context, namely, in department stores and superstores. Data were collected from 400 cardholders of a retail loyalty program in Klang Valley, Malaysia via the drop-off-and-collect technique. Structural modelling techniques were applied to analyze the data. The results indicated that program satisfaction is not related to store loyalty (share-of-wallet, share-of-visit and store preference). However, loyalty to the program (program loyalty) plays a crucial intervening role in the relationship between program satisfaction and store loyalty. The study underscores the principal importance of program loyalty in the retail loyalty program.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1988Structural equation modeling in practice: A review and recommended two-step approach.1988On the Evaluation of Structural Equation Models 1992Measuring Service Quality: A Reexamination and Extension 1999Whence Consumer Loyalty?1994Customer Loyalty: Toward an Integrated Conceptual Framework 1977Marketing Research: Methodological Foundations 1989Consumer Perceptions of Interpersonal Equity and Satisfaction in Transactions: A Field Survey Approach

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