Since the prevalence of loyalty programs worldwide, one of the urgent issues in retailing is whether\r\nloyalty programs really enhance customer loyalty. This paper proposes a conceptual framework that\r\nutilizes the construct of customer value to explain the link between loyalty programs and customer\r\nloyalty in retail context. Based on 450 respondents from members of several large department stores,\r\nthe results posit that loyalty programs have indirect positive impact on behavioral loyalty, affective\r\nloyalty via utilitarian value, hedonic value. This mediating progress is moderated by relationship\r\nbenefits derived from the long-term relationship between retailers and their customers. The results also\r\nshow that the role of utilitarian value playing in promoting customer loyalty is more significant, which\r\nhas certain reference for retailers to design effective loyalty programs.
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