• Title/Summary/Keyword: Loyalty program

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The Marketing Effect of Loyalty Program on Relational Market Behavior : Focusing in Franchise Membership Fitness Club (로열티 프로그램이 고객 참여와 소비자-브랜드 관계에 기초한 관계형 시장 행동에 미치는 영향 : 프랜차이즈 회원제 휘트니스클럽을 대상으로)

  • Yoon, Kyung-Goo;Shin, Geon-Cheol
    • Journal of Distribution Research
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    • v.17 no.2
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    • pp.1-28
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    • 2012
  • I. Introduction : The purpose of this study is to test empirically hypothetical causality among constructs used in previous studies to build the model of relational market behavior on customers' participation and consumer-brand relationship after introducing theories of relationship marketing, loyalty program, consumer-brand relationship, customers' participation in service marketing as previous studies with regard to relational market behavior, which Bagozzi(1995) and Peterson(1995) commented on constructs and definition suggested by Sheth and Parvatiyar (1995). For this purpose, loyalty program by the service provider, customers' participation and consumer-brand relationship as preceding variables explain relational market behavior defined by Sheth and Parvatiyar(1995). This study proposes that loyalty program as a tool of relationship marketing will be effective in that consumers' participation in marketing relationship results in a narrow range of choice(Sheth and Parvatiyar, 1995) because consumers think that their participation motive result in benefits(Peterson, 1995). Also, it is proposed that the quality of consumer-brand relationship explain the performance of relationship as well as the intermediary effect because the loyalty program could be evaluated based on relationship with customers. We reviewed the variables with regard to performance of relationship based on relation maintain in marketing literature, and then tested our hypotheses related to several performance variables including loyalty and intention of relation maintain based on the previous studies and constructs(Bendapudi and Berry, 1997 ; Bettencourt, 1997 ; Palmatier, Dant, Grewal and Evans, 2006 ; You Jae Yi and Soo Jin Lee, 2006). II. Study Model : Analyses about hypothetical causality were proceeded. The marketing effect of loyalty program on relational market behavior was empirically tested in study regarding a service provider. The research model in according to the path hypotheses (loyalty program ${\rightarrow}$ customers' participation ${\rightarrow}$ consumer-brand relationship ${\rightarrow}$ relational market behavior and loyalty program ${\rightarrow}$ consumer-brand relationship, and loyalty program ${\rightarrow}$ relational market behavior and customers' participation ${\rightarrow}$ consumer-brand relationship, and customers' participation ${\rightarrow}$ relational market behavior) proceeded as an activity for customer relation management was suggested. The main purpose of study is to see if relational market behavior could be brought as a result of developing relationship between consumers and a corporate into being stronger and more valuable when a corporate or a service provider try aggressively to build the relationship with customers (Bettencourt, 1997; Palmatier, Dant, Grewal and Evans, 2006; Sheth and Parvatiyar, 1995). III. Conclusion : The results of research into the membership fitness club, one of service areas with high level of customer participation (Bitner, Faranda, Hubbert and Zeithaml, 1997; Chase, 1978; Kelley, Donnelly, Jr. and Skinner, 1990) are as follows: First, causalities in according to path hypotheses were tested, after the preceding variables affecting relational market behavior and conceptual frame were suggested. In study, all hypotheses were supported as expected. This result confirms the proposition suggested by Sheth and Parvatiyar(1995), who claimed that intention of consumer and corporate to participate in marketing relationship brings high level of marketing productivity. Also, as a corporate or a service provider try aggressively to build relationship with customers, the relationship between consumers and a corporate can be developed into stronger and more valuable one (Bettencourt, 1997; Palmatier, Dant, Grewal and Evans, 2006). This finding supports the logic of relationship marketing. Second, because the question regarding the path hypothesis of consumer-brand relationship ${\rightarrow}$ relational market behavior are still at issue, the further analyses were conducted. In particular, there existed the mediating effects of consumer-brand relationship toward relational market behavior. Also, multiple regressions were conducted to see if which one strongly influences relational market behavior among specific question items with regard to consumer-brand relationship. As a result, the influence between items composing consumer-brand relationship and ones composing relational market behavior was different. Among items composing consumer-brand relationship, intimacy was an influence of sustaining relationship, word of mouth, and recommendation, intimacy and interdependence were influences of loyalty, intimacy and self-connection were influences of tolerance and advice. Notably, commitment among items measuring consumer-brand relationship had the negative influence with relational market behavior. This means that bringing relational market behavior is not consumer-brand relationship without personal commitment, but effort to build customer relationship like intimacy, interdependence, and self-connection. This finding confirms the results of Breivik and Thorbjornsen(2008). They reported that six variables composing the quality of consumer-brand relationship have higher explanation in regression model directly affecting performance of consumer-brand relationship. As a result of empirical analysis, among the constructs with regard to consumer-brand relationship, intimacy(B=0.512), interdependence(B=0.196), and quality of partner(B=0.153) had the effects on relation maintain. On the contrary, self-connection, love and passion, and commitment had little effect and did not show the statistical significance(p<0.05). On the other hand, intimacy(B=0.668) and interdependence(B=0.181) had the high regression estimates on word of mouth and recommendation. Regarding the effect on loyalty, explanation level of the model was high(R2=0.515), intimacy(0.538), interdependence(0.223), and quality of partner(0.177) showed the statistical significance(p<0.05). Furthermore, intimacy(0.441) had the strong effect as well as self-connection(0.201) and interdependence (0.163) had the effect on tolerance and forgive. And these three variables showed effects even on advice and suggestion, intimacy(0.373), self-connection(0.270), interdependence (0.155) respectively. Third, in study with regard to the positive effect(loyalty program ${\rightarrow}$ customers' participation, loyalty program ${\rightarrow}$ consumer-brand relationship, loyalty program ${\rightarrow}$ relational market behavior, customers' participation ${\rightarrow}$ consumer-brand relationship, customers' participation ${\rightarrow}$ relational market behavior, consumer-brand relationship ${\rightarrow}$ relational market behavior), the path hypothesis of customers' participation ${\rightarrow}$ consumer-brand relationship, was supported. The fact that path hypothesis of customers' participation ${\rightarrow}$ consumer-brand relationship was supported confirms assertion by Bitner(1995), Fournier(1994), Sheth and Parvatiyar(1995) about consumer relationship to participate in marketing relationship.

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The Mediating Effect of Brand Trust on the Relationship between Brand Value and Brand Loyalty in the Dessert Cafes (디저트 카페의 브랜드 가치와 브랜드 충성도 관계에 브랜드 신뢰의 매개효과)

  • Kwon, Ki-Wan;Choi, Ik-Jun;Kim, Kyoung-Eun
    • Culinary science and hospitality research
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    • v.23 no.5
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    • pp.48-57
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    • 2017
  • This study aims to analyze the relationships among brand value, brand trust, and brand loyalty of dessert cafes and to verify the mediating effect of brand trust in the relationship between brand value and loyalty. This study targeted eight dessert cafes located in Seoul, and a survey with customers aged 20 or over was conducted over 11 days from April 10th to 21th, 2017. A total of 230 self-administered questionnaires were distributed, and 205 questionnaires (89.13%) were included for the data analysis after the exclusion of 25 incomplete and unreliable responses. Every data used for analysis went through frequency analysis, reliability test, exploratory factor analysis, simple regression analysis, multiple regression analysis, mediator effect analysis, and Sobel test using the SPSS 18.0 analysis program. The study results revealed that brand value had a significant positive relationship to brand trust, and brand trust had a significant positive relationship to brand loyalty. Also, brand value had a significant positive relationship to brand loyalty, and brand trust mediated the relationship between brand value and loyalty. Based on these findings, the discussion to enhance brand loyalty of dessert cafes were suggested.

An Expanded Website Quality Model in Online Shopping Malls for Developing Satisfaction and Loyalty: The Moderating Effect of Gender

  • Sang Min KIM;Tian JIAQI;Yong-Ki LEE
    • Journal of Distribution Science
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    • v.22 no.5
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    • pp.93-104
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    • 2024
  • Purpose: This study used the SORmodel (or cue utilization theory) to examine the impact of expanded quality factorsincluding product quality on customer satisfaction, attitude, and behavioral loyalty. This study examined the moderating effect of gender on the customer satisfaction-attitudinal and behavioral loyalty relationship. Research design, data, and methodology: 364 respondents were collected through an online survey and analyzed using the SmartPLS 4.0 program. Results: The findings show that product quality, along with system quality and service quality, are key determinants of customer satisfaction. In addition, this study shows that the relationship between customer satisfaction and attitudinal loyalty (repurchase and word-of-mouth intention) does not differ depending on gender, but the relationship between customer satisfaction and behavioral loyalty (share-of-visit and share-of-wallet) is stronger for women than for men. Conclusions: This research integrates concepts from environmental psychology and marketing focusing on website quality (information, system, service, and product), as well as satisfaction, attitudinal and behavioral loyalty. Online shopping mall practitioners must systematically analyze and assess the quality of online shopping, a pivotal factor driving customer satisfaction, attitude, and behavioral loyalty. Acknowledging the influence of gender on consumers' online purchasing behavior can aid online retailers in devising tailored e-commerce marketing strategies aimed at attracting and retaining customers.

A study on sports commitment, brand satisfaction, and brand loyalty of female university students in their 20's (20대 여대생의 스포츠 운동몰입, 브랜드 만족도, 브랜드 충성도에 관한 연구)

  • Rhee, YoungJu
    • The Research Journal of the Costume Culture
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    • v.23 no.4
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    • pp.673-685
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    • 2015
  • The purpose of this study was to investigate the relationships between sports commitment, sportswear brand satisfaction, and brand loyalty of female university students in their 20s. Two hundred surveys were distributed to female university students, and 185 responses were used for the final analysis. The SPSS program was used with a reliability test and factor, frequency, path analysis. Based on the literature review, the following five hypotheses were suggested. H1: Cognitive commitment will have a positive effect on the behavioral commitment of sports commitment factors. H2: The behavioral commitment of female university students will have a positive effect on brand satisfaction. H3: Sportswear brand satisfaction will have a positive effect on continuous brand loyalty. H4: Cognitive commitment will have a positive effect on habitual brand loyalty. H5: Continuous brand loyalty will have a positive effect on habitual brand loyalty. The results of this study showed that first, after the factor analysis, there were two factors of sports commitment (behavioral commitment and cognitive commitment). Second, the path analysis results revealed that there were significant relationships between sports commitment factors (cognitive commitment and behavioral commitment), sportswear brand satisfaction, and brand loyalty factors (continuous brand loyalty and habitual brand loyalty). The results revealed that cognitive commitment had a positive relationship with behavioral commitment, which had a positive relationship with sportswear brand satisfaction. Sportswear brand satisfaction had a positive relationship with continuous brand loyalty, which had a positive relationship with habitual brand loyalty. Cognitive commitment also had a positive relationship with habitual brand loyalty.

Relationship between Participants Satisfaction in Agro-Healing Activities in a Healing Farm and the Level of Stress and Loyalty

  • Jang, Hye Sook;Jeong, Sun-Jin;Kim, Jae Soon;Yoo, Eunha
    • Journal of People, Plants, and Environment
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    • v.23 no.4
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    • pp.411-422
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    • 2020
  • Background and objective: This study was conducted to find out the effects of healing farm resources and participant satisfaction on the level of stress and loyalty. Methods: The experiment was conducted on 18 subjects who participated in agro-healing activities (aged 49.5 years on average) and the concentration of cortisol, the level of stress and satisfaction with the services and program of a healing farm. The healing-agriculture activities were performed once a week, a total of 7 sessions, for 90 minutes and their saliva was collected before and after the activities. Results: The concentration of cortisol, a stress hormone, was statistically significantly reduced after the healing-agriculture activities in 5 out of 7 sessions. The total cortisol concentration showed statistically significant differences. The 6th session was comprised of different activities, compared to others, such as understanding weeds, managing a garden and making a pizza with fermentation enzymes, and the level of cortisol in the 6th session was the lowest after participating in the agro-healing activities, which indicated that the activities have the positive effect of lowering the level of stress. The level of stress was lowered from 18.39 to 16.78, which was consistent with the results of the concentration of cortisol. The level of satisfaction in the last session was below 50%, which indicated that the owner of the farm might be a little inexperienced in education and marketing on information and safety. The variables of participants including stress and satisfaction with services showed a strong influence on their loyalty. Conclusion: Satisfaction with services and loyalty to the healing farm showed a very high correlation, which was statistically significant. It also showed that participants' stress level and satisfaction with the services and program of the healing farm have a strong influence on their loyalty.

An Exploratory Study on the Selection Criterion of an Airline Firm (항공사 선택요인 분석)

  • Yoo, Yong-Jae;Lee, Seung-Chang
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.14 no.4
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    • pp.101-109
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    • 2006
  • This study investigates what criterion airline customers recognize important when evaluating airline firms. Specifically it is surveyed if different criterion are used by different groups of airline customers when choosing an airline firm. In addition customer group with high loyalty to 'K' airline, national carrier of Korea, is differently evaluate 'K' airline for the selection criterion over customer group without loyalty. Frequent flyer program is suggested most important by most of the customers being followed by flight schedule. Flight schedule, in-flight food and air fare of 'K' airline are differently evaluated according to level of royalty to the airline. However there appears no difference in the evaluation of seat and entertainment between two groups, customers with high loyalty and customers without loyalty.

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The Impact of Airline's Retention Equity on Customer Positive·Behavior Intention (항공사 유지자산이 고객의 긍정적·배타적 행동의도에 미치는 영향)

  • In, Ok Nam;Kim, Seung Lee;Do, Sung
    • Journal of the Korea Society of Computer and Information
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    • v.18 no.10
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    • pp.225-234
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    • 2013
  • The purpose of this study is to evaluate the impact of airline's retention equity on customer positive exclusive behavior intention and to minimize customer churn based maintenance is aimed to derive key variables in air transport market. A survey was conducted Incheon and Gimpo airport to use in the national carrier of domestic air travelers. A total of 480 respondents completed a survey. The result reveal that loyalty program, preferential treatment & acknowledgement program, and community program have significantly effect on positive behavior intention. However, preferential treatment & acknowledgement program, and community program have significantly effect on exclusive behavior intention. It showed that they are more influence than loyalty program as a switching barrier of airlines. The academic and practical implication of this study has been identified in the competitive market to maximize customer retention factors of maintaining retention equity to derive empirical strategic priorities.

A Study of the Service Quality, Perceived Price and Product Quality, and Store Image on Store Loyalty (대형할인점 의류매장의 서비스품질, 가격과 품질지각, 및 점포이미지가 점포애호도에 미치는 영향)

  • Lee, Ok-Hee;Kim, Ji-Soo
    • Journal of the Korean Society of Clothing and Textiles
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    • v.32 no.10
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    • pp.1548-1558
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    • 2008
  • The goal of this study was to investigate the impacts of service quality, product quality, and perceived price on store loyalty of the clothes shops at a large-scale discount store. The subjects were 357 female adults living in Suncheon City, Jeollanam Province. The questionnaires were conveniently sampled from June 1 to 30, 2006. The collected data were factor and reliability analyzed using the SPSS program. And Regression was used to verified the relationships between the constructs. Among the five hypotheses set in the research model, total four were selected through empirical analysis and the rest one were rejected. The empirical results showed the following managerial implications. First, consumer' perceived service quality has a positive relationship with store image and store loyalty. Second, product quality has a positive relationship with store image. Third, store image has positively related with store loyalty. Fourth, perceived price has not significantly related with store loyalty. Finally, store image in large-scale discount store is 'sales people', 'VMD/atmosphere', and 'assortment' on forming the store image. Especially, 'assortment', 'oust and friendship', and 'symbol' have significantly related with store loyalty.

Switching Cost and Brand Loyalty preference on Customer Satisfaction and Repurchase (브랜드 충성도와 전환비용이 고객만족과 재구매에 미치는 영향에 관한 연구)

  • Han, Kyong-Hee;Cho, Jai-Rip
    • Proceedings of the Korean Society for Quality Management Conference
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    • 2006.11a
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    • pp.294-301
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    • 2006
  • This study attempts to investigate a general service sector model which aims to describe the extent to which customer repurchase intention is influenced by customer satisfaction, Customer loyalty, switching cost. This study attempts to investigate different group. Brand group 1 is higher Brand loyalty than Brand group 2. Brand Group 1 is 276 and Brand Group 2 is 271 consumers in service sector that they were used into data analysis. The data were analyzed by factor analysis and Structural Equation Model using SPSS and AMOS program. The results show that nearly all of the hypothesized relationships construct are supported. First, the direct effects of customer satisfaction on customer loyalty and switching cost were confirmed. The service company not only strengthens customer loyalty, but also strategically makes the most use of switching cost to satisfy customer satisfaction and create sustainable company advantages. Second, the interactive relationships among switching cost and customer loyalty were very significant. The proper management of these mediating variables plays key roles in connecting customer satisfaction with repurchase intention. Third, the effects of customer loyalty and brand preference on repurchase intention were supported but switching cost rejected in the path analysis. Implications of the results for path analysis are discussed and future research directions are offered.

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A Study on Clothing Shopping Orientation and Brand Loyalty of University Students (대학생의 의복쇼핑성향과 브랜드충성도에 관한 연구)

  • Sung, Hee-Won;Kim, Eun-Kyeung
    • Fashion & Textile Research Journal
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    • v.11 no.6
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    • pp.878-886
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    • 2009
  • The purpose of this study was to identify clothing shopping orientation of university students and brand loyalty in Jinju, Korea. In addition, the effect of consumer's shopping orientation and brand equity factors on brand loyalty were analyzed. A self-administrated questionnaire was developed based on previous studies. A total of 257 useful data were analyzed by SPSS 13.0 program. About 64.6% were female with the mean age of 22.2 years old. The results of this study were as follows. First, clothing shopping orientation was classified into 6 factors: hedonic, store patronage, planned, brand-pursued, economic, and convenience shopping orientation. Second, brand equity was identified into two factors, brand image and brand-consumer relationship. Third, store patronage and hedonic orientation were significant predictors of brand loyalty($R^2$=.275). Brand image and brand-consumer relationship showed significant effects on brand loyalty($R^2$=.541). Findings of this study were expected to contribute to understand young consumers in a typical trading area and to develop marketing strategy for casual brands to increase and maintain brand loyalty.