• International Commerce and Information Review
• /
• v.17 no.3
• /
• pp.323-358
• /
• 2015

This study strives to identify effects of the relationship between the loyalty program and service loyalty through focusing on the role of the loyalty program which is used as a means of promotion in relationship marketing. According to the result of the empirical testing, the higher the economical usefulness and psychological usefulness (the perceived value of the loyalty program) are, the higher the customer satisfaction rate was. Also, the higher the satisfaction of the loyalty program, the more credibility increased. Furthermore, the higher credibility was the more positive the influencing relationship with a heightened level of commitment was found to be. It was discovered that different factors such as customer satisfaction, customer trust, customer commitment in the loyalty program have a positive influence on service loyalty. Loyalty program satisfaction, along with loyalty program credibility and commitment indirectly affected service loyalty.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.3
• /
• pp.1349-1359
• /
• 2021

The electronic money market in Indonesia continues to experience an increase in the number of users and volume of transactions. However, the electronic money market, especially server-based, in Indonesia is becoming concentrated into a few issuers. Electronic money issuers compete in price and promotion wars to gain new customers and maintain their existing ones. This paper presents an analysis of the orientation and factors that influence the loyalty in electronic money products. The research model variables in this study are adopted from the E-Service Quality and Marketing Mix categories. These variables are hypothesized to affect the perceived value and then customer loyalty. The research population consists of all Indonesians who use server-based electronic money, with a sample of 400 individuals. The results show that, in the E-Service Quality group, reliability, responsiveness, and security significantly affect perceived value, while the perceived price and perceived promotional benefits significantly affect perceived value in the Marketing Mix group. The perceived price has the highest effect on the perceived value and customer loyalty, while the perceived value has a significant effect on customer loyalty. Finally, it was found that the customer is more sensitive to the price than quality in using electronic money.

• Culinary science and hospitality research
• /
• v.13 no.4
• /
• pp.80-91
• /
• 2007

The purpose of the study is to investigate how customer reward programs that are provided strategically to develop customer favors are assessed by customers, if they affect customer loyalty and what effect using membership card(how many possess and use it) takes. The findings from the study can be summarized as follows. Firstly, customer loyalty showed high when shared value and convenient value are felt for preference and referring effect and when shared value and allied value were felt for revisit. Secondly, when the number of cards in possession was a lot, high customer loyalty existed. Thirdly, when the number of cards in use was a lot, the customer loyalty was high. The customer's awareness of values, e.g. economic, shared, use, convenience and allied values, put a very meaningful positive effect on loyalty, i.e. preference, referring effect and revisit. The more the number of food service provider's' membership cards in use and in possession was, the higher customer loyalty was. This implies that continued development of business partners and quality control are critical for various benefits and shared value of the customer reward pro-grams and service upgrade.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.39 no.3
• /
• pp.63-82
• /
• 2014

The main objective of this research is to investigate whether the RFM (recency-frequency-monetary value) information of a customer's redemption behavior of loyalty points can improve the prediction of future value of the customer. The conventional measurement of customer value has been primarily based on purchase transactions behavior although a customer's future behavior can be also influenced by other interactions between the customer and the firm such as redemption of rewards in a loyalty program. We theorize why a customer's redemption behavior can influence her future purchases and thereby the customer's total value based on operant learning theory, goal gradient hypothesis, and lock-in effect. Using a dataset from a major book store in Korea spanning three years between 2008 and 2010, we analyze both purchase transactions and redemption records of over 10,000 customers. The results show that the redemption-based RFM information does improve the prediction accuracy of the customer's future purchases. Based on this result, we also propose an improved estimate of customer lifetime value (CLV) by combining purchase transactions and loyalty points redemption data. Managerial implications will be also discussed for firms managing loyalty programs to maximize the total value customers.

• Fashion & Textile Research Journal
• /
• v.12 no.1
• /
• pp.60-67
• /
• 2010

The purposes of this study were to investigate the impacts of shopping value, customer satisfaction, and switching barrier on consumer loyalty to website. For this purpose, the study tested covariance structural model which set relationships among independent variable(shopping value), meditated variables(customer satisfaction and switching barrier), and dependent variable(website loyalty). The data were collected from a sample of 239 internet shopper of college female students. The covariance structural model and research hypothesis analyzed by using SPSS 16.0 and AMOS 5.0 program. The results are as follows: First, the structural model is accepted significantly. Second, shopping value had a positive influence on customer satisfaction and switching barrier. Third, shopping value, shopping satisfaction of customer, and switching barrier had a positive impact on website loyalty. Forth, shopping value had a positive impact on website loyalty directly, it was found to have a indirect effect on website loyalty through customer satisfaction and switching barrier.

• Culinary science and hospitality research
• /
• v.23 no.5
• /
• pp.48-57
• /
• 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.

• Journal of Distribution Science
• /
• v.13 no.5
• /
• pp.5-14
• /
• 2015

Purpose - Loyalty programs enable retailers to maintain longer and better customer relationships. In successful services, customers actively use and value these programs. As the proximity to the goal (goal gradient) might signal active participation, this study empirically examines customer's goal gradient behavior in a multi-vendor loyalty program. We also consider the effect of customer's accrual diversity on goal gradients, which is a differentiating feature in a multi-vendor loyalty program, and is further examined. Research Design, Data, and Methodology - The data consists of6,646 OK Cashbag members' individual transaction records from 2006 to 2009. The goal gradient hypothesis was tested as an increase in both the speed and the amount of accumulated award points. Result - The findings suggest that the goal gradient is also observed in a multi-vendor loyalty program, occurring more strongly among members with high accrual diversity. Conclusions - The results indicate that customers with high accrual diversity attend strongly to goal gradients in multi-vendor loyalty programs; hence, it is important for such program managers to better inform members about affiliated partners.

• International Commerce and Information Review
• /
• v.12 no.2
• /
• pp.291-322
• /
• 2010

Many companies make active use of loyalty programs to improve their customers' loyalty to the company. Loyalty programs are widely used in various industries and sectors, including oil, telecommunications, credit card, department stores, and internet shopping malls; their performance seems to be successful in building a positive relationship with customers. This study emphasizes the role of affiliate programs in creating loyalty, thereby helping companies to maintain their competitive advantage. To objectives of this study are to investigate which antecedent variables(affiliate program benefit, service company characteristic , consumer characteristic) have significant effects on consumer perceived affiliate program satisfaction and to examine whether these factors have differences between Korean and Japanese consumers. The useful results will provide marketing strategy for marketers of service companies. The results also show that affiliate program is very important in order to maintain relationship with customers in service companies.

• The Journal of the Korea Contents Association
• /
• v.10 no.11
• /
• pp.391-402
• /
• 2010

The purposes of this study are to identify the relationships between service quality, perceived value, satisfaction, and loyalty for IhoTewoo festival through a structural equation model. This study was conducted by means of survey questionnaire of festival visitors with 348 responses. The main results of the study are as follows. First, the exploratory factor analysis with principal component method of the 19 service quality items identified four underlying domains. These dimensions were labelled: (1) 'program', (2) 'informational service', (3) 'festival area', and (4) 'food'. Second, service quality has a significantly positive effect on perceived value, satisfaction, and loyalty. Third, Perceived value has a significantly positive effect on satisfaction. Fourth, both perceived value and satisfaction have significantly positive effects on loyalty. Fifth, Although the direct effect of service quality on customer loyalty was evident, it was also found that the indirect effects of service quality through perceived value and/or overall satisfaction were stronger. Thus, customer loyalty will be stronger when service quality is matched with perceived value and/or overall satisfaction, meaning that multiple factors play a significant role in determining customer loyalty.

• Journal of Practical Engineering Education
• /
• v.11 no.2
• /
• pp.305-311
• /
• 2019

Many universities offer mileage system as part of their student reward program. The mileage system provides mileage to students who participated in on-campus extracurricular programs, and awards scholarships regardless of grades based on the mileage earned. The purpose of this study is to identify the effect of students' perception of college mileage system on loyalty and to compare the difference in loyalty between those who received mileage and those who did not. To this end, the effect of loyalty was studied empirically by classifying the perception of college mileage into five categories: the cash value, aspirational value, diversity of benefits, convenience, and relevance. The results showed that aspirational value, diversity of benefits and relevance had a positive effect on loyalty, while cash value and convenience did not. In addition, the effect of cash value on loyalty was higher in those who received mileage than those who did not. In terms of relevance, higher loyalty was found in group that did not receive mileage than those who did.