Examining the moderating effects of programme membership duration in the retail loyalty programme

A multi groups causal analysis approach

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Investigations to ascertain the contingent effects of membership duration in a loyalty programme are critical for advancing marketing knowledge and management practice. In line with this thinking, a baseline model was developed to assess the role of loyalty programme's benefits offered by one of the leading superstore 1 in Malaysia on its members' satisfaction and ultimately loyalty towards the store. What is more, the key constructs of relationship quality such as satisfaction, trust and commitment are integrated in the model. Subsequently, a multi group's causal analysis was executed in order to detect any significant difference (beta coefficients) among the paths postulated in the models. The research framework was empirically tested on 167 loyalty cardholders. The results delineate two key findings; Firstly, Programme Benefit holds a preeminent role in the formation of Programme Satisfaction and ultimately Store Loyalty; thus, Programme Benefit-Programme Satisfaction-Store Loyalty chain is confirmed. Secondly, Programme benefit has a significant impact on Store Loyalty via Programme Loyalty; hence, Programme Benefit-Programme Loyalty-Store Loyalty chain is established. In essence, the relationship between programme loyalty and store loyalty is contingent on the moderating effect of membership duration. The findings reveal important implications for marketing theory, management practice and fertile future research direction is suggested.

Original languageEnglish
Pages (from-to)314-323
Number of pages10
JournalWorld Applied Sciences Journal
Volume19
Issue number3
DOIs
Publication statusPublished - 2012

Fingerprint

Moderating effect
Loyalty programs
Retail
Store loyalty
Loyalty
Management practices
Superstores
Integrated
Coefficients
Marketing
Relationship quality
Marketing theory
Research directions
Malaysia

Keywords

  • Commitment and loyalty
  • Loyalty programme membership duration
  • Satisfaction
  • Trust

ASJC Scopus subject areas

  • General

Cite this

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abstract = "Investigations to ascertain the contingent effects of membership duration in a loyalty programme are critical for advancing marketing knowledge and management practice. In line with this thinking, a baseline model was developed to assess the role of loyalty programme's benefits offered by one of the leading superstore 1 in Malaysia on its members' satisfaction and ultimately loyalty towards the store. What is more, the key constructs of relationship quality such as satisfaction, trust and commitment are integrated in the model. Subsequently, a multi group's causal analysis was executed in order to detect any significant difference (beta coefficients) among the paths postulated in the models. The research framework was empirically tested on 167 loyalty cardholders. The results delineate two key findings; Firstly, Programme Benefit holds a preeminent role in the formation of Programme Satisfaction and ultimately Store Loyalty; thus, Programme Benefit-Programme Satisfaction-Store Loyalty chain is confirmed. Secondly, Programme benefit has a significant impact on Store Loyalty via Programme Loyalty; hence, Programme Benefit-Programme Loyalty-Store Loyalty chain is established. In essence, the relationship between programme loyalty and store loyalty is contingent on the moderating effect of membership duration. The findings reveal important implications for marketing theory, management practice and fertile future research direction is suggested.",
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