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

Research output: Contribution to journalArticle

10 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)21-41
Number of pages21
JournalAsian Academy of Management Journal
Volume16
Issue number1
Publication statusPublished - Jan 2011

Fingerprint

Store loyalty
Loyalty programs
Retail
Loyalty
Superstores
Factors
Malaysia
Share of wallet
Department stores
Structural modeling
Marketing practices
Marketing research

Keywords

  • Loyalty card
  • Loyalty program
  • Program loyalty
  • Retail
  • Satisfaction
  • Store loyalty

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

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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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