• Title/Summary/Keyword: Loyalty Programs

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Investigation of Factors Influencing Loyalty Toward Cultural Arts Events in Korea: A Logit Model Approach

  • Young Hee Park;Hyeon-Cheol Kim
    • International journal of advanced smart convergence
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    • v.13 no.2
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    • pp.94-102
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    • 2024
  • This study examines the factors influencing loyalty to cultural arts events using data from the Survey Report on National Culture and Arts Activity in 2022 and 2023. The dependent variable is a binary variable representing the intention to revisit in the future, which serves as a proxy for loyalty. Given that the dependent variable is binary, the logit model specification is employed to estimate the average marginal effects. The estimation results indicate that audience satisfaction exerts the strongest influence on loyalty in both years. It can be observed that participation in cultural arts events is the second most important variable in determining loyalty. This suggests that the government should support the expansion of the scope of these activities and the diversification of programs in order to facilitate greater participation in a wider range of cultural arts activities.

Design and Implementation of the System Provide of the Loyalty Service for Electronic Commerce (전자상거래 로열티 서비스를 위한 시스템 제공자 설계 및 구현)

  • Hong, Jae-Young;Kim, Ki-Young;Lee, Young-Seok;Choi, Hoon;Kim, Young-Kuk;Hong, Seung-Jae
    • Journal of KIISE:Computing Practices and Letters
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    • v.6 no.3
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    • pp.348-355
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    • 2000
  • Loyalty is a bonus point that a customer earns in reward of purchasing goods of a shop or a manufacturer. The management of loyalty such as issuing, accounting, reimbursing is carried out by the loyalty system. Traditional loyalty systems were proprietary. As a result, the systems are not interoperable with each other. However, our loyalty system allows a group of merchants join together and use the same IC card to operate their own loyalty programs. Data and counters can be shared or totally isolated, using secret codes and keys. The loyalty pool system communicates with the loyalty service providers over the Internet and performs the management of loyalty in fully automated manner. This paper describes the functional architecture and internal behavior of the loyalty pool system along with the communication protocols.

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Does Online Travel & Retail Distribution Agency's e-Service Quality Improve Customer Satisfaction, Trust, and Loyalty?

  • Wen Rou XIANG;Yong-Ki LEE;Wen Long WANG
    • Journal of Distribution Science
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    • v.22 no.10
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    • pp.91-102
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    • 2024
  • Purpose: This study exploresthe impact of e-service quality (e-SQ) on satisfaction, trust, and loyalty within Chinese online travel retail distribution agencies (OTRDAs) using the SOR (stimulus-organism-response) model. In addition, this research examines the mediating roles of satisfaction and trust in the relationship between e-SQ and loyalty. In the model, e-SQ encompasses four sub-dimensions, such as information, efficiency, reliability, and security. Research design, data, and methodology: Data were collected from 401 respondents through an online survey. The data were analyzed using SPSS 25.0 and SmartPLS 4.1 to test the relationships among the variables. Results: The findings reveal that information, efficiency, reliability, and security positively influence satisfaction and trust. Both satisfaction and trust, in turn, significantly enhance loyalty. Mediation analysisindicatesthat satisfaction and trust partially mediate the relationship between e-SQ and loyalty. Conclusions: The study highlights the direct effects of e-SQ components on satisfaction and trust, as well as their indirect effects on loyalty within the OTRDA framework. Notably, trust exerts a stronger influence on loyalty than satisfaction, underscoring the importance of trust as a mediator in the satisfaction-loyalty relationship. Consequently, customer loyalty programs for OTRDAs should prioritize trust evaluations alongside satisfaction measures.

How Desirable is the Medium? Effect of Point Accumulation Scheme on Consumer Loyalty Toward Reward Program

  • Eujin Park
    • Asia Marketing Journal
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    • v.24 no.4
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    • pp.190-205
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    • 2023
  • An accruable point scenario study was applied to examine the effect of the point-accumulation trend (diminishing vs. increasing) and the nominal value (small vs. large) of a medium for repeated consumption on program loyalty. The results showed that both factors affect consumer loyalty toward a reward program. Consumers who received a medium with an increasing accumulation trend and a large nominal value perceived a reward to be more valuable than those who received a diminishing trend and a small nominal value. The results confirmed that a large nominal value or an increasing accumulation trend increased the perception of reward and program loyalty. However, when the desirability of the medium was controlled, the effect of trend was reduced to almost negligible whereas that of the nominal value remained the same. These findings suggest how consumer perceptions of loyalty programs can be practically managed through point accumulation processes.

Effects of Joining Coalition Loyalty Program : How the Brand affects Brand Loyalty Based on Brand Preference (브랜드 선호에 따라 제휴 로열티 프로그램 가입이 가맹점 브랜드 충성도에 미치는 영향)

  • Rhee, Jin-Hwa
    • Journal of Distribution Research
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    • v.17 no.1
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    • pp.87-115
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    • 2012
  • Introduction: In these days, a loyalty program is one of the most common marketing mechanisms (Lacey & Sneath, 2006; Nues & Dreze, 2006; Uncles et al., 20003). In recent years, Coalition Loyalty Program is more noticeable as one of progressed forms. In the past, loyalty program was operating independently by single product brand or single retail channel brand. Now, companies using Coalition Loyalty Program share their programs as one single service and companies to participate to this program continue to have benefits from their existing program as well as positive spillover effect from the other participating network companies. Instead of consumers to earn or spend points from single retail channel or brand, consumers will have more opportunities to utilize their points and be able to purchase other participating companies products. Issues that are related to form of loyalty programs are essentially connected with consumers' perceived view on convenience of using its program. This can be a problem for distribution companies' strategic marketing plan. Although Coalition Loyalty Program is popular corporate marketing strategy to most companies, only few researches have been published. However, compared to independent loyalty program, coalition loyalty program operated by third parties of partnership has following conditions: Companies cannot autonomously modify structures of program for individual companies' benefits, and there is no guarantee to operate and to participate its program continuously by signing a contract. Thus, it is important to conduct the study on how coalition loyalty program affects companies' success and its process as much as conducting the study on effects of independent program. This study will complement the lack of coalition loyalty program study. The purpose of this study is to find out how consumer loyalty affects affiliated brands, its cause and mechanism. The past study about loyalty program only provided the variation of performance analysis, but this study will specifically focus on causes of results. In order to do these, this study is designed and to verify three primary objects as following; First, based on opinions of Switching Barriers (Fornell, 1992; Ping, 1993; Jones, et at., 2000) about causes of loyalty of coalition brand, 'brand attractiveness' and 'brand switching cost' are antecedents and causes of change in 'brand loyalty' will be investigated. Second, influence of consumers' perception and attitude prior to joining coalition loyalty program, influence of program in retail brands, brand attractiveness and spillover effect of switching cost after joining coalition program will be verified. Finally, the study will apply 'prior brand preference' as a variable and will provide a relationship between effects of coalition loyalty program and prior preference level. Hypothesis Hypothesis 1. After joining coalition loyalty program, more preferred brand (compared to less preferred brand) will increase influence on brand attractiveness to brand loyalty. Hypothesis 2. After joining coalition loyalty program, less preferred brand (compared to more preferred brand) will increase influence on brand switching cost to brand loyalty. Hypothesis 3. (1)Brand attractiveness and (2)brand switching cost of more preferred brand (before joining the coalition loyalty program) will influence more positive effects from (1)program attractiveness and (2)program switching cost of coalition loyalty program (after joining) than less preferred brand. Hypothesis 4. After joining coalition loyalty program, (1)brand attractiveness and (2)brand switching cost of more preferred brand will receive more positive impacts from (1)program attractiveness and (2)program switching cost of coalition loyalty program than less preferred brand. Hypothesis 5. After joining coalition loyalty program, (1)brand attractiveness and (2)brand switching cost of more preferred brand will receive less impacts from (1)brand attractiveness and (2)brand switching cost of different brands (having different preference level), which joined simultaneously, than less preferred brand. Method : In order to validate hypotheses, this study will apply experimental method throughout virtual scenario of coalition loyalty program if consumers have used or available for the actual brands. The experiment is conducted twice to participants. In a first experiment, the study will provide six coalition brands which are already selected based on prior research. The survey asked each brand attractiveness, switching cost, and loyalty after they choose high preference brand and low preference brand. One hour break was provided prior to the second experiment. In a second experiment, virtual coalition loyalty program "SaveBag" was introduced to participants. Participants were informed that "SaveBag" will be new alliance with six coalition brands from the first experiment. Brand attractiveness and switching cost about coalition program were measured and brand attractiveness and switching cost of high preference brand and low preference brand were measured as same method of first experiment. Limitation and future research This study shows limitations of effects of coalition loyalty program by using virtual scenario instead of actual research. Thus, future study should compare and analyze CLP panel data to provide more in-depth information. In addition, this study only proved the effectiveness of coalition loyalty program. However, there are two types of loyalty program, which are Single and Coalition, and success of coalition loyalty program will be dependent on market brand power and prior customer attitude. Therefore, it will be interesting to compare effects of two programs in the future.

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Influences of Public Library Service Quality on User Satisfaction and Loyalty (공공도서관의 서비스품질이 이용자만족도와 충성도에 미치는 영향)

  • Oh, Dong-Geun
    • Journal of the Korean Society for information Management
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    • v.22 no.4 s.58
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    • pp.61-78
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    • 2005
  • This study investigates the influences of the service qualify of public libraries, including printed publications, internet and electronic materials, culture programs and. service, library environment and facilities, and library staff, on the general satisfaction of the users, complaining intentions, and loyalty including reuse intentions. It develops a library user satisfaction model and testifies it through path analysis using questionnaires from 443 public library users in Daegu Metropolitan City area. This study shows that service qualities of printed publications, culture programs and service, library environment and facilities, and library staff Influence significantly on the general satisfaction of the users, and that service quality of library environment and facilities is the major variable which influences satisfaction and loyalty of the public library.

The Impact of Loyalty Program on Customer Retention: Empirical Evidence from Bangladesh

  • AHSAN, Syed Md. Hasib;ALAUDDIN, Md.;ALAM, Mohammad Manjur;NAZIA, Adiba;ISLAM, Tasnim
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.6
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    • pp.195-206
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    • 2022
  • The purpose of this paper is to examine how loyalty programs designed by retail stores affect customer retention. The present study is one of the few empirical studies finding the role of different loyalty programs that help to build customer retention. The study also seeks to explore the moderation role of customer perceived value between intrinsic motivation - customer retention and extrinsic motivation - customer retention. The researchers employed a quantitative research design to collect data from the 350 respondents who purchased goods from the retail chain/departmental stores in Bangladesh. The collected data are then analyzed using structural equation modeling. The result of their findings indicated that the size of the organizational reward has a positive effect on intrinsic and extrinsic motivation; further extrinsic motivation has a significant relation to customer retention. Surprisingly, no support was found for the positive impact of intrinsic motivation on customer retention. Customer perceived value (CPV) is critical as a moderator in building client retention, which improves the positive association between extrinsic motivation and customer retention. CPV, on the other hand, was found to mitigate the negative link between intrinsic motivation and client retention.

Effect of Service Quality Toward Student Satisfaction and Loyalty in Higher Education

  • MULYONO, Hardi;HADIAN, Arief;PURBA, Nelvitia;PRAMONO, Rudy
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.10
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    • pp.929-938
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    • 2020
  • This study analyzes the effect of quality of services provided to the students' in relation to their satisfaction and loyalty. Respondents in this study were seventh semester students of Universitas Muslim Nusantara Al-Washliyah, the total number of students was 312. Data analysis techniques in this study used was SEM (Structural Equation Modeling) using the SmartPLS program. The results showed that students' satisfaction significantly mediated the correlation between academics and students' loyalty, between non-academic and students' loyalty, between reputation and students' loyalty, and between campus access and students' loyalty; on the other hand, students' satisfaction was not significant in mediating the correlation between program issues and students' loyalty. The findings suggest that it is necessary to improve the quality of lecturers to improve students' academic abilities and communication skills. As far as non-academic aspects are concerned, conducting training and development efforts and increasing awareness programs for administrative staff is important. For the reputation aspect, to carry out several marketing campaigns which predict to have an effect upon students in building positive perceptions of campus has to be executed as well. Meanwhile for access aspect, it should be made certain that every student can have direct access to staff employees, and it is necessary to improve dimensions which can increase students' satisfaction so that students are convinced of their choice of campus and then they are likely to recommend their chosen university and spread positive things about their institutions.

A Study on the Effect of Customer's Awareness of the Food Service Industry's Customer Reward Program Value on Customer Loyalty (외식 업체의 고객 보상 프로그램에 대한 고객의 가치 지각이 고객 충성도에 미치는 효과에 관한 연구)

  • Son, Young-Jin;Lee, Kwang-Ock;Yoo, Hee-Jeong
    • Culinary science and hospitality research
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    • v.13 no.4
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    • pp.80-91
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    • 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.

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The influence of mileage program on brand loyalty of the apparel firm (의류업의 마일리지 제도가 브랜드 충성도에 미치는 영향)

  • 오경화;심혜연;홍병숙
    • Journal of the Korean Society of Clothing and Textiles
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    • v.27 no.3_4
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    • pp.384-394
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    • 2003
  • The purpose of this research is to provide the apparel companies with a successful business strategy by analyzing the concept, function and current status of mileage programs; and examining how customer's attitude, recognition, experience, compensation method of the mileage program in apparel companies affect its brand loyalty. In this research simple random sampling was performed. The sample pool was based on 494 people which included college students and employed men and women in their twenties and thirties living in Seoul and in the metropolitan area. The data analysis was completed on the basis of SPSS package, using frequency, percentage, mean, standard deviation, factor analysis, variation, Scheffe test, regression, t-test, and X/sup2/. The following results were found in this research: It is effective to maintain brand loyalty through continuous relationship with consumers as fierce competition increases in apparel companies. A mileage program is a win/win strategy that allows clothing companies to increase its sales and brand loyalty while consumers feel greater satisfaction.