The role of loyalty programs in boosting hotel guest loyalty: Impact of switching barriers |
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| Institution: | 1. Department of Marketing, University of Auckland, 12 Grafton Road, Auckland 1142, New Zealand;2. University of New South Wales, Kensington, Sydney 2052, Australia;3. Pusat Penataran Ilmu and Bahasa, Universiti Malaysia Sabah, Jalan UMS, 88400 Kota Kinabalu, Sabah, Malaysia;4. Gadjah Mada University, Faculty of Economics and Business, Jalan Sosio Humaniora 1, Bulaksumur, Yoyyakarta 55281, Indonesia;5. Parahyangan Catholic University, Jalan Ciumbuleuit No. 94, Bandung, West Java 40141, Indonesia;1. Farmer School of Business, Miami University, 800 E. High Street, Oxford, OH, United States of America;2. Kelley School of Business, Indiana University, 1309 E. 10th Street, Bloomington, IN, United States of America |
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| Abstract: | This study examines the relationships among the perceived value of a loyalty program, customer satisfaction with a loyalty program, affective commitment, switching barriers, and customer brand loyalty in the hotel context. An online survey method with a quantitative approach was used. Our results from a structural equation model revealed that the perceived value of a loyalty program is essential in the formation of customer brand loyalty. Lastly, findings from an indirect analysis showed that affective commitment and switching barriers mediated the relationship between the perceived value of a loyalty program and customer brand loyalty. Overall, our research will help researchers and practitioners demonstrate to the industry that the loyalty program is a crucial strategy for customer loyalty and helps develop competitive loyalty programs for success. |
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| Keywords: | Loyalty program Perceived value Satisfaction Affective commitment Switching barriers Customer brand loyalty |
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