Perceived Benefits of Retail Loyalty Programs: Their Effects on Program Loyalty and Customer Loyalty

The purpose of our study was to examine the interrelationship among the perceived benefits of retail loyalty programs (i.e., monetary savings, exploration, entertainment, recognition, social benefits), program loyalty, and customer loyalty within the context of apparel retailing. Monetary savings, entertainment, and social benefits were found to be positive predictors of program loyalty. Furthermore, program loyalty fully mediated the effects of entertainment, recognition, and social benefits on customer loyalty, whereas it served as a partial mediator in the link between monetary savings and customer loyalty. The implications of retail loyalty programs are discussed, as are limitations and areas for future research.