The Evolution of Behavioral Loyalty and Customer Lifetime Value Over Time: Investigation from a Casino Loyalty Program

Document Type

Article

Publication Date

5-21-2020

Publication Title

Journal of Marketing Analytics

First page number:

1

Last page number:

12

Abstract

Despite the widespread usage of loyalty programs across various businesses in the hospitality industry, its effectiveness is still being questioned. Thus, it is meaningful for hospitality marketers to evaluate the effectiveness of their loyalty programs to increase profitability and this study aims to investigate the effectiveness of a loyalty program. Specifically, this study examines the evolution of behavioral loyalty from a longitudinal perspective and observes whether loyalty program members produce positive customer lifetime value. This study obtains secondary data from a casino and hotel resort and performs time series ordinary least squares (OLS) modeling and study results support the research hypotheses. This study contributes to the understanding of the relation between a loyalty program and a firm's profitability. It provides practical insights to hospitality marketers on how to manage loyalty programs more proficiently.

Keywords

Behavioral loyalty; Customer lifetime value; Loyalty marketing; Loyalty program; Segmentation; Time series analysis

Disciplines

Business | Marketing

Language

English

UNLV article access

Search your library

Share

COinS