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The evolution of behavioral loyalty and customer lifetime value over time: investigation from a Casino Loyalty Program

Author

Listed:
  • Michelle Yoo

    (California State Polytechnic University, Pomona)

  • Billy Bai

    (University of Nevada Las Vegas)

  • Ashok Singh

    (University of Nevada Las Vegas)

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.

Suggested Citation

  • Michelle Yoo & Billy Bai & Ashok Singh, 2020. "The evolution of behavioral loyalty and customer lifetime value over time: investigation from a Casino Loyalty Program," Journal of Marketing Analytics, Palgrave Macmillan, vol. 8(2), pages 45-56, June.
    • Handle: RePEc:pal:jmarka:v:8:y:2020:i:2:d:10.1057_s41270-020-00076-6
    DOI: 10.1057/s41270-020-00076-6
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    References listed on IDEAS

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    Cited by:

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    5. Katarína Gubíniová & Thorsten Robert Moller & Silvia Treľová & Malgorzata Agnieszka Jarossová, 2023. "Loyalty Programmes and Their Specifics in the Chinese Hospitality Industry—Qualitative Study," Administrative Sciences, MDPI, vol. 13(6), pages 1-12, June.

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