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Effect of customer loyalty program on customer satisfaction and its impact on customer loyalty

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  • Salihah Khairawati

    (Business and Psychology Faculty, Yogyakarta Technology University, Indonesia)

Abstract

The aim of this research is to examine the effect of the customer loyalty program on customer satisfaction and its impact on customer loyalty. This program is developed by the company in order to increase customer satisfaction. Optimal customer satisfaction will be able to create customer loyalty. For a company, customer loyalty will guarantee the company’s income to be constantly optimal. The research is conducted using the survey method involving 110 customers and 100 feasible data used. The sampling technique used is judgment sampling and data collected through the questionnaire. It uses SEM in examining hypotheses assisted by software AMOS version 20.0. Member card significantly affects customer satisfaction, while discount promo has no significant effect on customer satisfaction and it also doesn’t affect customer loyalty. Member cards and discount promo have a direct effect on customer loyalty. In general, it can be understood that the customer loyalty program applied by Alfamart either member card or discount promo affects customer satisfaction and has an impact on customer loyalty. This research gives input to retail business managers in managing customer satisfaction through the proper development of customer loyalty programs. Key Words:Loyalty program, Customer satisfaction, Customer loyalty

Suggested Citation

  • Salihah Khairawati, 2020. "Effect of customer loyalty program on customer satisfaction and its impact on customer loyalty," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(1), pages 15-23, January.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:1:p:15-23
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    References listed on IDEAS

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    Cited by:

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    2. Fadhil Muhammad & Fatkhur Rozi & Achmad Sani Supriyanto, 2021. "The influence of membership program on customer loyalty mediated by customer satisfaction," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 34-41, September.
    3. Raed Ibrahim Mohamad Ibrahim & Pelin Bayram, 2024. "The effect of customer engagement on customer loyalty: indication from the insurance industry in Jordan," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 406-422, June.
    4. Minqin Yi & Ming Chen & Jilang Yang, 2024. "Understanding the self-perceived customer experience and repurchase intention in live streaming shopping: evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.

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