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

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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.

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Authors and Affiliations

  1. Collins College of Hospitality Management, California State Polytechnic University, Pomona, 3801 West Temple Avenue 79B-2419, Pomona, CA, 91768, USA

    Michelle Yoo

  2. William F. Harrah College of Hotel Administration, University of Nevada Las Vegas, Las Vegas, USA

    Billy Bai & Ashok Singh

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  1. Michelle Yoo
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  2. Billy Bai
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Correspondence to Michelle Yoo.

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Yoo, M., Bai, B. & Singh, A. The evolution of behavioral loyalty and customer lifetime value over time: investigation from a Casino Loyalty Program. J Market Anal 8, 45–56 (2020). https://doi.org/10.1057/s41270-020-00076-6

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