Effects of the Loyalty Program on Store Loyalty - The Moderating Role of Membership Duration

Abstract Store loyalty is a key focus for companies that want to retain their customers. One strategy for building store loyalty is to develop a loyalty program. This study aims to examine the impact of economic and non-economic benefits of the program on store loyalty, with the mediating role of the number of years of membership (membership duration) in the loyalty program. The model is based on structural equation modeling (SEM), while the statistical software AMOS was used to measure SEM. The results of the research showed that the economic and non-economic benefits of the loyalty program significantly affect to store loyalty, and that the membership duration in the program has a significant impact on the consumer’s perception of the previously stated benefits, and it was determined that with the increase in membership duration, the preference is given to non-economic benefits.