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

Michelle Yoo (), Billy Bai and Ashok Singh
Additional contact information
Michelle Yoo: California State Polytechnic University, Pomona
Billy Bai: University of Nevada Las Vegas
Ashok Singh: University of Nevada Las Vegas

Journal of Marketing Analytics, 2020, vol. 8, issue 2, No 2, 45-56

Abstract: 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 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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DOI: 10.1057/s41270-020-00076-6

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