Abstract

What factors of loyalty program make a significant change in customer behaviors have not been clearly verified in the cafe business. This study aims to identify whether the perceived benefits of lower variables of cafe loyalty program influence consumer loyalty mediated through commitment to cafe brand. Cafe loyalty program includes lower variables of monetary, exploration, entertainment, ego pleasure, and social benefit. The number of 258 cases was used for final analysis out of 289 cases surveyed. Frequency, reliability, and confirmatory factor analysis have been conducted to analyze the data employing SPSS statistics 20.0 and AMOS. Further, the propositions have been analyzed using structural equation modeling. The results indicate entertainment and social benefit significantly influence brand commitment while monetary, exploration, and ego pleasure fail to make the impact. Additionally, the results show that only ego pleasure make a significant impact on customer loyalty while the other lower variables failed to make it. Finally, brand commitment fully mediate the relationship between entertainment and customer loyalty and the relationship between social benefit and customer loyalty while the other mediating effects result in rejection. The study results imply the recognition of guests play significant role in the cafe business to enhance customer loyalty and the cafe managers need to be strategically involved in fostering brand commitment to connect the loyalty program and customer loyalty.

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