Abstract

Adapting the four-stage model of loyalty developed by Oliver (1999), this study aims to examine how a hotel loyalty program influences the formation of both attitudinal loyalty, which is progressively developed through cognitive, affective, and conative loyalty, and behavioral loyalty. Cognitive loyalty in a hotel loyalty program is considered to be the customers’ perceived values that consist of convenience, psychological, monetary, and benefit values. An online survey was conducted to Koreans who were members of the loyalty program of a global chain hotel and who had stayed at the hotel in the preceding five years. A total of 322 surveys were used for empirical analysis. The results implied that the psychological and benefit values of the hotel loyalty program positively influenced the formation of affective loyalty, which conveyed membership recognition, and that differentiated benefits were the most important for Koreans. Also, once cognitive loyalty was built, it progressively and positively influenced the formation of affective, conative, and eventually action loyalty, thus showing that the formation of cognitive loyalty is crucial for Koreans. This study is meaningful in that it empirically analyzed how a global chain hotel’s loyalty program contributes to the formation of loyalty through evaluating its effect on each stage.

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