Abstract
The purposes of this study were to provide the apparel companies with a effective marketing strategy by identifying the present condition of loyalty programs and designing the type of reward and the timing of reward, and to investigate the effects of loyalty programs on customers' satisfaction and loyalty. The experimental study was conducted to examine the relationship between loyalty programs and performances. The experiment, which adopted a scenario methodology, was a 2(type of rewards)<TEX>${\times}$</TEX>2(timing of rewards) between subjects factorial design. The sample was based on 362 college students. The data analysis was completed on the basis of SPSS 12.0 package, using descriptive analysis, frequency, factor analysis, Cronbach's a, ANOVA, and regression analysis. The following results were found in this research. First the respondent's recognition of reward(benefit, reserve fund, experience) was not relatively high. Second, the interaction effect of type of rewards and timing of rewards on the loyalty programs' satisfaction(p<.01) and customer loyalty(p<.001) was significant, but that on customer satisfaction was not significant. Finally, loyalty programs' satisfaction positively affected customer satisfaction and loyalty. The implications of the research and directions for future researchers were discussed.
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