Do loyalty programs really enhance customer loyalty in tourism enterprises: Evidence from a Korean Casino? (관광기업의 고객우대 프로그램 과연 고객충성도를 높이는가?-카지노기업의 고객우대 프로그램을 중심으로)

Kim, Tae-Hoon (김태훈); Park Sang-Kon (박상곤)

Do loyalty programs really enhance customer loyalty in tourism enterprises: Evidence from a Korean Casino?

Journal of Tourism Sciences
Abbr : JTS
2009, 33(5), pp.209-230
Publisher : The Tourism Sciences Society Of Korea
Research Area : Social Science > Tourism

Kim, Tae-Hoon ¹, Park Sang-Kon ²

¹국립중앙박물관
²한국문화관광연구원

Accredited

ABSTRACT

The paper investigates the effects of tourism enterprises' loyalty programs on customer loyalty. In particular, this study focused on the endogeneity problems of loyalty programs form the econometric perspective. A secondary data of customer satisfaction from a Korean casino was obtained. The data was analyzed using econometrics models such as ETS, EBT, ordered logit model. Results revealed that loyalty programs had no or negative one on the behavioral loyalty of customers. Furthermore, loyalty programs did not influence the long term attitudinal loyalty of the casino customers. The findings suggest that only very carefully designed loyalty programs are effective. An additional suggestion was that customer databases should be scientifically analyzed in order to design better loyalty program.

KEYWORDS

Customer loyalty program, Endogeneity, Behavioral loyalty, Attitudinal loyalty

Citation status

* References for papers published after 2023 are currently being built.

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