| Due to the rapid expansion in casinos and other gaming opportunities (e.g., web-based gaming, lotteries, racino, etc.), almost every casino is using loyalty programs as a key component of their marketing strategies. However, the value of customer loyalty programs has been questioned in part because empirical research on the effects of loyalty schemes has been inconclusive. The purposes of this study are to aid understanding of the effectiveness of casino loyalty programs, to segment loyalty program members based on the number of casino loyalty programs to which casino patrons belong, and to compare these segments' socio-demographic characteristics, gaming behaviors, perceived value of loyalty program, as well as their attitudinal and behavioral loyalty. In addition, this study developed and tested an integrated casino loyalty model to examine the influence of loyalty program value on customer satisfaction, switching cost, and attitudinal and behavioral loyalty.;A data driven web-based survey system was utilized to collect data from loyalty program members of a major casino gaming company. The finding suggests that the majority of respondents are multiple casino loyalty program members. In addition, customers who are multiple loyalty program members tend to exhibit lower perceived value of loyalty program, perceive switching cost, satisfaction, attitudinal and behavioral loyalty compared to those with one loyalty program membership. Structural equation modeling was utilized to examine the influence of loyalty program value (e.g., economic value, special treatment/services, communications) on customer satisfaction, switching cost, and attitudinal and behavioral loyalty. The results suggest that all components of the casino loyalty program directly or indirectly influence the perceived switching cost, satisfaction, attitudinal and behavioral loyalty.;This study is one of only a few empirical studies of customer loyalty programs and is perhaps the most comprehensive study of customer loyalty programs in the casino industry. This study resulted in a number of findings that shed light on loyalty, designing loyalty programs, and even casino management. This empirical validation of customer loyalty will improve the understanding of the value of these programs and will lead to suggestions for their use by the gaming industry. |
