The Mediating Effect of Relational Benefits on Retailer Loyalty Programs towards Customer Loyalty

This paper proposes a conceptual framework that utilizes the construct of relational benefits to explain the link between loyalty programs and customer loyalty in retail context.The framework posits that loyalty programs not only has the direct positive impact on behavioral loyalty,but also has indirect positive impact on behavioral and affective loyalty through confidence,social and special treatment benefits derived from the long-term relationship between retailers and their customers.The results show that the role of confidence benefits played in promoting customer loyalty is the most significant,followed closely by social benefits,which has certain reference for retailers to design effective loyalty programs.