Exploring the Relationship between Relevance of Coalition Loyalty Programs and Loyalty

Coalition loyalty programs are on the rise around the world. This paper proposes the construct of Relevance of Coalition Loyalty Programs. The construct comprises two dimensions: Convenience of redeem points and Product fit. We developed the scale of Relevance of Coalition Loyalty Programs. Further, a structural equation modeling was used to examine the effect of convenience of redeem points and product fit on customer satisfaction and customer loyalty. The results show that Convenience of redeem points and Product fit have a significant impact on customer satisfaction. Product fit has a significant relationship on customer loyalty, but Convenience of redeem points has no significant effect on customer loyalty. In addition, customer satisfaction partly mediates the relationship between product fit and customer loyalty. This article provides a theoretical guidance on designing coalition loyalty program and enhancing customer loyalty for enterprise managers.