Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
2007 Annual International CHRIE Conference & Exposition 
297
Sharp and Sharp (1997) analyzed the ability of a loyalty program to alter normal repeat-purchase rates. 
Unfortunately, the study's results had the lack of consistency. Their findings supported that it is difficult to change 
fundamental repeat-purchase pattern of customers. In addition, the finding of Dowling and Uncles (1997) are 
consistent with the lack of consensus on the value of loyalty programs to increase customer retention. It should be 
emphasized that studies that question the value of loyalty programs are largely based on research that uses single-
period switching models. However, the authors also mentioned that it is possible to alter repeat-purchase patterns at 
least to a small degree. As a result, the previous research suggested that the value of loyalty program may not lead to 
fundamental changes of customer behaviors, but the importance of loyalty programs affecting post behaviors can not 
be ignored (Dowling & Uncles, 1997; Sharp & Sharp, 1997). In this sense, rather than direct effects, we considered 
the indirect effect of loyalty programs toward customer’s post-purchase behaviors. The following hypotheses 
regarded the moderating effect of loyalty programs between online travel product attributes and traveler’s post-
purchase behaviors. 
H
2
: The impact of online travel attributes on traveler’s post-purchase behaviors will be moderated by loyalty 
program use. 
H
2-1
: The impact of online travel attributes on traveler’s overall satisfaction will be moderated by loyalty 
program use. 
H
2-2
: The impact of online travel attributes on traveler’s complaint intention will be moderated by loyalty 
program use. 
H
2-3
: The impact of online travel product on traveler’s switching intention will be moderated by loyalty 
program use.