Hospitality is notthe only industry for which research on loyalty program effectiveness is equivocal. A recent review of literature covering all industries attributes this to the fact that research has not yet determined what drives loyalty program effectiveness(Dorotic et al., 2011). They note that “prior research largely neglects the simultaneous impact of the LP and customer attitudes on their behavior” (p. 9). The current research begins to fill this gap by
making the connection between reward tiers and attitudinal and behavioralloyalty indicators thathave beeninvestigated inthehospitality and marketing literature. It adds to the body of knowledge on hospitality loyalty, where research on tier effects is sparse and inconclusive. It aids practitioners by evaluating their assumption that tier levels are effective loyalty building mechanisms