Abstract
Purpose – The purpose of this paper is to measure the impact of customer loyalty programs on
relationship quality, relationship commitment, and loyalty.
Design/methodology/approach – A survey with 480 qualified observations from department store
customers in Taiwan was conducted. A structural equation modeling approach was used.
Findings – Customer loyalty programs have a partially supported positive impact on relationship
quality; service quality has a positive impact on relationship quality; customers with a positive
relationship quality impact their relationship commitment; the higher the relationship commitment, the
higher the loyalty; and a customer loyalty program partially supports a positive impact on loyalty.
Originality/value – The paper shows that customer loyalty programs have positive influences on
loyalty. However, short-term customer loyalty programs, namely, Minimum Purchase Gift Cards,
displayed no significant influence on loyalty. The incentive of short-term customer loyalty programs is
not sufficient for loyalty.