The Impact of Loyalty Program on Customer Retention : Empirical Evidence from Bangladesh

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

View graph of relations


  • Syed Md. Hasib AHSAN
  • Mohammad Manjur ALAM
  • Adiba NAZIA
  • Tasnim ISLAM

Related Research Unit(s)


Original languageEnglish
Article number18
Pages (from-to)195-206
Journal / PublicationJournal of Asian Finance, Economics and Business
Issue number6
Online published30 Jun 2022
Publication statusPublished - 2022


The purpose of this paper is to examine how loyalty programs designed by retail stores affect customer retention. The present study is one of the few empirical studies finding the role of different loyalty programs that help to build customer retention. The study also seeks to explore the moderation role of customer perceived value between intrinsic motivation - customer retention and extrinsic motivation - customer retention. The researchers employed a quantitative research design to collect data from the 350 respondents who purchased goods from the retail chain/departmental stores in Bangladesh. The collected data are then analyzed using structural equation modeling. The result of their findings indicated that the size of the organizational reward has a positive effect on intrinsic and extrinsic motivation; further extrinsic motivation has a significant relation to customer retention. Surprisingly, no support was found for the positive impact of intrinsic motivation on customer retention. Customer perceived value (CPV) is critical as a moderator in building client retention, which improves the positive association between extrinsic motivation and customer retention. CPV, on the other hand, was found to mitigate the negative link between intrinsic motivation and client retention.

Research Area(s)

  • Customer Retention, Loyalty Program, Intrinsic Motivation, Extrinsic Motivation, Customer Perceived Value, Retail Chain

Bibliographic Note

Information for this record is supplemented by the author(s) concerned.

Citation Format(s)

The Impact of Loyalty Program on Customer Retention: Empirical Evidence from Bangladesh. / AHSAN, Syed Md. Hasib; ALAUDDIN, Md.; ALAM, Mohammad Manjur et al.
In: Journal of Asian Finance, Economics and Business, Vol. 9, No. 6, 18, 2022, p. 195-206.

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review