Loyalty program members are segmented based on their personal values and relationships with their respective
programs and performance outcomes are expected to vary between segments. Tiered programs are used to segment
customers ideally and provide differentiated rewards based on the customers’ behaviors. This study was designed to
identify notable facts for businesses to improve current loyalty programs by examining customers’ repeat purchase
behavior. The main purpose of this study was to focus on customers’ behavioral loyalty and examine significant
differences between the segments that help explain the intentions and behaviors of casino loyal patrons. Secondary
data was used from a Las Vegas Strip hotel casino property. The final data set included 417 samples. Data was
entered into SPSS 16.0 for data analysis. Hierarchical cluster analysis was performed for data segmentation and
one-way analysis of variance (ANOVA) and Chi-Square test was performed to test the study hypothesis. Study
results revealed two cluster solution and indicated that behavioral attributes were not equally significant for the two
loyal groups. In conclusion, this study suggested practical utilization of casino loyalty programs by increasing the
implementation of differentiated segmentation for loyal customers. Finally, study limitations and future
recommendations were addressed.
Key Words : customer loyalty, casino loyalty program, behavioral loyalty, repeat patronage, segmentation