Effects of Loyalty Programs on Financial Performance: The Moderating Role of Company Size

John Kiarie, Gabriel Kirori, David Wachira


The purpose of this study was to develop an original framework to explore the direct effect of Loyalty programs on a firm’s financial performance and to discuss the moderating role of company size. The study applies two original concepts - Loyalty programs and company size to develop an integral model that enhances the firm’s financial performance. Secondary data was extracted from financial statements. Explanatory research design which was non-experimental in nature was employed to analyze the effect of company size on financial performance of selected service industry firms. Panel data analysis was used to link the relationship between the Loyalty programs, company size and financial performance. Findings indicated that company size moderates the relationship between loyalty programs and Financial Performance of the selected firms in the service industry in Kenya.
Key words: Company Size, Loyalty Programs, Financial Performance

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