Selected antecedents of customer loyalty within a restaurant loyalty program: Perceived control, privacy concern, perceived value of a loyalty program, and willingness to disclose information

Open Access
Lee, Hee Seok
Graduate Program:
Hotel, Restaurant, and Institutional Management
Doctor of Philosophy
Document Type:
Date of Defense:
August 04, 2008
Committee Members:
  • Carolyn U Lambert, Committee Chair
  • David Allen Cranage, Committee Member
  • Karthik Namasivayam, Committee Member
  • Dongwon Lee, Committee Member
  • willingness to disclose information
  • customer loyalty
  • CRM
  • perceived control
  • privacy concern
  • perceived value
The objectives of this study were to examine a conceptual model of information disclose and customer loyalty with respect to the sensitive level of information, perceived control, privacy concern, and perceived value of a loyalty. Data for the study were collected using an online survey distributed to customers who made a reservation for dinner at a student managed restaurant and 300 participants completed the online survey. The data were analyzed by univariate and multivariate analyses including analysis of variance, analysis of covariance, multivariate analysis of variance, regression analyses and the structural equation modeling. The findings indicated 1) customers’ willingness to disclose and perceived value of a loyalty program are the determinants of customer loyalty (e.g. behavioral intent and relative attitude); 2) willingness to disclose is affected by perceived control (e.g. perceived cognitive and decisional control), privacy concern and perceived value of a loyalty program; 3) privacy concern is affected by the sensitivity level of information and perceived cognitive control; and 4) perceived value of loyalty program is affected by information privacy concern. The implications of the findings for restaurant managers are that they can collect more disclosure-based information in a restaurant loyalty program by controlling the sensitivity level of information and providing a loyalty program which has a high perceived value. Also, restaurants may provide customers with more control over the way that companies use personal information to collect disclosure-based information. For future research, the generalizability could be improved by recruiting participants from a restaurant which practices CRM with a loyalty program. By doing so, the information requested by the company would be more realistic. Also, other marketing strategies to reduce privacy concern, other than providing an information edit function, need to be examined in a restaurant loyalty context. Additionally, further examination of an information edit function utilized in this study and its effect on privacy concern and willingness to disclose would help to explain the relationship between greater willingness to disclose (and greater privacy concern) and absence of information edit function.