Research on the customer value to an organization has been widely
explored, yet most studies only determined on the financial value based
on the customer's purchasing behavior. The value of customers beyond
their purchasing behavior -- defined as the relational worth - has not
been commonly captured yet. This non-financial value is one of the
drivers in retaining customers, hence it becomes a crucial factor in
preserving the profitability of the organization. For this reason, this
paper aims to examine the customer non-financial valuations of a loyalty
reward program. The scope of the study covered a reward program
involving consumer exertions in the context of a Frequent Flyer Program
(FFP) offered by an airline in Indonesia. The hypotheses are empirically
tested with a sample of FFP members conducted through an online survey
(n=475). The data were statistically analyzed using structural equation
modeling (SEM) as a first order construct. Results indicate that the
perceived social rewards lead to an affective and normative commitment
as well as consumers' satisfaction, while the economic reward did not
have an effect on developing affective bonds with members for long-term
relationships. The relational benefit offered through the FFP creates
affectively and normatively committed members who produce relational
behaviors, in terms of WOM, immunity, openness and acquiescence of the
members to the airline. Furthermore, the FFP members produced social
behaviors toward the airline when they felt satisfied with their
relational exchanges. [ABSTRACT FROM AUTHOR]