Modeling Customer Loyalty Through Loyalty Programs, Perceived Value, And Customer Satisfaction: Evidence From Greater Bandung (Bandung Raya)

. This study aims to examine the influence of loyalty programs on customer loyalty by investigating the mediating roles of perceived value and customer satisfaction through an integrative framework that combines the Stimulus–Organism–Response (SOR) Theory, Perceived Value Theory, and Relationship Marketing Theory. Data were collected from 260 Generation Z respondents (aged 17–23) residing in the Greater Bandung area who have experience using loyalty programs. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS. The results reveal that loyalty programs have a positive and significant effect on both perceived value and customer satisfaction. Furthermore, perceived value and satisfaction were found to be strong predictors of customer loyalty. The IPMA results indicate that program has the highest importance in driving loyalty, highlighting the critical role of emotional and experiential factors in fostering long-term commitment. This study offers theoretical contributions by integrating three major consumer behavior frameworks and practical implications for businesses seeking to optimize their loyalty program strategies. Overall, the findings emphasize that enhancing perceived value and customer satisfaction is essential for strengthening customer loyalty, particularly among digital-native consumers such as Generation Z.