Abstract In context of Frequent flyer program, this research explores effects of customer benefit of loyalty program (i.e. tangible rewards, preferential treatment and perceived status) on customer loyalty and effects of customer loyalty on customer entitlement behavior (e.g. request deeper discount, take some privileges) and complaint behavior. The empirical study shows that: tangible rewards，preferential treatment and perceived status have positive effect on customer loyalty; customer loyalty has a positive effect on customer entitlement, which indicates the extent to which a customer expects special treatment from the firm in retail environments; customer loyalty has positive effect on customer complaint mediated by customer entitlement; customer gratitude positively moderates the relationship between customer loyalty and customer entitlement.
