I am examining a loyalty program's (LP) effectiveness on customer loyalty across members and non-members. I first hypothesised members will perceive higher levels of switching costs (SC), and exhibit higher levels of attitude, commitment and satisfaction than non-members. This is then followed by next set of hypotheses predicting all those variables will partially mediate the relationship between LP's membership and customer loyalty (e.g. higher SC -> higher customer loyalty).
How would I be able to test my second set of hypotheses (mediation effect)? Do I simply do a multiple regression on SPSS by commanding only outputs of LP members ('rule selection variable') and examine the 'unstandardised coefficients' of all those predictors on customer loyalty?
Given that there's a categorical variable (LP membership) in my hypotheses, are Baron and Kenny (1986)'s mediation steps still applicable in my case?