Status Demotion in Hierarchical Loyalty Programs: Effects of Payment Source
MetadataShow full item record
This is an Author's Original Manuscript of an article published by Taylor & Francis in The Service Industries Journal on 22/08/2016 available online at http://www.tandfonline.com/ 10.1080/02642069.2016.1219721
Hierarchical loyalty programs are being operated currently by many firms to improve customer relationships. While past work has demonstrated the negative effects of status demotion in such programs, research on how these effects may vary across different customer group based on payment source is almost nonexistent. This paper examines the moderating role of payment source (‘own money’ versus ‘others money’) on the effects of status demotion on customer attitudes and behavior in hierarchical loyalty programs. Analysis of data collected from members of airline loyalty programs show that the negative effects of status demotion on customer attitudes, loyalty intentions, and share-of-wallet are stronger for demoted ‘own money’ customers than for demoted ‘others money’ customers. The study provides a deeper insight about the effects of status demotion and points out that firms could possibly be endangering the loyalty of many potentially valuable customers, in particular among the ‘own money’ customer group.
Showing items related by title, author, creator and subject.
Ramaseshan, Balasubramani; Ouschan, Robyn (2017)© 2017, © Emerald Publishing Limited. Purpose: The purpose of this paper is to extend research on customer loyalty status and customer demotion by investigating if the effect of demotion on customer attitudinal and ...
Status demotion in hierarchical loyalty programs and its effects on switching: Identifying mediators and moderators in the Chinese contextBanik, S.; Gao, Y.; Rabbanee, Fazlul (2019)© 2018 Elsevier Inc. Hierarchical loyalty programs (HLPs) are widespread across many service industries; however, research on the effects of status demotion in an Eastern cultural context is relatively scant. Based on the ...
Evanschitzky, H.; Ramaseshan, Balasubramani; Woisetschläger, D.; Richelsen, V.; Blut, M.; Backhaus, C. (2012)Gaining customer loyalty is an important goal of marketing, and loyalty programs are intended to help in reaching it. Research on loyalty programs suggests that customers differentiate between loyalty to a company and ...