Does Customer Demotion Jeopardize Loyalty?
Abstract
Hierarchical loyalty programs award elevated customer status (e.g., “elite membership”) to consumers who meet a predefined spending level. However, if a customer subsequently falls short of the required spending level, firms commonly revoke that status. The authors investigate the impact of such customer demotion on loyalty intentions toward the firm. Building on prospect theory and emotions theory, the authors hypothesize that changes in...
Paper Details
Title
Does Customer Demotion Jeopardize Loyalty?
Published Date
May 1, 2009
Journal
Volume
73
Issue
3
Pages
69 - 85
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