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Spillover Effects of Service Failures in Coalition Loyalty Programs: The Buffering Effect of Special Treatment Benefits

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  • Schumann, Jan H.
  • Wünderlich, Nancy V.
  • Evanschitzky, Heiner

Abstract

Coalition loyalty programs are on the rise, yet few studies investigate the impact of service failures in such programs. Using data from a retail context, the authors show that a program partner deemed responsible for a service failure suffers negative customer responses. However, customers’ perceptions of the benefits of the coalition loyalty program buffer these consequences. Perhaps most importantly, when customers perceive the program's special treatment benefits as low, direct and indirect spillover effects occur, such that a service failure by one program partner has a negative effect on customer loyalty toward the program itself.

Suggested Citation

  • Schumann, Jan H. & Wünderlich, Nancy V. & Evanschitzky, Heiner, 2014. "Spillover Effects of Service Failures in Coalition Loyalty Programs: The Buffering Effect of Special Treatment Benefits," Journal of Retailing, Elsevier, vol. 90(1), pages 111-118.
    • Handle: RePEc:eee:jouret:v:90:y:2014:i:1:p:111-118
    DOI: 10.1016/j.jretai.2013.06.005
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    References listed on IDEAS

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    5. Xenia Raufeisen & Linda Wulf & Sören Köcher & Ulya Faupel & Hartmut H. Holzmüller, 2019. "Spillover effects in marketing: integrating core research domains," AMS Review, Springer;Academy of Marketing Science, vol. 9(3), pages 249-267, December.
    6. Stourm, Valeria & Bradlow, Eric T., 2023. "Cross-reward effects in a coalition loyalty program: The impact of a point currency devaluation," International Journal of Research in Marketing, Elsevier, vol. 40(2), pages 276-293.
    7. Danaher, Peter J. & Sajtos, Laszlo & Danaher, Tracey S., 2020. "Tactical use of rewards to enhance loyalty program effectiveness," International Journal of Research in Marketing, Elsevier, vol. 37(3), pages 505-520.
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    9. Els Breugelmans & Tammo Bijmolt & Jie Zhang & Leonardo Basso & Matilda Dorotic & Praveen Kopalle & Alec Minnema & Willem Mijnlieff & Nancy Wünderlich, 2015. "Advancing research on loyalty programs: a future research agenda," Marketing Letters, Springer, vol. 26(2), pages 127-139, June.
    10. Stuart Read & Stefan Michel & Jan H. Schumann & Kumar Rakesh Ranjan, 2019. "Pricing co-created value: an integrative framework and research agenda," AMS Review, Springer;Academy of Marketing Science, vol. 9(3), pages 155-183, December.
    11. Yoonseock Son & Wonseok Oh & Sang Pil Han & Sungho Park, 2020. "When Loyalty Goes Mobile: Effects of Mobile Loyalty Apps on Purchase, Redemption, and Competition," Information Systems Research, INFORMS, vol. 31(3), pages 835-847, September.
    12. Viswanathan, Vijay & Sese, F. Javier & Krafft, Manfred, 2017. "Social influence in the adoption of a B2B loyalty program: The role of elite status members," International Journal of Research in Marketing, Elsevier, vol. 34(4), pages 901-918.
    13. Jisu J. Kim & Lena Steinhoff & Robert W. Palmatier, 2021. "An emerging theory of loyalty program dynamics," Journal of the Academy of Marketing Science, Springer, vol. 49(1), pages 71-95, January.
    14. Alex Belli & Anne-Maree O’Rourke & François A. Carrillat & Ljubomir Pupovac & Valentyna Melnyk & Ekaterina Napolova, 2022. "40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 147-173, January.
    15. Washington Macías-Rendón & Katia Rodríguez-Morales & Holger Raúl Barriga-Medina, 2021. "COVID-19 lockdown and the satisfaction with online food delivery providers," Estudios Gerenciales, Universidad Icesi, vol. 37(159), pages 200-209, June.
    16. Moon, Ilkyeong & Xu, Jie & Feng, Xuehao & Ruan, Xiao, 2020. "Cooperative sales promotion with a point-sharing policy: Advantages and limitations," Omega, Elsevier, vol. 94(C).
    17. Chen, Jianyu & Gong, Xiushuang & Ren, Rui, 2023. "Active or avoidance coping? Influencing mechanisms of streamers' coping strategies on viewers’ word of mouth after livestreaming e-commerce failures," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    18. Hsin Hsin Chang & Kit Hong Wong, 2018. "Consumer psychological reactance to coalition loyalty program: price-consciousness as a moderator," Service Business, Springer;Pan-Pacific Business Association, vol. 12(2), pages 379-402, June.
    19. Rehnen, Lena Marie, 2016. "Exit strategies of loyalty programs," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 9(1), pages 564-596.
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