IDEAS home Printed from https://ideas.repec.org/a/taf/servic/v36y2016i9-10p375-395.html
   My bibliography  Save this article

Status demotion in hierarchical loyalty programs: effects of payment source

Author

Listed:
  • B. Ramaseshan
  • Alisha Stein
  • Fazlul K. Rabbanee

Abstract

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.

Suggested Citation

  • B. Ramaseshan & Alisha Stein & Fazlul K. Rabbanee, 2016. "Status demotion in hierarchical loyalty programs: effects of payment source," The Service Industries Journal, Taylor & Francis Journals, vol. 36(9-10), pages 375-395, July.
    • Handle: RePEc:taf:servic:v:36:y:2016:i:9-10:p:375-395
    DOI: 10.1080/02642069.2016.1219721
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/02642069.2016.1219721
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02642069.2016.1219721?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yong You Nie & Austin Rong Da Liang & Dun Ji Chen, 2017. "Assessing the effect of organic-food short storytelling on consumer response," The Service Industries Journal, Taylor & Francis Journals, vol. 37(15-16), pages 968-985, December.
    2. Banik, Shanta & Gao, Yongqiang & Rabbanee, Fazlul K., 2019. "Status demotion in hierarchical loyalty programs and its effects on switching: Identifying mediators and moderators in the Chinese context," Journal of Business Research, Elsevier, vol. 96(C), pages 125-134.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:servic:v:36:y:2016:i:9-10:p:375-395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FSIJ20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.