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Effects of customer loyalty on customer entitlement and voiced complaints

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  • Xiaofei Li
  • Baolong Ma
  • Chen Zhou

Abstract

The value of customer loyalty has been well documented by academicians and practitioners. Nevertheless, prior literature has paid little attention to the negative consequences of customer loyalty, for example, entitlement behaviors (e.g. requests for deeper discounts) and complaint behaviors (voicing dissatisfaction to the company). This research empirically examines the effects of customer loyalty on entitlement and voiced complaint behaviors in the context of Frequent Flyer programs in airline industry. Base on partial least squares-structural equation modeling, the results show that (1) customer loyalty has a positive effect on customer entitlement, which is the extent to which customers expect special treatment from the company; (2) the effect of customer loyalty on voiced complaints is fully mediated by customer entitlement; (3) perceived status of loyalty programs amplifies the entitlement behaviors of loyal customers, while tangible rewards of loyalty programs mitigate the entitlement behaviors of loyal customers. Theoretical and managerial implications are elaborated in the discussion section.

Suggested Citation

  • Xiaofei Li & Baolong Ma & Chen Zhou, 2017. "Effects of customer loyalty on customer entitlement and voiced complaints," The Service Industries Journal, Taylor & Francis Journals, vol. 37(13-14), pages 858-874, October.
    • Handle: RePEc:taf:servic:v:37:y:2017:i:13-14:p:858-874
    DOI: 10.1080/02642069.2017.1360290
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    Cited by:

    1. Pizzi, Gabriele & Vannucci, Virginia & Shukla, Yupal & Aiello, Gaetano, 2022. "Privacy concerns and justice perceptions with the disclosure of biometric versus behavioral data for personalized pricing tell me who you are, I’ll tell you how much you pay. Consumers’ fairness and p," Journal of Business Research, Elsevier, vol. 148(C), pages 420-432.

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