Taeseok Rhois a Doctoral Candidate of Marketing at Pusan National University. His primary research areas are relationship marketing, service marketing and behavioral decision theory. He has taught consumer behavior, service marketing and marketing research at several colleges and universities as a lecturer. E-mail: tsrho@pusan.ac.kr
Henry Greeneis an Associate Professor of Marketing at Central Connecticut State University. His primary areas of interest are Interactive Marketing, Database Marketing and Experiential teaching methodologies. Before his work in academia, Henry worked as a marketing research analyst and marketing consultant for several corporations: Donneley Marketing, Strategic Mapping, ADVO, Inc., Advanced Database Marketing, Young and Rubicam, IBM and Information Xperts. He has also taught mathematics, computer science, operations research and statistics at several universities and colleges. E-mail: hgreene@ccsu.edu ABSTRACT In this study, we examine customer reactions to demarketing stimulation in an e-business environment. Specifi cally, we examine attempts to exit or improve a relationship with a service provider. A 2 × 2 × 2 MANOVA, 2 (demarketing type: price, product) × 2 (strength: strong, weak) × 2 (self-regulatory focus: promotion, prevention) mixed design on psychological response, exit and relationship improvement with a service provider, as the dependent variables, was implemented with undergraduate student participants at a northeast university in the United States. Stimulations in each situation were manipulated based on Kotler and Levy ' s demarketing -marketing mix. Moderating psychological factors were incorporated in this investigation, selected from prior research studies in regulatory focus. With each stimulation, respondents were asked to answer questions about their relationship with an organization in terms of their intention to dissolve, maintain or improve their relationship. In addition, the moderating effects of self-regulatory focus (promotion and prevention) were examined to investigate the psychological response under the different stimulation. In this investigation, we show that there is a signifi cant reaction to demarketing stimulation in the e-business marketplace; consumers exhibit a negative response against demarketing stimuli when price stimulations and strength stimulations are high. Customers with a promotion focus were more likely to seek a better relationship with