2020
DOI: 10.1108/jsm-02-2019-0089
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Unintended negative consequences of loyalty programs: endowed vs earned loyalty

Abstract: Purpose Loyalty programs are pervasive across service industries. However, the examination of cross-customer effects represents a critical gap in the loyalty literature. To address this gap, this research conducts two between-subjects experimental design studies to examine traditional versus endowed loyalty status earner attitudinal loyalty intention toward the company, switching intentions and perceived unfairness. Design/methodology/approach Study 1 conducts a 2 (self: earned vs endowed) × 2 (others: earne… Show more

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Cited by 21 publications
(18 citation statements)
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“…Only recently have researchers examined the negative effects of HLPs (e.g. Baker and Legendre, 2020;Kim and Baker, 2020;Mimouni-Chaabane and Pez, 2020). Therefore, this study expands the emerging literature by uncovering the two design elements of HLPs that contribute to understanding the "dark side" effect of HLP.…”
Section: Introductionmentioning
confidence: 86%
See 1 more Smart Citation
“…Only recently have researchers examined the negative effects of HLPs (e.g. Baker and Legendre, 2020;Kim and Baker, 2020;Mimouni-Chaabane and Pez, 2020). Therefore, this study expands the emerging literature by uncovering the two design elements of HLPs that contribute to understanding the "dark side" effect of HLP.…”
Section: Introductionmentioning
confidence: 86%
“…This practice of status endowment, that is, awarding elevated status to customers who are not entitled to it (Eggert et al, 2015) or similarly offering unearned or discretionary preferential treatment to certain customers (Butori and De Bruyn, 2013;Jiang et al, 2013;Wu et al, 2015), is gaining traction in managing loyalty programs because of its positive effects on target customers. However, it is not clear how endowed customers may respond to HLP design characteristics (Baker and Legendre, 2020;Eggert et al, 2015). Considering that endowed customers did not earn their elevated status via point accumulation or spending in the first place, one might expect that they would react less negatively to point expiration following status demotion compared to customers who earned their status.…”
Section: Introductionmentioning
confidence: 99%
“…The survey was launched on the Qualtrics platform. Study Participants were recruited from Amazon Mechanical Turk, where it provides a nationwide consumer panel with high quality data (Baker & Legendre 2020; Legendre et al . 2020b).…”
Section: Methodsmentioning
confidence: 99%
“…Edible insects and consumer acceptance Entomophagy, the practice of eating insects, is traditional in many cultures but not in Western countries (Baker and Legendre, 2019). Edible insects have a long and ancient history , with over 1,900 types of edible insects consumed globally and two billion people already eating insects throughout the world (Baker and Legendre, 2020). Many scientists identify insects as one of the more sustainable sources of nutrients able to satisfy global food needs .…”
Section: Literature Reviewmentioning
confidence: 99%
“…To eliminate cultural influence, this study sampled only general US consumers. MTurk provides nation-wide quality data (Baker and Legendre, 2020) and is often used in hospitality research . To ensure quality, respondents who failed quality control checks were omitted, as respondents and workers needed to have a minimum percentage of Human Intelligence Tasks to qualify (Kim and Baker, 2020;Migacz et al, 2018).…”
Section: Design and Proceduresmentioning
confidence: 99%