Customer frustration in loyalty programs
Customer frustration in loyalty programs

Customer frustration in loyalty programs

Aufsatz, Englisch, 34 Seiten, Emerald Group Publishing Limited

Autor: Dr. Maxie Schmidt

Herausgeber / Co-Autor: Bernd Stauss, Andreas Schöler

Erscheinungsdatum: 2005

Quelle: International Journal of Service Industry Management, Vol. 16, No. 3

Seitenangabe: 229-252


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Do loyalty programs FRUSTRATE customers and how? What are measures against this?

This is a critical question because frustration leads to alienation - the opposite of retention.

This article answers the queation based on a market study and a case in the service industry.

Several implications for planning and implication arise from the results of the study. Management has to make sure that program-related and relationship-related negative effects are avoided. That calls for offering only those benefits that represent genuine additional value to customers and for ensuring that the benefits can be claimed at any time and without any additional effort by the customer. Furthermore, the perceived quality of the program should be monitored to
obtain prompt information about possible customer frustration and indications of protest (i.e. customer complaints) should be viewed with particular attention.

This paper provides new insights into the so far highly neglected negative side effects of loyalty programs. Also, innovative is the first-time application of the frustration construct to the analysis of customer behavior in the context of loyalty programs. The contribution is of high value for all who research in the field of customer relationship management and customer loyalty.

 

 

This paper received the "Best Paper Award of the Emerald Literati Network 2006"

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