Freedom restriction and non-member customers' response to loyalty programs. (April 2021)

• Record Type: Journal Article
• Authors: Ding, Anni; Legendre, Tiffany S.; Han, Juyeon (Rachel); Chang, Howook (Sean)
• Is Part Of: International journal of hospitality management. Volume 94(2021)
• Publication Date: 2021-04
• Subjects: Loyalty program -- Non-member customers -- Reactance theory -- Perceived threat to freedom -- Importance of freedom -- Relationship norms; Hotel management -- Periodicals; Restaurant management -- Periodicals; Food service management -- Periodicals; Hôtels -- Gestion -- Périodiques; Restaurants -- Gestion -- Périodiques; Services alimentaires -- Gestion -- Périodiques; Food service management; Hotel management; Restaurant management; Periodicals; 647.94
• DOI: 10.1016/j.ijhm.2020.102809
• Languages: English
• ISSNs: 0278-4319

Abstract

Highlights: In loyalty program literature, how non-loyalty program members would react to the preferential treatment is shallow. This study investigates non-member customers' negative responses to loyalty programs. Two 2 × 2 between-subjects-design experimental studies were conducted to evaluate the application of reactance theory in hospitality settings. The results show that negative customer responses arise due to the perceived threat to freedom and is moderated by the importance of freedom. This study also finds that relationship norms moderate the influence of perceived threat to freedom on non-member customers' negative responses. Abstract: In loyalty program (LP) literature, research on how non-loyalty program members would react to preferential treatment is scarce. Nested within reactance theory, this paper suggests that negative customer responses arise due to the perceived threat to freedom and that the effects are moderated by the importance of freedom and relationship norms. Through two 2 × 2 between-subjects-design experiments, our results indicate that when the perceived threat to freedom of receiving LP benefits is high, non-member customers show increased anger, decreased attitude towards the company, and decreased intention to revisit. Similar results are observed when a company presents the image of building a communal relationship with its customers and when non-member customers perceive a high threat to freedom in terms of receiving the LP benefits. Both studies indicate that the interaction effects are less pronounced when non-member customers perceive a low threat to freedom of receiving the LP benefits.