Do status levels in loyalty programmes change customers’ willingness to pay?

Do status levels in loyalty programmes change customers’ willingness to pay?

0.00 Avg rating0 Votes
Article ID: iaor20123902
Volume: 11
Issue: 3
Start Page Number: 274
End Page Number: 288
Publication Date: May 2012
Journal: Journal of Revenue and Pricing Management
Authors: ,
Keywords: revenue management, brand choice, loyalty programs, travel industry
Abstract:

This article examines the effects of loyalty programme membership, promotion and demotion across different status levels on customer brand preferences and willingness to pay (WTP). The results of a study in the travel industry show that loyalty programme members express significantly higher brand preferences for their respective airline or hotel group than do non‐members. Furthermore, consumers close to experiencing a change in their status level exhibit even stronger brand preferences, which extends to a greater WTP. The empirical findings illustrate how frequent traveller programmes affect purchase choices, especially if customers anticipate that they are about to lose or gain a higher status level.

Reviews

Required fields are marked *. Your email address will not be published.