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

Title: Do status levels in loyalty programmes change customers' willingness to pay?
Creator: Mathies, Christine; Gudergan, Siegfried P.
Relation: Journal of Revenue and Pricing Management Vol. 11, Issue 3, p. 274-288
Publisher Link: http://dx.doi.org/10.1057/rpm.2012.13
Publisher: Palgrave Macmillan
Resource Type: journal article
Date: 2012
Description: 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.
Subject: loyalty programmes; customers; membership; travel industry
Identifier: http://hdl.handle.net/1959.13/1067103
Identifier: uon:18280
Identifier: ISSN:1476-6930
Language: eng
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