Effects of demotion in loyalty programs on brand-switching intentions

Insuk Hwang, Hyukjin Kwon

Research output: Contribution to journalArticlepeer-review

19 Scopus citations

Abstract

This study explores the effects of demotion in loyalty programs on intentions to switch to competitors. In a survey of 650 individuals, demotion evoked negative emotions, and its effect weakened when the demoted respondents’ internal locus of control was high and strengthened when their program involvement was high. Negative emotions had an indirect effect on intentions to switch to competitors; its effect was thus mediated by the demoted respondent’s attitudes toward the company. Finally, negative emotions had a direct effect on switching intentions, an effect moderated by prior satisfaction with the company.

Original languageEnglish
Pages (from-to)489-505
Number of pages17
JournalService Business
Volume10
Issue number3
DOIs
StatePublished - 1 Sep 2016

Keywords

  • Brand-switching intention
  • Demotion
  • Loyalty program

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