STATUS DEMOTION IN LOYALTY PROGRAM: STRATEGY FOR CLOSE TO THE THRESHOLD CUSTOMERS

Main Authors: Altamim Marie Igamo; Graduate School of Management, Faculty of Economics and Business, Universitas Indonesia, Adi Zakaria Afiff; Graduate School of Management, Faculty of Economics and Business, Universitas Indonesia
Format: Article application/pdf eJournal
Bahasa: eng
Terbitan: Management Research Center, Department of Management, Faculty of Economics and Business, U , 2019
Subjects:
Online Access: http://journal.ui.ac.id/index.php/amj/article/view/12921
ctrlnum article-12921
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language eng
format Journal:Article
Journal
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Journal:eJournal
author Altamim Marie Igamo; Graduate School of Management, Faculty of Economics and Business, Universitas Indonesia
Adi Zakaria Afiff; Graduate School of Management, Faculty of Economics and Business, Universitas Indonesia
title STATUS DEMOTION IN LOYALTY PROGRAM: STRATEGY FOR CLOSE TO THE THRESHOLD CUSTOMERS
publisher Management Research Center, Department of Management, Faculty of Economics and Business, U
publishDate 2019
topic customer loyalty
demotion
distributive justice theory
loyalty programs
relationship marketing
psychological ownership
url http://journal.ui.ac.id/index.php/amj/article/view/12921
contents Manuscript type: Documentary Research.Research Aims: Identifying loyalty program strategies to demoted closed to the threshold customers with additional points and additional time in own money and other money customer to have positive evaluate toward program&rsquo; and company&rsquo; loyalty intention.Design/methodology/approach: This research employs 2 (payment source: own money vs other money) &times; 3 (demotion strategies: without additional point vs with additional points vs with additional time) factorial designs between-subject.Research Findings: Loyalty intention to the loyalty program appear stronger with demotion strategies with an additional point and additional time than demotion without additional pointTheoretical Contribution/Originality: Enrich references about the status of demotion in HLP, distributive justice in the context of loyalty programs and scarcity theory in marketing.Practitioner/Policy Implication: Marketing managers should concern more about the strategy to demoted customer, especially customer who close to the threshold to produce more positive consumer evaluation.Research limitation/Implications: Further studies can focus on participant that have used airline loyalty programs to have stronger external validity.&nbsp;
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