Purchasing the senator status for 2000 Euro? : the effect of a payment option in hierarchical loyalty programs

Müller, Steffen; Seiler, Roger

Publication type:	Conference other
Type of review:	Peer review (abstract)
Title:	Purchasing the senator status for 2000 Euro? : the effect of a payment option in hierarchical loyalty programs
Authors:	Müller, Steffen Seiler, Roger
Conference details:	47th EMAC Annual Conference, Glasgow, Scotland, 29 May - 1 June 2018
Issue Date:	2018
Language:	English
Subject (DDC):	658.8: Marketing management
Abstract:	In an effort to reward their most loyal customers, many companies have introduced hierarchical loyalty programs. While the positive effects of upgrading customers in such programs have been shown in relatively many studies, the negative effects of downgrading customers in such programs have been investigated in relatively few studies. Some companies (e.g., Lufthansa) have introduced a payment option when downgrading customers (e.g., purchasing the Senator status for 2000 Euro). We conduct an online experiment with n=112 airline travelers. Based on prospect theory and based on mental accounting, we show that downgrading with a payment option leads to lower loyalty intentions than downgrading with no payment option. Moreover, we show that downgrading with a pre-announcement leads to higher loyalty intentions than downgrading with no pre-announcement. We discuss implications for managers of hierarchical loyalty programs and give recommendations for further research.
URI:	https://digitalcollection.zhaw.ch/handle/11475/12978
Fulltext version:	Published version
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Institute of Marketing Management (IMM)
Appears in collections:	Publikationen School of Management and Law

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Müller, S., & Seiler, R. (2018). Purchasing the senator status for 2000 Euro? : the effect of a payment option in hierarchical loyalty programs. 47th EMAC Annual Conference, Glasgow, Scotland, 29 May - 1 June 2018.

Müller, S. and Seiler, R. (2018) ‘Purchasing the senator status for 2000 Euro? : the effect of a payment option in hierarchical loyalty programs’, in 47th EMAC Annual Conference, Glasgow, Scotland, 29 May - 1 June 2018.

S. Müller and R. Seiler, “Purchasing the senator status for 2000 Euro? : the effect of a payment option in hierarchical loyalty programs,” in 47th EMAC Annual Conference, Glasgow, Scotland, 29 May - 1 June 2018, 2018.

MÜLLER, Steffen und Roger SEILER, 2018. Purchasing the senator status for 2000 Euro? : the effect of a payment option in hierarchical loyalty programs. In: 47th EMAC Annual Conference, Glasgow, Scotland, 29 May - 1 June 2018. Conference presentation. 2018

Müller, Steffen, and Roger Seiler. 2018. “Purchasing the Senator Status for 2000 Euro? : The Effect of a Payment Option in Hierarchical Loyalty Programs.” Conference presentation. In 47th EMAC Annual Conference, Glasgow, Scotland, 29 May - 1 June 2018.

Müller, Steffen, and Roger Seiler. “Purchasing the Senator Status for 2000 Euro? : The Effect of a Payment Option in Hierarchical Loyalty Programs.” 47th EMAC Annual Conference, Glasgow, Scotland, 29 May - 1 June 2018, 2018.