Reactions of the jilted consumer |
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| Institution: | 1. School of Hotel & Tourism Management, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong;2. School of Hotel and Restaurant Administration, Oklahoma State University, Stillwater, OK 74078, USA;3. School of Business, Sun Yat-Sen University, Guangzhou, China;1. Jönköping University, Jönköping, Sweden;2. Stockholm School of Economics, Stockholm, Sweden;1. Department of Marketing Fairfield University Fairfield, CT 06825, USA;2. Department of Marketing and Finance Frostburg State University, Frostburg, MD 21532, USA;1. Department of Marketing, Monash University, PO Box 197, Caulfield East, VIC 3145, Australia;2. School of Management, University of Bath, The Avenue, Claverton Down, Bath, Avon BA2 7AY, United Kingdom |
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| Abstract: | Differential promotion strategies are a vital relationship marketing tool that is advantageous to both the company and the targeted customer. However, a differential approach means some customers do not fare as well as others. The customers who get the lesser deals are the focus of this study. How does a customer react when they learn another customer received a better deal? How should the provider respond when this imbalance is obvious to the customer? Fairness theory is utilized to address these research questions. The study includes an experiment featuring hypothetical scenarios. MANOVA results reveal that a proactive, upfront strategic response can mitigate the negative effects of differential promotion strategies in terms of fairness perceptions and behavioral outcomes. |
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| Keywords: | Customer relationships Customer deals Fairness Trust Commitment |
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