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Consumer Reaction to Unearned Preferential Treatment

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  • Lan Jiang
  • JoAndrea Hoegg
  • Darren W. Dahl

Abstract

Prior research on consumer response to preferential treatment has focused on treatment that has been earned through loyalty or effort, and most of this work has reported positive outcomes for recipients. Unearned preferential treatment (e.g., receiving a surprise discount, getting a free upgrade), in contrast, has received little attention. The current research demonstrates that, although receiving unearned preferential treatment does generate positive reactions, it is not always an entirely pleasurable experience. Results from four experiments show that when unearned preferential treatment is received in front of others, the positive feelings of appreciation for the treatment can be accompanied by feelings of social discomfort stemming from concerns about being judged negatively by other customers. These feelings of discomfort can reduce satisfaction with a shopping experience and affect purchasing behaviors. The negative impact of unearned preferential treatment on satisfaction is moderated by the characteristics and reactions of those observers.

Suggested Citation

  • Lan Jiang & JoAndrea Hoegg & Darren W. Dahl, 2013. "Consumer Reaction to Unearned Preferential Treatment," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 40(3), pages 412-427.
    • Handle: RePEc:oup:jconrs:doi:10.1086/670765
    DOI: 10.1086/670765
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    Cited by:

    1. Wenli Zou, Lili & Kin (Bennett) Yim, Chi & Wa Chan, Kimmy, 2022. "How firms can create delightful customer experience? Contrasting roles of future reward uncertainty," Journal of Business Research, Elsevier, vol. 147(C), pages 477-490.
    2. Liu, Stephanie Q. & Bogicevic, Vanja & Mattila, Anna S., 2018. "Circular vs. angular servicescape: “Shaping” customer response to a fast service encounter pace," Journal of Business Research, Elsevier, vol. 89(C), pages 47-56.
    3. Dragos Ilie & Laura Ungureanu, 2014. "Survey on the Viewpoints of Credit Beneficiaries Qua Consumers in Order to increase Banking Accountability," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(35), pages 138-138, February.
    4. Jones Kayleigh & Moital Miguel, 2017. "Techniques employed to create event prestige value for corporate VIPs: the V.I.P. Framework," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 8(2), pages 117-129, December.
    5. Park, Jeong-Yeol & Jang, SooCheong (Shawn), 2015. "You got a free upgrade? What about me? The consequences of unearned preferential treatment," Tourism Management, Elsevier, vol. 50(C), pages 59-68.
    6. Christopher L. Newman & Melissa D. Cinelli & Douglas Vorhies & Judith Anne Garretson Folse, 2019. "Benefitting a few at the expense of many? Exclusive promotions and their impact on untargeted customers," Journal of the Academy of Marketing Science, Springer, vol. 47(1), pages 76-96, January.
    7. Ruz-Mendoza, Miguel Á. & Trifu, Andreea & Cambra-Fierro, Jesús & Melero-Polo, Iguácel, 2021. "Standardized vs. customized firm-initiated interactions: Their effect on customer gratitude and performance in a B2B context," Journal of Business Research, Elsevier, vol. 133(C), pages 341-353.
    8. Mahfuzur Rahman & Mohamed Albaity & Billah Maruf, 2017. "The Role of Religiosity on the Relationship Between Materialism and Fashion Clothing Consumption Among Malaysian Generation Y Consumers," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(2), pages 757-783, June.
    9. Lena Steinhoff & Robert W. Palmatier, 2016. "Understanding loyalty program effectiveness: managing target and bystander effects," Journal of the Academy of Marketing Science, Springer, vol. 44(1), pages 88-107, January.
    10. Jisu J. Kim & Lena Steinhoff & Robert W. Palmatier, 2021. "An emerging theory of loyalty program dynamics," Journal of the Academy of Marketing Science, Springer, vol. 49(1), pages 71-95, January.
    11. Chang, Woojung & Song, Ji Hee & Lee, Sungho, 2020. "Observation of other's preferential treatment as a constructive catalyst for improved repatronize intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    12. Xiong, Xiling & Guo, Siyuan & Gu, Li & Huang, Rong & Zhou, Xinyue, 2018. "Reciprocity anxiety: Individual differences in feeling discomfort in reciprocity situations," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 149-161.
    13. Banik, Shanta & Gao, Yongqiang & Rabbanee, Fazlul K., 2019. "Status demotion in hierarchical loyalty programs and its effects on switching: Identifying mediators and moderators in the Chinese context," Journal of Business Research, Elsevier, vol. 96(C), pages 125-134.
    14. Pizzi, Gabriele & Vannucci, Virginia & Shukla, Yupal & Aiello, Gaetano, 2022. "Privacy concerns and justice perceptions with the disclosure of biometric versus behavioral data for personalized pricing tell me who you are, I’ll tell you how much you pay. Consumers’ fairness and p," Journal of Business Research, Elsevier, vol. 148(C), pages 420-432.
    15. Moital, Miguel & Bain, Amy & Thomas, Harriet, 2019. "Summary of cognitive, affective, and behavioural outcomes of consuming prestigious sports events," Sport Management Review, Elsevier, vol. 22(5), pages 652-666.
    16. Li, Yi & Fumagalli, Elena, 2022. "Spoiled Rotten: How and When Discontinuation of Repetitive and Regular Delight Offers Increases Customer Desire for Revenge," Journal of Retailing, Elsevier, vol. 98(3), pages 412-431.
    17. Lu, Zhi & Mattila, Anna & Liu, Stephanie Q., 2021. "When customers like preferential recovery (and when not)?," Annals of Tourism Research, Elsevier, vol. 87(C).

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