IDEAS home Printed from https://ideas.repec.org/a/spr/svcbiz/v1y2007i2p159-175.html
   My bibliography  Save this article

Can economic bonus programs jeopardize service relationships?

Author

Listed:
  • Thorsten Hennig-Thurau
  • Michael Paul

Abstract

Research findings on the impact of economic bonus programs on service relationships are contradictory. While some studies find positive effects of economic bonus programs on customer’s relational behavior, other studies demonstrate negative effects. Building on self-determination theory, Dholakia (J Market Res 43(2):109–120, 2006 ) points at a possible explanation for these conflicting results, arguing that economic marketing programs have negative effects on self-determined customers when the program is perceived as controlling by them. By testing the effect of four different kinds of economic bonus programs on loyalty in an experimental setting using a nationwide representative sample of 768 participants, this research is the first that provides empirical evidence that economic bonus programs can indeed endanger service relationships by reducing customer’s self-determination. Implications of our findings for the abundance of economic bonus programs offered to service customers these days are highlighted. Copyright Springer-Verlag 2007

Suggested Citation

  • Thorsten Hennig-Thurau & Michael Paul, 2007. "Can economic bonus programs jeopardize service relationships?," Service Business, Springer;Pan-Pacific Business Association, vol. 1(2), pages 159-175, June.
    • Handle: RePEc:spr:svcbiz:v:1:y:2007:i:2:p:159-175
    DOI: 10.1007/s11628-006-0012-9
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11628-006-0012-9
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11628-006-0012-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Geyskens, I. & Steenkamp, J.E.B.M. & Scheer, L.K. & Kumar, N., 1996. "The effects of trust and interdependence on relationship commitment : A trans-Atlantic study," Other publications TiSEM ef7c8d6c-963d-4ee7-8576-9, Tilburg University, School of Economics and Management.
    2. Steven M. Shugan, 2005. "Brand Loyalty Programs: Are They Shams?," Marketing Science, INFORMS, vol. 24(2), pages 185-193.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," Working Papers hal-01904416, HAL.
    2. repec:hal:cepnwp:hal-01904416 is not listed on IDEAS
    3. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," CEPN Working Papers 2018-04, Centre d'Economie de l'Université de Paris Nord.
    4. Alex Belli & Anne-Maree O’Rourke & François A. Carrillat & Ljubomir Pupovac & Valentyna Melnyk & Ekaterina Napolova, 2022. "40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 147-173, January.
    5. Yu-Hsin Chen & Ching-Jui Keng, 2023. "The effect of subscription relational bond on customer engagement and stickiness in podcast: the moderating role of social connectedness," Service Business, Springer;Pan-Pacific Business Association, vol. 17(3), pages 723-745, September.
    6. Teng Teng & Shengliang Zhang & Xiaodong Li & Yuan Chen, 2020. "Customer compliance with employee fuzzy requests in service encounters: a self-determination theory perspective," Service Business, Springer;Pan-Pacific Business Association, vol. 14(2), pages 217-240, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmed Ibrahim Alzahrani & T. Ramayah & Nalini Suppiah & Osama Alfarraj & Nasser Alalwan, 2020. "Modeling Blog Usage From a Developing Country Perspective Using Structural Equation Modeling (SEM)," SAGE Open, , vol. 10(3), pages 21582440209, July.
    2. Judit Oláh & Attila Bai & György Karmazin & Péter Balogh & József Popp, 2017. "The Role Played by Trust and Its Effect on the Competiveness of Logistics Service Providers in Hungary," Sustainability, MDPI, vol. 9(12), pages 1-22, December.
    3. Zur, Andrew & Leckie, Civilai & Webster, Cynthia M., 2012. "Cognitive and affective trust between Australian exporters and their overseas buyers," Australasian marketing journal, Elsevier, vol. 20(1), pages 73-79.
    4. Kang, Jun & Alejandro, Thomas Brashear & Groza, Mark D., 2015. "Customer–company identification and the effectiveness of loyalty programs," Journal of Business Research, Elsevier, vol. 68(2), pages 464-471.
    5. Dewani, Prem Prakash & Sinha, Piyush Kumar & Mathur, Sameer, 2016. "Role of gratitude and obligation in long term customer relationships," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 143-156.
    6. Juan Oliveros Fontaine & Cristina del Campo & Elena Urquía-Grande, 2024. "What Are Investors Most Interested in about Sustainability? An Approach from the Scientific Literature," Sustainability, MDPI, vol. 16(8), pages 1-23, April.
    7. P. Van Kenhove & K. De Wulf & D. Van Den Poelt, 2003. "Does Attitudinal Commitment to Stores Always Lead to Behavioral Loyalty? The Moderating Effect of Age," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/168, Ghent University, Faculty of Economics and Business Administration.
    8. Gandomi, Amir & Zolfaghari, Saeed, 2018. "To tier or not to tier: An analysis of multitier loyalty programs׳ optimality conditions," Omega, Elsevier, vol. 74(C), pages 20-36.
    9. imen ABDENNADHER & Karim TRABELSI & Tarek ABDELLATIF, 2017. "Les influences des déterminants de la qualité relationnelle des banques islamiques sur l’engagement de leurs clients," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 8(1), June.
    10. Schulze, Birgit & Wocken, Christian & Spiller, Achim, 2008. "(Dis)loyalty in the German dairy industry: a supplier relationship management view ; empirical evidence and management implications," DARE Discussion Papers 0806, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    11. Noah Lim & Teck-Hua Ho, 2007. "Designing Price Contracts for Boundedly Rational Customers: Does the Number of Blocks Matter?," Marketing Science, INFORMS, vol. 26(3), pages 312-326, 05-06.
    12. repec:dgr:rugsom:03g23 is not listed on IDEAS
    13. Amir Gandomi & Amirhossein Bazargan & Saeed Zolfaghari, 2019. "Designing competitive loyalty programs: a stochastic game-theoretic model to guide the choice of reward structure," Annals of Operations Research, Springer, vol. 280(1), pages 267-298, September.
    14. Mitev, Ariel & Bauer, András & Gáti, Mirkó, 2019. "A személyes értékesítők hálózatépítési tevékenysége [Networking activities of salespersons]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 95-113.
    15. Oznur Ozkan Tektas, 2017. "Perceived justice and post-recovery satisfaction in banking service failures: Do commitment types matter?," Service Business, Springer;Pan-Pacific Business Association, vol. 11(4), pages 851-870, December.
    16. Sergio Da Silva & Barbara Espirito Santo & Felipe Sigrist & Raul Matsushita, 2022. "Reciprocity vs. Commitment in Bank Marketing Strategies," International Journal of Business, Economics and Management, Conscientia Beam, vol. 9(3), pages 84-92.
    17. Hye-Jin Jeon, 2020. "The Mechanism of Empathy and Relationship Commitment Through Emojis: Path to Perspective Taking, Inner Imitation, Emotional Empathy, and Relationship Commitment," SAGE Open, , vol. 10(4), pages 21582440209, November.
    18. Nasser Hamidi & Tahmineh Torabi Rad & Alireza Jahany, 2012. "Evaluation Of Factors Influencing Tendency Towards E- Banking In Bank Customers," Far East Journal of Marketing and Management, Far East Research Centre, vol. 2(3), pages 25-42, August.
    19. Yuan, Yang & Feng, Bo & Lai, Fujun & Collins, Brian J., 2018. "The role of trust, commitment, and learning orientation on logistic service effectiveness," Journal of Business Research, Elsevier, vol. 93(C), pages 37-50.
    20. Gaby Odekerken-Schröder & Bloemer Josée, 2002. "Constraints and Dedication as Drivers for Relationship Commitment: An Empirical Study in a Health-Care Context," Research Memorandum 078, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    21. Ritter, Thomas & Gemunden, Hans Georg, 2003. "Interorganizational relationships and networks: An overview," Journal of Business Research, Elsevier, vol. 56(9), pages 691-697, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:svcbiz:v:1:y:2007:i:2:p:159-175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.