Using membership fees to increase customer loyalty
Abstract
Reports on a preliminary study which examined the impact of membership fees on consumer attitude and choice. Consumers participated in a computerized simulated shopping experiment in which repetitive choices were made from a set of videotape rental stores. Paying a membership fee had a short‐term impact on attitudes and choice. It is suggested that it is often a wise practice for retailers to build membership fees (even very small ones) into their pricing structure. Paying such a fee appears to make consumers resistant to the offers of competitors in the short run and may provide some insulation from competitive attacks.
Keywords
Citation
Dick, A.S. (1995), "Using membership fees to increase customer loyalty", Journal of Product & Brand Management, Vol. 4 No. 5, pp. 65-68. https://doi.org/10.1108/10610429510103845
Publisher
:MCB UP Ltd
Copyright © 1995, MCB UP Limited