An exploratory analysis of social commonalities and subjective discounts

Abstract

Purpose

This article seeks to illustrate how social commonalities between employees and their customers often result in customers believing that they are entitled to discounts in retail settings.

Design/methodology/approach

This study employs survey methodology to reveal the extent to which various social commonalities between customers and service providers encourage customers to believe that they are entitled to financial discounts.

Findings

The findings show that commonalities may cause customers to adhere to narcissism – that is, many customers may expect discounts even when they know that employees may jeopardize their jobs by providing them.

Research limitations/implications

Customer relationships dramatically change with commonalities, as customers believe that social relationships propel them to “best customer status” and that they are entitled to discounts.

Practical implications

Customers who become increasingly connected with employees expect relational benefits that usually require time to develop. Retailers that encourage their employees to develop social media bonds with their customers must realize that customers desire to be financially rewarded for maintaining these linkages.

Originality/value

This work reveals that customers who maintain social commonalities with employees expect to receive some type of financial benefit from doing so.

Citation

Rosenbaum, M.S., Massiah, C. and Wozniak, R. (2013), "An exploratory analysis of social commonalities and subjective discounts", International Journal of Retail & Distribution Management, Vol. 41 No. 9, pp. 671-687. https://doi.org/10.1108/IJRDM-03-2012-0032