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Article
Publication date: 21 August 2020

Woojung Chang

This paper aims to investigate how to design a firm’s customer demotion policy and communication styles differently for customers demoted from top-tier and bottom-tier to promote…

Abstract

Purpose

This paper aims to investigate how to design a firm’s customer demotion policy and communication styles differently for customers demoted from top-tier and bottom-tier to promote their willingness to restore lost status and loyalty intentions.

Design/methodology/approach

Four scenario-based experiments were conducted in the customer demotion context of an airline’s hierarchical loyalty program. A total of 796 customers recruited from a survey panel participated in the study.

Findings

The results reveal that customers in top-tier demotion significantly increase their willingness to restore lost status and loyalty intentions when a short evaluation period (vs a long evaluation period) is given. Further, customers in bottom-tier demotion improve their willingness to restore and, in turn, their loyalty intentions more with a gain-focused communication style than with a loss-focused communication style. Willingness to restore lost status plays a mediating role in the process by which an appropriate match between demotion type and evaluation period type/communication styles leads to higher loyalty intentions.

Research limitations/implications

This study extends the research stream on customer demotion by examining how to execute customer demotion to mitigate its detrimental effects and facilitate demoted customers’ approach motivation and behavioral intentions, a critical but understudied topic that has been ignored by researchers.

Practical implications

Managers are advised to offer customized customer status evaluation periods and communication styles for top-tier and bottom-tier demoted customers to effectively promote their willingness to restore lost status and loyalty intentions.

Originality/value

This study is among the first to explore the possible varying effects of differential demotion policy and communication style on different tiers of customers.

Details

European Journal of Marketing, vol. 54 no. 12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 25 October 2021

Shanta Banik, Yongqiang Gao and Fazlul K. Rabbanee

Status demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, little is known about whether status demotion engenders two widely…

Abstract

Purpose

Status demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, little is known about whether status demotion engenders two widely recognised behavioural intentions: revenge and avoidance. This study aims to make up this gap by examining the effects of status demotion on customers’ revenge and avoidance intentions. The underlying mechanism and boundary conditions of these effects are also explored.

Design/methodology/approach

Two studies were conducted to test the hypotheses. Study 1 was conducted using a structured survey from 347 active HLP members/customers of Chinese airlines. Study 2 used an online experiment amongst 268 active HLP airline customers in Australia. Partial least squares-based structural equation modelling and Hayes’ (2013) PROCESS macro were used for data analysis.

Findings

The results of Study 1 show that status demotion increases customers’ revenge and avoidance intentions simultaneously. Meanwhile, these effects are more significant for demoted customers with an external locus of causality than those with an internal locus of causality and demoted customers with higher entitlement tend to possess more revenge intentions than avoidance intentions. Study 2 further identified perceived inequity as a mechanism, which links status demotion to revenge and avoidance intentions of demoted customers.

Research limitations/implications

This study examines demoted customers’ revenge and avoidance intentions amongst Chinese and Australian airline travellers. Future research may focus on actual behaviour and test the current study’s model in cross-cultural and cross-industry settings.

Practical implications

Managers should deal with demotion decisions carefully as the failure to manage outraged customers may weaken customer-company relationships.

Originality/value

This study extends the existing literature on relationship marketing and HLPs by offering a better understanding of how and under what conditions status demotion elicits customers’ intentions for revenge and avoidance.

Article
Publication date: 28 August 2023

Shanta Banik and Fazlul K. Rabbanee

Status demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, existing research is relatively silent on whether HLP status

Abstract

Purpose

Status demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, existing research is relatively silent on whether HLP status demotion fosters service relationship fading by influencing demoted customers’ psychological disengagement and the likelihood of patronage reduction. Drawing on the relationship fading literature and the stimulus–organism–response framework, this study aims to examine these effects. It further investigates the moderating role of psychological ownership on the links of status demotion with psychological disengagement and the likelihood of patronage reduction.

Design/methodology/approach

Two studies (Studies 1 and 2) were conducted in the context of airline HLPs. Study 1 was a structured survey conducted among 213 demoted airline HLP customers in Australia, and Study 2 was an experiment conducted among 178 executive MBA students in Bangladesh. The PROCESS macro was used to test the moderated mediation model.

Findings

The results of both studies show that HLP status demotion significantly influences customers’ psychological disengagement and the likelihood of patronage reduction. The findings also reveal that psychological disengagement mediates the relationship between status demotion and the likelihood of patronage reduction. Further, customers with high (low) psychological ownership feel high (less) psychological disengagement and show high (less) likelihood of patronage reduction due to their HLP status demotion.

Originality/value

This study extends the existing literature on relationship marketing and HLPs by offering a better understanding of how and under what conditions status demotion elicits customers’ psychological disengagement and the likelihood of patronage reduction.

Article
Publication date: 1 July 2005

Sujatha Perera, Jill McKinnon and Graeme Harrison

This paper uses a stakeholder approach to examine how the role of accounting and the status of accountants changed over a 30 year period (1970 to 2000) in a major Australian…

5346

Abstract

This paper uses a stakeholder approach to examine how the role of accounting and the status of accountants changed over a 30 year period (1970 to 2000) in a major Australian government trading enterprise. Data are gathered from semi‐structured interviews with organizational participants and documentation. The study provides support for the importance of stakeholders in shaping organizational processes and practices, including accounting practices, and for the effects of changes in stakeholder constituency and agenda on such practices. The study also provides evidence of the roles accounting and accountants may play in implementing a stakeholder agenda, including both instrumental and symbolic roles, and how the status of accountants may rise and fall commensurate with those roles.

Details

Pacific Accounting Review, vol. 17 no. 2
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 1 December 2002

Jo Carby‐Hall

Discusses the long existing and confusing problems of establishing the relationship of who is, and who if not, a dependent worker. Reflects developments which have occurred in…

1090

Abstract

Discusses the long existing and confusing problems of establishing the relationship of who is, and who if not, a dependent worker. Reflects developments which have occurred in British law as it affects the employment field, plus an evaluation and analysis of some of the different types of employment relationships which have evolved by examining, where possible, the status of each of these relationships. Concludes that the typical worker nowadays finds himself in a vulnerable position both economically and psychologically owing to the insecurity which exists.

Details

Managerial Law, vol. 44 no. 6
Type: Research Article
ISSN: 0309-0558

Keywords

Book part
Publication date: 24 March 2017

Bilian Ni Sullivan and Daniel Stewart

This article explores the contingent role that social ties play in the emergence of status hierarchies. We argue that, while status is formed based on actors’ perception and…

Abstract

This article explores the contingent role that social ties play in the emergence of status hierarchies. We argue that, while status is formed based on actors’ perception and understanding of social cues, network structure, and position influence this process by influencing the attention and legitimacy given to the focal actor in accordance with social cues that signal an actor’s identity. Using a large data set from an open-source software development community, we find that a broker linking diverse network members is less likely to receive status ratings from others and that the rating is more likely to be low when a broker receives a rating. Furthermore, we find evidence that the effects of brokerage are contingent upon certain factors that may affect the attention and legitimacy given to actors in the process of status evaluation, such as the actor’s prior status. An actor’s prior status was found to weaken the negative effect of brokerage. The importance of this study for theories of status, social networks, and attention is discussed.

Details

Emergence
Type: Book
ISBN: 978-1-78635-915-5

Keywords

Content available
Book part
Publication date: 30 July 2018

Abstract

Details

Marketing Management in Turkey
Type: Book
ISBN: 978-1-78714-558-0

Book part
Publication date: 3 April 2018

Erik Aadland, Gino Cattani and Simone Ferriani

Building on sociological research that examines the allocation of rewards in peer evaluations, we argue that the recognition of cultural producers’ work varies with their status

Abstract

Building on sociological research that examines the allocation of rewards in peer evaluations, we argue that the recognition of cultural producers’ work varies with their status and social distance from the audience members who evaluate them. We study the influence of these two mechanisms within the context of the Norwegian advertising industry. Specifically, we looked at how cultural producers’ status and social distance from jury members affect their chances of being honored in “The Silver Tag” – one of the main digital advertising award contests in Norway – during the period 2003–2010. While our findings provide support for status-based rewards allocation, the positive effects of status may be more circumscribed than previously thought. When accounting for the existence of previous connections between audience members and cultural producers, we find that cultural producers are more or less likely to receive an accolade depending on their degree of separation from the audience members. By exposing network-based determinants of consecrating decisions, and suggesting that the positive effects of status may be more circumscribed than previously thought, our findings shed important light on the social foundations of evaluation and, more broadly, the mechanisms of reward allocation in cultural fields.

Details

Frontiers of Creative Industries: Exploring Structural and Categorical Dynamics
Type: Book
ISBN: 978-1-78743-773-9

Keywords

Article
Publication date: 12 October 2022

Limin Su, YongChao Cao, Huimin Li and Chengyi Zhang

The optimal payment in the whole operation and maintenance period of water environment treatment PPP projects has become the main approach to realize sustainable development of…

Abstract

Purpose

The optimal payment in the whole operation and maintenance period of water environment treatment PPP projects has become the main approach to realize sustainable development of projects. This study is aimed at constructing an effective payment model for the whole life period of projects to achieve win-win among all stakeholders, so as to provide a theoretical reference and managerial implications for the public sector in the whole operation and maintenance period.

Design/methodology/approach

In the whole operation and maintenance period of water environment treatment PPP projects, this article investigates how the public sector optimizes the payment in the whole operation and maintenance period of projects. Firstly, the projects' whole operation and maintenance period is divided into several stages according to the performance appraisal period. And then, the multi-stage dynamic programming model is constructed to design the payment construct model for the public sector in each performance appraisal stage. The payment from the public sector is the decision variable, and the deduction from the private sector is a random variable.

Findings

The optimal payment model showed that the relatively less objective weight of public sector leaded to its relatively more total payment and vice versa. Therefore, the sustainable development of the projects can only be ensured when the objective weights both of them should be balanced. Additionally, the deduction from the performance appraisal of private sector plays an important role in the model construction. The larger deduction the private sector undertakes, the smaller profits private sector has. Since the deduction at each stage is a random variable, the deduction varies with the different probability distributions obeyed by the practical deduction in each stage.

Research limitations/implications

The findings from this study have provided theoretical and application references, and some managerial implications are also given. First, the improvement of the pricing system of public sector should be accelerated. Second, the reasonable profit of the private sector must be guaranteed. While pursuing the maximization of social benefits, the public sector should make full use of the price sharing mechanism in the market and supervise the real income situation of the private sector. Third is increasing the public to participate in pricing. Additionally, it is a limitation that the deduction is assumed to conform to a uniform distribution in this study. Other probability distributions on deduction can be essentially further sought, so as to be more line with the actual situation of the projects.

Originality/value

The optimal payment in whole operation and maintenance period of the projects has become an important issue, which is a key to project success. This study constructs a multi-stage dynamic programming model to optimize payment in the whole period of projects. Additionally, this study adds its value through deeply developing the new theories of optimal payment to more suitable for the practical problems, so that to optimize the design of payment mechanism. Meanwhile, a valuable reference for public and private sectors is provided to ensure the sustainable development of the projects.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 29 July 2014

San-dang Guo, Sifeng Liu, Zhigeng Fang and Lingling Wang

The purpose of this paper is to put forward a multi-stage information aggregation method based on grey inspiriting control lines to evaluate the objects dynamically and…

Abstract

Purpose

The purpose of this paper is to put forward a multi-stage information aggregation method based on grey inspiriting control lines to evaluate the objects dynamically and comprehensively.

Design/methodology/approach

According to the evaluation value of the objects, the positive and negative incentive lines were set up and the predicted values were solved based on the grey GM(1, 1) model, so the value with expected information could be evaluated. In the evaluation, the part above the positive incentive line should be “rewarded” and that below the negative incentive line should be “punished” appropriately. Thereby the double incentive effects of “the current development situation and future development trend” to objects could be implemented on the basis of control.

Findings

This method can primarily describe the decision maker's expectancy of the development of evaluation objects and make the evaluation results have better practical application value.

Research limitations/implications

Many comprehensive evaluations were always based on the past information. However, the future development trend of the evaluated object is also very important. This study can be used in the evaluation for future application and development.

Originality/value

The paper succeeds in providing not only a method of multi-phase information aggregation with expectancy information, but also a simple and convenient method solving nonlinear inspiring lines objectively.

Details

Grey Systems: Theory and Application, vol. 4 no. 2
Type: Research Article
ISSN: 2043-9377

Keywords

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