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As internet dividends are gradually disappearing, loyalty programs have become the panacea for monetizing traffic, attracting new customers and retaining existing customers. Improving their effectiveness has thus become key to enterprises’ market competitiveness. However, member customers’ hedonic adaptation to this relationship strategy undermines its effectiveness. Based on the hedonic adaptation theory, this study aims to analyze the process of member customers' hedonic adaptation to preferential treatment in loyalty programs and explore the boundary conditions of alleviating this effect.

This study surveyed 271 member customers in China and tested the hypothesized relationships using structural equation modeling and multigroup analysis.

Preferential treatment suffers from hedonic adaptation to member customer engagement and customer gratitude, and customer tenure is a key condition for these effects. Customer gratitude is an intermediary mechanism that explains the hedonic adaptation effect of preferential treatment to member customers engagement. In addition, the structural characteristics of loyalty programs form the boundary condition that alleviates hedonic adaptation. The authors found that high-tier and -payment strategies are more likely to mitigate hedonic adaptation of preferential treatment to customer gratitude.

This study elucidates the factors that influence the effectiveness of preferential treatment and provides constructive insights into customer relationship management and for improving enterprise performance.

Enterprises' multichannel operations provide various avenues for customer interaction; however, existing literature investigating customer-to-customer interaction (CCI) mainly focuses on a single channel. The purpose of this paper is to investigate the spillover effect of CCI and potential underlying mediating mechanisms in different information channels.

Three between-subjects experiments with 946 participants were employed to empirically validate the proposed hypotheses in the context of an experiential product and a material product.

Results suggest the clear spillover effect of CCI, indicating that positive CCI improves focal customers' satisfaction and purchase intention, whereas negative CCI reduces focal customers' satisfaction and purchase intention. Moreover, CCI's spillover effect varies based on the CCI channel. Offline CCI has a stronger positive spillover effect than online CCI. Contrarily, online CCI has a stronger negative spillover effect than offline CCI. Customer experience and trust are demonstrated to have mediating roles in this process.

This study is the first to comprehensively understand and compare the CCI spillover effect of the two information channels. The findings add to the existing knowledge of information processing in the psychological mechanisms influencing the belief in addition to providing insights for companies engaged in multichannel operations management across different channels.