Spillover Effects of Service Failures in Coalition Loyalty Programs: The Buffering Effect of Special Treatment Benefits

Jan H. Schumann, Nancy V. Wünderlich and Heiner Evanschitzky

Journal of Retailing, 2014, vol. 90, issue 1, 111-118

Abstract: Coalition loyalty programs are on the rise, yet few studies investigate the impact of service failures in such programs. Using data from a retail context, the authors show that a program partner deemed responsible for a service failure suffers negative customer responses. However, customers’ perceptions of the benefits of the coalition loyalty program buffer these consequences. Perhaps most importantly, when customers perceive the program's special treatment benefits as low, direct and indirect spillover effects occur, such that a service failure by one program partner has a negative effect on customer loyalty toward the program itself.

Keywords: Service failure; Spillover effects; Buffering effect; Coalition loyalty program (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jouret:v:90:y:2014:i:1:p:111-118

DOI: 10.1016/j.jretai.2013.06.005

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