Negative Effects of Loyalty Programs: An Empirical Investigation on the French Mobile Phone Sector

Virginie Pez ()
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Virginie Pez: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique, DMSP - Dauphine marketing, stratégie, prospective - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres

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Abstract: Loyalty programs have been the object of a growing interest in the area of marketing. However, it is quite surprising that there is no generally accepted theoretical or empirical research that study how these programs could elicit negative effects on consumer behavior. Using a two-step method, qualitative and quantitative, conducted in the mobile phone sector in 2007, the research explores the potential negative effects of loyalty programs.Results indicate that loyalty programs can generate negative emotions, resulting in extreme behaviors, such as shunning the operator a direct competitor. This demonstrated that loyalty programs could, in some cases, encourage behaviors opposed to the ones they actually should.

Keywords: Loyalty programs; negative emotions; churn; mobile communications (search for similar items in EconPapers)
Date: 2008-09-03
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Published in IAREP / SABE World Meeting 2008, Sep 2008, France

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00337273

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