Spillover effects of service failures in coalition loyalty programs: the buffering effect of special treatment benefits

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

Research output: Contribution to journalArticlepeer-review

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.
Original languageEnglish
Pages (from-to)111-118
Number of pages8
JournalJournal of Retailing
Volume90
Issue number1
Early online date12 Aug 2013
DOIs
Publication statusPublished - 1 Mar 2014

Keywords

  • service failure
  • spillover effects
  • buffering effect
  • coalition loyalty program

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