Customer Prioritization: Profit Enhancing Or Threat Inducing?

Svetlana Davis, Queens University, Canada
Peter Dacin, Queens University, Canada
Customer prioritization is a widely used strategy in which a company separates customers into groupings based on an estimated life-time worth, gaining profitability of each segment. In this research, we suggest that customer prioritization strategies can also lead to negative consequences. Particularly, we suggest that different offerings that are tailored to different customer groups could potentially threaten the strong self-brand connection among strongly attached customers. We further predict and find that as a mechanism to restore this self-brand connection, some customers with strong brand attachment will feel entitled to receive better treatment from the firm. Implications for theory and practice discussed.
[ to cite ]:
Svetlana Davis and Peter Dacin (2011) ,"Customer Prioritization: Profit Enhancing Or Threat Inducing?", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 895-896.