Marketing Exclusion: When Loyalty Programs Make Customers Feel Like "Outsiders"

Danna Tevet, Tel Aviv University, Israel
Shai Danziger, Tel Aviv University, Israel
Irit Nitzan, Tel Aviv University, Israel
We demonstrate that loyalty program's preferential treatment to privileged customers causes unprivileged customers to feel meaningless and un-belonging. We term this “marketing exclusion”. We show that marketing exclusion decreases customer satisfaction, affects product choice, induces aggressive behavior and increases customer perceptions that the brand is less warm and more elitist.
[ to cite ]:
Danna Tevet, Shai Danziger, and Irit Nitzan (2015) ,"Marketing Exclusion: When Loyalty Programs Make Customers Feel Like "Outsiders" ", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 809-809.