NDLI: Can economic bonus programs jeopardize service relationships?

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Can economic bonus programs jeopardize service relationships?

Content Provider	Springer Nature Link
Author	Hennig Thurau, Thorsten Paul, Michael
Copyright Year	2007
Abstract	Research findings on the impact of economic bonus programs on service relationships are contradictory. While some studies find positive effects of economic bonus programs on customer’s relational behavior, other studies demonstrate negative effects. Building on self-determination theory, Dholakia (J Market Res 43(2):109–120, 2006) points at a possible explanation for these conflicting results, arguing that economic marketing programs have negative effects on self-determined customers when the program is perceived as controlling by them. By testing the effect of four different kinds of economic bonus programs on loyalty in an experimental setting using a nationwide representative sample of 768 participants, this research is the first that provides empirical evidence that economic bonus programs can indeed endanger service relationships by reducing customer’s self-determination. Implications of our findings for the abundance of economic bonus programs offered to service customers these days are highlighted.
Starting Page	159
Ending Page	175
Page Count	17
File Format	PDF
ISSN	18628516
Journal	Service Business
Volume Number	1
Issue Number	2
e-ISSN	18628508
Language	English
Publisher	Springer-Verlag
Publisher Date	2007-01-23
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Bonus programs Customer loyalty Self-determination Intrinsic motivation Extrinsic motivation Management Personnel Management Business/Management Science
Content Type	Text
Resource Type	Article
Subject	Business and International Management Strategy and Management

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
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4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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