Willing to Pay More, Eager to Pay Less: The Role of Customer Loyalty in Price Negotiations

Détails

ID Serval
serval:BIB_A8551B5FF181
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
Willing to Pay More, Eager to Pay Less: The Role of Customer Loyalty in Price Negotiations
Périodique
Journal of Marketing
Auteur(s)
Wieseke  J., Alavi  S., Habel  J.
ISSN
0022-2429
Statut éditorial
Publié
Date de publication
11/2014
Peer-reviewed
Oui
Volume
78
Numéro
6
Pages
17-37
Langue
anglais
Résumé
This article is the first to empirically examine the effect of customer loyalty in retail price negotiations. Across three field studies and one negotiation experiment, the authors establish what they call the "loyalty-discount cycle": in price negotiations with salespeople, loyal customers receive deeper discounts that, in turn, increase customer loyalty, resulting in a downward spiral of a company's price enforcement. The reason for the positive effect of customer loyalty on discount is twofold: (1) loyal customers demand a reward for their loyalty and invoke their elevated perceived negotiation power, and (2) to retain loyal customers, salespeople grant discounts more willingly. Furthermore, the mechanisms are moderated by the basis of a customer's loyalty (price vs. quality) and the length of the relationship between the salesperson and the customer. To escape the loyalty-discount cycle, salespeople can use functional and relational customer-oriented behaviors. The study helps managers and salespeople optimize their price enforcement and servicing of loyal customers.
Mots-clé
customer loyalty, price negotiations, personal selling, retailing, pricing
Web of science
Création de la notice
02/09/2016 15:59
Dernière modification de la notice
03/03/2018 20:20
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