The Effect of Status, Truth of Messages, Involvement on Loyalty When Customer Exper ience Demotion in Retail Loyalty Program Jong-Kuk Shin

Abstract It empirically studied the effects of customer status, truth of messages, and involvement on loyalty when customer experience demotion in loyalty program. A scenario based 2(customer demotion: highest status customer/middle status customer) × 2(truth of messages: high/low) × 2(involvement: high/low) between-subjects factorial design experiments are conducted for the hypotheses. According to the result of ANCOVA, highest status customer's loyalty and middle status customer's loyalty decrease when they experience demotion. But middle status customer's loyalty less decreases than the highest status customer. Loyalty of the group who feel high truth of message less decreases than those of other groups. And loyalty of the low-involvement group's loyalty less decreases than those of other groups. Moreover it test three way interactions among customer status, truth of messages, and involvement. The result indicates that loyalty of the group who feel high truth of message and low-involvement less decreases than those of other groups