Workshop Series: Mauricio Palmeira

18 May, 2012 - 10:30 to 12:00
Level 1 Conference Room, Duhig Library Building

Abstract:

Loyalty programs often categorize consumers into different tiers offering superior benefits and status to their most valuable customers. While consumers on top the hierarchy appreciate the special treatment, this practice risks making a large base of lower tier customers disgruntled for receiving a relatively inferior treatment. In the current research, we address this problem focusing on the role of consumers' mindsets. We show that when communications about the loyalty program focus on status, nonelite consumers are put in a compensatory mindset reacting negatively to the superior treatment given to elite consumers. In contrast, when the focus is on benefits, consumers are put in a noncompensatory mindset and are not affected by the treatment offered to elite consumers.

Mauricio Palmeira, Senior Lecturer, Department of Marketing, Monash University

Mauricio joined Monash in June 2009, after completing his PhD at Indiana University. His research interests are in the domain of consumer behaviour and decision making and topics of current and recent projects include loyalty programs, price promotions, brand extensions and advice taking. His work has been published in Organizational Behavior and Human Decision Processes, Journal of Consumer Research and Journal of Retailing.