Hierarchical loyalty programs award elevated customer status (e.g., “elite membership”) to consumers who meet a predefined spending level. However, if a customer subsequently falls short of the required spending level, firms commonly revoke that status. The authors investigate the impact of...

The focus of marketing is shifting away from transactional marketing and toward relationship marketing. Companies are beginning to recognize the economic value of stable, long-term customer relationships based on a high degree of customer satisfaction, trust, commitment, and loyalty. The book...