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Differential Effects of Preferential Treatment Levels on Relational Outcomes

Russell Lacey

University of New Orleans

Jaebeom Suh

Ajou University, Korea

Robert M. Morgan

University of Alabama

Despite its often controversial and philosophically divisive nature, preferential treatment of customers holds the potential to contribute to important relational outcomes valued by firms. In this study, sampled customers (n = 2,461) of a national upscale department store chain representing recipients of three different levels of preferential treatment are tested. While controlling for individual customer characteristics, higher levels of preferential treatment are shown to positively influence relationship commitment, increased purchases, share of customer, word of mouth, and customer feedback. This study fills a major services marketing research gap by assessing the favorable effects of higher levels of preferential treatment as a relationship marketing strategy.

Key Words: preferential treatment • relationship marketing • customer loyalty programs

Journal of Service Research, Vol. 9, No. 3, 241-256 (2007)
DOI: 10.1177/1094670506295850
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[Abstract] [PDF]