Does self-perception as a loyal customer affect one’s evaluation of benefits received?

Abstract

This research sets out to (1) develop the notion of perceived loyalty to a brand by distinguishing it from loyalty as measured by the company and (2) study the way in which perceived loyalty influences evaluations of the preferential treatment offered by companies. Two studies (qualitative and quantitative) are used first of all to identify the four prototypical characteristics of loyal customers that determine perceived loyalty: continuity of the relationship, brand exclusivity, trust and the search for information. Drawing on the theory of justice, a third (quantitative) study is then used to test the effect of two benefits of different intensities on perceived legitimacy and satisfaction towards preferential treatment. The results indicate that being overly rewarded for one’s perceived loyalty produces a feeling of iniquity that generates immediate dissatisfaction. In contrast, not being sufficiently rewarded at time t does not necessarily result in dissatisfaction at that point in time, as consumers are accustomed to receiving deferred rewards over time.