Companies are encouraging retail employees and their customers to join together on social media, such as LinkedIN and Facebook. What are the consequences? Customers expect discounts.
An exploratory analysis of social commonalities and subjective discounts
|Title:||An exploratory analysis of social commonalities and subjective discounts|
|Author(s):||Mark S. Rosenbaum, (Department of Marketing, Northern Illinois University, DeKalb, Illinois, USA), Carolyn Massiah, (Department of Marketing, University of Central Florida, Orlando, Florida, USA), Richard Wozniak, (Department of Marketing, Northern Illinois University, DeKalb, Illinois, USA)|
|Citation:||Mark S. Rosenbaum, Carolyn Massiah, Richard Wozniak, (2013) "An exploratory analysis of social commonalities and subjective discounts", International Journal of Retail & Distribution Management, Vol. 41 Iss: 9, pp.671 - 687|
|Keywords:||Commercial friendships, Consumer behaviour, Consumer culture theory,Customer relationship management, Group nepotism theory, Retail discounts,Subjective discounts|
|Article type:||Research paper|
|DOI:||10.1108/IJRDM-03-2012-0032 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
Design/methodology/approach – This study employs survey methodology to reveal the extent to which various social commonalities between customers and service providers encourage customers to believe that they are entitled to financial discounts.
Findings – The findings show that commonalities may cause customers to adhere to narcissism – that is, many customers may expect discounts even when they know that employees may jeopardize their jobs by providing them.
Research limitations/implications – Customer relationships dramatically change with commonalities, as customers believe that social relationships propel them to “best customer status” and that they are entitled to discounts.
Practical implications – Customers who become increasingly connected with employees expect relational benefits that usually require time to develop. Retailers that encourage their employees to develop social media bonds with their customers must realize that customers desire to be financially rewarded for maintaining these linkages.
Originality/value – This work reveals that customers who maintain social commonalities with employees expect to receive some type of financial benefit from doing so.