Using membership fees to increase customer loyalty

Author: Dick, Alan S

Source: Journal of Product and Brand Management, Volume 4, Number 5, 1995 , pp. 65-68(4)

Publisher: Emerald Group Publishing Limited

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Abstract:

Reports on a preliminary study which examined the impact ofmembership fees on consumer attitude and choice. Consumers participatedin a computerized simulated shopping experiment in which repetitivechoices were made from a set of videotape rental stores. Paying amembership fee had a short-term impact on attitudes and choice. It issuggested that it is often a wise practice for retailers to buildmembership fees (even very small ones) into their pricing structure.Paying such a fee appears to make consumers resistant to the offers ofcompetitors in the short run and may provide some insulation fromcompetitive attacks.

Keywords: Consumer Attitudes; Customer Loyalty; Fees; Pricing

Document Type: Research article

DOI: http://dx.doi.org/10.1108/10610429510103845

Publication date: 1995-05-01