Customer frustration in loyalty programs

Abstract

Purpose – This article aims to examine the negative effects of loyalty programs from the perspective of frustration theory. It seeks to develop a model of customer frustration on the basis of frustration theory and an exploratory qualitative study.Design/methodology/approach – First, frustration is defined as a special form of dissatisfaction and a general model of frustration in business relationships is developed by evaluating the literature on frustration theory. Second, an explorative and qualitative focus group study among participants of a loyalty program for frequent travelers is conducted. A multi‐level iterative content analysis of the participants' statements reveals the existence of different categories of frustration incidents. Third, the findings of the study are used to develop a system of propositions that generate a specific model of customer frustration in loyalty programs.Findings – Seven categories of frustration incidents that were triggered by the loyalty program and lead to frustrati...