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Endowed loyalty status Essay Example

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Endowed loyalty status

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On the other hand, limited reward or unfair treatment leads to dissatisfaction. It is also common for people getting the unfair treatment to feel underappreciated. Among the foundations of Equity theory is the assumption that people always seek to maximize their rewards, people get distressed in unequal relationships and then they try to restore parity in such unequal relationships.The other theory is the attribution theory. According to the theory, people analyze success or failure based on three main characteristics. First, they evaluate the nature of the cause of success or failure. Second, they try to determine whether it is a stable or unstable cause. Stable means that even if the behavior is repeated the result remains the same (Zhang & Huang 10). Conversely, unstable implies that a different outcome is likely.The two theories inform customer behavior in extremely tangible ways. Equity theory professes that the customers will feel much treasured if they are given prizes and gifts from time to time. As a result, their loyalty is extremely enhanced. Alternatively, if the status of a customer is downgraded, he will feel unworthy and as a result, will consider some of the alternatives that are the preserve of this theory.One of the ways they shall seek to establish a new balance in the relationship is by doing more to raise their reward levels. They can do this by purchasing more so as to get a status upgrade. On the other hand, if they are appreciated they shall feel that a sense of fairness exists in the company.Equity theory has its drawbacks too. It can impact the customer socially. The customer can resort to social comparisons between himself/ herself and other customers who sit higher up in the hierarchy. Incase they are not able to match up to the other customers, they may resolve to stop acquiring their products or services from the company involved. When the relationship is unequal the customer can also resort to underhand methods to restore parity. To that end they can distort inputs or outputs to bring a balance. This might mean buying less or obtaining only essential services. If this fails to make them feel better too, the customers may seek appreciation elsewhere (Zhang & Huang 15).Attribution theory can also lead the customer to make certain conclusions regarding their endowed status. As a result, the customer will first of all try to evaluate the possible causes of

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Works Cited

Atkinson, J. “Motivational Determinants of Risk Taking Behaviour.” Psychological Review. 64,

(1957): 359–372. Print

Zhang,Y & Huang, S. “How Endowed versus earned progress Affects Consumer Goal

Commitment and Motivation.” Journal of Consumer Research June 38.5 (2010): 1-20. Print

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