Does love become hate or forgiveness after a double deviation? The case of hotel loyalty program members

Abstract

This study aims to (1) examine whether a hotel's loyalty program is effective in weakening the desire for retaliation and perceived betrayal of high-tiered members after a double deviation and (2) determine which recovery tactic is more effective in attenuating their desire for retaliation and perceived betrayal. Scenario-based studies were conducted to achieve the objectives. The findings of this study suggest that high-tiered members are more likely than nonmembers to suppress their desire for retaliation and perceived betrayal during the transition from a single deviation to a double deviation, advocating the “love-is-forgiving” effect. This study also found that financial compensation and apology moderate perceived betrayal among high-tiered members. By contrast, only financial compensation attenuates perceived betrayal among nonmembers. This study contributes to the literature on loyalty programs and customer coping responses with novel findings on how members and nonmembers respond differently to service failure, failed service recovery, and recovery tactics.