The mechanisms of paid memberships: Customer entitlement, status, and power
Presentation Type
Abstract
Faculty Advisor
Manuel Gonzalez
Access Type
Event
Start Date
25-4-2025 1:30 PM
End Date
25-4-2025 2:29 PM
Description
The current study aimed to explore how paid memberships in the Warehouse Club Industry (e.g., Costco, BJ's, Sam's Club) influences customer entitlement, power, and status, which have been linked to customer aggression in retail settings. Prior research suggests that loyalty and reward programs can increase perceptions of entitlement and power, with membership identification (e.g., gold vs. silver) affecting status. Drawing on social exchange theory, I hypothesized that warehouse members, who are in social exchange with the warehouse by purchasing a membership, would (1) experience higher levels of entitlement and power, compared to status, (2) tier 1 members would have higher levels than tier 2 members, and (3) main account holders and add-on account holders who help pay for the membership would have higher levels than those who are added onto the account and do not pay. Data was collected from 92 warehouse members through a cross-sectional survey, in which they completed measures of entitlement, power, and status, as well as demographic questions related to their membership experiences. Data was analyzed using multiple MANOVAs; the analyses did not support the three (3) hypotheses. However, status was found to not only be significantly higher for tier 1 members compared to tier 2 members but experienced at higher levels across warehouse members compared to entitlement and power. These findings can be introduced to Warehouse Club management to identify how to better manage membership status perceptions in hopes to reduce the antecedent of customer aggression and provide a healthier workplace environment to employees.
The mechanisms of paid memberships: Customer entitlement, status, and power
The current study aimed to explore how paid memberships in the Warehouse Club Industry (e.g., Costco, BJ's, Sam's Club) influences customer entitlement, power, and status, which have been linked to customer aggression in retail settings. Prior research suggests that loyalty and reward programs can increase perceptions of entitlement and power, with membership identification (e.g., gold vs. silver) affecting status. Drawing on social exchange theory, I hypothesized that warehouse members, who are in social exchange with the warehouse by purchasing a membership, would (1) experience higher levels of entitlement and power, compared to status, (2) tier 1 members would have higher levels than tier 2 members, and (3) main account holders and add-on account holders who help pay for the membership would have higher levels than those who are added onto the account and do not pay. Data was collected from 92 warehouse members through a cross-sectional survey, in which they completed measures of entitlement, power, and status, as well as demographic questions related to their membership experiences. Data was analyzed using multiple MANOVAs; the analyses did not support the three (3) hypotheses. However, status was found to not only be significantly higher for tier 1 members compared to tier 2 members but experienced at higher levels across warehouse members compared to entitlement and power. These findings can be introduced to Warehouse Club management to identify how to better manage membership status perceptions in hopes to reduce the antecedent of customer aggression and provide a healthier workplace environment to employees.
Comments
Poster presentation at the 2025 Student Research Symposium.