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Endowed loyalty status

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On the other hand, lmited reward or unfair treatment leads to dissatisfaction. I is also common for people getting the unfair treatment to feel underappreciated. Aong the foundations of Equity theory is the assumption that people always seek to maximize their rewards, pople get distressed in unequal relationships and then they try to restore parity in such unequal relationships. Te other theory is the attribution theory. Acording to the theory, pople analyze success or failure based on three main characteristics. Frst, tey evaluate the nature of the cause of or failure.

Scond, tey try to determine whether it is a stable or unstable cause. Sable means that even if the behavior is repeated the result remains the same (Zhang & Huang 10). Cnversely, ustable implies that a different outcome is likely. Te two theories inform customer behavior in extremely tangible ways. Euity theory professes that the customers will feel much treasured if they are given prizes and gifts from time to time. A a result, teir loyalty is extremely enhanced. Aternatively, i the status of a customer is h will feel unworthy and as a result, wll consider some of the alternatives that are the preserve of this theory.

Oe of the ways they shall seek to establish a new balance in the relationship is by doing more to raise their reward levels. Tey can do this by purchasing more so as to get a status upgrade. O the other hand, i they are appreciated they shall feel that a sense of fairness exists in the company. Euity theory has its drawbacks too. I can impact the socially.

Te customer can resort to social comparisons between himself/ herself and other customers who sit higher up in the hierarchy. Icase they are not able to match up to the other customers, tey may resolve to stop acquiring their products or services from the company involved. Wen the relationship is unequal the customer can also resort to underhand methods to restore parity. T that end they can distort inputs or outputs to bring a balance. Tis might mean buying less or obtaining only essential services. I this fails make them feel better too, te customers may seek appreciation elsewhere (Zhang & Huang 15).

Atribution theory can also lead the customer to make certain conclusions regarding their endowed status. As a result, te customer will first of all try to evaluate the possible causes of...

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