...Shanta Banik; Fazlul K. Rabbanee Purpose Status demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, existing research is relatively silent on whether HLP status demotion fosters service relationship fading by influencing demoted customers...

... Customer status demotion Equity theory Hierarchical loyalty programs With HLPs, marketers determine the magnitude of spending necessary to receive a reward, as well as thresholds for getting promoted to a higher tier. Companies usually lower customer status once the spending level diminishes...