Consumer Attitudes and Brand Relationship Type

Key Takeaways

• Taken at face value, any fee charged is viewed negatively and should be avoided.

• A larger study of this type could help determine HOW to structure a business model and WHY in order to promote stronger brand loyalty.

Overview

This study explored how consumers assess businesses when a service fee is charged for a service rendered in response to an unforeseen circumstance. Each participant was given a packet containing four different scenarios. After each scenario, we asked each participant three questions:

1. How likely are you to continue to do service with this company?
2. Overall, how satisfied are you with this company?
3. How satisfied are you with the way the company handled the situation?

Half of the scenarios primed the reader for a more personal, communal brand relationship. The other half primed the reader for a less-personal, exchange type of relationship. Likewise, a fee was charged for a service rendered in one of the communal and one of the exchange scenarios, and no fee was charged for the same service in the other two scenarios. Additionally, we used four different types of businesses (a bank, a dine-in restaurant, an auto mechanic, and a local florist) that were randomized throughout the packets to mitigate any effects the business type might have. The participants in the study were 18 students in an undergraduate psychology class.

Findings

The results of this study showed that any fee charged results in a more negative view of a business. This was contrary to other research conducted on the subject (see references), which showed an interaction between business type and a fee charged. The reason for the divergent findings could be many things. For instance, all the participants in the study were undergraduate college students who have less money than the average full-time employee, so a fee regardless of context could have a more negative impact. The small sample size could have also impacted the power of the study.

In other studies, there was an interaction between relationship type and fee charged. In other words, people didn’t view a business negatively when a fee was charged IF the relationship type was an exchange type.

References

Aggarwal, P. (2004). The effects of brand relationship norms on consumer attitudes and behavior. Journal of Consumer Research, 31(1), 87–101. doi:10.1086/383426

Clark, M. S., & Mills, J. (1979). Interpersonal attraction in exchange and communal relationships. Journal of Personality and Social Psychology, 37 (1), 12-24. doi:10.1037/0022-3514.37.1.12

Wan, L., Hui, M., & Wyer, R. (2011). The role of relationship norms in responses to service failures. Journal of Consumer Research, 38(2), 260-277. doi:10.1086/659039

Sample Scenarios

[Exchange condition with fee charged]

You have been banking with Westwood First Bank for the last five years. You have used the bank quite extensively and have been very happy with their efficiency and the quality of their services. You have taken a loan from the bank and in fact they were able to get the paperwork done quite quickly. Their interest rates are also among the best in the city. You also use their credit card because they offer a large credit limit and very good interest rates. Westwood First Bank also periodically makes some offers to you that appear to be of great value. In the past, whenever you have gone to the branch you have gotten your work done very fast—they respect your time, and get the job done fast. Their executives seem to be quite well trained and smart. Overall your experience with Westwood First Bank has been excellent.

Recently, you faced a problem. You had written a check to UCLA Housing for $35.47. You later received a letter from UCLA Housing saying that the money was never received by them. As soon as you got this letter, you called up Westwood First Bank, and asked the clerk to find out what had happened. The clerk told you that the money was sent to UCLA Housing on the specified date. You requested the clerk to write to UCLA Housing and let them know about it. One week later you received a letter in the mail from Westwood First Bank that the problem was resolved at a charge of $20.00.

[Exchange condition without fee charged]

You have been dining at the Westwood Family Diner for the last five years. You have dined there quite frequently and have been very happy with the quality of their food and services. Their prices are also among the best in the city. You also use their delivery services because their delivery rates are quite low. Westwood Family Diner also periodically offers coupons to you that appear to be of great value. In the past, whenever you have gone to the restaurant the service has been very fast. Their waiters and chefs seem to be quite well trained. Overall your experience with Westwood Family Diner has been excellent.

Recently, you faced a problem. You had purchased takeout from the restaurant and as you were walking out you bumped into someone and your food fell on the ground. You went back inside the restaurant and explained to the manager what happened. The manager told you that they would make you a second plate free of charge.

[Communal condition without fee charged]

You have been going to Westwood Auto for the last five years. You have used their oil changing services quite extensively and have been very happy with the quality of their services. You still remembered how relieved you were when you first came to UCLA and they were able to fix your car. You have always associated Westwood Auto with positive feelings since you often visit the mechanic whenever something is wrong with your car. They have always treated you well. Over the past few years, whenever you have visited the mechanic you have had very pleasant and warm interactions. They seem to be taking a personal interest in you, and have often taken the initiative to suggest ways to keep your car running smoothly. Overall your experience with Westwood Auto has been memorable.

Recently, you faced a problem. You were driving around Westwood when you noticed your tire pressure was low. You decided to stop by Westwood Auto to have them look at your tires. They told you that all that was needed was more air in your tires which they could do for you at that moment at no charge to you.

[Communal condition with fee charged]

You have been using Westwood Flowers for all your floral needs for the last five years. You have used the florist quite extensively and have been very happy with the quality of their services. You still remember how thrilled you were when you got your first flower arrangement from them. You have always associated the florist with positive feelings since you often visit the florist whenever you need a flower arrangement. The florist has always treated you well. Over the past few years, whenever you have visited the florist you have had a very pleasant and warm interaction. They seem to be taking a personal interest in you, and have often taken the initiative to suggest ways to improve flower arrangements for the situation. Overall your experience with Westwood Flowers has been memorable.

Recently, you faced a problem. You ordered a flower arrangement to be delivered, and it never arrived. After the expected delivery date passed, you called Westwood Flowers and asked the associate what had happened. The associate told you that the arrangement had been sent out promptly after being ordered. You requested the arrangement be sent out again. The next day, you received a phone call from Westwood Flowers informing you that the arrangement had been overnighted at a charge of $10.00.