What does this research mean for the field?

Ambiguous terms and conditions in loyalty programs cause psychological contract violations that lead to brand-switching and reduced upgrade intentions, especially when members observe others successfully negotiating for preferential benefits. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To examine how ambiguous terms and conditions and the social observation of peer negotiation outcomes influence loyalty program members' psychological contracts and behavioral coping strategies.

August 24, 2026Journal of Travel Research

Watching Others Win: How the Ambiguous Benefits of Loyalty Programs and Members’ Social Observations Shape Their Coping Strategies

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Authors

WWWei Wu YHYoulin Huang

Discussion

Member takes

Overview

Experimental study demonstrates how ambiguous loyalty terms trigger brand-switching in program members, indicating the risk of unstandardized preferential treatment.

Key Points

To examine how ambiguous terms and conditions and the social observation of peer negotiation outcomes influence loyalty program members' psychological contracts and behavioral coping strategies.
Conducted three experimental studies evaluating customer reactions to ambiguous terms and conditions in tourism loyalty programs.
Applied psychological contract theory to test how observing granted versus denied customer-initiated negotiations moderates member responses.
Ambiguity in terms and conditions promoted brand-switching, benefit-negotiation behaviors, and reduced tier-upgrade intentions via psychological contract violation.
Observing other members receive granted (versus denied) preferential treatment significantly heightened psychological contract violation and strengthened negative behavioral intentions.

Cite This Study

Wu et al. (2026) studied this question.

synapsesocial.com/papers/6a8c0086bca056c88e6df415 https://doi.org/10.1177/00472875261481127

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August 24, 2026Journal of Travel Research

Watching Others Win: How the Ambiguous Benefits of Loyalty Programs and Members’ Social Observations Shape Their Coping Strategies

View Full Paper

Ask AI

Bookmark

Authors

WWWei Wu YHYoulin Huang

Discussion

Member takes

Overview

Experimental study demonstrates how ambiguous loyalty terms trigger brand-switching in program members, indicating the risk of unstandardized preferential treatment.

Key Points

To examine how ambiguous terms and conditions and the social observation of peer negotiation outcomes influence loyalty program members' psychological contracts and behavioral coping strategies.
Conducted three experimental studies evaluating customer reactions to ambiguous terms and conditions in tourism loyalty programs.
Applied psychological contract theory to test how observing granted versus denied customer-initiated negotiations moderates member responses.
Ambiguity in terms and conditions promoted brand-switching, benefit-negotiation behaviors, and reduced tier-upgrade intentions via psychological contract violation.
Observing other members receive granted (versus denied) preferential treatment significantly heightened psychological contract violation and strengthened negative behavioral intentions.

Cite This Study

Wu et al. (2026) studied this question.

synapsesocial.com/papers/6a8c0086bca056c88e6df415 https://doi.org/10.1177/00472875261481127

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