Need for distinction moderates customer responses to preferential treatment

Abstract

Purpose This paper aims to examine how individuals’ need for distinction moderates the effect of perceived harm to others as a result of preferential treatment on customers’ attitudes towards the service provider. Design/methodology/approach Two experiments test the hypothesis that when a customer receives preferential treatment, the effect of perceived harm to others on the customer’s attitudes towards the service provider is moderated by their need for distinction and mediated by negative moral emotions, such that mediation occurs for customers with a lower (but not higher) need for distinction. Findings When customers have a lower need for distinction, they scan the environment to seek information about others when judging their own experience. In contrast, customers with a higher need for distinction tend to disregard others’ opinions and feelings, focusing solely on the benefits they receive from the service provider and avoiding moral emotions. Our results show that customers with a higher need for distinction tend to evaluate the service provider more favourably than those with a lower need for distinction in scenarios where the benefit given to an advantage customer imposes a disadvantage on other customers. Originality/value To the best of author’s knowledge, this research is the first to examine the interaction between perceived harm to others and one’s need for distinction as drivers of customers’ response to preferential treatment. The authors are the first to show that negative moral emotions may arise for customers with a lower need for distinction but not for those with a higher need for distinction.