Investigating the Moderating Role of Membership Level in the Non-Linear Relationship between Information Disclosure and Subsequent Purchases

Chuning Yungr^*
*Correspondence: Chuning Yungr, Department of Marketing, Economics and Management, Wuhan University, Wuhan 430072, China, Email:

Keywords

Marketing strategies • Customer information • Moderates

Introduction

In today's data-driven world, businesses are investing heavily in collecting and utilizing customer information to enhance their marketing strategies. Information disclosure refers to the practice of sharing relevant details about products or services with consumers. This transparency is believed to build trust and positively impact consumers' purchasing decisions. However, not all customers respond equally to information disclosure. The role of membership level in shaping this relationship has been relatively unexplored. This article aims to bridge this gap by investigating how membership status moderates the non-linear relationship between information disclosure and subsequent purchases [1].

Initially, as more information is shared, there is typically a positive impact on consumer behaviour. However, beyond a certain threshold, excessive information may lead to information overload, confusion, or even scepticism, resulting in a decline in purchase intentions. Information disclosure plays a pivotal role in shaping consumer perceptions and attitudes towards a brand or product. When consumers receive comprehensive and trustworthy information, they are more likely to make informed decisions, which can lead to increased satisfaction and loyalty. Information disclosure can influence consumers in various stages of the purchase decision-making process, including awareness, consideration, and purchase [2,3].

Literature Review

Membership programs are commonly used by businesses to build long-term relationships with their customers and enhance loyalty. Different membership levels are often designed to cater to customers with varying levels of engagement and commitment to the brand. It is hypothesized that the moderating effect of membership level can influence consumers' responses to information disclosure. Consumers with basic or free membership may have limited engagement with the brand. For these customers, information disclosure can significantly impact purchase intentions, as they are more likely to be receptive to new information. However, there might be a saturation point where excessive information can become overwhelming, negatively affecting their purchase decisions. While information disclosure has numerous benefits for businesses, it is essential to recognize that the relationship between information disclosure and subsequent purchases may not always be linear [4].

Discussion

Customers with mid-level membership often have a higher level of engagement with the brand than free members. They may already possess a considerable amount of information about the company's offerings. For these consumers, additional information disclosure may have a diminishing impact on purchase intentions [5]. Premium or VIP members are usually the most loyal and engaged customers. They may already have access to exclusive information and benefits. For these customers, additional information disclosure may have minimal to no impact on their purchase intentions, as they have already developed a strong connection with the brand. Businesses can use membership level as a basis for segmenting their customer base. Tailoring information disclosure efforts to match each segment's preferences can optimize the impact on purchase intentions [6].

Conclusion

Information disclosure is a powerful tool for building consumer trust and influencing purchasing decisions. However, its impact is not uniform across all customers. The moderating role of membership level in shaping the nonlinear relationship between information disclosure and subsequent purchases is a critical consideration for businesses seeking to optimize their marketing strategies. By understanding the preferences and needs of customers at different membership levels, companies can tailor their information disclosure efforts, foster stronger customer relationships, and drive enhanced customer satisfaction and loyalty. Implementing feedback mechanisms can help businesses gauge customers' responses to information disclosure and make necessary adjustments in real-time. Leveraging customer data and membership status can enable businesses to create personalized marketing messages, ensuring that the right information reaches the right consumers at the right time.

Acknowledgement

None.

Conflict of interest

None.

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