Exploiting Gratitude #

July 2nd, 2009 | In Worth Knowing 

Hyatt Hotels has started to give away seemingly random goodies — a free massage or night’s stay — to guests. The goal of the generosity is to inspire gratitude in the guests which psychologists expect will inspire greater loyalty than traditional points-based loyalty programs.

If a favor seems to be a function of the free will (as opposed to company rules), “you have more desire to reciprocate,” Palmatier says. Hyatt’s strategy of relying on the discretion of on-the-ground employees to provide “acts of generosity” is a pretty fair approximation of the gratitude-creation situation Palmatier says he thinks can pay off.

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