Pocket change: When does corporate gratitude backfire

Tuesday, June 2, 2015 - 11:30 in Mathematics & Economics

Not too long ago, Microsoft mailed loyal Xbox customers an e-card encoded with twenty-five cents' worth of Microsoft points. The software behemoth might have thought it was showing appreciation. But recipients of the company's "generosity" might have felt "Is that all I'm worth?" According to a new study in the Journal of Marketing, companies that bestow monetary gifts in too small amounts can leave customers feeling, well, small.

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