The paper "Entourage Effect Has Significant Consequences for Any Brand " is a great example of marketing coursework. McFerran and Argo (2014) article seek to verify that VIPs experience higher status levels when they are offered privileged treatment with an entourage, although this leads to the depreciation of the rewards related to this treatment. McFerran and Argo exhibit that the effect of VIP treatment is attributed to the increasing connectedness feeling with one’ s guests. In their study, the authors provide a discussion about the entourage effect, and their contributions are rooted in comprehending how guests’ presence changes the status that is experienced by the VIP.
Generally, the authors seek to analyse how the VIPs feel when they are offered an entourage. Further, the authors aspire to validate that having an entourage improves the social connection feelings, and this is rooted in the assumption that social connection feelings mediate the effect of the felt status while having an entourage as well as that influencing (dis)connectedness feelings directly weakens the effect. Besides that, McFerran and Argo's study seeks to disprove numerous alternative explanations with regard to the entourage effect, rather they endeavour to justify that entourage effect ascends because of an augmented sense of social connection, which is experienced by the VIP.
The authors further seek to justify that the entourage effect cannot arise because of the repugnance of being unaccompanied, improved public perceptibility, lack of sharing ability, or perceived acknowledgement. The key objective of McFerran and Argo study is to examine whether having an entourage during preferential treatment can neutrally, positively, or negatively the idiosyncratic status feelings that are experienced by a VIP. Overview of Theories and Hypotheses Concurring with numerous studies such as Dre`ze and Nunes (2009), McFerran and Argo posit that preferential treatment has an effect on status felt by the recipient, and this consequentially results in stronger relationships between the customer as well as the company and also improves both purchase volume as well as customer satisfaction.
Considering that a high percentage of the company’ s sales frequently derive from a few consumers, McFerran and Argo assert that finding a way to reward such loyal customers should at all times be a vital business question.
Even though numerous existing literature talks about the effect of VIP treatment on the recipient’ s felt status against those who do not receive such treatment, they failed to examine how individual guests for a VIP can influence the experience of the VIP. Echoing Fombellea et al. (2015, p. 1) sentiments, the authors argue that comprehending the effect of the entourage on a VIP is very imperative. The key assumption in this study is that having an entourage during a preferential treatment can positively, negatively, or neutrally impact the individual status feelings that are experienced by the VIP.
As mentioned by McFerran and Argo members of entourage have characteristically not done anything so as to earn the favoured treatment, and can possibly weaken the services’ prestige, since the rewards are extended to ordinary people. Simply, entourage members according to Gherasim (2013) are receiving unjustifiable perks, and such individuals make VIP rewards less limited.
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