Harmony amidst dissonance: unveiling the power of open communication in resolving demarketing dilemmas

Cognitive dissonance (CD) is a well-established concept in marketing literature, particularly within consumer behavior contexts. This study extends its application to the underexplored domain of demarketing in the banking sector, specifically addressing the challenges banks face in managing loan rej...

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Main Authors: Fiona Kigen, Marike Venter de Villiers
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2025.2453624
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author Fiona Kigen
Marike Venter de Villiers
author_facet Fiona Kigen
Marike Venter de Villiers
author_sort Fiona Kigen
collection DOAJ
description Cognitive dissonance (CD) is a well-established concept in marketing literature, particularly within consumer behavior contexts. This study extends its application to the underexplored domain of demarketing in the banking sector, specifically addressing the challenges banks face in managing loan rejections. Unlike traditional studies on post-purchase dissonance or general dissatisfaction, this research examines how deliberate, firm-initiated actions – such as demarketing – create CD while requiring strategies to retain customer loyalty. The study investigates the role of communication openness (CO) as a moderator in the relationship between CD, satisfaction and loyalty. By highlighting how open communication mitigates the adverse effects of demarketing decisions, the research provides a fresh perspective on preserving customer relationships in adverse scenarios. Methodologically, the study employs a vignette-based approach combined with structural equation modeling (SEM), analyzing 505 responses, offering a robust framework for understanding customer reactions. This methodological design allows for rigorous statistical validation of complex relationships. The findings contribute to the literature on demarketing and relationship marketing, offering actionable strategies for banks to navigate the delicate balance of rejecting customer requests while fostering long-term loyalty.
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spelling doaj-art-c7b9bd101e9b4594b1ba33acd6e5192d2025-01-25T12:54:32ZengTaylor & Francis GroupCogent Business & Management2331-19752025-12-0112110.1080/23311975.2025.2453624Harmony amidst dissonance: unveiling the power of open communication in resolving demarketing dilemmasFiona Kigen0Marike Venter de Villiers1Division of Marketing, School of Business Sciences, University of the Witwatersrand, Johannesburg, South AfricaDivision of Marketing, School of Business Sciences, University of the Witwatersrand, Johannesburg, South AfricaCognitive dissonance (CD) is a well-established concept in marketing literature, particularly within consumer behavior contexts. This study extends its application to the underexplored domain of demarketing in the banking sector, specifically addressing the challenges banks face in managing loan rejections. Unlike traditional studies on post-purchase dissonance or general dissatisfaction, this research examines how deliberate, firm-initiated actions – such as demarketing – create CD while requiring strategies to retain customer loyalty. The study investigates the role of communication openness (CO) as a moderator in the relationship between CD, satisfaction and loyalty. By highlighting how open communication mitigates the adverse effects of demarketing decisions, the research provides a fresh perspective on preserving customer relationships in adverse scenarios. Methodologically, the study employs a vignette-based approach combined with structural equation modeling (SEM), analyzing 505 responses, offering a robust framework for understanding customer reactions. This methodological design allows for rigorous statistical validation of complex relationships. The findings contribute to the literature on demarketing and relationship marketing, offering actionable strategies for banks to navigate the delicate balance of rejecting customer requests while fostering long-term loyalty.https://www.tandfonline.com/doi/10.1080/23311975.2025.2453624Demarketingcognitive dissonancecommunication opennesssatisfactionloyaltybanking
spellingShingle Fiona Kigen
Marike Venter de Villiers
Harmony amidst dissonance: unveiling the power of open communication in resolving demarketing dilemmas
Cogent Business & Management
Demarketing
cognitive dissonance
communication openness
satisfaction
loyalty
banking
title Harmony amidst dissonance: unveiling the power of open communication in resolving demarketing dilemmas
title_full Harmony amidst dissonance: unveiling the power of open communication in resolving demarketing dilemmas
title_fullStr Harmony amidst dissonance: unveiling the power of open communication in resolving demarketing dilemmas
title_full_unstemmed Harmony amidst dissonance: unveiling the power of open communication in resolving demarketing dilemmas
title_short Harmony amidst dissonance: unveiling the power of open communication in resolving demarketing dilemmas
title_sort harmony amidst dissonance unveiling the power of open communication in resolving demarketing dilemmas
topic Demarketing
cognitive dissonance
communication openness
satisfaction
loyalty
banking
url https://www.tandfonline.com/doi/10.1080/23311975.2025.2453624
work_keys_str_mv AT fionakigen harmonyamidstdissonanceunveilingthepowerofopencommunicationinresolvingdemarketingdilemmas
AT marikeventerdevilliers harmonyamidstdissonanceunveilingthepowerofopencommunicationinresolvingdemarketingdilemmas