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Controversy exists about the shape of the relationship between loyalty and profitability. This paper aims to address the possibly nonlinear effects of behavioral loyalty (BLOY) on customer spending (as a proxy for profitability). Building on social exchange theory and the norm of reciprocity, it examines the asymmetries between BLOY and customer spending and the moderating influence of personal communication (PCOMM) as a social reward and dispositional positive reciprocity as process evidence.

Study 1a (n = 309) gathered customer data from four restaurants and Study 1b (n = 252) data from hotel guests after they checked out. Study 2 is an experimental study with two manipulated factors (BLOY and PCOMM). In total, 295 participants from a large German online panel completed the study.

The results indicate an inverted-U shaped relationship between BLOY and customer spending: after reaching a turning point, customers gradually curb spending as their BLOY further increases. High PCOMM acts as a reciprocal response while triggering additional customer spending particularly at higher levels of behavioral loyalty; positive reciprocity adjusts the differences in customer spending when social rewards such as PCOMM are present.

The asymmetric relationship between BLOY and customer spending is tested only for hedonic service settings.

Not all loyal customers spend more – companies need to meet their reciprocal obligations before they can benefit from increased customer spending.

The present research re-considers the nature of the relationship between BLOY and customer spending and reveals an inverted-U shaped relationship, with a turning point beyond which greater customer loyalty decreases customer spending. It finds converging process evidence for the mechanism of reciprocity underlying this relationship. This study also details the financial impact of BLOY on the firm by investigating actual customer spending.

Successful knowledge transfer (KT) between younger and older workers (YW and OW, respectively) is critical for organizational success, especially in light of the recent surge in employment volatility among the youngest and oldest segments of the workforce. Yet, practitioners and scholars alike continue to struggle with knowing how best to facilitate these exchanges. The qualitative study offers insight into this phenomenon by exploring how KT unfolds in YW/OW dyads.

The authors performed a reflexive thematic analysis of semistructured interviews with two samples of blue- and white-collar younger/older workers from the USA (N = 40), whereby the authors interpreted the “lived experiences” of these workers when engaged in interdependent tasks.

The analysis, informed by social exchange theory and exchange theories of aging, led to the development of the knowledge transfer process model in younger/older worker dyads (KT-YOD). The model illustrates that, through different combinations of competence and humility, KT success is experienced either directly (by workers weighing the perceived benefits versus costs of KT) and/or indirectly (through different bases of trust/distrust perceived within their dyads). Further, humility in dyads appears to be necessary for KT success, while competence was insufficient for realizing KT success, independently.

In exposing new inner workings of the KT process in YW/OW dyads, the study introduces the importance of humility and brings scholars and organizations a step closer toward realizing the benefits of age diversity in their workplaces.