The implementation of digital channels as avenues for economic transactions (e.g., online and mobile banking/FinTech) has shifted the paradigm of customer–bank interactions, providing unprecedented opportunities for both parties. The prevailing belief is that digital banking has several advantages, such as lower costs and higher information transferability for customers. These benefits can also promote competition between banks given customers' predilection for “multi‐homing,” or engagement with multiple banks. This study investigated the impact of customers' digital banking adoption on hidden defection, in which customers purchase financial products from competing banks instead of their primary banks. To this end, we developed an analytical model to provide insights into the effects of digital banking adoption while taking customers' multi‐homing behaviors into consideration. We then conducted a series of empirical analyses using comprehensive individual‐level transaction data to provide evidence of hidden defection. Our findings indicate that customers with higher loyalty exhibit greater hidden defection after digital banking adoption. Customers who engage primarily with personal‐service channels (e.g., branches) show stronger hidden defection than do self‐service channel (e.g., ATMs) users, and this effect is more prevalent among loyal customers. Our results provide valuable implications for omni‐channel services in a market characterized by multi‐homing behavior of customers.

This research investigates how a shift from traditional loyalty cards to mobile-driven loyalty apps affects consumers’ reward redemption patterns, purchase behaviors, and store-level competition. The findings indicate that loyalty app adoption is associated with increased expenditure and purchase frequency as well as more active point redemption. In a multivendor loyalty program (MVLP) context, the use of loyalty apps is associated with spillover effects in which case customers visit more stores that they had not previously considered and exhibit diminished allegiance to their focal shop after they adopt a loyalty app. Finally, the adoption of loyalty apps is related to deal-prone behaviors because informed consumers tend to selectively purchase highly discounted products. Our findings provide several valuable implications for managers and platform owners who are considering launching mobile loyalty programs (LPs) and participating in an MVLP market. Although the merits of loyalty app adoption are apparent, we caution against potential downsides at individual store levels. Many customers are likely to succumb to deals, selectively purchasing highly discounted products with low margins through loyalty apps. The thrust of LPs should be directed toward fostering a strong connection with a brand, going beyond the promise of deals and promotions.

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While considerable progress has been made in understanding gender mismatch and bias in the physical workplace, there is a limited understanding of how these biases manifest in online platforms where gender masking and manipulation can easily occur. In this study, we collaborate with an online product and service firm in Asia and propose a field experiment design to examine how gender bias influences people‐centric operations in online platforms. By assigning different gender combinations of clients and consultants, we examine how the effect of gender bias differs depending on the gender match or mismatch of the entities in the information exchange process. Using 7 months of data, we provide preliminary evidence of gender biases of different client‐consultant gender pairings. Theoretical and practical implications are discussed.