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PurposeConsumers who share their suggestions with firms contribute valuable knowledge and both exhibit and reinforce positive customer engagement. Yet, the motivational antecedents of direct-to-firm customer suggestion sharing rem...
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PurposeConsumers who share their suggestions with firms contribute valuable knowledge and both exhibit and reinforce positive customer engagement. Yet, the motivational antecedents of direct-to-firm customer suggestion sharing remain understudied. This study aims to investigate how potential self, other customer and firm benefits motivate consumer suggestion sharing.Design/methodology/approachA critical incident pretest explores the domain and establishes ecological validity. Two scenario-based experimental studies test the proposed relationships in distinct service contexts.FindingsResults support a prosocial (helpful) view of suggestion sharing - potential benefits to other customers motivate suggestion sharing. Potential benefits for the firm play two roles, namely, they indirectly motivate suggestion sharing by increasing consumers' perceived outcome expectancy, illustrating a pragmatic mechanism, and they directly motivate suggestion sharing when service quality is high, illustrating a conditional, reciprocity-driven mechanism. When service quality is low, consumers are less likely to share firm-benefitting suggestions and more likely to share non-beneficial suggestions, highlighting a potential low service quality "trap" in which firms can become stuck.Research limitations/implicationsFuture research is needed to study the antecedents of attitude toward suggestion sharing and the effect of relationship strength on suggestion sharing.Practical implicationsManagerially, multiple paths are identified by which firms can motivate suggestion sharing. The low-service quality "trap" indicates that low-service quality firms should not rely on, and should perhaps even ignore, customer suggestions as a tool for improving their offerings.Originality/valueBy experimentally investigating the motivational antecedents of direct-to-firm consumer suggestion sharing, this paper fills a gap in extant research and provides a foundation upon which future suggestion sharing research can build.
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Purpose The present study investigates the moderating role of customer trust in customer relationship management (CRM) components and customer loyalty relationships in the context of the baking sector in Bangladesh. Design/methodo...
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Purpose The present study investigates the moderating role of customer trust in customer relationship management (CRM) components and customer loyalty relationships in the context of the baking sector in Bangladesh. Design/methodology/approach Data were collected through a survey using a structured questionnaire from 350 customers of commercial banks in Bangladesh. Findings The key finding is that all CRM components (customer orientation, customer advocacy and customer knowledge) except customer engagement have positive impact on customer loyalty. Moreover, customer trust only moderates the relationship between customer knowledge and customer loyalty, whereas other CRM components and customer loyalty do not moderate by trust. Originality/value The findings of the study add to the substantial pool of knowledge on CRM components, customer trust and customer loyalty literature. More specifically, the moderating role of customer trust between customer knowledge and customer loyalty is the novel contribution of this research which will enrich the existing CRM literature particularly in the banking sector of Bangladesh.
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This paper focuses on optimisation procedures for customer acquisition and retention costs. It compares a recent contribution by Pfeifer (2005) to the original Blattberg and Deighton (1996) model and gives generic formulations for...
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This paper focuses on optimisation procedures for customer acquisition and retention costs. It compares a recent contribution by Pfeifer (2005) to the original Blattberg and Deighton (1996) model and gives generic formulations for both optimisation procedures. It extends the model and the optimisation procedures from the rather narrow 'lost for good' customer dynamic behaviour scheme to the more general 'always a share' behaviour model. Numeric optimisation algorithms used to build iso-curves help prove that the ratio between optimal retention and acquisition costs is fundamentally a matter of customer versus prospect responsiveness to marketing efforts, and produce decision support to find the optimal ratio between customer retention and acquisition spending. Empirical data adapted from existing literature on the subject are used to test and illustrate the optimisation models and methods that are introduced.
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The study site was Southeast Sulawesi Province. The research object was customers of BRI. The study took place in three (3) months. The first and second months were when the researchers contacted Bank Rakyat Indonesia (BRI) to con...
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The study site was Southeast Sulawesi Province. The research object was customers of BRI. The study took place in three (3) months. The first and second months were when the researchers contacted Bank Rakyat Indonesia (BRI) to conduct research, then the researchers distributed questionnaires to respondents. In the third month, the researchers collected questionnaires that had been filled in and performed data processing. The population in this study was BRI customers throughout Southeast Sulawesi, totaling 11,800 people. This study took 8% sampling precision to maintain the representativeness of the research sample. Based on the population, the sample size set in this study follows the Slovin formula to obtain a sample of 156 people.
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Despite interests from many researchers, the conceptualization and measurement of customer‐to‐customer encounter quality (CCEQ) have mostly remained untapped. The present study aims to develop a conceptua
Despite interests from many researchers, the conceptualization and measurement of customer‐to‐customer encounter quality (CCEQ) have mostly remained untapped. The present study aims to develop a conceptual framework to manage the impact of other customers on the focal customers’ service experience based on the perceived service quality framework. In Study 1, the authors employed critical incident technique to establish a multilayered factor structure of CCEQ consisted of three primary categories: customer‐to‐customer hedonic quality, customer‐to‐customer utilitarian quality, and customer‐to‐customer normative quality. In Study 2, the authors examined reliability and validity of the CCEQ model by using comprehensive confirmatory factor analyses and structural equation modeling. The results support the conceptualization of CCEQ proposed in Study 1. As an initial work as to the conceptualization and measurement of CCEQ model, this study provides theoretical and managerial insights into other customers’ influence on focal customers’ overall evaluation of service experiences.
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Purpose Responding to an increasing call for a more comprehensive conceptualization of customer delight, the purpose of this paper is to expand the theory of customer delight and to examine the implications of such an expanded vie...
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Purpose Responding to an increasing call for a more comprehensive conceptualization of customer delight, the purpose of this paper is to expand the theory of customer delight and to examine the implications of such an expanded view for service theory and practice. Design/methodology/approach This paper presents the results of three qualitative studies. The first study explores customer delight through self-reported consumption experiences in customer-selected contexts, followed by one-on-one in-depth interviews. The second involves focus groups and the third examines self-reported incidents of delightful customer experiences. Findings This research finds that customer delight goes beyond extreme satisfaction and joy and surprise to include six properties that-individually or in combination-characterize customer delight. An expanded conceptualization of how customer delight can be defined is proposed in which customer delight is associated with various combinations of six properties - the customer experiencing positive emotions, interacting with others, successful problem-solving, engaging customer's senses, timing of the events and sense of control that characterizes the customer's encounter. Research limitations/implications It is clear from the findings of this research that there is no single property that is associated with delight. Through the facilitation of multiple properties, managers have the potential to create a multitude of routes to delight. It is recommended that future research (1) identify and explicate these alternative routes for engendering delight using the six properties identified, and (2) develop a general typology based on service context and characteristics, customer segment, etc. that further stimulates scholarship on delight, and offers more industry-specific insights for managers. Practical implications Insights from this investigation will encourage managers and service designers to think more broadly and creatively about delight. Doing so will open up new opportunities for achieving customer delight, beyond merely focusing on extreme satisfaction or surprise and joy strategies currently dominating discussions of customer delight. Originality/value This paper makes several contributions to the service literature. First, it extends current conceptualizations of customer delight and offers an expanded definition. Next, it demonstrates how this new understanding extends the existing literature on delight. Finally, it proposes an agenda for future delight research and discusses managerial implications, opening up new opportunities for firms to design delightful customer experiences.
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Purpose – The purpose of this research is to examine the role of accounting numbers in one organisation's attempts to enact and calculate customer intimacy, given renewed interest in organisation-customer relationships. Design/me...
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Purpose – The purpose of this research is to examine the role of accounting numbers in one organisation's attempts to enact and calculate customer intimacy, given renewed interest in organisation-customer relationships. Design/methodology/approach – The paper utilises actor-network theory in conducting an ethnography at a wholesale financial services firm pursuing a strategy of customer intimacy. The main empirical site was the sales and marketing department, where actors were attempting to further their knowledge of customer needs in the present and anticipate them into the future. Findings – The paper finds heterogeneous enactments of “customer intimacy” through a “numeric calculation network” and a “sales calculation network”. The former sought to use accounting numbers to calculate how customer intimacy was enacted and impose upon a sales-force periphery a regime of performance measurement. The latter eventually destabilised the proposed performance measures by promoting their own basis for calculating customers. These were more diverse and “implicit”, comprising talk and communication through co-location and proximity with customers. Originality/value – The paper provides a number of insights into the role of accounting as a calculative practice. The observed emergence of novel means of producing accounting numbers outside the domain of the accounting function and within the sales and marketing department has important implications for the practice and study of accounting. In addition, potential limits to the use of accounting in enabling “action at a distance” are identified through the observed contest between “hard” accounting' numbers and softer modes of calculation.
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Purpose - This study aims to investigate how customer satisfaction and loyalty evolve during the initial years of a business services relationship. In addition to assessing the potential for dynamic effects, models explore how rel...
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Purpose - This study aims to investigate how customer satisfaction and loyalty evolve during the initial years of a business services relationship. In addition to assessing the potential for dynamic effects, models explore how relational transgressions such as very poor sales and implementation experiences might moderate customer satisfaction dynamics and the relationship trajectory. Design/methodology/approach - Analyses utilize structural equation modeling on longitudinal data obtained over a three-year period from customers contracting with a global provider for IT services. Findings - Results reveal significant dynamic effects for satisfaction across two successive time periods but not for loyalty intentions, suggesting prime importance for finding ways to continually satisfy customers. Customers' initial sales and implementation experiences negatively moderated the dynamic effects of satisfaction from time 1 to time 2, but not for time 2 to time 3. This result indicates that customers who experience relational transgressions strongly update their perceptions with new information in early phases of the relationship, but subsequently, customers anchor future evaluations using their existing perceptions. Originality/value - Whereas a growing amount of work explores how satisfaction and loyalty evolve for consumers, there is very little empirical knowledge to help managers understand how business customers' evaluations shift or follow certain trajectories based on initial relationship experiences. This study aims to address this important gap and finds evidence that customers do rely on their satisfaction perceptions from previous periods and, given time, can move beyond past relational transgressions when they evaluate their providers.
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Purpose - The purpose of this research is to examine different customer satisfaction and loyalty metrics and test their relationship to customer retention, recommendation and share of wallet using micro (customer) level data. Desi...
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Purpose - The purpose of this research is to examine different customer satisfaction and loyalty metrics and test their relationship to customer retention, recommendation and share of wallet using micro (customer) level data. Design/methodology/approach - The data for this study come from a two-year longitudinal Internet panel of over 8,000 US customers of firms in one of three industries (retail banking, mass-merchant retail, and Internet service providers (ISPs)). Correlation analysis, CHAID, and three types of regression analyses (best-subsets, ordinal logistic, and latent class ordinal logistic regression) were used to test the hypotheses. Findings - Contrary to Reichheld's assertions, the results indicate that recommend intention alone will not suffice as a single predictor of customers' future loyalty behavior. Use of a multiple indicator instead of a single predictor model performs better in predicting customer recommendations and retention. Research limitations/implications - The limitation of the paper is that it uses data from only three industries. Practical implications - The presumption of managers when looking at recommend intention as the primary, even sole gauge of customer loyalty appears to be erroneous. The consequence is potential misallocations of resources due to myopic focus on customers' recommend intentions. Originality/value - This is the first scientific study that examines recommend intentions and its impact on retention and recommendation on the micro (customer) level.
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