Customer experience and commitment in retailing: Does customer age matter?

While the customer experience (CX) concept has rapidly gained traction in recent years, its effect on customer brand commitment and loyalty remains tenuous. Moreover, while customer age has been identified as an influential driver of consumer behavior, little is known about its effect on the customer's brand experience. Addressing these gaps, we develop a model that examines the relationships between CX, commitment, and loyalty, while using customer age as a moderator in the proposed associations. A total of 423 valid responses was collected from branded retail customers. Structural equation modeling results reveal a positive effect of (a) CX on customers' affective/calculative commitment, and (b) customer commitment on brand loyalty. Moreover, multi-group analysis results reveal that while customer ages moderates the association between CX/affective commitment, it does not significantly moderate the relationship between CX/calculative commitment. We conclude with key implications that arise from this research.     

Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program

The focus of this study is the determinants of customer loyalty among members of retail loyalty programs. With data collected from a DIY loyalty program in a Central European country (a preliminary sample of 116 club members and a representative sample of 416 members), the study empirically tests the nature of the effect of the quality of personal interactions and perceptions of the quality of the loyalty program on customer loyalty through the mediating variable of customer satisfaction. Although the findings suggest that the quality of personal interactions bears no direct influence on members’ loyalty, it has a stronger influence on members’ satisfaction than the perceived quality of the loyalty program does. Influence on members’ loyalty is stronger from the mediating variable of customer satisfaction than from perceived quality of the loyalty program. This finding confirms the role of customer satisfaction as an important determinant of customer loyalty in the DIY setting. Offering a diagnostic tool in terms of selected direct and indirect determinants influencing customers’ loyalty, the paper also contributes to comprehension of loyalty programs’ effectiveness and members’ responses to the quality of loyalty programs, which contribution provides important implications for management and development of retail loyalty programs.     

The customer retail app experience: Implications for customer loyalty

Retailer mobile applications are one of the principal retail purchase and information search channels. Customer experience is key to retail app success. However, its dimensions and impact on retailer performance have been the subject of only a limited number of studies. This research builds on existing customer retail app experience literature by considering four dimensions as precursors of satisfaction with the retailers’ app and customer loyalty (cognitive, affective, relational and sensorial). Data were collected from a sample of 545 retailer app users and analysed using PLS-SEM. The results demonstrate that the affective dimension has the most influence and they highlight the importance of the sensory experience, which even surpasses the cognitive experience. The effect of the relational dimension on customer satisfaction, meanwhile, could not be positively confirmed. Analysis of the moderating effect of gender, age and device type used identifies effects that have not, until now, been demonstrated in current literature.     

The practitioners’ path to customer loyalty: Memorable experiences or frictionless experiences?

Managers of CX programs are often faced with a decision between investing more in experience design (memorable CX) or improving experience delivery (frictionless CX). Current measurement approaches in both industry and academia do not provide a useful framework to address this dilemma adequately or directly. Using 6009 brand ratings by 1070 unique respondents, this research evaluates the impact of memorable vs frictionless CX on customer share of wallet, as well as the mediating effects of satisfaction on these relationships. Both memorable and frictionless CX have significant positive effects on customer share of wallet. These effects are partially mediated by satisfaction. There is an interaction between memorable and frictionless CX which suggests that attempts to maximize both have diminishing returns. The relative impact of each type of CX varies significantly by sector. This alternative method for measuring CX and assessing its impact provides incremental insight over common industry approaches.     

Personalization and hedonic motivation in creating customer experiences and loyalty in omnichannel retail

This study examines the effects of personalization and hedonic motivation on customer experience and its loyalty outcomes in omnichannel retail context. The study develops eight hypotheses which are tested using two survey samples (Finland (n = 2084) and Sweden (n = 2334). In addition, empirical analysis includes 20 semi-structured interviews. The findings support all the hypotheses confirming the positive relationships personalization and hedonic motivation have on cognitive and emotional customer experience components. Further, the positive effects of customer experience on loyalty are confirmed. The results provide both theoretical and managerial insights for improved CX and customer loyalty.     

Modelling and Investigating the relationship of after sales service quality with customer satisfaction,retention and loyalty – A case study of home appliances business

After sales services (ASS) are activities that take place after the purchase of the product by customers and are devoted to supporting customers in the use and disposal of goods. ASS can create sustainable relationships with customers and contribute significantly to customer satisfaction. The purpose of this study is to evaluate the ASS quality by measuring the level of customer satisfaction (CS), customer retention (CR) and customer loyalty (CL) through the SERVQUAL dimensions comprising of ASS attributes and also to check which such ASS-based dimensions of SERVQUAL needs to be focused more on improving the quality of ASS with the consideration of firms involved in manufacturing the home appliances. For this purpose research models were proposed to examine the influence of ASS attributes on CS, CR and CL for three different products such as Gas Stove, Water Purifier and Mixer Grinder from the home appliances sector and tested by multiple regression analyses on data collected through the structured survey questionnaire, with a five-point Likert scale. The study has demonstrated the application of multiple regression analysis in studying the influence of ASS attributes on CS, CR and CL, and the results of the study have helped in analysing the performance of the case companies so as to devise suitable strategies in improving CS, CR and CL.     

The influence of customer loyalty program design on the relationship between customer motives and value perception

Despite the strong use in marketing practice, the effectiveness of loyalty programs is still heavily questioned among researchers. In our study we present an empirically tested framework that views customer loyalty programs (CLPs) with their differing designs as a moderating tool in a means-end relationship between customer motives and value. By disentangling customer value perceptions of loyalty programs we contribute to the remaining question of the efficacy of CLPs and set the road for further research. Our results support the argument that CLPs can be an effective tool and are not only something that adds to the value of a product or service, but rather creates value by itself. However, this is only the case for programs that target prevailing customer motives and hence provide a higher level of perceived value.     

A Bayesian examination of the relationship of internal and external touchpoints in the customer experience process across various service environments

Customer experience (CX) is an aggregate of consumer touch points that can be brand-owned (completely controlled by the firm), partner-owned (collectively controlled by the firm and one or more of its partners), customer-owned (where the firm or its partner cannot exert any control or influence) or represented by social/external touch points that account for the importance of the roles of others in the customer experience process. Although the concept of CX is widely used, not much has been examined about how external touch points impact customer perception of experience. Therefore, the main purpose of this study is to examine the role and impact of internal and external touchpoints as dimensions of customer experience and how CX can impact consumer word-of-mouth intention. Service outcome and peace of mind were used to represent internal experience touchpoints and peer to peer quality (PTP) was used to represent an external experience touchpoint. A total of 293 usable surveys were used for analysis using a Bayesian model developed for this study instead of the more traditional SEM approaches. Results showed that an external experience touchpoint has a similar impact to those of internal experience touchpoints in the experience process. CX was also found to have a strong effect on customer word of mouth intention. These findings make various contributions to the literature on CX, especially to research differentiating internal from external experience touchpoints. On the practical side, this study provides recommendations to retailers about how to manage an external touchpoint.     

Customer value and customer loyalty: Is competition a missing link?

This study is aimed at providing an insight into the effects of competition on customer value delivery for customer loyalty. Data were collected using a questionnaire on dyads of service employees and customers. The techniques of ANOVA, ordinary least squares, and logistic regression were used to analyze the dyad data in terms of research purposes. Results show that competition is a moderator of the relationship between customer value and customer loyalty from the consumer perspective. Also, competition is a predictor of customer loyalty from the employee perspective. Insights into this asymmetry in the view on competition between employees and consumers are found. Findings of the moderating effects of competition on the customer value-customer loyalty relationship suggest the significance of competition in the service encounter. In addition, this study found that the predictive validity of the loyalty model for consumers is significantly higher than that for employees. This finding suggests that the factors driving customer loyalty are better captured from the consumer perspective. Findings of the impact of competition on the consumer’s experience of different types of value provide insights as to where to invest in generating customer value to achieve desired customer loyalty. This study also suggests to managers how service employees could be recruited and managed to achieve a service competitive advantage. This study extends our understanding of the customer value–customer loyalty relationship by uncovering the significant role of competition from a dyadic viewpoint.     

The influence of customer experience with automated games and social interaction on customer engagement and loyalty in casinos

Drawing on experiential marketing theory, This study examines the relationship between casino customers’ experience with automated games and their engagement and loyalty responses to casinos. Social interaction as a proxy of visiting motivation is modelled as a moderator in the relationship. Customer behaviours include word-of-mouth, visiting frequency, and average spending. The study focuses on Australian land-based casino members with automated game experience. The results show that customer experience with some features of automated games had a positive and significant impact on customer engagement with the casino, which led to positive loyalty. Automated game experience also had an indirect effect on customer loyalty. Social interaction exhibited a significant moderating effect on the relationship between customer engagement and visiting frequency. Discussion and implications of these findings for the literature and practitioners conclude the paper.     

Relationship between sales force reputation and customer behavior: Role of experiential value added by sales force

Based on the resource-based view theory and the experiential value model, this paper aims to investigate how experiential value added by the salesperson mediates the relationship between perceived salesperson reputation and customer behavior. A questionnaire is constructed, and data are collected from 229 customers served by financial salespeople working in five bank agencies in Canada. Structural equation modeling was employed to assess the proposed research model empirically. The empirical results revealed that the two dimensions of experiential value – economic benefit and service productivity – partially mediated the relationship between perceived salesperson reputation and both customer loyalty towards the salesperson and customer share of wallet. However, enjoyable interaction mediates only the relation among salesperson reputation and customer loyalty. The managerial implications are addressed.     

Effects of customer loyalty on customer entitlement and voiced complaints

The value of customer loyalty has been well documented by academicians and practitioners. Nevertheless, prior literature has paid little attention to the negative consequences of customer loyalty, for example, entitlement behaviors (e.g. requests for deeper discounts) and complaint behaviors (voicing dissatisfaction to the company). This research empirically examines the effects of customer loyalty on entitlement and voiced complaint behaviors in the context of Frequent Flyer programs in airline industry. Base on partial least squares-structural equation modeling, the results show that (1) customer loyalty has a positive effect on customer entitlement, which is the extent to which customers expect special treatment from the company; (2) the effect of customer loyalty on voiced complaints is fully mediated by customer entitlement; (3) perceived status of loyalty programs amplifies the entitlement behaviors of loyal customers, while tangible rewards of loyalty programs mitigate the entitlement behaviors of loyal customers. Theoretical and managerial implications are elaborated in the discussion section.     

Challenging the "integration imperative": A customer perspective on omnichannel journeys

Omnichannel literature largely assumes that retailers should integrate touchpoints across channels to promote seamless experiences. This paper challenges this assumption by exploring how perceived journey integration affects customer experience in omnichannel retailing. A qualitative study reveals that two dimensions of journey integration—consistency and connectivity—interact to form four patterns of omnichannel journeys, each prompting distinct experiences. When looking at this phenomenon through the customer’s perspective, we find that there are cases in which low consistency or connectivity can trigger positive experiences, contradicting extant literature. We then formulate research propositions that challenge the “integration imperative” in the omnichannel literature and provide managerial implications for retail firms that want to improve their customers’ experiences.     

There is a secret to success: Linking customer experience management practices to profitability

Customer experience (CX) and customer experience management (CXM) are key tenets of the presently dominant marketing research and management strategy paradigm. Despite CXM's prevalence, very little research explores its practices and links to company performance. This study tackles a rather elusive challenge for practice and research: how to connect customer experience (management practices) to company profitability. Based on a dataset of over 273 companies with dedicated CX strategies, we explore four different clusters of how companies manage their CX programs. Interestingly, each form of practice leads to a different performance outcome. Thus, our work lays the foundation for linking CXM practices to company performance, emphasizing which practices are more rewarding than others. The present study lays the groundwork for research to further elaborate on the cause-effect relationship between CX and performance and what the next and best CXM practices look like.     

Guiding directions and propositions: Placing dynamics at the heart of customer experience (CX) research

Our study summarizes and synthesizes the content of our Special Issue along with additional information from customer experience (hereafter CX) managers and research to determine the main challenges and opportunities for the most important trend in CX practice and research alike: CX's dynamic nature. While widely acknowledged, CX researchers and managers have been struggling with how to research, address, and successfully manage CX's dynamic nature. Individual contributions build the foundation for our study, establishing a conceptual framework within which to successfully address the four main challenges at hand: time, the role of emotions, personal experience vicinity, and methods. We present guiding research directions and questions emphasizing fruitful avenues of enquiry.     

Examining customer engagement and brand intimacy in social media context

Customer engagement (CE) is critical for firms to cultivate and improve customer brand experience in the customer journey. However, few studies are available on the effects of customer-based driving forces on CE in a defined brand experience context. Given the multidimensional nature of CE, the interrelationships among CE dimensions and various dimensional effects on the customer–brand relationship, represented by brand intimacy, have not been thoroughly explored. To address these research gaps, this study explores three customer- and context-based forces that drive CE in social media contexts from a consumer’s perspective. CE is operationalized as a second-order construct consisting of three dimensions (i.e., consumption, contribution, and creation) to reflect its multifaceted nature. An online survey was used to collect data. The results suggest that customer-based forces, advice seeking, and self-image expression exert positive influences on behavioral CE dimensions. The effect of a context-based factor, that is, fashion involvement, is salient only when gender difference is integrated. Moreover, the three facets of behavioral CE affect brand intimacy to different extents. Brand intimacy is the most affected by creation followed by consumption. The research findings contribute to the literature on CE and brand intimacy and also offer practical insights on marketing communications and segmentation.     

Influence of customer application experience and value in use on loyalty toward retailers

This study aims to explain the mechanism by which user experience with retailer applications could lead to loyalty toward retailers. The data were collected through a survey in Indonesia (n = 717). The results support the positive impact of customer experience (i.e., sensorial experiential state, affective experiential state, interactivity, and relative advantage) on value in use. Value in use mediates the effects of customer experience on satisfaction and loyalty toward retailer application. In turn, these two constructs increase loyalty toward the retailer. These findings contribute to the theoretical and practical understanding of the impact of retailer applications on the customer-retailer relationship.     

Impact of customer experience on loyalty: a multichannel examination

This article examines the relation between the five dimensions of customer experience advocated by Schmitt [1999a. Experiential Marketing. Journal of Marketing Management, 15, 53–67] (cognitive, affective, sensory, behavioural and social) and service provider loyalty. The examination focuses on two different channels, namely branch/agency (physical) and online (Web-based). A total of 484 panellists of a large Canadian polling firm self-administered a Web-based questionnaire regarding banking experience. The exercise was subsequently replicated in the tourism sector. Findings demonstrate that the main dimension impacting loyalty is the affective dimension (negative), thereby contributing handsomely to experiential marketing literature since negative emotions are rarely investigated. Findings also reveal that choice of channel exerts a moderating effect on the different dimensions influencing loyalty and that results vary from one sector to another. The multidimensional, multichannel, multisector approach selected for this study substantiates customer experience as complex and context specific. The authors also suggest practical implications and set out avenues of future research.     

Building and sustaining profitable customer loyalty for the 21st century

The concept of customer loyalty is conspicuous by it's ubiquity. Therefore, there is no surprise that it is one of the most widely studied areas by researchers and one of the most widely implemented marketing initiatives by practitioners. This article draws upon past research to review important findings related to customer behavior and attitude in the context of customer loyalty. Further, research related to linking loyalty to profitability and forward looking metric such as the customer lifetime value is reviewed to propose a conceptual framework for building and sustaining loyalty and profitability simultaneously at individual customer level. A two-tiered rewards structure is presented as a means for marketers to operationalize the framework. The conceptual framework hopes to serve as a platform to understand the evolving dominant logic of loyalty programs for building and sustaining loyalty in the twenty first century as well as induce further research in that direction.