Measuring and improving customer retention at authorised automobile workshops after free services

Customer retention is vital for businesses with much research literature now available. But nothing has been investigated regarding measuring and improving customer retention at authorised automobile workshops after free services. Even after providing extensive warranties and other free service benefits, customers don't use authorised workshops although their vehicles are still under warranty. By not arranging regular maintenance services, customers lose warranty benefits, with product performance and safety related awareness undermined; companies lose huge business potential. Therefore, this study aims to measure and improve customer retention at authorised automobile workshops after free services. To achieve this, a four-phased study has been conducted. In phase one, a combination of a literature review and expert opinions is used to identify customers' retention factors. The second and third phases describe how data is collected from industry experts and customers. Analytical Hierarchy Process (AHP) and Decision Making Trial & Evaluation Laboratory (DEMATEL) are used to prioritise and examine inter-relationships among factors. In the last phase, the study recommends three business strategies to help a company to improve customer retention and make their Annual Maintenance Contract (AMC) product more customer friendly.     

The effect of shipping fees on customer acquisition, customer retention, and purchase quantities

The growth of the e-commerce sector has highlighted the importance of shipping fees. We empirically study the effects of shipping fees and marketing activities on customer acquisition, customer retention, and average expenditures using data from an online grocer. We find that shipping fees greatly influence order incidence rates and graduated shipping fees significantly affect average expenditures. The analysis indicates that customer acquisition is more sensitive to order size incentives while retention is more influenced by base shipping fee levels. Furthermore, a profitability analysis suggests that shipping policies that provide incentives for larger order sizes may outperform free shipping promotions and standard increasing fees structures.     

The influence of satisfaction on customer retention in mobile phone market

This study examines the determinants of customer satisfaction and customer loyalty in the Peruvian mobile phone market. Based in a survey to 1259 customers, Multinomial Logit and GSEM estimations show how determinants of customer satisfaction can be assessed when satisfaction is measured through ordered categorical data. The results confirm that in mobile phone market Customer Satisfaction influences strongly on Customer Loyalty, and in turn Loyalty is an important determinant of Customer Retention. In contrast with previous literature, this study identified the differentiated influence of diverse factors on positive and negative customer satisfaction categories. Indeed while results show that quality of service assessments made by customers had a significant impact on both negative and positive customer satisfaction categories; assessments of other service attributes like customer care, information on tariffs and plans and billing clarity, only showed a significant statistical influence on positive categories of customer satisfaction. Similar asymmetrical results were found with regard to other economic, socioeconomic and geographical determinants of customer decisions. As well, an analog effect is also observed in the relationship between customer satisfaction and loyalty, where only positive satisfaction assessments helps to explain the loyalty of users. Finally, results show that while satisfaction can be identified as a powerful cause of CR, switching barriers did not deter more demanding customers to switch to alternative carriers, suggesting that recent pro-competition regulatory reforms implemented in Peru contributed to reduce these barriers to competition in mobile markets.     

Understanding the psychological process underlying customer satisfaction and retention in a relational service

This paper reexamines the psychological process underlying the relationship between customer satisfaction and customer retention in a relational service context. It is based on a composite model of the attitude-behavior relation, which takes both attitude toward target and attitude toward behavior into account. Data were collected from a survey with a sample of 209 clients from a major credit counseling organization in the USA. Account data indicating those clients' actual retention behavior were matched with the survey data. A two-step structural equation modeling (SEM) procedure was employed to establish the construct validity and test the hypotheses. The results revealed that the effect of customer satisfaction on retention is mediated by the more proximal determinants of the actual retention behavior. Specifically, customer satisfaction has both direct and indirect effects on customers' attitudes toward remaining in the Debt Management Program (DMP), which is the proximal predictor of customer retention. In addition, satisfaction alone cannot guarantee customer retention. Customers' perceived behavioral control exerts direct effects on their intention to remain and retention.     

Examining the relationship between customer bonding,customer participation,and customer satisfaction

This study empirically analyzes the relationship between customer bonding, customer participation, and customer satisfaction. It uses data from 804 VIP customers of South Korea's commercial banks. The hypotheses are tested using the structural equations modeling technique. The results show that social and structural bonding are the main antecedents of customer participation. Additionally, customer participation positively impacts customer participation value and worth. The findings also show that customer participation, customer participation value, and customer participation worth strongly and positively affect customer satisfaction. Furthermore, it finds that customer participation value and worth are essential mediators between customer participation and satisfaction.     

The impact of personalised incentives on the profitability of customer retention campaigns

Traditional approaches to managing customer churn have typically concentrated on those customers most likely to defect. While accurately predicting customer churn probability is important, this metric alone does not sufficiently empower managers to make optimal decisions. Hence, the current study focuses on the relationship between retention incentives and profit maximisation. Specifically, we improve existing churn management practices by: (1) allowing for customer heterogeneity in incentive redemption behaviour, (2) introducing the dependence of the probability of accepting an incentive on its monetary value, and (3) offering an improved model for developing retention campaigns. We support our conclusions with empirical data and simulations and make tangible managerial recommendations.     

Demystifying the impact of self-indulgence and self-control on customer-employee rapport and customer happiness

Past research mostly ignores the link between customers' purchase orientations and their engagement with frontline service employees. This paper addresses this gap by using socio-emotional selectivity theory to investigate the effects of customers’ self-indulgence/control on their rapport building efforts with frontline service employees and on their own happiness. It also explores the moderating effects of age, gender and shopping day on the impact of self-indulgence/control on happiness. Data from 252 Australian customers shows that self-control has no significant influence on rapport or happiness while rapport and self-indulgence positively affect happiness. Finally, all the moderating effects only find partial support.     

The impact of customer-specific marketing expenses on customer retention and customer profitability

We study the effects of customer-specific marketing expenses on customer retention and customer profitability in a business-to-business setting. Using data from a company providing hygiene services, we look at the impact of a hitherto unstudied type of expense targeted at individual customer relationships: the offering of free equipment to customers. The data allow tracking the activities performed in more than 4,500 customer relationships over a period of 4 years. Retention rates are higher for customers targeted with free equipment, but this effect results from an interaction with customer size. First-order dynamic panel data analyses show that the impact of targeted marketing expenses on customer dollar profit is positive for large customers, but there is no effect for smaller customers. Thus, targeted marketing expenses seem to be a tool for relationship maintenance rather than customer development: they help in retaining large customers that generate more profit, but they do not seem to work in developing new customers into larger, more profitable ones.     

Social interaction,convenience and customer satisfaction: The mediating effect of customer experience

The present study is an effort to investigate the impact of both convenience and social interaction on customer satisfaction and the mediating role of customer experience. A structured questionnaire was used to collect data (n=840) using systematic sampling from department store shoppers of age 18 years and above in India. Multivariate data analysis techniques like Exploratory Factor Analysis and Structural Equation Modeling were used to analyze the data. Results revealed that convenience and social interaction affect both customer experience and customer satisfaction. Arguably, this paper is the first to examine the four constructs namely, social interaction, convenience, customer satisfaction and customer experience using them together in the same model. Academic and managerial implications are further discussed.     

The impact of technological and organizational implementation of CRM on customer acquisition, maintenance, and retention

In recent years, customer relationship management (CRM) has been a topic of the utmost importance for scholars and managers. Despite the evidence provided by numerous empirical studies, many companies that have implemented CRM systems report unsatisfactory levels of improvement. This study analyzes what influence companies can expect CRM implementation to have on performance and how they can leverage its impact. The authors propose a conceptual model that investigates the link between technological and organizational implementations, as well as the implementations' interactions with management and employee support and CRM process-related performance. By measuring CRM performance in terms of the initiation, maintenance, and retention of customer relationships, the study provides a detailed picture of what CRM implementations are capable of achieving. The results of the empirical study, conducted across four industries and ten European countries, indicate that CRM implementation does not impact performance equally for different aspects of the CRM process, and that it has an impact only if adequately supported by the appropriate company stakeholders.     

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.     

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.     

Feel the VIBE: Examining value-in-the-brand-page-experience and its impact on satisfaction and customer engagement behaviours in mobile social media

A critical issue for marketing managers is how best to orchestrate branded social media consumption experiences via mobile applications. This is important because in a mobile first world, these experiences are perceived to be valuable to consumers which in turn facilitate positive consumer behaviour toward the brand. So far, marketing literature offering managerial guidance on this issue remains limited. To this end, this study investigates for the first-time consumer perceptions of ‘Value-In-The-Brand-Page-Experience’ (VIBE), a multidimensional construct, in an emerging market setting of China. China represents an appropriate contextual condition to study given its high mobile penetration and its integration within consumer's lifestyle. This study further examines the impact of VIBE on customer satisfaction and customer engagement behaviours toward the brand via a survey of 714 Chinese consumers. The results substantiate the VIBE framework which contributes to the sparse conceptual development of value perceptions in mobile social media. Furthermore, it confirms the existence of a value–satisfaction–customer engagement behaviour chain. The findings are managerially relevant and focus on leveraging the components of VIBE. These components act as key mechanisms for unlocking customer satisfaction and customer engagement behaviours for brands in the domain of mobile social media.     

Marketing mix and customer equity of SPA brands:Cross-cultural perspectives

Globalization has substantially transformed the fashion industry. Firms that conduct innovative marketing campaigns for SPA brands, also known as fast fashion, are operating worldwide. Because SPA brands tend to have short trend cycles, corporate profitability is sensitive to consumers' attitudinal changes. The authors of this study establish a theoretical framework by examining research trends related to customer equity at home and abroad by delving into the current state of global SPA brands, defining customer equity, developing customer equity measurements, and conducting empirical analyses. This study uses structural equation models to analyze corporate marketing activity effects on customer lifetime value through brand attitude. Although earlier studies identify customer equity as driving value equity, brand equity, and relationship equity, the authors introduce social network equity as another driver.     

Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM

This study examines how social media technology usage and customer-centric management systems contribute to a firm-level capability of social customer relationship management (CRM). Drawing from the literature in marketing, information systems, and strategic management, the first contribution of this study is the conceptualization and measurement of social CRM capability. The second key contribution is the examination of how social CRM capability is influenced by both customer-centric management systems and social media technologies. These two resources are found to have an interactive effect on the formation of a firm-level capability that is shown to positively relate to customer relationship performance. The study analyzes data from 308 organizations using a structural equation modeling approach.     

On linking the perceived values of mobile shopping apps,customer well-being,and customer citizenship behavior: Moderating role of customer intimacy

Marketing studies that seek to determine the drivers of Customer Citizenship Behavior (CCB) are still relatively rare, especially for its multi-faceted relationship with perceived values in the context of online transactions. This study seeks to bridge this research gap by exploring the relationship between the perceived values of mobile shopping applications (MSApps) and CCB through perceived well-being based upon the social exchange theory. This study also makes another original contribution by investigating the moderating role of customer intimacy. A quantitative approach was adopted by collecting data through a web survey and then applying structural equation modelling, as well as cluster and multigroup analyses to test the proposed hypotheses. Perceived values were found to influence consumer well-being, thus predicting CCB, with consumer intimacy playing a significant moderating role in this relationship. This study is one of a few seeking to verify the drivers of CCB for MSApps, and it is the first of its kind to investigate consumer intimacy as a moderating factor. The findings will prove useful to providers of MSApps and retailers.     

Exploring the drivers of customer engagement behaviours in social network brand communities: towards a customer-learning model

Customer learning is regarded as a process that alters either individual cognition or the outcomes of socialisation. Understanding how the learning process works enables a brand firm to identify a customer’s latent needs. Prior studies have primarily focused on effectively positioning brand knowledge in the minds of customers, but that linear learning process does not apply to the interactive and proactive social media setting. Based on the uses and gratifications perspective, this study proposes a customer-learning model and analyses 373 online questionnaires using partial least squares structural equation modelling. The empirical results confirm that learning motivation and collaborative learning are two core components of customer learning that have positive influences on satisfaction, which in turn has a positive influence on customer engagement behaviours (CEBs) and loyalty. In addition, learning motivation is the driver of collaborative learning. Finally, CEBs also have a positive influence on loyalty. This study also concludes that the social network brand community is an informative customer-learning platform that is characterised by interactivity, collaborative learning and co-creation. Theoretical and managerial implications are also discussed.     

Whether,when, and why functional company characteristics engender customer satisfaction and customer-company identification: The role of self-definitional needs

Beyond merely satisfying customers, companies are increasingly striving to build deeper and more meaningful customer relationships characterized by strong customer-company identification. However, whereas previous research has solely focused on symbolic drivers of identification, it remains unclear whether, when, and how managers can build on core functional company characteristics (i.e., quality, innovativeness, and price) to establish customer–company identification. The present study addresses these questions by developing a theoretical framework based on theoretical notions of social identity theory and the cue diagnosticity framework. Evidence from two field studies and one experimental study shows that functional company characteristics are not effective in creating customer–company identification per se, but that their influence depends on whether they match with a self-definitional need that is important to the customer (i.e., self-continuity, self-distinctiveness, or self-enhancement). The findings also reveal the underlying mechanism of this contingency by showing that a self-definitional need fosters customer–company identification because it strengthens the symbolic value of a matching functional characteristic. By identifying specific characteristic–need matches, this research offers novel insights into how managers can leverage functional company characteristics in their targeting and communication efforts to establish meaningful long-term relationships with customers.     

The social significance of AI in retail on customer experience and shopping practices

This paper draws on practice-informed, ethnographic research to develop an understanding of the novel social consequences and opportunities afforded from consumers' interactions with AI digital humans as part of the in-store shopping experience. We reveal and interrogate consumers’ experiences with AI digital humans in an exploratory study undertaken during the launch phase of an in-store kiosk digital store greeter in a flagship store of a large national technology and appliance chain. Our findings contribute to understanding the social significance of AI in retail on customer experience (CX) and the managerial implications of consumers interactions with AI digital humans are described and discussed.     

Effect of social support on customer satisfaction and citizenship behavior in online brand communities: The moderating role of support source

Customers often join online brand communities to seek support from others when they encounter product problems. Some customers who receive good social support exhibit customer citizenship behavior. This study develops a theoretical model to investigate how social support influences customer citizenship behavior through customer satisfaction with firms in online brand communities. Moreover, the moderating role of support source (i.e., firms vs. other customers) is measured. The research model is tested by using the Partial Least Squares technique. The results show that informational and emotional support significantly affects the customer citizenship behavior of providing feedback to the firm, recommendations, and helping other customers through customer satisfaction in online brand communities. Moreover, informational and emotional support from firms and other customers exert different effects on customer satisfaction.