Understanding the role of service innovation behavior on business customer performance and loyalty

Providing new services to customers gives firms a competitive advantage in the market. Consequently, firms strive to develop innovative service that delivers new value propositions to customers and leads to customer satisfaction and the acquisition of new customers. The authors investigate the relationship between the innovative behavior of service providers, business customer performance, and business customer loyalty in the safety industry. The study's results show that technology-oriented and co-creation-oriented innovative behavior leads to business customer performance. Business customer performance is closely related to recommendations and re-contracts. Moreover, the degree of safety involvement has a moderate effect between service innovation and business customer performance. The findings have important theoretical and managerial implications for service innovation for researchers as well as service providers.     

Determinants of customer loyalty in the wireless telecommunications industry

This paper reports the results of research investigating the determinants of the propensity to switch wireless service providers. A model generated from the data rather than from a priori theory is presented, and it is found to uphold the strong relationship between customer satisfaction and customer loyalty exhibited in prior studies. In sharp contrast to the prevailing industry practice of ‘locking in’ customers by means of restrictive contracts, this research suggests that wireless service providers are better off improving customer satisfaction in order to minimize customer defection. This would imply shifting scarce resources to customer retention through improved service, saving costs of expensive customer acquisition campaigns. The paper also proposes two methodological innovations. First, the research employs the ‘Tetrad methodology’ as an exploratory technique prior to building a Structural Equation Model (SEM) making it possible to identify drivers of loyalty—direct or indirect—when it might not be known a priori what these drivers might be. Secondly, the paper proposes an approach to estimating moderator effects on the relationship between satisfaction and customer loyalty.     

Customer value anticipation, customer satisfaction and loyalty: An empirical examination

A service-dominant logic by definition is inherently customer oriented and relational, reflecting deeper and more complex connections between suppliers and customers. The service mindset driving increased collaboration enables suppliers to have deeper insights to what customers' value. Customer value perceptions are dynamic, sometimes in constant flux, necessitating anticipatory capabilities on the part of suppliers. Yet, there is a notable lack of discussion about customer value anticipation and related empirical evidence of whether or not customers care if suppliers anticipate what they value. The authors report on two survey studies that test using structural equation modeling the notion that suppliers good at anticipating what customers will value realize higher customer satisfaction and loyalty. Understanding this relationship is critical for marketing managers wrestling with allocation of limited resources. We find that customer value anticipation is a strong driver of satisfaction and loyalty, with satisfaction acting as a mediator for loyalty.     

Two Sides of the Same Coin: How Do Different Dimensions of Product Program Innovativeness Affect Customer Loyalty?

Conventional wisdom holds that innovativeness has essentially positive performance implications. However, empirical research reveals mixed findings regarding customer‐related responses to innovation, as distinct dimensions—such as product newness and meaningfulness—may generate responses in different manners. This study introduces a multidimensional conceptualization of innovativeness at the program level, thereby enlarging the customary perspective by considering both positive and negative customer responses to innovativeness. Drawing on information economics, this study suggests that product program meaningfulness fosters customer loyalty, whereas product program newness undermines customer loyalty. In addition, the study examines mechanisms that might buffer the negative newness–loyalty relationship and explores enablers of the positive meaningfulness–loyalty effect by considering a brand's association with innovativeness and customer integration. Empirical support for the proposed effects comes from a multi‐industry sample with 180 triadic cases from business‐to‐business companies, which includes assessments from marketing, and research and development managers as well as customers. Moderated regression analysis was applied to test the hypotheses. The results indicate a negative effect of product program newness on customer loyalty and a positive effect of product program meaningfulness. Further, a brand's close association with innovativeness reduces the negative effect of product newness, and integrating customers into the value‐creating process fosters the loyalty effect of product meaningfulness. This study offers a potential explanation for the ambiguity created by equivocal empirical results regarding customer responses to innovativeness. The study also shows that offering more innovations does not necessarily make customers loyal. Instead, managers should mitigate the negative effects of product program newness.     

录井企业顾客满意度测评体系建立和实施

为了提高企业市场竞争能力,渤海钻探工程公司开展了录井服务质量满意度测评。通过建立顾客满意度测评体系,实施顾客满意度测评,将顾客的反馈信息和意见进行统计分析,把顾客的期望应用在公司服务质量方面的改进。通过进行测评实施,总结了顾客满意度测评的经验,从而达到了持续改进服务质量的目的,实现了增强企业的市场竞争能力和企业盈利能力。     

浅谈如何在关系营销中建立和完善客户关系管理体系

随着燃气这个清洁能源的普遍应用,燃气企业的知名度也在飞速提升。然而,当前我们面临的首要任务之一,就是在以信息化建设为依托、以燃气为中介,从关系营销中,如何建立出满足当今市场竞争的用户关系,如何改善用户服务体系,从而增强用户的满意度,占有更多的市场份额。关系营销,是一种符合现代企业发展的经营理念,我们要在获得新用户、新消费者的同时,还要加大管理力度对已有的用户信息进行维护和更新。迅速有效地实现"5化"精细管理:营销管理集中化、组织扁平化、服务便捷化、资源最优化、信息共享化。从公司营销的市场应变能力、用户服务能力、管理控制能力和营销运作能力入手,整体促进公司的全面可持续发展。     

Implementing market segmentation using full-refund and no-refund customer returns policies in a dual-channel supply chain structure

Products returned by customers are common in the retail industry and result in costs to both the supplier and the retailer. In practice, retailers implement returns policies that may give customers a full, partial, or no refund for returned products. In this paper, we examine how a firm that faces customer returns can enhance profit by using different customer returns policies, full-refund and no-returns, as a device to segment its market into a dual-channel structure. We also show the impact of customer returns on the firm's pricing and ordering decisions, as well as on the firm's profit in such a dual-channel structure.     

Functional,emotional, and social benefits of new B2B services

While marketing literature has defined the benefits concept broadly, there is limited empirical research clarifying what benefits constitute and how they contribute to customer satisfaction in the B2B service context. Benefits have typically been characterized as falling under a single, all-encompassing concept, but emerging thinking views them as multi-dimensional, including functional, emotional and social benefits. This research examines whether this demarcation applies in the B2B services context, and if so, how these three types of benefits are related with customer satisfaction. Based on a survey of 335 customers of recently launched B2B services, the demarcation of these three types of benefits appears warranted and each type of benefit exhibits a different pattern of relationship with customer satisfaction. Functional benefits are found to be positively related with customer satisfaction, while emotional benefits and social benefits exhibit non-linear relationships. Emotional benefits have a diminishing effect on customer satisfaction as they increase and social benefits reach a plateau after a threshold point. These results suggest that recognizing the three types of benefits and the different shapes of their relationships with customer satisfaction can result in effective strategies for driving customer satisfaction when innovating new B2B services. Managerial and research implications are discussed.     

Customer perceived value in B-t-B service relationships: Investigating the importance of corporate reputation

The importance of customer perceived value (CPV) has been advocated in numerous publications over the recent years. The research presented in this article aims at 1) understanding drivers of customers' perception of economic value, especially when the service provided has high a degree of intangibility, and 2) assessing the consequences of value perceptions. The authors present a theoretical model of antecedents and consequences of CPV in a B2B service industry setting. Corporate reputation, information sharing, distributive fairness and flexibility are modeled as drivers of CPV whereas word-of-mouth (WOM) and search for alternatives (loyalty measures) represent the effects of CPV. A test of the hypothesized model using structural equation modeling showed that corporate reputation had substantially stronger effect on CPV than the other drivers measured. This indicates that when the intrinsic nature of service performance is hard to evaluate, corporate reputation works as substantial shorthand for value. Finally, customers' perceptions of economic value increase their likelihood of recommending the supplier and reduce their tendency to seek information about alternatives.     

关于天然气批发环节客户评价体系及精准营销的思考

近年来,中国天然气行业市场化改革不断深化,市场原有竞争格局受到挑战,但供应商现有客户评价管理较为粗放,客户评价体系不尽完善。新形势下的天然气行业客户评价及精准营销体系亟待建立,新体系遵循的原则包括:多维衡量,因地制宜;分类细化,量化评价;结合场景,灵活运用。可依据"销量、价格、效益、信用、协作"5个维度及15个指标,选取所需指标并赋予权重,获取指标数据源,运用分数归类定级方法进行判断。客户评价是工具,精准营销是措施。建议从做好精准营销基础项目、立足本职工作替客户分忧、运用大数据探索精准营销3个层面进行规划与升级。     

Customer information resources advantage,marketing strategy and business performance: A market resources based view

Chief among a firm's market-based resources are its relational resources such as brand equity, customer equity and channel equity that result from its interactions with customers and marketing intermediaries, and intellectual resources – accumulated knowledge about entities in the market environment such as consumers, end use and intermediate customers and competitors. In the evolving digital data rich market environment, customer-based resources, a subset of a firm's market-based resources, are becoming increasingly important as potential sources of competitive advantage. Customer information assets refer to information of economic value about customers owned by a firm. Information analysis capabilities are complex bundles of skills and knowledge embedded in a firm's organizational processes employed to generate customer knowledge from customer information assets. Customer insights or knowledge is a firm's extent of understanding of customers that informs its business decisions. Building on the resource-based, capabilities-based and knowledge-based views of the firm, resource advantage theory of competition, and the outside-in and inside-out approaches to strategy, this article presents a market resources-based view of strategy, competitive advantage and performance. The article presents a framework delineating the relationship between a firm's customer information based resources, marketing strategy and performance, and discusses implications for theory, research and practice.     

Investigating the influence of velocity performance on satisfaction with third party logistics service

The Third Party Logistics (3PL) service industry is characterized by customer relationships that can extend over several years, involving multiple instances of service delivery. When services are delivered on an ongoing basis, customers are able to not only evaluate positional (current) performance, but also velocity (rate at which the service changes) performance. This research presents findings from an empirical study utilizing an online survey of 3PL customers to examine the influence of these two types of performance on 3PL service satisfaction. Environmental moderators including market turbulence and competitive intensity are also examined, and results indicate that velocity performance is a more important driver of satisfaction when customers operate in industries characterized by high market turbulence. The findings suggest that 3PL service providers should implement velocity performance metrics, especially for customers operating in rapidly changing environments, and use velocity performance information during the sales process and customer negotiations.     

How value and trust influence loyalty in wireless telecommunications industry

Despite making significant investments in enhancing the customer service experience, long-term customer loyalty remains an elusive dream for many service providers. Particularly in the telecommunications industry, switching providers even from within continuous contract relationships is easy and companies struggle to retain their customers. Trust and value are considered cornerstones of long-term relationships, so it is perhaps surprising that previous research on how relationship age and usage level actually affect value, trust and loyalty is inconclusive. The current research is set in the telecommunications services field and draws on a large-scale survey undertaken in Finland. The findings support the contention that perceived value relates positively to loyalty, and that trust mediates that relationship. Surprisingly, in the telecommunications industry, increasing relationship age and usage level strengthen neither value and loyalty nor the links between trust and loyalty. The results may be explained by the unique characteristics of the highly competitive mobile telecommunications sector, and confirm the view that loyalty does not pay without strategies that value long-term customers and thereby build trust with new customers.     

New Product Development Structures: The Effect of Customer Overload on Post-Concept Time to Market

In corporate policy statements, seminars, journal articles—even in television commercials—the message comes through loud and clear: To remain competitive, we must do a better job of listening to our customers. Through close contact with customers, designers can more accurately identify market requirements, quickly refine product specifications, and thus reduce time to market. However, too much customer input can create confusion and duplication of effort, which ultimately increases time to market. In other words, some firms run the risk of over-listening to their customers. In a study of three global players in the electronic component industry, Srikant Datar, Clark Jordan, Sunder Kekre, Surendra Rajiv, and Kannan Srinivasan explore the effects of having too much input from customers. Specifically, they examine the relationship between a company's new product development structure and the volume of customer input, which in turn can affect time to market. The high-tech, fast-cycle firms examined in this study employ two distinct new product development structures: concentrated and distributed. A concentrated structure locates all product designers in one facility. This facilitates cross-product learning among designers, but limits designers' contact with customers and process engineers. A distributed structure disperses new product development among numerous manufacturing sites, giving designers close contact with customers and process engineers. However, a distributed structure limits designers' opportunities for cross-product learning. Analysis of 220 new product efforts reveals that the distributed structure offered a time-to-market advantage as long as these firms efficiently managed the level of customer interaction. When designers received input on the product design from no more than 25 customers, the distributed structure provided shorter time to market than the concentrated structure. Beyond the 25-customer level, time-to-market performance of the distributed structure degraded quickly and at an increasing rate. In such cases, more effective management of customer interaction might allow firms employing a distributed structure to enjoy the benefits not only of customer input, but also of improved coordination between product designers and process engineers.     

A Causal Model of the Impact of Skills, Synergy, and Design Sensitivity on New Product Performance

Notwithstanding the best efforts of outstanding managers, project team members, researchers, and consultants, no product development plan can guarantee success. Every new products organization will experience its fair share of failures, but a firm can take steps to ensure that its failures do not outweigh its successes. By benchmarking the competition, a firm can gain insight into best practices–the factors that lead most directly to new product success. To help identify these best practices, X. Michael Song, William E. Souder, and Barbara Dyer develop and test a causal model of the relationships among the key variables leading to new product performance. The proposed model identifies five factors that lead to marketing and technical proficiency: process skills, project management skills, alignment of skills with needs, team skills, and design sensitivity. According to the model, marketing and technical proficiency directly determine product quality, and ultimately lead to new product success or failure. The causal model was tested using information on 65 completed projects–34 successes and 31 failures–from 17 large, multi-divisional Japanese firms. The study participants develop, manufacture, and market high-technology consumer and industrial products. These firms judged the success or failure of the projects in this study by using seven criteria: return on investment, profit, market share, sales, opportunities for technical leadership, market dominance, and customer satisfaction. These firms generally assigned the greatest importance to customer satisfaction, opportunity creation, and long-term growth. For the most part, the responses from these firms support the relationships presented in the causal model. According to the respondents, marketing proficiency and product quality have a strong, positive influence on their new product performance, as do process skills, project management skills, and alignment of skills and needs. The responses highlight the importance to these firms of responsiveness to customer wants and needs, as well as ensuring a close fit between project needs and the firm's skills in marketing, R&D, engineering, and manufacturing. Somewhat surprisingly, the responses do not support the model's suggested relationships between skills/needs alignment and technical proficiency or between technical proficiency and product quality.     

Customer accounting and customer profitability analysis for the order handling industry—A managerial accounting approach

Market-oriented businesses are concerned with customer satisfaction and business profitability, both in the longer term. Thus the marketing managers need updated decision-relevant information (marketing metrics) with respect to the set of processes that are leading to customer values and economic customer values. The attention of this study is focused on the profitability aspects of marketing. The context is the business-to-business order-handling industry, i.e. four exporting companies and 176 of their customers in 36 various markets. A market-oriented accounting framework that can be included as a natural part of a managerial accounting system is introduced and discussed, and financial reports as well as graphic representations and key figures for various levels of a market hierarchy are presented. The findings with respect to the profitability of orders, customers and markets are presented and the managerial implications are discussed.     

Marketing metrics: Insights from Brazilian managers

This study examines how managers approach marketing measures in a Brazilian context. Using data from a large-scale empirical study in Brazil, we focus on managers' views of the practices in marketing measurement and identify which indicators they emphasize. The findings, which reflect Brazilian managerial practice, indicate that managers use a combination of metrics. Items such as total number of customers, number of complaints, and customer satisfaction are among the most known and most used metrics. When addressing the 10 most relevant metrics results yield 4 groups, including customer vision, financial, product vision, and market and innovation. Indicators pertaining to customer vision are the most important to Brazilian managers. Furthermore, we discuss the results and draw comparisons with similar studies conducted in the United Kingdom and China. Finally, we present conclusions and avenues for future research.     

Customer attitudes of stayers and defectors in B2B services: Are they really different?

Identifying attitudinal differences between stayers and defectors is important in establishing a deeper understanding of customer satisfaction and loyalty research. Both managers and academics often use global customer attitudes, such as customer satisfaction and behavioral intentions, as determinants of customer loyalty. The implicit assumption is that customer satisfaction and/or behavioral intentions are valid, and accurate, predictors of actual loyalty behaviors. This study compares customer attitudes of stayers and defectors in B2B services using respondents (primary decision makers) from a Fortune 100 company. The results show that the commonly used customer metrics of service quality, satisfaction, and behavioral intentions have some differences between stayers and defectors. However, these metrics are shown to be relatively weak differentiators of actual customer defection. The stayers and defectors are much more similar, than different, on most metrics. The most notable difference is price perceptions, where defectors appear to be more price sensitive than stayers. These findings have significant implications for the design and use of customer-focused research by managers.     

Measuring new product success: an empirical investigation of Australian SMEs

New product development (NPD) has long been recognised as one of the corporate core functions. However, measuring new product success has remained elusive. This paper attempts to examine several conceptual issues underlining the measurement of new product success and the measurement practice adopted in Australian small and medium enterprises (SMEs). The sample included 276 SMEs from two most innovative industries: chemical and machinery industries. Results have indicated that four factors underline the commonly used success measurement: financial performance, objective market acceptance, subjective market acceptance, and product-level measures. These four factors are related to each other and can be used to well predict the overall measurement. The most frequently used specific measures in Australian SMEs are customer acceptance, customer satisfaction, product performance, and quality.     

Determinants of Relationship Quality and Loyalty in Personalized Services

The study adopts a relationship perspective to examine and better understand customers' interactions with service firms' contact personnel, physical environment and customer environment and their influence on the relationship quality, that is trust and satisfaction, and consequently loyalty. The conceptual model, which integrates relational and evaluative perspectives, is validated in the Asian context of personalized service through findings from a survey of 325 respondents. The findings at the aggregate level indicate that while the physical environment is an important determinant of both trust and satisfaction in personalized service encounters, the customer environment influences only satisfaction but not trust. Service contact personnel's friendliness and knowledge of customers strongly influence relationship quality; while expertise, similarity and disclosure influence trust but not satisfaction. Both relationship trust and satisfaction were found to significantly influence loyalty to the service provider. At the disaggregate level, trust was found to be a stronger predictor of loyalty for high-end service providers while satisfaction was a stronger predictor of loyalty for low-end service providers. The implications for high-end and low-end service providers to enhance loyalty by strategically leveraging on key customer-firm antecedents of relationship trust and satisfaction are discussed.