Retrospective: service failure and loyalty: an exploratory empirical study of airline customers

2016 ◽  
Vol 30 (5) ◽  
pp. 480-484 ◽  
Author(s):  
Adrian Palmer ◽  
David Bejou
Keyword(s):  
Empirical Study ◽  
Relationship Marketing ◽  
Service Failure ◽  
Marketing Research ◽  
Customer Experience ◽  
Customer Relationship ◽  
Content Type ◽  
Relationship Expectations ◽  
Customer Experience Management ◽  
Relationship Lifecycle

Purpose This paper aims to reflect on the paper “Service failure and loyalty: an exploratory empirical study of airline customers” published 18 years ago. It positions it in the evolving literature on relationship marketing and suggests directions for further research and developments in the area. Design/methodology/approach A review of key contributions of the paper to the study of relationship marketing and the effects of service failures on relationships identifies emerging strands of research. Findings The concept of a “relationship lifecycle” is now widely used in marketing for identifying customer segments. Different points in the lifecycle are associated with differing sets of relationship expectations and levels of tolerance to service failure. Customer relationship management has tended to morph into customer experience management where principles of relationship lifecycles have been applied to mapping customer “journeys” through a service process. Practical implications The original study informed practices of managing relationship expectations and handling failed expectations, depending on a customer’s length of relationship with a company. Although relationship marketing was originally conceived as an integrator of marketing cues, its emphasis on cognitive evaluations may have been too limiting and customer experience management has since introduced additional affective dimensions. Originality/value The original paper had been widely cited and generated discussion and important further research. It has value as part of the emerging landscape of services marketing research. This retrospective analysis locates this historical development with reference to currently popular issues of customer experience management.

Salesperson profitability in relationship marketing

2014 ◽  
Vol 9 (3) ◽  
pp. 306-323 ◽  
Author(s):  
Said Echchakoui
Keyword(s):  
Relationship Marketing ◽  
Transaction Cost Economics ◽  
Retention Rate ◽  
Sales Force ◽  
Customer Relationship ◽  
Critical Duration ◽  
Sales Managers ◽  
Content Type ◽  
Dynamic Exchange ◽  
The Relationship

Purpose – This paper aims to answer a prominent question that arises for the manager who wishes to recruit a salesperson to maintain and develop a portfolio–customer relationship: Under which condition is this decision profitable for the firm? Though several authors have underscored the importance of the salesperson's role in the creation of purchaser–salesperson relationships, in the author's knowledge, no study has focused on the salesperson's profitability in the relationship approach. This issue is significant for sales managers because the investment in sales force is greater, and the relationship profitability with customers is not guaranteed. Design/methodology/approach – Econometric model based on transaction cost economics theory and dynamic exchange between firm, salesperson and a customer. Specifically, this model links between customer life value, firm financial value, salesperson cost and relationship time. Findings – Three zones are identified that can characterize the dynamic salesperson profitability. It was shown that only one zone can be profitable to the firm. Research limitations/implications – This result is important because it can solve the equivocal posit between scholars with regard to the success or the failure of relationship marketing. This study also specifies the critical retention rate, the critical duration time in which a salesperson begins to be profitable. Originality/value – In the author's knowledge, this study is the first to use an exchange model to show in which conditions the salesperson will be profitable in relationship marketing.

scholarly journals Customer experience management: asking the right questions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ian R. Hodgkinson ◽  
Thomas W. Jackson ◽  
Andrew A. West
Keyword(s):  
Decision Making ◽  
Business Models ◽  
Management Practices ◽  
Management Practice ◽  
Customer Experience ◽  
Content Type ◽  
Customer Data ◽  
Customer Experience Management ◽  
New Perspective ◽  
The Right

Purpose Customer experience is more critical than ever to firms’ successes and future growth opportunities. Typically measured through aggregate satisfaction scores, businesses have been criticized for oversimplifying what experience means. The purpose of this study is to provide a new perspective on experience management and offers a novel way forward for customer-centric strategizing. Design/methodology/approach Mapping the current digital technologies being used across businesses in all sectors to engage and connect with customers more effectively, this paper outlines some of the fundamental challenges of experience management and future opportunities to enhance business practice. Findings Businesses are capturing what they know about customers, rather than what a customer thinks and feels about the firm. Many experience management initiatives create customer pains (not gains), while for businesses, decision-making can be jeopardized by fake customer data. A framework based upon the five experience dimensions is presented for optimal customer-driven decision-making. Practical implications Going beyond aggregate satisfaction scores that serve as an output rather than an input into businesses strategizing, the paper presents an actionable framework for targeted investments and enhanced experience management practices. Originality/value Businesses are seeking to grow intelligent customer experience analysis capabilities to disrupt traditional business models toward greater customer-centricity and to track the digital spread of positive and negative experiences. Examining how this is being done and where the weaknesses lie by bridging management practice and the scientific literature, this paper provides new knowledge to advance customer-centric strategies for growth and profitability.

Employing proactive interaction for service failure prevention to improve customer service experiences

2017 ◽  
Vol 27 (1) ◽  
pp. 164-186 ◽  
Author(s):  
Hyunju Shin ◽  
Alexander E. Ellinger ◽  
David L. Mothersbaugh ◽  
Kristy E. Reynolds
Keyword(s):  
Customer Service ◽  
Service Provision ◽  
Service Providers ◽  
Service Failure ◽  
Marketing Research ◽  
Theory And Practice ◽  
Future Research ◽  
Content Type ◽  
Failure Prevention ◽  
Patronage Behavior

Purpose Services marketing research continues to be largely focused on firms’ reactive interactions for recovering from service failure rather than on proactive customer interactions that may prevent service failure from occurring in the first place. Building on previous studies that assess the efficacy of implementing proactive interaction in service provision contexts, the purpose of this paper is to compare the influences of proactive interaction to prevent service failure and reactive interaction to correct service failure on customer emotion and patronage behavior. Since proactive interaction for service failure prevention is a relatively underexplored and resource-intensive approach, the authors also assess the moderating influences of customer and firm-related characteristics. Design/methodology/approach The study hypotheses are tested with survey data from two scenario-based experiments conducted in a retail setting. Findings The findings reveal that customers prefer service providers that take the initiative to get to them before they have to initiate contact for themselves. The findings also identify the moderating influences of relationship quality, situational involvement, and contact person status and motive. Originality/value The research contributes to the development of service provision theory and practice by expanding on previous studies which report that proactive efforts to prepare customers for the adverse effects of service failure are favorably received. The results also shed light on moderating factors that may further inform the exploitation of resource-intensive proactive interaction for service failure prevention. An agenda is proposed to stimulate future research on proactive customer interaction to prevent service failure in service provision contexts.

Customer experience management in medical tourism (case study: Iranian hospital’s medical tourists)

2021 ◽  
Vol 13 (1) ◽  
pp. 198-226
Author(s):  
Hamed Dabaghi ◽  
Saeid Saieda Ardakani ◽  
Seyed Mohammad Tabataba’i-Nasab
Keyword(s):  
Medical Tourism ◽  
Statistical Tests ◽  
Statistical Significance ◽  
Data Gathering ◽  
Customer Experience ◽  
Research Literature ◽  
Content Type ◽  
Research Areas ◽  
Customer Experience Management ◽  
Data Saturation

Purpose The purpose of this paper is to focus on the emerging phenomenon of medical tourism in the context of Iran from a customer experience management perspective and benchmark of their judgment including positive or negative, of the experience they have achieved of the Iranian health (medical) experience (CE) and suggest scenarios for the improvement of the Iranian customer experience management (CEM). Design/methodology/approach The research methodologies and research methods that are used in this descriptive-analytical research are based on an inspection of the remarkable literature related to medical tourism and customer experience management. The data gathering instrument is a researcher-made questionnaire based on the variables in the conceptual model extracted from the research literature. The study was conducted from May to August 2019. The population cohort of this study was the foreign patients calling selected Iranian hospitals and the sampling method was a purposive and snowball sample of prospective medical tourists. As the study was conducted throughout Iran, some important hospitals in Iran were selected by stratified sampling Yang et al. (2020b). The sample size and data saturation were 500 participants Lv and Song (2019). The collected data using the questionnaire were analyzed by SPSS software and statistical tests. Findings According to the results, the customer experience management statistical significance in the task aspect is (p = 0.0523), in the mechanical aspect is (p = 0.0563), in the human aspect is (p = 0.0544). The study showed positive customer experience among the patients who had been treated in the Iranian hospitals. Originality/value There is a lack of study that focuses on medical tourism and customer experience management in Iran. Therefore, based on the results of this study, the experience of medical tourists in Iran proved to be positive and satisfying. As little research has been conducted in the area of customer experience management (CEM) in Iranian medical tourism, future researchers can use these valuable results precisely and in more detail to benchmark more accurately the customer experience in all areas of medical and health tourism and other research areas in different aspects of CEM in Iran.

Identifying brand touchpoints to increase switching costs in the banking industry

2019 ◽  
Vol 38 (3) ◽  
pp. 718-736 ◽  
Author(s):  
Abdullah Sultan
Keyword(s):  
Factor Analysis ◽  
Structural Equation ◽  
Switching Costs ◽  
Service Providers ◽  
Banking Industry ◽  
Service Failure ◽  
Customer Experience ◽  
Equation Modeling ◽  
Exploratory Research ◽  
Content Type

Purpose The purpose of this paper is to study the effect of staged customer experiences on customer switching costs in the banking industry. Design/methodology/approach Brand touchpoints in the banking industry are identified by exploratory research using focus group sessions with bank customers and staff and refined by exploratory factor analysis using an independent sample of bank customers to form the staged customer experience construct. The proposed research model is then validated by confirmatory factor analysis with an independent sample using structural equation modeling. Findings Customer experience in the banking industry consists of four related but distinct stages (i.e. pre-touch, in-touch, post-touch and service failure). The first three stages have direct and indirect effects on switching costs that are partially mediated by relationship quality. Research limitations/implications Customer experience is an industry-specific construct with complicated effects on switching costs. Thus, the staged customer experience construct should be examined in different industries and applications to understand its implications. Practical implications Bank customers demand experiences that achieve desirable results in everyday situations and switch to other service providers easily if this demand is not met. Banks should focus on brand touchpoints that are both important to customers and increase switching costs to keep customers from defecting. Originality/value This research expands upon findings in the customer experience literature by exploring factors that link staged customer experiences with switching costs in the banking industry. In addition, a paradox is identified in the staged customer experience model that requires managers’ attention in order to design an effective customer experience strategy.

Relationship marketing: looking backwards towards the future

2017 ◽  
Vol 31 (1) ◽  
pp. 11-15 ◽  
Author(s):  
Adrian Payne ◽  
Pennie Frow
Keyword(s):  
Relationship Marketing ◽  
Research Priorities ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Dark Side ◽  
Future Research ◽  
Policy Makers ◽  
Content Type ◽  
A Value ◽  
The Future

Purpose This paper aims to review the growth and development of the field of relationship marketing and, through a consideration of this body of work, identifies key research priorities for the future of relationship marketing. The paper also delineates the frequently confused associated concepts of customer relationship management and customer management and considers how they fit within the broader concept of relationship marketing. Design/methodology/approach This paper undertakes a review of the relationship marketing literature, supplemented by the authors’ on-going interactive research with managers. Findings The paper reviews alternative approaches to relationship marketing, reflects on the development of the field of relationship marketing and identifies three critical priorities for future research in relationship marketing. Practical implications The research priorities that are identified in this paper represent important priorities for scholars, managers, regulators and policy makers. Originality/value Although there is now a substantial body of research on relationship, marketing, much of this work focuses on the customer-firm dyad, with a smaller body of work focusing on a broader range of stakeholders. This paper argues for the broadening of the role of relationship marketing to consider ecosystems; the need for firms to shift from a value-in-exchange to a value-in-use perspective when addressing customer relationships; and the critical need to address “dark side” behaviour and dysfunctional processes in relationship marketing.

scholarly journals Research note: customer experience management in cruise pre-consumption

2019 ◽  
Vol 13 (2) ◽  
pp. 235-243 ◽  
Author(s):  
Liz Sharples
Keyword(s):  
Business Performance ◽  
Integrated Approach ◽  
Customer Experience ◽  
Tourism Industry ◽  
Service Industries ◽  
Future Research ◽  
Consumer Experience ◽  
Content Type ◽  
Customer Experience Management ◽  
Tourism Sector

Purpose This study aims to apply the relatively new concept of customer experience management (CXM) to the pre-consumptive stage within a cruise tourist’s journey. Design/methodology/approach The work will apply CXM to the tourism sector and, in particular to the cruise market. Academics have noted how CXM needs to takes a holistic integrated approach and focus on the complete customer experience. The cruise sector has been selected for this research because, it is the fastest growing tourism sector globally and the pre-consumption stage for cruise passengers is longer than for other vacation types. Findings This study has shown how CXM has emerged from the more traditional marketing concept of relationship marketing and has highlighted its relevance within the tourism industry, in particular, the cruise sector. In addition, the work has shown how adapting CXM to the pre-consumptive phase more fully will enhance consumer relationships and improve business performance. Research limitations/implications This work is conceptual. It is proposed that the research propositions should be verified within the pre-consumptive stage of cruise passenger journeys. Another limitation is that the focus has been solely on the cruise sector and future research could be extended to other tourism service industries. Practical implications This work will provide tourism and other service industry managers with a new strategy to enhance consumer experience and improve business performance in the pre-consumptive stage and extend academic understanding within this stage of a cruise tourist’s vacation. Originality/value This research is significant because CXM is a model, which has been used within service businesses, but had a limited application to the cruise sector and to the pre-consumption timeframe. It is important to understand cruise passengers in this time-frame to encourage positive relationships, to potentially increase revenue opportunities and provide an overall improved consumer experience.

Analysis of relationship marketing factors for sports centers with mixed methods research

2018 ◽  
Vol 30 (1) ◽  
pp. 182-197 ◽  
Author(s):  
Sheng Yen Lee
Keyword(s):  
Mixed Methods ◽  
Relationship Marketing ◽  
Mixed Methods Research ◽  
Quantitative Research ◽  
Negative Impact ◽  
Customer Relationship ◽  
Content Type ◽  
Statistical Survey ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to study the effects of relationship marketing factors of sports centers on commitment to relationship and intention to recommend. Design/methodology/approach A statistical survey was conducted for quantitative research, and in-depth interviews, for qualitative research, according to the mixed methods research. Findings The results of the quantitative research show that the relationship marketing factors of bonding, facility, and price positively influence commitment to relationship. Expertise and facility positively influence intention to recommend. Finally, commitment to relationship positively influences intention to recommend. Practical implications Sports centers could build relationships based on polite and hospitable service, and host monthly events for building rapport among members. Instructors’ expertise promotes bonding and serves as the most essential factor for intention to recommend. Sports centers must adequately introduce promotions related to rational consumption and specialized promotion. Centers that are managed too carelessly or frugally will have a highly negative impact on customer relationship and intention to recommend. Originality/value This study aims to empirically analyze customer needs by comparing the results of in-depth interviews with customers based on the results of quantitative studies through mixed methods research. It determines the relationships between the aforementioned variables, providing practical implications through analysis of the customers’ subjective consciousness by focusing on sports facilities in order to secure competitive advantage, and thus, overcome financial difficulties.

scholarly journals Strategic B2B customer experience management: the importance of outcomes-based measures

2017 ◽  
Vol 31 (2) ◽  
pp. 172-184 ◽  
Author(s):  
Judy Zolkiewski ◽  
Victoria Story ◽  
Jamie Burton ◽  
Paul Chan ◽  
Andre Gomes ◽  
...  
Keyword(s):  
Customer Experience ◽  
Current Approach ◽  
Future Research ◽  
Content Type ◽  
Management Framework ◽  
Future Research Agenda ◽  
Customer Experience Management ◽  
Strategic Approach ◽  
Business To Consumer ◽  
Theoretical Paper

Purpose The purpose of this paper is to critique the adequacy of efforts to capture the complexities of customer experience in a business-to-business (B2B) context using input–output measures. The paper introduces a strategic customer experience management framework to capture the complexity of B2B service interactions and discusses the value of outcomes-based measurement. Design/methodology/approach This is a theoretical paper that reviews extant literature related to B2B customer experience and asks fresh questions regarding B2B customer experience at a more strategic network level. Findings The paper offers a reconceptualisation of B2B customer experience, proposes a strategic customer experience management framework and outlines a future research agenda. Research limitations/implications This paper is conceptual and seeks to raise questions surrounding the under-examined area of B2B customer experience. As a consequence, it has inevitable limitations resulting from the lack of empirical evidence to support the reconceptualisation. Practical implications Existing measures of customer experience are problematic when applied in a B2B (services) context. Rather than adopting input- and output-based measures, widely used in a business-to-consumer (B2C) context, a B2B context requires a more strategic approach to capturing and managing customer experience. Focussing on strategically important issues should generate opportunities for value co-creation and are more likely to involve outcomes-based measures. Social implications Improving the understanding of customer experience in a B2B context should allow organisations to design better services and consequently enhance the experiences of their employees, their customers and other connected actors. Originality/value This paper critiques the current approach to measuring customer experience in a B2B context, drawing on contemporary ideas of value-in-use, outcomes-based measures and “Big Data” to offer potential solutions to the measurement problems identified.

The role of analytical CRM on salesperson use of competitive intelligence

2020 ◽  
Vol 35 (12) ◽  
pp. 2127-2137
Author(s):  
Christopher A. Nelson ◽  
Michael F. Walsh ◽  
Annie Peng Cui
Keyword(s):  
Large Scale ◽  
Marketing Research ◽  
Information Use ◽  
Final Analysis ◽  
Information Value ◽  
Customer Relationship ◽  
Competitive Intelligence ◽  
Content Type ◽  
Use Behavior ◽  
The Impact

Purpose The purpose of this paper is to identify the impact of analytical customer relationship management (CRM) on salesperson information use behavior. Design/methodology/approach To achieve the aim of this paper, a vignette experiment was undertaken. The data used for the final analysis included 125 professional salespeople across multiple industries. Findings This paper focuses on the personal use of competitive intelligence. The authors find that to maximize the effectiveness of using competitive intelligence, the salesperson must become adept at both choosing the correct pa`rtners to trust and properly valuing information. Properly valuing information can be accomplished through the use of analytical CRM. Practical implications The managerial implications of this paper are straightforward yet important. CRM providers have improved the tools available to salespeople (e.g., heat maps) and have partnered with other large scale providers of customer and market information (e.g., global marketing research firms) to provide a analytical tool that is user friendly to salespeople. Yet, many firms still use simplified CRM platforms, which do little more for the salesperson than offer an opportunity to document notes. Sales firms should move toward this analytical CRM system because it improves the salesperson’s ability to value information and increases the salesperson’s ability to use intelligence to link products to buyer needs. Originality/value This paper contributes to theory through confirming the importance of analytical CRM on salesperson’s information use behavior by using a motivation, opportunity and ability framework. Additionally, a methodological contribution was made through the development of an information value scale.

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