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Understanding Customer Experience Throughout the Customer Journey
Abstract
Understanding customer experience and the customer journey over time is critical for firms. Customers now interact with firms through myriad touch points in multiple channels and media, and customer experiences are more social in nature. These changes require firms to integrate multiple business functions, and even external partners, in creating and delivering positive customer experiences. In this article, the authors aim to develop a stronger understanding of customer experience and the customer journey in this era of increasingly complex customer behavior. To achieve this goal, they examine existing definitions and conceptualizations of customer experience as a construct and provide a historical perspective of the roots of customer experience within marketing. Next, they attempt to bring together what is currently known about customer experience, customer journeys, and customer experience management. Finally, they identify critical areas for future research on this important topic.
... Companies [E] and [G] focus on feedback collected from customer service, and therefore exclusively on post-purchase moments (Lemon & Verhoef, 2016 We haven't done it for a while, but we released a survey to our customer base, even to understand more and get to know them, a bit about their behavior and also to find out about their experience with the product. We got feedback that 92% of people are satisfied with the product, a very good number [E]. ...
... Company [C] was more emphatic about obtaining data to visualize more stages of a customer journey. This was the first mention of this technique in the interviews, which also refers to more advanced CRM techniques, noted by Lemon & Verhoef (2016) much cited in studies from the 1980s onwards, during the total quality movements. ...
... For them, CE gained relevance as their business models matured and focus could shift beyond core operations. Still, even among these more mature DNVBs, opportunities to design holistic experiences that foster loyalty, habit formation, and sustainable growth (Lemon & Verhoef, 2016) remain underexplored. ...
Objective: This study aimed to analyze how Brazilian fast-moving consumer goods startups born in digital environments - also known as DNVBs (digitally native vertical brands) - are adopting effective customer experience (CE) practices in order to maximize their purchase recurrence rates and growth. In fast-moving categories such as food, beverages, cleaning or hygiene products, repeat purchases generally occur in shorter cycles and, for this reason, this research chose to target these sectors, thus observing the potential application and effects of CE in this context. Method: In-depth qualitative interviews were conducted with seven executives from Brazilian companies operating under the DNVB business model within the fast-moving consumer goods (FMCG) sector. The research instrument was based on a review of CE literature and questions regarding recurring purchases in this product category. The interviews were subsequently transcribed, analyzed and constitute the results of this study as proposed by Cheron et al. (2022). This report adheres to the COREQ checklist ensuring transparency and rigor in the presentation of qualitative research findings (Tong et al., 2007). Results: All seven fast-moving DNVBs investigated employ at least some CE practices. Post-purchase satisfaction surveys and the proximity between leaders and their customer service teams proved to be the central pillars for most of these companies. In this group of companies, the trend towards business growth was observed, as was the use of purchase recurrence metrics, yet subscription programmes remain technically complex and often misaligned with the business model; accordingly, only two companies have implemented them successfully, underscoring a need for further technical support and innovation. The relationship between company growth and the application of CE techniques has not yet been shown to be sufficiently relevant: managers have initially prioritized evaluations of the quality of products and aspects of services, such as delivery times. Contributions: The research identified a still small number of CE management practices being applied by these startups in the day-to-day running of their businesses. It also revealed frustration on the part of these leaders in exploring emerging technologies that are effective in improving their metrics, demonstrating opportunities for researchers and startups in retail technology that can address this type of management need. The research also sheds light on the agenda of companies born in the digital age, operating their own channels, and the challenges that entrepreneurs or executives in the fast-moving consumer goods industry may encounter when undertaking business in this segment.
... Additionally, Customer Journey Mapping provides a structured approach to understanding how consumers interact with a brand across multiple touchpoints. As proposed by Lemon and Verhoef (2016), this model helps businesses visualize and analyze the various stages of a customer's journey-from initial awareness to postpurchase engagement. By identifying key moments of interaction, brands can optimize their strategies to enhance consumer experiences and reinforce trust at every stage. ...
... By identifying key moments of interaction, brands can optimize their strategies to enhance consumer experiences and reinforce trust at every stage. In digital contexts, where consumers navigate between websites, social media platforms, and mobile applications, journey mapping is a crucial tool for ensuring a seamless and trustworthy brand experience [7] . ...
... In digital environments, elements such as website design, navigation ease, and interactivity significantly influence these dimensions [14] (Mollen & Wilson, 2010). Lemon and Verhoef (2016) also emphasize that the digital touchpoints across a consumer's journey contribute uniquely to the brand experience, enhancing customer satisfaction and loyalty [7] . ...
... However, the masstige market demands more exploratory research connecting these two domains. (Lemon & Verhoef, 2016;Schmitt, 1999). People who visit upscale yet cost-effective social and hospitality clubs expect proper functionality, emotional immersion, social relevance, and fresh, novel experiences. ...
... Research in hospitality services alongside the digital retail domain proves that emotional value strengthens the overall customer path when customers encounter personalized service touchpoints or deep, immersive environments (Lemon & Verhoef, 2016). Customer engagement and long-term relationship quality stem from the emotional responses that customers experience in service encounters (Gallardo-Garcia et al., 2022; Waqas et al., 2021). ...
... Excellent customer experiences establish strong emotional attachments between brands and customers while developing their trust and creating feelings of belonging. The emotional bond between businesses and customers is fundamental for maintaining customer loyalty while limiting customer turnover, which affects CLV assessment (Lemon & Verhoef, 2016). Hence, the relationship between emotional value, CX and CLV in social and hospitality clubs can be hypothesized as follows; ...
Consumption values play a fundamental role in designing customer choice, and customer experience (CX) is a critical success factor for a long-term profitable business relationship. This research expands the Theory of Consumption Values (TCV) to the masstige landscape within Pakistan’s social and hospitality clubs, formulating a unique domain of the hospitality industry. Calling on the rich body of literature on consumption values and customer experience in the service industry, it investigates the mediating role of customer experience between consumption values: functional, emotional, social, conditional, epistemic and customer lifetime value. The data are collected from 416 members of leading social clubs in Pakistan through a structured questionnaire. Smart PLS is used for data analysis. The relationship among consumption values comprising functional, emotional, social, epistemic, conditional and customer lifetime value (CLV) is mediated by customer experience. Studying perceived values, customer experience, and lifetime value within the masstige framework expands theoretical insights about consumer behaviour in the context of masstige clubs and offers practical guidance for managers intending to improve value proposition strategies in masstige hospitality.
... In digital marketing, embedded finance has a significant impact on how companies interact with consumers (Malshe & Agarwal, 2015). The experience-based marketing theory by Lemon & Verhoef (2016) emphasizes that an integrated and personalized user experience can enhance customer satisfaction and loyalty. By integrating financial services into digital platforms, companies can streamline transaction processes and offer solutions that better meet the individual needs of users (Meyera & DeToreb, 2001). ...
... Research by Forrester Report, (2022) indicates that a positive user experience can significantly enhance customer loyalty. This is in line with Lemon & Verhoef, (2016) user experience theory, which shows that the integration of financial services in digital applications creates a more enjoyable and satisfying experience. Additional research indicates that embedded finance features, such as direct payments in e-commerce applications, reduce transaction barriers and increase user satisfaction. ...
... In the context of user experience, research by Au & Kauffman (2008). and Lemon & Verhoef (2016) shows that embedded finance increases user satisfaction by reducing transaction friction. ...
Penelitian ini mengeksplorasi dampak embedded finance terhadap strategi pemasaran digital, pengalaman pengguna, dan loyalitas pelanggan. Dengan menggunakan metode tinjauan pustaka sistematis (SLR), penelitian ini menganalisis bagaimana integrasi layanan keuangan ke dalam platform non-keuangan memengaruhi ketiga aspek tersebut. Hasilnya menunjukkan bahwa embedded finance meningkatkan efektivitas kampanye pemasaran dengan memanfaatkan data untuk meningkatkan relevansi, yang tercermin dalam peningkatan konversi hingga 20%. Selain itu, integrasi ini meningkatkan pengalaman pengguna dengan mengurangi gesekan transaksi dan meningkatkan kepuasan, yang dapat meningkatkan loyalitas pelanggan hingga lima kali lipat. Penelitian ini juga menemukan bahwa program loyalitas berbasis embedded financial dapat meningkatkan retensi pelanggan hingga 30%, meskipun ada tantangan dalam hal keamanan data. Temuan ini menekankan perlunya strategi pemasaran yang inovatif dan praktik keamanan data yang ketat untuk sepenuhnya memanfaatkan potensi embedded finance. Integrasi layanan keuangan ke dalam platform non-keuangan memungkinkan perusahaan untuk mengumpulkan dan menganalisis data pengguna secara lebih mendalam untuk menciptakan strategi pemasaran yang lebih personal dan efektif. Namun, seiring bertambahnya data yang dikumpulkan, risiko kebocoran data dan pelanggaran privasi juga meningkat, sehingga perusahaan harus memastikan sistem keamanan yang kuat dan kepatuhan terhadap peraturan untuk melindungi data pengguna. Secara keseluruhan, penelitian ini memberikan wawasan yang komprehensif tentang manfaat dan tantangan keuangan tertanam dalam konteks pemasaran digital serta pentingnya menyeimbangkan inovasi dan keamanan.
... To guarantee the beneficial use of deepfakes on metaverse for expression, communication, and entertainment, we must address the unique opportunities and challenges they also offer. To improve customers' cognitive, emotional, behavioral, sensorial, and social responses, metaverse offers synthetic customer experiences, which are natural or physical customer experiences expanded through technology like deepfakes (Lemon & Verhoef, 2016). ...
... We also offer guidelines that align with this idea for strategically embracing deepfakes to manage synthetic customer experiences. Value is based on creating synthetic or technologically extended natural or physical customer experiences that improve customers' emotional, behavioural, sensory, and social reactions (Lemon & Verhoef, 2016). Therefore, we propose adopting a socio-technological approach over and above traditional theories of technology adoption. ...
This study aims to understand how deepfakes affect customer stickiness, which characterizes the degree of customer retention on an online retail platform like Metaverse. Metaverse retail platforms can offer deepfake marketing to give customers an innovative buying experience. The study, built on the attachment theory and socio-technological approach, empirically evaluated affective and cognitive responses from 278 metaverse platform users using structural equation modelling. The results show that the technology factors, namely syn-chronicity, vicarious expression, and security and privacy, impacted platform attachment. The social factor, deep-fakes interaction, impacted emotional attachment to deepfakes. The other social factors, deepfakes' familiarity and reputation, did not affect emotional attachment to Deepfakes' content. This study advances the literature on attachment theory and offers practical recommendations for retailers intending to explore deepfake usage on metaverse platforms. Our study proposes strategies for enhancing customers' attachment to retail brands through deepfakes and emphasizes the critical factors influencing customer retention in the context of metaverse retail.
... The Pre-Planning stage serves as a foundational step in the evaluation process, with the primary objective of systematically collecting and analyzing historical data relevant to the HEIs and their students. The data encompass various sources of information, including but not limited to teacher evaluations, results from prior evaluation surveys, market research, and Customer Journey Maps (CJMs) [5,9,36,37]. These elements are instrumental in constructing a comprehensive Student Journey Map (SJM), which provides a detailed visual representation of the students' experiences throughout their educational journey. ...
... Development of the SJM [5,9,36,37]: This task involves the creation of a detailed SJM for each student profile identified as relevant by the HEI. The SJM must systematically and explicitly include all services and systems pertinent to the evaluation with which the students interact. ...
Cultural factors shape students' expectations and perceptions within diverse educational settings. The perceived quality of a Higher Education Institution (HEI) is crucial to its success, with student satisfaction determined mainly by their overall experiences. The concept of Student eXperience (SX) can be analyzed through the lens of Customer eXperience (CX) from a Human-Computer Interaction (HCI) perspective, positioning students as the "customers" of the institution. SX encompasses academic and physical interactions and students' emotional, social, and psychological responses toward an insti-tution's systems, products, and services. By accounting for factors such as emotions, socioeconomic status, disabilities, and, importantly, cultural background, SX provides a comprehensive measure of student experiences. Building upon our previous SX model and Hofstede's national culture model, we have developed a Student eXperience evaluation methodology that serves as a diagnostic tool to assess both student satisfaction and how effectively HEIs serve a diverse student population. This methodology ensures that all students, regardless of their background, are considered in the evaluation process, facilitating the early identification of institutional strengths and weaknesses. Incorporating cultural aspects into the assessment delivers more precise results. Furthermore, our approach supports HEIs in promoting equity, diversity, and inclusion by addressing the needs of minority students and students with disabilities, as well as reducing gender disparities. These objectives align with UNESCO's Sustainable Development Goals, contributing to fostering an equitable learning environment. By adopting such inclusive evaluation practices , HEIs can enhance the perceived quality of education and their responsiveness to the needs of an increasingly multicultural student body.
... Effective CEM strategies foster loyalty and positive word-of-mouth, utilizing Customer Relationship Management (CRM) systems and digital engagement platforms. According to Lemon and Verhoef (2016), these platforms improve satisfaction through real-time responses and personalized services [30]. CRM systems enable data collection and analysis, allowing companies to tailor services to individual needs. ...
... Effective CEM strategies foster loyalty and positive word-of-mouth, utilizing Customer Relationship Management (CRM) systems and digital engagement platforms. According to Lemon and Verhoef (2016), these platforms improve satisfaction through real-time responses and personalized services [30]. CRM systems enable data collection and analysis, allowing companies to tailor services to individual needs. ...
The electric vehicle (EV) market is expanding rapidly, highlighting the need for enhanced customer perceived value to foster loyalty and competitive differentiation. This study investigates how experience management tools can improve customer experience management in the EV sector with an emphasis on sustainable business practices and environmental sustainability. The research explores existing customer experience management methods, the necessary functions of these tools, and their effectiveness in enhancing management capabilities from the perspective of customer perceived value. A thorough literature review and empirical analysis were conducted to design and evaluate tailored experience management tools. The findings suggest that these tools can enhance customer satisfaction and loyalty by addressing key elements of perceived value, such as price perception, quality perception, and brand image. Additionally, improved customer experience management may encourage sustainable consumer behaviors by making eco-friendly EVs more appealing, supporting environmental sustainability. This research aims to bridge the gap between customer perceived value theory and its practical application in the EV industry. It offers insights for manufacturers and marketers seeking to create more engaging and sustainable customer experiences. The implications extend beyond the EV market, providing a potential framework for various industries to enhance customer perceived value through effective and sustainable experience management.
... Essentially, as with traditional sports, new players may stop playing due to a myriad of contextual factors. Consumer journeys are a consumer's engagement with a firm over time across multiple touchpoints and interactions (Lemon and Verhoef, 2016). In esports, such a journey is seen through continued engagement with a specific game (Huston et al., 2021), and auto-netnographic (Kozinets and Kedzior, 2009) explorations of such engagement represent an opportunity to develop new knowledge (McCauley, 2023). ...
... Given that the audience are reliant on commercial game publishers to provide the platforms of play (Scholz, 2019), any engagement with esports can be considered from the consumer perspective. Unique to the notion of the customer journey are "touchpoints" that emerge (often unexpectedly) over the course of time during customers experiences (Lemon and Verhoef, 2016). These touchpoints are situations, moments and interactions that matter and can be both positive and negative (Muskat, 2020). ...
Purpose
This study aims to explore the potential of a team-based esports game, Valorant, as a platform for developing individuals and teams in organizations.
Design/methodology/approach
This work represents an auto-netnographic exploration of a team-based esports title from a consumer perspective through extensive diaries recorded through the initial 10 weeks of play.
Findings
Three key themes are identified that illuminate the experience of entering a new team-based game experience. The results illustrate that at the core of Valorant is the team experience, which suggests potential for the game as a platform to develop teams and enhance relevant individual and team-based skills in organizational contexts. Organizational teams should benefit from the use of esports as a team development tool, but any such organizational initiative requires a structured approach. Virtual teams may benefit more than their co-located equivalents from the affordances of online team-based play.
Originality/value
This study is one of the few auto-netnographic explorations of a team-based game in esports. Valorant, as an increasingly popular game, remains underexplored in academic literature.
... Revista Pesquisa Qualitativa. São Paulo (SP), v.13, n.33, p. 284-313 (Lemon;Verhoef, 2016). ...
... Revista Pesquisa Qualitativa. São Paulo (SP), v.13, n.33, p. 284-313 (Lemon;Verhoef, 2016). ...
Esta pesquisa objetiva compreender o papel dos atores do Ecossistema de Inovação da região Noroeste e Missões do Estado do Rio Grande do Sul (RS). Trata-se de uma pesquisa empírica de abordagem qualitativa, com natureza exploratória e descritiva. Para tal, realizou-se um estudo de caso único. Os dados foram coletados por meio de entrevistas semi estruturadas, documentos e observação e analisados pela análise de conteúdo. Por meio do framework desenvolvido, verifica-se que os atores do ecossistema de inovação são classificados em sete grupos: 1) Ideação, 2) Investidores, 3) Pesquisa e Desenvolvimento (P&D), 4) Organizações de apoio e correlatas, 5) Indústrias, 6) Startups e 7) Sociedade. Os resultados mostraram que a região apresenta determinados atores que exercem suas funções e dentre os sete grupos de atores pode-se destacar com maior interação e que interagem entre si no ecossistema de inovação da região, o grupo Ideação. Contudo, o ecossistema de inovação ainda está em estágio inicial, o qual deve evoluir a fim de tornar-se um ambiente promotor de empresas altamente tecnológicas.
... • Struggle with large, high-dimensional datasets (e.g., transactional, behavioral, and demographic data) (Lemon & Verhoef, 2016). ...
... AI-powered clustering and predictive analytics uncover hidden customer segments and behaviors, allowing for hyper-personalized marketing and retention strategies (Lemon & Verhoef, 2016). For example, deep learning models can predict churn likelihood and recommend targeted interventions. ...
Financial forecasting and Customer Lifetime Value (CLV) prediction are critical for business growth and strategic decision-making. Traditional methods often struggle with dynamic market conditions and vast datasets. This study explores the application of AI-driven analytics to enhance financial forecasting accuracy and improve CLV prediction models. By leveraging machine learning algorithms, deep learning techniques, and big data analytics, businesses can uncover hidden patterns, optimize resource allocation, and personalize customer engagement strategies. The paper evaluates key AI methodologies, their implementation challenges, and real-world case studies demonstrating measurable improvements in predictive performance. The findings highlight how AI-driven analytics can transform financial planning and customer relationship management, offering actionable insights for sustainable profitability.
... Consumers are increasingly active in seeking information, comparing products, and providing reviews online before deciding to buy. Companies need to implement a data-based approach to master consumer behavior patterns and optimize marketing strategies in a more personal and relevant way (Lemon & Verhoef, 2020) . ...
... A real example of this strategy is the use of recommendation systems on streaming and e-commerce platforms where algorithms analyze users' shopping or viewing patterns to offer more relevant content. This strategy not only increases consumer satisfaction, but also encourages increased consumer loyalty and retention (Lemon & Verhoef, 2020) . ...
In an era where business dynamics and consumer behavior continue to evolve rapidly, the understanding and mastery of marketing management become critical pillars for organizational success. This book, Marketing Management, is compiled with the intention to provide a comprehensive guide and practical insights into the principles, strategies, and applications of marketing in the modern business landscape.
... Influencer marketing juga menjadi alat yang efektif untuk meningkatkan kepercayaan konsumen melalui endorsement. Menurut Lemon dan Verhoef (2021), penggunaan teknologi seperti kecerdasan buatan (AI) dalam promosi digital telah meningkatkan jangkauan pemasaran, memungkinkan pengiriman pesan yang lebih tepat waktu, serta menawarkan pengalaman konsumen yang lebih personal dan relevan (Lemon & Verhoef, 2016). ...
This research aims to analyze and implement OperCart as a promotional media for home industry products in Agam and Lima Puluh Kota Regencies. This research is expected to increase market access and competitiveness of local products through the use of digital technology. Currently, home industries in the Agam and Lima Puluh Kota Regencies face various obstacles, such as limited access to a wider market, lack of effective promotional media, and the low level of adoption of digital technology by business actors. By utilizing digital technology such as OperCart, businesses can promote products more efficiently, reach a wider market, and increase competitiveness in the midst of global competition. This research uses a descriptive approach with a system development method. The research stages include needs analysis, OperCart design and implementation, and platform performance evaluation through interviews, surveys, and direct observation of users. The implementation of OperCart showed a significant increase in the effectiveness of home industry product promotion. Within three months of use, the platform managed to increase sales transactions by 40% and expand market reach by 55%. Businesses responded positively to OperCart because of its ease of use and features that support promotional needs, such as product catalogs, transaction recording, and social media integration. This research proves that digital platforms such as OperCart can be an effective solution to improve the competitiveness of home industries. Further development recommendations include the addition of marketing analytics features and technical training for businesses to optimize the use of the platform.
... Within the realm of DMC strategies, once the stages of the conversion funnel have been identified, professionals employ the customer journey map to design an optimal user experience. This tool enables marketers to visualise and structure the various touchpoints between the consumer and the brand throughout their journey of awareness, consideration, decision-making, and loyalty (Kuehnl, Jozic, & Homburg, 2019;Lemon & Verhoef, 2016;Wolny & Charoensuksai, 2014). ...
This study examines the marketing communication strategies used by online gambling and betting (OGB) operators and their impact on young people, a group that is particularly vulnerable to gambling. Through the application of the conceptual framework of the conversion funnel and a systematic review of the literature, the communicative strategies and tactics deployed in each phase of the player's journey are comprehensively analysed. The results reveal that strategies such as normalization of the game, personalized promotions and emotional narratives generate cumulative effects that increase the risk of problematic behaviours among young people, from the misperception of control to the intensification of compulsive patterns. On the basis of these findings, a good practice guide that offers clear guidelines for operators to use communication in designing more ethical and responsible gambling experiences is proposed. This work not only contributes to the understanding of the marketing communication dynamics of the sector but also lays the foundation for future research and the development of regulatory policies that prioritize the protection of vulnerable users without compromising the commercial viability of the sector.
... Customer experience research is approached differently, for example Helkkula, (2011) described it as a "process (focusing on the architectural and time element of the experience); as an antecedent to various outputs (such as satisfaction and repurchase intentions); or as a phenomenon (specific to an individual in a specific context)". It can be argued that the concept is key in driving both business success customer satisfaction and competitive advantage (McColl-Kennedy et al., 2015;Lemon and Verhoef 2016;Mosavi, et al., 2018). For Jaakkola et al., (2017) customer experience is largely focusing on customers as the actors and is described as an internal and how customers subjectively respond (Dagger et al., 2013). ...
Purpose: This paper seeks to explore how queuing and waiting in the banking hall affect customers' service experience and to suggest avenues for future success in handling customer frustration in the banking sector in Ghana. This is important because delay in the queuing system results in frustration and customer dissatisfaction. Design/methodology/approach: Using a survey research design, data was collected from 306 bank account holders by the help of self-administered questionnaires and was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. Findings: The study found that queue management (Seeking hedonic gratification) queue environment (Seeking social interaction) impact on customer experience while available services (Seeking economic performance); queuing time (Seeking convenience) did not impact on customer experience. The study also found that customer experience impacts positively service delivery. Originality/value: First, this study helps to improve our understanding of customer experience of waiting and queuing for services. Second, it examines the impact of waiting and queuing has on customer experience and quality service delivery. Third, the study then examines customer perceptions of waiting in line and focuses on methods for making waiting time more tolerable.
... Through the integration of data from diverse sources-such as browsing behavior, purchase history, geolocation, and social media activity-brands are able to provide messaging that is both timely and emotionally impactful (Rust & Huang, 2014). Moreover, hyper-personalization significantly improves customer satisfaction and loyalty by showcasing a profound comprehension of the unique customer journeys (Lemon & Verhoef, 2016). With the growing expectation among consumers for brands to demonstrate an understanding of their individual preferences, organizations that effectively adopt hyper-personalization strategies are positioned to achieve a significant competitive advantage. ...
The study examines the integration of emotion analysis and association rule mining to facilitate intelligent customer segmentation, aiming to deliver hyper-personalized experiences. A sample comprising 250 respondents has been utilized to analyse the relationship between emotional sentiment and behavioral attributes in shaping consumer preferences and engagement patterns. The analysis of sentiment and emotion has been employed to classify textual feedback into contemporary emotional categories, such as joy, anticipation, and anger, thus providing a nuanced understanding of customer perceptions. In combination, association rule mining was used to highlight encoded patterns and interconnections amongst the demographic characteristics, behavioral responses, and emotional states. The findings suggest a strong correlation between customer sentiments and emotional expressions, and also their purchasing tendencies, including a preference for personalized offers and engagement with AI-powered chatbots. The insights gained the identification of independent emotional-behavioral customer segments, each characterized by specific personalization requirements. The integration of rule-based approach with emotion mining in the study displays an effective technique for extracting actionable insights, thereby improving customer targeting and engagement strategies. The findings would help in developing scholarly discussion and practical implementations in marketing analytics, highlighting the significance of emotional intelligence in data-driven personalization.
... Customers who receive beneficial service and operate seamlessly with quick assistance develop enhanced perceptions of product or service value (Lemon & Verhoef, 2016). The price-to-benefit assessment made by customers constitutes an essential part of determining their purchasing decisions, according to Zeithaml (1988). ...
For this research, the primary objective is to investigate the impact of utilizing AI for personalized experiences on consumer purchasing behaviour. The study focuses on the level of customer engagement, the perceived value of the personalized experience, and overall satisfaction with the personalized interaction. Understanding these factors is crucial, especially with the increasing use of AI in personalization. Additionally, the study aims to examine how concerns regarding privacy, trust in digital technology, and general comfort with technology influence these relationships. To achieve these research goals, a combination of methodologies will be employed, including surveys and in-depth interviews. Convenience sampling, a non-probability sampling technique, will be utilized to select interview participants who have prior exposure to AI-driven personalization. The gathered data will then be analyzed using Structural Equation Modeling (SEM), with SMART PLS 4.0 being employed to drive the results of the study.
... Better customer satisfaction and loyalty follow from a better customer experience, claims Lemon and Verhoef (2016). Individualized software programs and advanced sales automation technologies help one to achieve this. ...
Investigating the most recent advancements in sales automation and software development for global companies is the aim of this study paper. This paper aims to analyze how artificial intelligence, machine learning, and data analytics affect the approaches in charge of sales procedures and software development. By means of a thorough literature review and industry report analysis, we find significant trends in this work. Low-code and no-code platforms, the acceptance of cloud-based solutions, and the integration of customer relationship management (CRM) systems with sales automation tools include among these trends. The paper also examines the possibilities and difficulties connected with these new trends as well as the effects they have on companies with worldwide operations. Our results suggest that companies implementing these technologies have great possibilities in terms of sales productivity, customer involvement, and general corporate performance.
... Customer-Centricity: The combination of marketing insights and technological capabilities enables organizations to create highly personalized and seamless customer experiences across multiple touchpoints(Lemon & Verhoef, 2016). 2. Data-Driven Decision Making: Combining marketing analytics with AI-powered technology lets companies use real-time data and predictive insights to guide more educated and timely decisions (Wedel & Kannan, 2016). ...
... The increasing variety of products in the market requires businesses to continue to adapt and innovate to maintain competitiveness. This increasing competition does not only occur in the goods sector, but also extends to electronic-based services (Lemon & Verhoef, 2016). Therefore, companies are increasingly focusing on customer retention strategies as a measure to survive and thrive in a dynamic business landscape. ...
Complex business competition in the modern era encourages every business actor to adapt a lot to their environment. One of them is by providing maximum service, both physically and online. Amarta Shop, Ponorogo Regency is the object of this research, to measure the quality of service obtained by consumers. The method used in this research is descriptive qualitative, by distributing questionnaires to obtain primary data that supports the results of this study. The results of this study indicate three things, namely (1) service quality affects consumer purchasing decisions, (2) competitive prices also encourage loyalty from consumers, so that in this aspect the Amarta store must pay attention to responsiveness, empathy and build trust with consumers. (3) The price aspect encourages loyalty from consumers, so the Amarta Store shows a good perception in the price aspect. From these three aspects, it shows that the service quality aspect has an influence on consumer decision making, the price aspect also shows influence, as well as the trust aspect.
This study investigates the serial effects of value in use on consumer brand engagement, perceived brand quality, brand loyalty, and continuance intention in the context of branded mobile apps. Data collected from 294 U.S. mobile app users were analyzed using complementary methods, including partial least squares structural equation modeling and fuzzy-set qualitative comparative analysis. The results indicate that value in use stimulates consumer brand engagement, which leads to enhanced perceived brand quality and increased brand loyalty. In turn, these factors contribute to higher continuance intention. By recognizing the importance of branded mobile apps in enhancing value co-creation through experiential aspects of use, this study extends the understanding of value in use and consumer brand engagement within the framework of Service-Dominant Logic.
Purpose
This quantitative research, based upon technology acceptance model (TAM) theory, is to examine the impact of Customer Experience and Digital Competency (Information and Digital Handling, Communication and Collaboration) on Online Brand Advocacy (brand defence, brand positivity, brand information sharing, virtual positive expression) through intervening role of Customer Values (Relational Value, Utility Value), Brand Reputation and Behavioral Loyalty among customers of food (Users of Foodpanda app).
Design/methodology/approach
A multivariate statistical approach with structural equations modeling was used for analysis. A total of 273 complete questionnaires were gathered from users of Foodpanda app for food delivery of restaurants. SPSS-24 and Smart PLS 4.1.0.0 were used for demographic analysis, and SEM (structural equation modeling) was used for data analysis.
Findings
Current research proposed 12 hypotheses (7 for direct relationship and 5 for mediation effect (20 subhypotheses). Results confirm that all the seven hypotheses of direct relationship are accepted. Most mediating hypotheses are accepted, whereas 1 out of 20 subhypotheses is rejected. Results indicate that the proposed theoretical model is justified.
Originality/value
The current study advances the current understanding of online brand advocacy by using the variable Behavioral Loyalty, Brand Reputation, Customer Values (Relational Value, Utility Value), Digital Competency (Information and Digital Handling, Communication and Collaboration) and Customer Experience with direct and intervening effect on the basis of TAM.
Purpose
In the current dynamic and competitive environment in which service sector companies operate, innovation and sustainability are put forward as differentiating elements. Given this scenario, this study examines the interaction between Sustainability-Oriented Service Innovation (SOSI), information and communication technologies (ICT), relationship value, and satisfaction in the context of the service sector from the companies’ perspective.
Design/methodology/approach
We used a structural model based on data from 450 hotel and retail managers to evaluate if ICT facilitates SOSI and if it drives relationship value and stakeholder satisfaction.
Findings
The results reveal that ICT is a significant catalyst for SOSI in the service sector. Furthermore, empirical evidence was found on how relationship value acts as a crucial mediator between SOSI and satisfaction, indicating that value perceptions derived from innovative and sustainable practices are essential to improve the satisfaction of agents close to the organisation. Significant differences are also observed in the relationships between hotels and retailers, suggesting the need for strategies tailored to each sector.
Practical implications
This study contributes to both theoretical advancements in Sustainability-Oriented Service Innovation (SOSI) and practical insights, offering actionable strategies for enhancing business practices and stakeholder engagement in the service sector.
Originality/value
Conducting this study allows us to advance the understanding of how the integration of technologies and a business culture oriented towards SOSI can strengthen relationships with customers and suppliers and increase their satisfaction, offering valuable insights for managers working in the service sector.
Rapid developments in technology are causing a revolution in retail. In order to remain competitive and enhance the shopping experience for customers, retailers are utilizing new technologies. These technical advancements are helping retailers to stay ahead of the competition, retailers are increasingly using Artificial Intelligence of Things (AIoT) to help them comprehend the millions of data points that are present in their stores and transform them into useful information that will enable them to align the business more quickly and effectively for the required changes. At a staggering CAGR of 21.8%, the smart retail market is expected to rise at a quick pace, from roughly 140.6 billion by 2030. This chapter illustrates how retail establishments can benefit from a potent digital transformation experience through the combination of AI & IoT (AIoT). Additionally, this chapter explores the advantages, difficulties, and prospects of AIoT in consumer insights and smart retailing, emphasizing its influence on the direction of the retail sector.
Marketing resource allocation has a strong influence on the financial performance of a company by affecting such factors as brand equity, consumer engagement, and revenue generation. However, the relationship between financial performance and marketing expenditure is controversial, as some studies show a positive influence, while other studies show a phenomenon of decreasing returns. This study examines the effect of marketing expenditure on financial performance measures, which are Return on Equity (ROE), Net Profit Margin (NPM), Return on Assets (ROA), Earnings Per Share (EPS), Weighted Average Cost of Capital (WACC), and Return on Investment (ROI).This research is based on the financial information of India's leading FMCG business houses Hindustan Unilever Limited (HUL), Dabur, Marico, Tata Consumer Products, ITC, using regression analysis to examine the effect of marketing expenditure on financial performance. The research finds a positive correlation between marketing expenditure and profitability measures like ROE, ROA, and EPS. This research presents valuable recommendations to policymakers and business leaders through evidence of the economic implications of marketing spending. It suggests that firms strategically plan marketing spending with the objective of profitability and long-term financial stability. The research concludes by recommending future studies, for instance, investigating industry-specific factors and analyzing the effects of marketing expenditure on financial performance.
Marketing personalization has been famed as a transformative force in consumer engagement, largely seen with the recent inclusion of artificial intelligence (AI). With the companies wanting to create tighter bonds with their target consumers, AI solutions have exposed possibilities of creating more engaging, specific, and timely messages to the audiences. In this abstract, the multidisciplinary study of the consumer engagement framework is discussed with regards to the AI-based persona-driven marketing personalization, discovering that this paradigm can open new frontiers for customer engagement evolution and business triumph. Pivotal to this endeavor is the capacity of AI systems to mine deep and wide to identify patterns relevant to CON-SUMERS in ways that would help marketers to shape the messages, products and interfaces employed from those that are most relevant to their consumers' wants and behaviors. This can be achieved by integrating machine learning algorithms and natural language into the system and interpreting complex data patterns of the customers.
In the intensely competitive hospitality sector, the quality of customer experience is a critical determinant of a hotel's success. As customers become more selective and their expectations evolve, hotels must continuously assess and enhance their service quality to remain competitive. This chapter aims to explore various indicators of hotel customer experience from a service quality perspective. Secondary data was utilized, with 434 hotel reviews collected from Tripadvisor.com, a prominent customer review site. Among these reviews, 268 were from domestic customers and the remainder from international travelers. Qualitative analysis was conducted using R software and Bigram analysis to identify recurring words and phrases. The study identified seven key dimensions based on repeated phrases, including hotel rooms, food quality, staff behavior, overall stay experience, and service quality. The research provides insights into these indicators and suggests that future studies could explore big data related to customer experience across different geographical areas.
The thematic analysis adopted in this paper is a method that examines the evolving nature of marketing management field conceptually. Basic marketing principles has remained essential but the need for digital technological adoption coupled with artificial intelligence and human focused methods and moral standards has brought dynamics in marketing. This paper highlights several modern trends in marketing management which includes customization for customers together with digital changes and eco- friendly progressions and innovative patterns of practices. The research used theoretical frameworks for evaluation because it has revealed the exact operational hindrances and focus on current modern strategic development opportunities. In this paper is also highlighted that organizations must implement agile principles alongside data driven decisions and a compressive understanding of customer experiences for sustainable market competition. Recommendations in the analysis includes direct practitioners to adapt their marketing methods or processes to contemporary marketplace needs together with suggestions for researchers to continue with their studies into new fields of study in the marketing management perspectives.
Exploring how Technology might help in the Webrooming Scenario in the Automotive Service Industry, this Chapter is organized. In analysing the subject of the book chapter, the authors focus on such aspects as the evolution of the industry, the use of Webrooming in the purchasing process. It also deliberation on different technologies including Artificial Intelligence, Blockchain, Virtual and Augmented Reality, and Internet of Thing that may help to enhance trust, transparency and engagement while using Webrooming System. As the chapter demonstrated, the actual application of the Conceptual Framework of Webrooming supported by advanced technologies among key automotive brands is shown through their cases. To those automotive service providers who want to use information technology in webrooming, the authors give guidelines and suggestions. Past work and approaches are also discussed, followed by discussion of the ethical issues and the directions for future research work so that reader is well-aware with the prospects and limitations in this growing domain of study.
Service robots are increasingly transforming customer service by automating tasks traditionally performed by human employees, creating a hybrid of technological and human interaction across various industries. This chapter examines the integration of service robots into sectors such as hospitality, retail, healthcare, and finance, focusing on their impact on customer experience (CX)The findings highlight that motivations for adopting service robots include productivity gains, novelty, and convenience (Ivanov & Webster, 2019), while barriers such as high costs, privacy concerns, and limited social acceptance remain significant (Bartneck et al., 2020; Gursoy et al., 2019). This study contributes to the growing discourse on human-robot interaction, offering practical insights for organizations and suggesting future research directions, such as longitudinal studies on customer loyalty and the ethical implications of widespread service robot deployment (Huang & Rust, 2021; Belanche et al., 2021a).
In the era of digital transformation, artificial intelligence (AI) has emerged as a powerful tool reshaping the landscape of marketing. This chapter delves into the transformative impact of AI-driven personalization on consumer engagement. By leveraging vast amounts of data, AI enables businesses to create highly tailored marketing strategies that resonate with individual preferences, behaviors, and needs. The chapter explores key AI technologies, including machine learning, natural language processing, and predictive analytics, and their applications in crafting personalized consumer experiences. AI-driven personalization delivers content and recommendations that align closely with individual consumer preferences, leading to heightened satisfaction. By analyzing data from various touchpoints, AI systems can anticipate consumer needs and provide timely, relevant interactions, fostering a more satisfying customer journey. Personalized marketing strategies help build stronger emotional connections between consumers and brands.
Membangun brand yang kuat adalah salah satu langkah krusial bagi UMKM untuk dapat bersaing di pasar yang semakin kompetitif. Brand bukan hanya sekadar nama atau logo, tetapi juga mencerminkan nilai, visi, dan misi dari sebuah usaha. Menurut Kotler dan Keller (2016), brand yang kuat dapat menciptakan pengenalan dan kepercayaan dari konsumen, yang pada gilirannya dapat meningkatkan penjualan dan loyalitas pelanggan. Data dari Nielsen (2020) menunjukkan bahwa 59% konsumen lebih memilih untuk membeli produk dari brand yang mereka kenal. Hal ini menunjukkan bahwa membangun brand yang dikenal dapat memberikan keuntungan kompetitif yang signifikan bagi UMKM. Pentingnya brand juga terlihat dari kemampuan UMKM untuk beradaptasi dengan perubahan pasar. Di era digital saat ini, konsumen semakin memilih untuk berbelanja secara online. Oleh karena itu, UMKM perlu memiliki brand yang dapat dikenali di platform digital. Menurut laporan dari Google dan Bain & Company (2021), 70% konsumen Indonesia lebih memilih berbelanja produk lokal secara online. Ini menunjukkan bahwa UMKM yang memiliki brand yang kuat dan dikenal akan lebih mudah mendapatkan perhatian di pasar digital. Pentingnya identitas brand juga terlihat dari bagaimana UMKM dapat menciptakan pengalaman pelanggan yang unik. Identitas brand yang kuat dapat membantu menciptakan pengalaman yang konsisten di semua titik interaksi dengan pelanggan. Secara keseluruhan, identitas brand adalah fondasi yang kuat bagi UMKM untuk membangun brand yang sukses. Dengan identitas yang jelas dan konsisten, UMKM dapat menciptakan citra positif di benak konsumen dan meningkatkan daya tarik produk mereka di pasar.
In the era of digital transformation, leveraging artificial intelligence (AI) for customer insights has become a pivotal strategy for organizations utilizing cloud data platforms. This paper explores the integration of AI technologies with cloud data solutions to enhance customer understanding and drive business growth. By analyzing vast amounts of data collected from various sources, AI algorithms can uncover patterns and trends that traditional analytical methods may overlook. The study highlights the effectiveness of machine learning and natural language processing in deriving actionable insights from unstructured and structured data. Moreover, the research investigates the role of AI in personalizing customer experiences, enabling businesses to tailor their offerings based on individual preferences and behaviors. It also discusses the challenges associated with data privacy and security in cloud environments, emphasizing the need for robust frameworks to safeguard sensitive information while maximizing insight generation. The findings indicate that organizations that effectively leverage AI for customer insights can significantly improve their decision-making processes, enhance customer satisfaction, and foster loyalty. Additionally, this paper provides a roadmap for implementing AI-driven strategies within cloud data ecosystems, outlining best practices and potential pitfalls. Ultimately, this research contributes to the growing body of knowledge on AI applications in business, illustrating the transformative potential of integrating AI with cloud data for gaining deeper customer insights and achieving competitive advantage.
Although e-procurement uptake is slow amongst SMEs in developing countries, the introduction of web-based technologies in the 1990s and the creation of social media platforms and other e-commerce sites have currently revolutionized the way small and medium-sized enterprises operate businesses. Therefore, the purpose of this quantitative cross-sectional survey research was to examine the factors that drive the effective implementation of e-procurement systems among SMEs in the Republic of South Sudan. The study systematically sampled and surveyed 300 SMEs out of a total of 1215 and collected data using a survey questionnaire in Google Form format with a valid response rate of 71% (213). The background data were analysed using descriptive statistics such as frequency and percentage; and the variables were analysed using inferential statistics such as principal component analysis (PCA), relatively important index (RII), and analytical hierarchical process (AHP). Resultantly, the availability of experienced and skilled personnel; and the availability of government directives were ranked the highest drivers among the political and legal factors, followed by an increase in quality through benchmarking (market intelligence) and an increase in quality through improved communication due to competitive factors, cost reductions in terms of staffing, processing, transaction, and administrations for management factors. Future studies should evaluate the main factors that motivate SMEs to adopt procurement practices in emerging and developed countries, with the aim of promoting the adoption of e-procurement. Meanwhile, stakeholders could invest in skilled personnel, advocate for government directives and policies, improve communication channels, utilize market intelligence tools, focus on cost reduction strategies, promote training and awareness programs, collaborate with industry partners, and ensure legal compliance. This study proposed employing qualitative techniques to examine the drivers of e-procurement adoption by SMEs.
This chapter explores the transformative role of technology in personalizing reskilling programs for service employees, with a focus on enhancing customer-centricity. It examines the evolution of reskilling in response to shifting business environments, driven by technological advancements like AI, machine learning, and immersive technologies such as VR and AR. The chapter highlights key technologies that enable personalized learning experiences and discusses the challenges and ethical implications associated with implementing these programs. It also outlines the future directions of reskilling, emphasizing the importance of continuous learning, inclusivity, and collaboration. By fostering a customer-centric workforce, technology-driven reskilling offers organizations the opportunity to adapt to changing market demands and improve employee engagement and performance. Ultimately, personalized reskilling programs are vital for creating a resilient, agile workforce capable of delivering exceptional customer experiences.
Definido como a gestão lucrativa do relacionamento com os clientes, o marketing nas organizações constitui hoje uma área fundamental para a criação de valor no mercado-alvo e sua prática se dá por meio de diferentes formas. O presente artigo visa identificar e analisar os principais desafios enfrentados por uma distribuidora de produtos hortifruti, localizada no interior do estado de São Paulo, no âmbito do marketing digital. O método selecionado foi o estudo de caso do tipo explanatório, com abordagem qualitativa. Este estudo foi conduzido em três grandes fases, iniciando-se pela construção do quadro teórico, seguindo para a pesquisa de campo e, por fim, realizando a divulgação dos resultados observados. Com base nos resultados obtidos, constatou-se que a empresa enfrenta desafios em personalizar a comunicação com seus clientes e adaptar seus produtos às necessidades do mercado, sem uma estratégia clara de marketing digital. Dessa forma, dentre as sugestões de estudos futuros apontadas, propõe-se que se concentrem em examinar as práticas de marketing digital de outras empresas distribuidoras de hortifruti, abordando diferentes regiões, uma vez que este setor tem grande potencial para atingir e fidelizar consumidores online.
Purpose
The aim of the paper is to address the persistent uncertainty surrounding the effectiveness of chatbot-led service failure recovery (SFR) in delivering a satisfactory online customer experience. Prior studies have not explored how chatbot-led SFR processes influence customers’ actual experiences. This gap in the literature may exist because current understanding of chatbot–customer interactions obscure how individuals’ adoption of chatbot-led SFR shape their experiences.
Design/methodology/approach
Drawing on frustration–aggression theory and signaling theory, and building on a social constructivist philosophical paradigm, this paper interprets participants’ narratives on chatbot-led interactions and online experiences. Empirical data was generated through 52 in-depth interviews conducted with participants from the USA, France, Italy, and the UK.
Findings
Through thematic analysis of interview data, the study presents two key contributions. First, this paper elucidates the dynamics unfolding between customers and chatbots in a service recovery journey, encompassing customers’ priorities and expectations. Second, this paper delineates three customer typologies based on their interactions with chatbots during chatbot-led SFR, including their emotional responses. These interactions could either positively or negatively signal future patronage of chatbots. The identified three customer types can assist managers to reshape their strategies to effectively turn negative customer experiences into opportunities for enriching online customer experiences. This could involve providing multiple touchpoints, including human-led and chatbot-led interactions in the SFR process.
Originality/value
This study proposes that chatbots are not just technological tools that support customers during service failures and facilitate connection with the brand, but also function as signals that trigger emotional and cognitive responses, thereby influencing the customer experience.
FinTech industry is evolving rapidly, and customer interaction is a key factor in driving its success. With growing competition, financial institutions are turning to advanced technologies like Natural Language Processing (NLP) to enhance customer experiences. This chapter explores the transformative role of NLP in FinTech, focusing on how chatbots, sentiment analysis, and personalized services can improve customer satisfaction. It also discusses how NLP can streamline compliance processes and risk management. We examine current challenges in customer interactions within FinTech, the limitations of traditional methods, and how NLP offers solutions. The chapter concludes by addressing the future potential of NLP in advancing customer interactions, particularly through AI-driven analytics and multilingual support.
The paper explores how consumer immersiveness is related to customer retention for the Metaverse platform. The study explores the effectiveness of Consumer Immersiveness and its applicability in the metaverse universe. The constructs studied under consumer immersiveness are brand Value and Brand Trustworthiness. The study explores the direct relation of brand value with customer retention and brand trustworthiness with Customer Retention. It also explores the mediating effect of Customer Engagement on Customer Retention. The study uses purposive and convenience sampling as the sampling techniques for the study. The statistical study used to analyze the data was structural equation modeling using AMOS. The findings show that brand trustworthiness and brand value affect customer retention at Metaverse Universe for Marketing.
This study explores the key determinants influencing online purchase intention in the digital marketplace. The findings indicate that various digital marketing strategies and consumer perceptions play a crucial role in shaping purchase decisions. Notably, while trust and engagement drive positive purchase behaviour, perceived risk also holds significance, suggesting that consumers acknowledge potential risks but proceed with purchases due to mitigating factors such as brand credibility, return policies, and digital security measures. The study provides valuable insights for businesses aiming to optimize their online presence, enhance customer trust, and improve digital marketing effectiveness. By leveraging data-driven strategies, businesses can refine consumer interactions and boost purchase confidence. The research contributes to the growing body of knowledge on online consumer behaviour, offering practical implications for marketers, policymakers, and e-commerce platforms in designing more effective engagement and conversion strategies.
This chapter explores the fusion of green marketing and AI-driven branded entertainment, focusing on ethical, strategic, and creative innovations in sustainable advertising. As brands increasingly adopt green marketing to resonate with environmentally conscious consumers, artificial intelligence (AI) is transforming the way branded content is produced, personalized, and delivered. The chapter discusses ethical concerns, such as transparency, data privacy, and potential manipulation, while highlighting the strategic benefits of AI in promoting sustainability. It also examines the evolving role of advertising professionals, emphasizing the new competencies required to navigate this AI-driven landscape. Case studies of successful campaigns illustrate how AI can effectively engage audiences and drive sustainable consumer behavior.
AI chat-bots are vital in e-commerce, enabling real-time, personalized interactions. However, their role in customer retention remains underexplored, especially in emerging markets like North India. This study examines AI chat-bots' direct influence on retention, the mediating role of satisfaction, and the moderating effect of personalized responses. A survey of 300 e-commerce users assessed AI chat-bot quality, responsiveness, and helpfulness. Regression models tested direct and mediated effects, showing that AI chat-bot interactions significantly enhance retention, with satisfaction as a key mediator. Personalization strengthens the satisfaction-retention link. Findings suggest e-commerce firms should optimize chat-bot personalization to boost loyalty and engagement. Personalized AI-driven interactions reduce churn and drive profitability, positioning firms competitively in the digital marketplace. By integrating AI strategically, businesses can foster long-term customer relationships, ensuring sustained success in the evolving e-commerce landscape.
Marketing landscape experiencing a drastic change, driven by the growth of artificial intelligence (AI) and personalization, replacing "one-size-fits-all" marketing approach by more personalized marketing strategies, like machine learning and predictive analysis. This will allow organisations to engage with users in a dynamic, user-specific design, thus enhancing user engagement and satisfaction. Platforms such as Netflix, Amazon, and Spotify, already use artificial intelligence to tailor content and recommendations based on user behaviour patterns, ensuring user retention and high loyalty. The actual implementation process demands meticulous handling of data, foresight and adherence to transparency and ethical practice. Newer technologies such as edge computing and AR/VR integration will transform real-time personalization, giving each user a unique immersive and personalized experience.
Artificial Intelligence in marketing has revolutionized business-consumer engagement, offering unprecedented opportunities for personalization and innovation. However, alongside these advancements, the practice of “AI washing”—the deliberate misrepresentation of AI capabilities for competitive advantage has emerged, misleading consumers and undermining trust in legitimate AI-driven innovations. This research traces AI marketing's evolution from basic data-driven approaches to predictive analytics, exploring how industry hype fuels deceptive practices. It evaluates the feasibility of AI implementation, the long-term viability of AI-driven marketing strategies, and the ethical considerations necessary to balance innovation with transparency. Through case studies and an analysis of marketing agencies' role in AI washing, this research identifies key risks, including reputational damage, legal liability. It also highlights tensions between marketing claims and actual AI capabilities. By addressing these concerns, this study contributes to the broader discourse on ethical AI marketing.
Buku ini
berisi materi yang dapat digunakan baik oleh tenaga pengajar
maupun mahasiswa, serta para pembaca umumnya untuk
menambah wawasan berpikir dan Ilmu Ekonomi dan Bisnis.
Buku ini membahas tentang:
Bab 1 Konsep Dasar Studi Kelayakan Bisnis
Bab 2 Aspek Hukum Kelayakan Bisnis di Era Digital
Bab 3 Aspek dan Dampak Lingkungan Bisnis Digital
Bab 4 Aspek Ekonomi dan Sosial di Era Digital
Bab 5 Aspek Pasar dan Pemasaran
Bab 6 Analisis Aspek Pasar dan Pemasaran di Era Digital
Bab 7 Aspek Teknis dan Teknologi di Era Digital
Bab 8 Aspek Manajemen dan Sumber Daya Manusia di Era Digital
Bab 9 Kewirausahaan Sosial di Desa
Bab 10 Analisis Aspek Keuangan di Era Digital
Bab 11 Analisis Kompetitor di Era Digital
Bab 12 Pengelolaan Risiko dalam Bisnis Digital
Bab 13 Peran Teknologi dalam Bisnis Digital
Bab 14 Model Bisnis Digital
Bab 15 Pengembangan Sumber Daya Manusia untuk Bisnis Digital
Bab 16 Masa Depan Bisnis UMKM: Tren, Tantangan, dan Peluang
Buku ini dapat terwujud hanya dengan modal semangat kolaborasi
yang solid dari tim penulis yang berasal dari berbagai Perguruan
Tinggi dan Instansi. Penyusunan buku ini juga merupakan
implementasi Tri Dharma Perguruan Tinggi.
Customer experience (CX) has become a top concern of business executives worldwide, and is considered to be a key determinant of long-term corporate success. Although numerous books and research papers have been written on the topic, knowledge remains limited about the nature of CX and the appropriateness of current best practices. At the same time, CX represents one of the cornerstones of the marketing discipline and "Understanding Customers and the Customer Experience" is a top-tier priority in the Marketing Science Institute's 2014-16 Research Priorities. In this report, Arne De Keyser, Katherine Lemon, Philipp Klaus, and Timothy Keiningham develop an integrative, yet parsimonious framework that captures the complexity of CX and builds upon interdisciplinary insights stemming from marketing, philosophy, psychology, and sociology. Employing a three-step analytical procedure, they suggest the following definition: "Customer experience is comprised of the cognitive, emotional, physical, sensorial, and social elements that mark the customer's direct or indirect interaction with a (set of) market actor(s)." They also describe the fundamental embeddedness of CX within a multi-layered system that continuously and dynamically impacts the way customers experience their interactions with firms. More importantly, they examine the relationship of CX with customer value and customer engagement, establishing a clear link between three of marketing's most-discussed concepts. The authors develop a three-stage cyclical model to describe this interrelationship, highlighting how all three actively co-shape consumer buying and consumption processes. CX is recognized as the vital nutritional element of this model, being the driving force of all customers' value reflections and engagement behaviors. Managerial implications Overall, this report provides academics and practitioners with a structured framework for guidance in researching and managing the customer experience. A better understanding of CX may lead to direct changes in daily practices, and may also induce significant change of long-term strategic thinking throughout the organization. Specifically, the authors offer four guidelines to help businesses better manage CX. First, a CX-driven practice should be centered on the individual customer applying a "jobs-to-be-done" mindset. In other words, companies must examine how their customers integrate products and services within their daily lives in order to improve their relevance to these customers. Only then will CX initiatives be truly successful. Second, the scope of CX programs should extend beyond the dyadic customer-firm relationship and take a service ecosystem perspective. Marketers armed with knowledge of the multiple parties involved in creating the CX will be able to design better offerings. Third, the long-term, dynamic nature of CX should become a key focus of marketers. Rather than solely focusing on specific moments-of-truth, management should take account of the entire journey that impacts CX (i.e., all consecutive touchpoints of the customer-firm relationship). Marketing Science Institute Working Paper Series 1 Fourth, accurate CX measurement requires a multi-method approach and cannot be centered around one single measure such as satisfaction or NPS. A combination of methods will enable an accurate understanding of the customer experience and will prove useful to guide managerial decision making. Overall, this work establishes a specific CX mindset to assist top-level management in designing, executing and monitoring vital, dynamic and holistic CX strategies.
If service quality relates to retention of customers at the aggregate level, as other research has indicated, then evidence of its impact on customers’ behavioral responses should be detectable. The authors offer a conceptual model of the impact of service quality on particular behaviors that signal whether customers remain with or defect from a company. Results from a multicompany empirical study examining relationships from the model concerning customers’ behavioral intentions show strong evidence of their being influenced by service quality. The findings also reveal differences in the nature of the quality-intentions link across different dimensions of behavioral intentions. The authors’ discussion centers on ways the results and research approach of their study can be helpful to researchers and managers.
This meta-analysis examines the role of trust in marketing channels. First, the analysis of pairwise relationships involving trust indicates that trust, on average, exhibits a robust and strong relationship with other channel relationship constructs under a wide range of different conditions. Next, we explored systematic patterns of variation in the correlations. The results demonstrate that the use of experiments, samples drawn from multiple industries, and US data tend to produce larger effects than the use of field studies, samples drawn from a single industry, and European data respectively do. Various other methodological characteristics of studies did not have significant effects. Finally, we examined the role of trust in a nomological net, involving some of the most frequently studied antecedents and consequences of trust. We find that trust contributes to satisfaction and long-term orientation over and beyond the effects of economic outcomes of the relationship. Both trust and economic outcomes—not just one or the other—are conducive to relationship marketing success. q 1998 Published by Elsevier Science B.V. All rights reserved.
Alternative listing for article: www.jagsheth.com/marketing-research/ecological-imperatives-and-the-role-of-marketing
Evidence indicates that satisfied customers defect at a high rate in many industries. Because satisfaction alone does not translate linearly into outcomes such as loyalty in terms of purchases, businesses must strive for 100 percent, or total, customer satisfaction and even delight to achieve the kind of loyalty they desire. Current studies attribute a higher degree of emotionality to the dissatisfaction end of the satisfaction continuum than in the past. For example, customers who have experienced service failures feel annoyed or victimized. Although victimization is felt at a deeper emotional level than irritation, both can result in outrage. By focusing on more intense customer emotions, such as outrage and delight, the authors explore the dynamics of customer emotions and their effect on customer behavior and loyalty. Schneider and Bowen base their conceptualization on people's needs rather than the more conventional model that focuses on customer expectations about their interactions with a firm. The authors propose a complementary needs-based model far service businesses that assumes customer delight and outrage originate with the handling of three basic human needs - security, justice, and self-esteem. By recasting a situation as one that has violated any of a customer's fundamental needs, the deeper emotional outcome (e.g., outrage) does not seem incongruous. The authors describe each need and offer specific managerial tactics for avoiding outrage and creating delight. Recent emphasis on relationship marketing - that is, attracting, developing, and retaining customers is pertinent because building relationships requires that companies view customers as people first and consumers second. Service is an exchange relationship in which customers swap their money and loyalty for what Schneider and Bowen argue is need gratification - a psychological contract with service firms to have their needs gratified. The authors discuss strategies that help firms gratify and, in some cases, delight customers. while avoiding the perception that they do not respect customer needs. Companies must manage how they show concern for customer needs in all actions, including the activities of the back office (e.g., billing, shipping), not just front-office personnel who directly contact the customer.
Customer equity drivers (CEDs)—value equity, brand equity, and relationship equity—positively affect loyalty intentions, but this effect varies across industries and firms. We empirically examine potential industry and firm characteristics that explain why the CEDs–loyalty link varies across services industries and firms in the Netherlands. The results show that (1) some previously assumed industry and firm characteristics have moderating effects while others do not and (2) firm-level advertising expenditures constitute the most crucial moderator because they influence all three loyalty strategies (significant for value equity and brand equity; marginally significant for relationship equity), while three industry contexts (i.e., innovative markets, visibility to others, and complexity of purchase decisions) each influence two of the three loyalty strategies. Our results clearly show that specific industry and firm characteristics affect the effectiveness of specific loyalty strategies.
You really need to know only four things about each customer encounter with your brand. To identify what influences the attitudes and behavior of customers, most companies rely on surveys, focus groups, and ethnographic research. The trouble is, surveys and focus groups tap customers' memories, which are unreliable, and the presence of observers can cause customers to alter their behavior. The authors, three academics, believe they have found a new research tool without those flaws: real-time experience tracking. Conducted over mobile phones, RET allows companies to inexpensively collect instant, unbiased feedback from customers 24 hours a day. In RET, participants supply the answers to a four-question survey every time they encounter a brand, be it through a direct interaction, such as a purchase or ad, or an indirect one, such as a conversation with another customer. The process is incredibly simple: They need only text a four-character message. One major benefit is that RET allows firms to track campaigns as they unfold and readjust them toward the most effective tactics. This article describes how a growing number of companies, such as Schweppes, Energizer, and Fox, are using RET to inform their marketing decisions, increase sales, and help customers improve their own experiences. HBR Reprint R1209H
The Internet has given rise to many new forms of advertising. Scientific studies have focused on individual reactions to specific advertising forms in isolation and have offered little guidance for aggregate-level budget allocation decisions, which are typically based on simple rules. This article compares the long-term effectiveness of nine forms of advertising-seven online and two offline-by means of a structural vector autoregressive model and restricted impulse responses. For five product categories, we investigate how these forms of advertising generate traffic, affect conversion, and contribute to revenue. We find that content-integrated advertising is the most effective form, followed by content-separated advertising and firm-initiated advertising. Although online advertising forms have similar power to drive traffic, content integration dominates content separation in the area of progression toward purchase. Last-click attribution underestimates content-integrated activities and suggests online advertising budget allocations that yield 10%-12% less revenue than the status quo, whereas the model's proposed online advertising budget allocation yields a 21% revenue increase over the status quo. These results highlight the payoffs for companies that integrate content into online media.
Although academics and practitioners have embraced customer engagement as a major objective of marketing, the conceptualization and measurement of engagement is challenging. Prior research largely has relied on conventional "one-size-fits-all" measures with a fixed set of scale items. The current, more flexible approach measures engagement based on context-specific experiences that can vary across brands and products. Three studies examining engagement when consuming (a) live jazz music, (b) newspapers, and (c) television programming provided evidence that a flexible approach to measuring engagement can help predict consumer behavior. The third of these studies also provided new evidence that engagement with television programming increases advertising effectiveness.
Brand experience is conceptualized as sensations, feelings, cognitions, and behavioral responses evoked by brand-related stimuli that are part of a brand's design and identity, packaging, communications, and environments. The authors distinguish several experience dimensions and construct a brand experience scale that includes four dimensions: sensory, affective, intellectual, and behavioral. In six studies, the authors show that the scale is reliable, valid, and distinct from other brand measures, including brand evaluations, brand involvement, brand attachment, customer delight, and brand personality. Moreover, brand experience affects consumer satisfaction and loyalty directly and indirectly through brand personality associations.
Managers have widely embraced and adopted the Net Promoter metric, which noted loyalty consultant Frederick Reichheld advocates as the single most reliable indicator of firm growth compared with other loyalty metrics, such as customer satisfaction and retention. Recently, however, there has been considerable debate about whether this metric is truly superior. This article (1) employs longitudinal data from 21 firms and 15,500-plus interviews from the Norwegian Customer Satisfaction Barometer to replicate the analyses used in Net Promoter research and (2) compares Reichheld and colleagues' findings with the American Customer Satisfaction Index. Using industries Reichheld cites as exemplars of Net Promoter, the research fails to replicate his assertions regarding the “clear superiority” of Net Promoter compared with other measures in those industries.
Marketing managers are being required to demonstrate the profitability of their marketing actions down to the level of their individual customers and on an ongoing basis. At the same time, customers expect firms to increasingly customize their products and services to meet their demands. Firms still need to produce superior products, sell smarter, and understand the markets as a whole, but the ability of firms to orient themselves to interact successfully with their individual customers will differentiate them in the future. Advances in technology have resulted in increasing opportunities for interactions between firms and customers, between customers, and between firms. An interaction orientation reflects a firm's ability to interact with its individual customers and to take advantage of information obtained from them through successive interactions to achieve profitable customer relationships. First, the authors identify the components of interaction orientation: (1) customer concept, (2) interaction response capacity, (3) customer empowerment, and (4) customer value management. Second, they relate interaction orientation to both customer-level and aggregate-level performance measures. Third, they identify the antecedents of interaction orientation. Fourth, they examine the moderating effects of customer-initiated contacts and competitive intensity on the interaction orientation–performance linkage. The results are based on a survey of top marketing managers. The commonly held view that customer-based relational performance is related to customer-based profit performance is not supported. However, both customer-based relational performance and customer-based profit performance affect aggregate business-level performance positively. Interaction orientation is a phenomenon observed in both business-to-business and business-to-consumer firms. The extent of customer-initiated contacts moderates the interaction orientation–performance relationship.
Many firms are now using referral marketing campaigns to harness the power of word of mouth and to increase referrals to acquire new customers. Prior research has identified a method of computing the value of referrals using only a customer's actual past referral behavior to compute customer referral value (CRV). In this article, the authors develop and test a new four-step approach to compute CRV. In addition, they determine the behavioral drivers of CRV and then identify the most effective methods of targeting the most promising customers on the basis of their customer lifetime value (CLV) and CRV scores. The authors illustrate and test this approach through four separate field experiments with firms from two industries: financial services and retailing. They find that to maximize profitability, it is critical to manage customers in terms of both their CLV and CRV scores and that understanding the behavioral drivers of CRV can help managers better target the most profitable customers with their referral marketing campaigns.
The authors empirically examine the effect of gas prices on grocery shopping behavior using Information Resources Inc. panel data from 2006 to 2008, which track panelists’ purchases of almost 300 product categories across multiple retail formats. The authors quantify the impact on consumers’ total spending and examine the potential avenues for savings when consumers shift from one retail format to another, from national brands to private labels, from regular-priced to promotional products, and from higher to lower price tiers. They find a substantial negative effect on shopping frequency and purchase volume and shifts away from grocery and toward supercenter formats. A greater shift occurs from regular-priced national brands to promoted ones than to private labels, and among national brand purchasers, bottom-tier brands lose share, midtier brands gain share, and top-tier brand share is relatively unaffected. The analysis also controls for general economic conditions and shows that gas prices have a much larger impact on grocery shopping behavior than broad economic factors.
This article develops a model of a business customer's decision to upgrade service contracts conditional on the decision to renew the contract. It proposes that the firm's upgrade decision is influenced by (1) decision-maker perceptions of the relationship with the supplier, (2) contract-level experiences, and (3) interactions between firm- and contract-level variables. The authors model the firm's decision as a binary logit model with random parameters for the contract-level variables and fixed parameters for the firm-level variables. They estimate the model with data describing more than 2000 service contracts and find that decision-maker satisfaction, service quality, and price have a significant effect on the decision to upgrade; price and satisfaction also moderate the effect of service quality on the decision. Simulations indicate that modest improvements in service quality for a focal contract can have a relatively large, positive effect on the likelihood that the firm will upgrade. The results suggest that suppliers need to manage their firm relationships at both the individual contract level and the overall firm level. In addition, the results suggest specific windows of opportunity for suppliers when firms may be more likely to upgrade to higher-level service contracts.
Marketing theory and practice have focused persistently on exchange between buyers and sellers. Unfortunately, most of the research and too many of the marketing strategies treat buyer-seller exchanges as discrete events, not as ongoing relationships. The authors describe a framework for developing buyer-seller relationships that affords a vantage point for formulating marketing strategy and for stimulating new research directions.
Grocery retailers have been informed that, to remain competitive, they must reduce the number of stockkeeping units (SKUs) offered, in line with consumer demand, or, in other words, adopt “Efficient Assortment.” Retailers have resisted this principle on the basis of a fear that eliminating items would lower consumer assortment perceptions and decrease the likelihood of store choice. In two studies, the authors examine how consumers form assortment perceptions in the face of SKU reduction with a particular emphasis on two heuristic cues: the availability of a favorite product and the amount of shelf space devoted to the category. Results indicate that retailers might be able to make substantive reductions in the number of items carried without negatively affecting assortment perceptions and store choice, as long as only low-preference items are eliminated and category space is held constant. Thus, the potential risk inherent in item reduction might be more limited than initially thought. The authors then discuss the implications of these findings for retailers, as well as additional measurement considerations.
In recent years, academic and practitioner interest has focused on market orientation and factors that engender this orientation in organizations. However, much less attention has been devoted to developing a valid measure of market orientation. Here we define market orientation as the organizationwide generation of market intelligence pertaining to current and future needs of customers, dissemination of intelligence horizontally and vertically within the organization, and organization-wide action or responsiveness to market intelligence. The authors describe a procedure to develop a measure of the construct. Key features of the research methodology include several rounds of pretesting, a single-informant assessment, and a multi-informant (both marketing and nonmarketing executives) replication and extension. The multi-informant results indicate that the proposed 20-item market orientation scale (MARKOR) may be best represented by a factor structure that consists of one general market orientation factor, one factor for intelligence generation, one factor for dissemination and responsiveness, one marketing informant factor, and one nonmarketing informant factor. Taking into account the informant factors, the subsequent validation tests are moderately supportive of the market orientation construct. The authors discuss methodological, substantive, and application directions for future research in light of these findings.
Instead of offering products or services alone, increasingly, firms and their partners are offering consumption systems. Consumption systems are offerings characterized by a significant product and service subsystem, as well as a pattern of consumption in which consumption occurs in multiple episodes over time. The authors develop a theoretical model for conceptualizing satisfaction with consumption systems and empirically test it using longitudinal data from 5206 automobile owners. Results show that an intertemporal examination of attribute-level performance, satisfaction, and behavioral intentions can improve an understanding of their relationships because these relationships change as the consumption of the product unfolds. For example, on the basis of their salience, attribute weights in determining satisfaction shift over time. Furthermore, the crossover effect of product and service satisfaction in determining intentions toward the manufacturer and the service provider is asymmetric, and this asymmetry reverses over time. Service satisfaction initially has a much larger impact in determining intentions toward the manufacturer, but later, product satisfaction is more influential in generating intentions toward the service provider and manufacturer. The results show that there is no direct link between satisfaction and behavioral intentions. Rather, satisfaction affects behavioral intentions in the future through a dual-mediation route.
A typology of service organizations is presented and a conceptual framework is advanced for exploring the impact of physical surroundings on the behaviors of both customers and employees. The ability of the physical surroundings to facilitate achievement of organizational as well as marketing goals is explored. Literature from diverse disciplines provides theoretical grounding for the framework, which serves as a base for focused propositions. By examining the multiple strategic roles that physical surroundings can exert in service organizations, the author highlights key managerial and research implications.
The authors investigate the conceptualization and measurement of service quality and the relationships between service quality, consumer satisfaction, and purchase intentions. A literature review suggests that the current operationalization of service quality confounds satisfaction and attitude. Hence, the authors test (1) an alternative method of operationalizing perceived service quality and (2) the significance of the relationships between service quality, consumer satisfaction, and purchase intentions. The results suggest that (1) a performance-based measure of service quality may be an improved means of measuring the service quality construct, (2) service quality is an antecedent of consumer satisfaction, (3) consumer satisfaction has a significant effect on purchase intentions, and (4) service quality has less effect on purchase intentions than does consumer satisfaction. Implications for managers and future research are discussed.
For consumers, evaluation of a service firm often depends on evaluation of the “service encounter” or the period of time when the customer interacts directly with the firm. Knowledge of the factors that influence customer evaluations in service encounters is therefore critical, particularly at a time when general perceptions of service quality are declining. The author presents a model for understanding service encounter evaluation that synthesizes consumer satisfaction, services marketing, and attribution theories. A portion of the model is tested experimentally to assess the effects of physical surroundings and employee responses (explanations and offers to compensate) on attributions and satisfaction in a service failure context.
A model is proposed which expresses consumer satisfaction as a function of expectation and expectancy disconfirmation. Satisfaction, in turn, is believed to influence attitude change and purchase intention. Results from a two-stage field study support the scheme for consumers and nonconsumers of a flu inoculation.
The marketing discipline has been concerned primarily with GOODS. Yet SERVICES are claiming an increasing share of the consumer's dollar. This author argues that marketing people should direct more of their attention to the services sector.
What are the marketing characteristics of services? Are goods solely goods—services solely services? Is not the marketing of services by government agencies an appropriate province for marketing analysis? These are some of the questions considered here.
Relationship marketing—establishing, developing, and maintaining successful relational exchanges—constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
This paper defines hedonic consumption as those facets of consumer behavior that relate to the multisensory, fantasy and emotive aspects of product usage experience. After delineating these concepts, their theoretical antecedents are traced, followed by a discussion of differences between the traditional and hedonic views, methodological implications of the latter approach, and behavioral propositions in four substantive areas relevant to hedonic consumption—mental constructs, product classes, product usage and individual differences. Conclusions concern the usefulness of the hedonic perspective in supplementing and extending marketing research on consumer behavior.
Although industrial market research has generated large data banks on organizational buyers, very little from the existing data seems helpful to management. What is needed before more data is collected is a realistic conceptualization and understanding of the process of industrial buying decisions. This article integrates existing knowledge into a descriptive model to aid in industrial market research.
Article can be found here - https://www.jagsheth.com/consumer-behavior/a-model-of-industrial-buyer-behavior/
The development and selection of research designs too often reflects thinking which is technique-oriented. This article looks at advertising research from another viewpoint.
It starts with the questions: What is advertising supposed to do? What are its functions? The authors then show the implications of these questions in relation to measurements of the effectiveness of proposed advertisements.
Recent research has identified attitude toward the ad (AAd) as an important construct mediating the effects of advertising on brand attitude and purchase intention. To date, however, little attention has been directed toward explaining the origins of AAd. The authors present the latest version of a theory of AAd formation, report the results of an empirical test of a portion of that theory, and offer further refinements to the theory based on the observed results. Implications of the findings for advertising practice are discussed.
The authors highlight the need for and develop a framework for engagement by reviewing the relevant literature and analyzing popular- press articles. They discuss the definitions of the focal constructs-customer engagement (CE) and employee engagement (EE)in the engagement framework, capture these constructs' multidimensional, and develop and refine items for measuring CE and EE. They validate the proposed framework with data from 120 companies over two time periods, and they develop strategies to help firms raise their levels of CE and EE to improve performance. They also observe that the influence of EE on CE is moderated by employee empowerment, type of firm (business-to- business [B2B] vs. business-to-consumer [B2C]), and nature of industry (manufacturing vs. service); in particular, this effect is stronger for B2B (vs. B2C) firms and sen/ice (vs. manufacturing) firms. The authors find that although both CE and EE positively influence firm performance, the effect of CE on firm performance is stronger. Furthermore, the effect of CE and EE on performance is enhanced for B2B (vs. B2C) and for service (vs. manufacturing) firms.
To foster customer relationships, firms have implemented so-called loyalty programs (LPs). These programs provide monetary benefits (e.g. through direct discounts or rewards) and/or more soft benefits by focusing on creating commitment to the firm among customers through excellent service or giving special treatment to customers. In this chapter, we present a framework of three mechanisms underlying the LP effect. Next, we incorporate a discussion of relatively under-researched areas, such as reward redemption effects and so-called short-term LPs. We discuss models that can be used to examine LP effects and to analyze customer data to support marketing decisions. Finally, we provide a discussion on emerging topics in LPs, specifically addressing increasing digitalization, empowered customers, and the prevalence of big data. We conclude with a discussion on some pressing research questions.
"We need to deliver a great customer experience.' How often have you heard these or similar statements? And how often has a manager given a clear and meaningful definition of what a great customer experience (CX) actually is, or even proposed an idea about how to accurately measure it? In many organizations CX has become a meaningless buzzword, a vague and ephemeral 'theory of everything' that fails to deliver on its promise to drive improved performance. So why is CX so hard to pin down? It focuses on customers' value-in-use and so blurs traditional distinctions between products and services, and it exists in emotional and instinctive responses rather than rational and cognitive choices. But, as Professor Phil Klaus argues, although it may be hard, it's not impossible. And it is essential. If you can't measure it you can't manage it - but how can you hope to measure it if you can't even define it? If you're serious about measuring customer experience (and you should be) you need to define it in hard measureable terms that are connected to consumer behavior and firm performance. Blending the findings of rigorous scientific research from a multitude of global studies with practical tools and techniques developed and tested in the real-world, Measuring Customer Experience shows you how to really focus in on what parts of the customer experience drive behavior and, ultimately, business profits.
One of the most important tasks in marketing is to create and communicate value to customers to drive their satisfaction, loyalty, and profitability. In this study, the authors assume that customer value is a dual concept. First, in order to be successful, firms (and the marketing function) have to create perceived value for customers. Toward that end,marketers have to measure customer perceived value and have to provide customer perceptions of value through marketing-mix elements. Second, customers in return give value through multiple forms of engagement (customer lifetime value, in the widest sense) for the organization. Therefore, marketers need to measure and manage this value of the customer(s) to the firm and have to incorporate this aspect into real-time marketing decisions. The authors integrate and synthesize existing findings, show the best practices of implementation, and highlight future research avenues.
The authors provide a critical examination of marketing analytics methods by tracing their historical development, examining their applications to structured and unstructured data generated within or external to a firm, and reviewing their potential to support marketing decisions. The authors identify directions for new analytical research methods, addressing (1) analytics for optimizingmarketing-mix spending in a data-rich environment, (2) analytics for personalization, and (3) analytics in the context of customers' privacy and data security. They review the implications for organizations that intend to implement big data analytics. Finally, turning to the future, the authors identify trends that will shape marketing analytics as a discipline as well as marketing analytics education.
Our newly digital world is generating an almost unimaginable amount of data about all of us. Such a vast amount of data is useless without plans and strategies that are designed to cope with its size and complexity, and which enable organisations to leverage the information to create value. This book is a refreshingly practical, yet theoretically sound roadmap to leveraging big data and analytics. Creating Value with Big Data Analytics provides a nuanced view of big data development, arguing that big data in itself is not a revolution but an evolution of the increasing availability of data that has been observed in recent times. Building on the authors' extensive academic and practical knowledge, this book aims to provide managers and analysts with strategic directions and practical analytical solutions on how to create value from existing and new big data. By tying data and analytics to specific goals and processes for implementation, this is a much-needed book that will be essential reading for students and specialists of data analytics, marketing research, and customer relationship management. © 2015 Peter C. Verhoef, Edwin Kooge and Natasha Walk. All rights reserved.
How a company views its markets determines what it produces, how it takes those products to market, who it believes its competitors are, and how large it believes its market opportunities are. Most companies segment along lines defined by the characteristics of their products or customers because that is the most accessible data. But these are poor indicators of customer behavior because this is not how markets are structured from the customer's perspective. Customers simply need to get things done. These situational needs for which customers are looking to "hire" products or services go unnoticed during traditional market research and segmentation. As a result, the true breadth of competition often goes unnoticed too. Using examples from the fast-food industry, furniture retailing, the automobile industry and health care, and citing a wide variety of companies and brands, this article describes the benefits reaped when executives segment their markets by job (for example, the risk and cost of innovation are minimized), the methods that those involved in marketing and new-product development can use to identify the job-based structure of a market, and how the details of business plans can be made more coherent and focused when innovators understand the job to be done.
Electronic word-of-mouth (eWOM) is often tracked in volume and valence metrics, but the topic of conversation may vary from the brand to its advertising to purchase statements. How do these different topics affect company performance? And which specific marketing communication (online, TV, radio, print) obtains most of its performance impact by stimulating eWOM topics? This paper quantifies the dynamic interactions among marketing, eWOM content, search, and online and offline store traffic for an apparel retailer. While it yields a similar online store traffic lift, advertising-related eWOM yields only half the offline store traffic lift of brand-related eWOM and of neutral eWOM about purchasing at the retailer. Paid search shows the highest elasticity in stimulating online conversations, but drives less business than offline marketing actions. While TV is the main paid driver of online store traffic, print is the main paid driver of offline store traffic for the studied retailer. Over a third of the offline store traffic effects materialize indirectly through eWOM and organic search. To avoid undercounting the benefits of paid marketing, managers should therefore track how their actions induce specific eWOM content metrics and how much these in turn drive performance.
The notion that companies must go above and beyond in their customer service activities is so entrenched that managers rarely examine it. But a study of more than 75,000 people interacting with contact-center representatives or using self-service channels found that over-the-top efforts make little difference: All customers really want is a simple, quick solution to their problem. The Corporate Executive Board's Dixon and colleagues describe five loyalty-building tactics that every company should adopt: Reduce the need for repeat calls by anticipating and dealing with related downstream issues; arm reps to address the emotional side of customer interactions; minimize the need for customers to switch service channels; elicit and use feedback from disgruntled or struggling customers; and focus on problem solving, not speed. The authors also introduce the Customer Effort Score and show that it is a better predictor of loyalty than customer satisfaction measures or the Net Promoter Score. And they make available to readers a related diagnostic tool, the Customer Effort Audit. They conclude that we are reaching a tipping point that may presage the end of the telephone as the main channel for service interactions and that managers therefore have an opportunity to rebuild their service organizations and put reducing customer effort firmly at the core, where it belongs.