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Transcript of Customer Engagement Behavior: Theoretical Foundations and Research Directions Author - Jenny van...
Customer Engagement Behavior: Theoretical Foundations and Research Directions
Author - Jenny van Doorn1, Katherine N. Lemon2, Vikas Mittal3,Stephan Nass4, Doreen Pick5, Peter Pirner6, and Peter C. Verhoef1
Resource -Journal of Service Research, 2010
Professor - Soe-Tsyr Yuan
Presenter – Wayne Yang
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Agenda
Background and Scope
Conceptual Model of Customer Engagement Behavior Definition of CEB Dimension of CEB Model
Temporal Aspects OF CEB
CEB management
Conclusion
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Background
1. CEOs are becoming wary of value-creating antics of financial managers who rely on techniques such as leveraging and financial restructuring (Aksoy et al. 2008; de Ruyter and Wetzels 2000).
2.Marketing scholars have begun to focus on customer-based metrics for measuring organizational performance.
=>Sustaining and nurturing the customer base may require the firm to look beyond repurchase behavior alone.
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Scope
We seek to provide customer engagement behaviors (CEBs) as a construct, more than that a way of thinking, to capture how and why customers behave in numerous ways that are relevant to the firm and its multiple stakeholders.
Our approach provides a unifying framework to think about the numerous customer behaviors that have previously been examined on a piecemeal basis.
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Conceptual Model of Customer Engagement Behavior-Defining CEB
We posit that customer engagement behaviors go beyond transactions, and may be specifically defined as a customer’s behavioral manifestations that have a brand or firm focus
The behavioral manifestations, other than purchases, can be both positive and negative.
Customer engagement also encompasses customer co-creation.
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Conceptual Model of Customer Engagement Behavior-Defining CEB
Customer engagement also embodies the exit and voice components of Hirschman’s (1970) classic model.
brand engagement as ‘‘an individual difference representing consumers’ propensity to include important brands as part of how they view themselves’’ (p. 92). (a) self-brand connection (b) customer-brand relationships
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Conceptual Model of Customer Engagement Behavior-Dimensions of CEB
1.Valence, from a firm’s perspective customer engagement can be classified as positive or negative (Brady et al. 2006).
2. The form and modality of customer engagement refers to the different ways in which it can be expressed by customers. type of resources (e.g., time vs. money) in-role behaviors, extra-role behaviors, and elective behaviors. Another way to understand the scope of customer
engagement is the type of firm/brand level outcomes that customers achieve.
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Conceptual Model of Customer Engagement Behavior-Dimensions of CEB
3. scope—temporal and geographic.
4.The impact of CEBs on the firm and its constituents can be conceptualized in terms of the immediacy of impact, intensity of impact, breadth of impact, and the longevity of the impact.
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Conceptual Model of Customer Engagement Behavior-Dimensions of CEB
5.It is also helpful to consider the customer’s purpose when engaging, focusing on three questions: to whom is the engagement directed, to what extent is
the engagement planned? to what extent are the customer’s goals aligned with the
firm’s goals? Is the customer’s behavior directed at the firm or some
other constituent (such as government regulator, investors, customers, or competitors)?
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Conceptual Model of Customer Engagement Behavior-Customer-Based Factors Affecting CEB
Satisfaction
Trust/commitment
Identity
Consumption goals (ex: getting the best deal during vacation)
Resources (ex: time, money)
Perceived costs/benefits
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Conceptual Model of Customer Engagement Behavior-Firm-Based Factors Affecting CEBs
Brand characteristics
Firm reputation
Firm size/diversification
Firm information usage and processes Ex: Google and Apple
Industry
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Conceptual Model of Customer Engagement Behavior-Context-Based Factors Affecting CEB
Competitive factors Ex: comparative ad
P.E.S.T. Political (ex: encouraging or inhibiting information flow) Economic/environmental (ex: earthquake) Social (ex: media) Technological
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Conceptual Model of Customer Engagement Behavior-The Moderating Role of Antecedents
We posit that different antecedents can also moderate the effect of each other on CEBs.
While many of these factors can directly affect CEBs, it is important to understand and consider the idea that these factors can interact with each other to jointly affect CEBs.
Clearly, theoretical and empirical work in this area is necessary to further develop this idea.
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Conceptual Model of Customer Engagement Behavior-Consequences for Customers
Cognitive (WIKI: cognition is a group of mental processes that includes attention,
memory, producing and understanding language, learning, reasoning, problem solving, and decision making.)
Attitudinal (WIKI: An attitude can be defined as a positive or negative evaluation of people,
objects, event, activities, ideas, or just about anything in your environment)
Emotional
Physical/Time ex: time, money, and effort
Identity ex:biker
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Conceptual Model of Customer Engagement Behavior-Consequences for Firms
Financial ex: referral may cause more buying
Reputational
Regulatory ex: often negative experience
Competitive
Employee ex: suggestions from customers
Product ex: co-create
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Conceptual Model of Customer Engagement Behavior-Other Consequence
Consumer welfare ex: customer complaints
Economic surplus
Social surplus
Regulation ex: customer complaints
Cross-brand/Cross-customer utilization of information in the public domain can affect
the entire industry.
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Temporal Aspects OF CEB-CEB Development Over Time
While commitment gradually develops in a relationship, passion usually occurs at the start of the relationship and may subsequently diminish and occur irregularly.
Ex: WOM, House, Services
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Temporal Aspects OF CEB-Factors Affecting CEB Over Time
the main factors affecting CEB over time is the change in a customer’s relative dependency on the particular product or service category. Ex: health care
One might also argue that the relative importance of attitudes influencing CEBs may change during the course of the relationship with a firm. Ex: Verhoef, Franses, and Hoekstra (2002) did not find any
evidence for a moderating effect of relationship age on the effect of relational attitudes
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Temporal Aspects OF CEB-Factors Affecting CEB Over Time
Changes in the level of dependency may also affect the customers’ sensitivity to positive or negative disconfirmation based on performance outcomes. Ex: finance crisis
In many cases, particularly for services or durable goods, customers have multiple experiences with the same brand over time. As the relative quality of the experience changes, so does the likelihood of CEBs. Negative + Negative = more negative
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Temporal Aspects OF CEB-Changes in Context
Changes in the customer and firm context can affect the level of CEBs over time, such as the available engagement options and costs of engagement.
Ex: Blockbuster vs. Netflix
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Managing CEB
Step 1: Identifying Engagement Behaviors and Customers
Step 2: Evaluating Engagement Manifestations Ex: CEB scorecard
Step 3: Acting on Customers’ Engagement Behavior Ex: listen carefully for the negative feedback
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Conclusion
Provide a simple model for CEB for further research and for practical usage.
Give a practical step-by-step map to manage the CEB
Using verb at the topic
There are still many ground need further research. such as, interaction between antecedent factors, many managerial issues - a more systematic way to identify CEB
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Q&A
AeSL, Ambient e-Service Lab
Please visit our website:http://www.aesl.nccu.edu.twResearch Topics: SOA & SSME (service science)
64, Sec. 2,Zhi-nan Rd., Wenshan, Taipei 116, Taiwan, Republic of China,Commerce Building 5F