Performance measurement and customer satisfaction Flashcards
Describe the paper:
Harmeling, C. M., Palmatier, R. W., Houston, M. B., Arnold, M. J. and Samaha, S. A. (2015). Transformational relationship events. Journal of Marketing,
Summary:
The article explores the concept of transformational relationship events (TREs), which are encounters between exchange partners that significantly disconfirm relational expectations. The authors differentiate between incremental and dramatic exchange events, providing a foundation for understanding their effects on relationship development. They also identify the potential risks and benefits of TREs and provide insights into strategies for managing them.
Results:
The authors found that TREs have a significant impact on the trajectory of the relationship, often leading to discontinuous change and reformulation of the relationship itself. Positive TREs can enhance the relationship and increase customer involvement, while negative TREs can lead to betrayal and retaliation. The authors also found that financial compensation is not an effective strategy for mitigating the negative effects of TREs, but a sincere apology can be effective in managing the initial sensemaking and repairing some perceptions of the partner’s integrity and intentions.
Managerial Implications:
The authors suggest that businesses should be aware of the potential risks and benefits of TREs and develop strategies for managing them. They recommend that businesses leverage positive TREs to enhance their relationships with customers and increase their involvement. They also suggest that businesses should be prepared to respond to negative TREs with a sincere apology that includes remorse, taking responsibility, willingness to make restitution, and a promise to change. The authors emphasize the importance of managing the initial sensemaking to help shape a customer’s relationship narrative and repair some perceptions of the partner’s integrity and intentions.
Eksta:
* Larger impact of negative TREs compared to positive (2-3 times higher)
* Communication and information sharing ease negative TREs and enhance the positive TREs
* An apology can save the relationship
* Financial compensation has no impact!
Explain what illustrative measures there are on ‘distribution’
- Sales, expenses, and contribution by channel type
- Sales and contribution margin by intermediary type and individual intermediaries
- Sales relative to market potential by channel, intermediary type, and specific intermediaries
- Expense-to-sales ratio by channel
- Logistics cost by logistics activity by channel
Explain what illustrative measures there are on ‘Product’
Sales by market segments
Sales relative to potential
Sales growth rates
Market share
Contribution margin
Percentage of total profits
Return on investment
Explain what illustrative measures there are on ‘Communication’
Advertising effectiveness by media type
Actual audience/target audience ratio
Cost per contact
Number of calls, inquiries, and information requests by media type
Dollar sales per sales call
Sales per territory relative to potential sales
Selling expenses to sales ratios
What are the critisism of measuring?
- Measures (and rewards) are external motivators - substitute for internal motivators
- Internal motivators (Sense, want to do a good job, social relations) are more effective
- Potentially hindering creativity, responsibility feeling and new thinking unwanted behavior (short term)
- ”Perverse learning” (Gupta & Meyer 1994)
- ”Easy” approach to manage people
Explain the Kano Model
Dissatisfiers (Must be):
- Ordering
- After sales service (complaints and help)
Satisfiers (Performance):
- Sales support
- Delivery
Delighters (Attractive):
- Marketing communication
- Sales force
Explain what TRE’s are?
TRE stands for ‘Transformational Relationship Event’. It refers to encounters between exchange partners that significantly disconfirm relational expectations, either positively or negatively.
Explain ‘disconfirmation’
Disconfirmation refers to the process of encountering information or experiences that contradict or challenge one’s existing expectations or beliefs. In the context of relationships, disconfirmation occurs when an event or interaction deviates from what was anticipated or expected. This can include both positive and negative disconfirmations.
