Theme E: Consumer participation 1

Question 1

Relationship marketing

Answer 1

It is ‘the establishment and maintenance of long-term buyer-seller relationships”.

Question 2

Relationship marketing capabilities

Answer 2

• Data collection and access
• Product and service customization
• Customer service procedures
• Multi-channel customer interactions
• Customer retention

Question 3

Relationship development

Answer 3

Established consumer behavior constructs for a positive customer and firm outcomes.

Question 4

Customer outcome

Answer 4

1. Dis/satisfaction
2. Loyalty - brand attitudes and repeat purchase
3. WOM recommendation / advocacy

Question 5

Firm outcome

Answer 5

CLV, sales/profit, customer retention

Question 6

Satisfaction is …

Answer 6

• A post-purchase evaluation of a service offering, or judgment following a consumption experience.
• It focuses on a single event or cumulative experience.
• It is a process extending across the entire consumption experience.

Question 7

Expectations exist at four levels

Answer 7

• General e.g. service standards in USA
• Category/product class e.g. package holidays
• Brand e.g. Club Med, Thompson, Crystal
• Transaction - e.g. two weeks in Italian Lakes

Question 8

Disconfirmation theory assumes that …

Answer 8

Consumer (dis)satisfaction results from a positive or negative discrepancy between the performance and the expectations of a good or service.

Question 9

Consumption emotions

Answer 9

Accounts for emotional dimensions of experience that feed into satisfaction judgments

Question 10

The expectations can come from

Answer 10

company’s communication, external party review, etc.

Question 11

Positive emotions (and ambivalence)

Answer 11

Contentment, Pleasure, Delight, Relief, Ambivalence (remarkable experience)

Question 12

Negative emotions (and attribution)

Answer 12

• Blame provider: anger, disgust, contempt
• Blame circumstances: sadness, fear
• Blame self: shame, guilt

Question 13

Purpose of customer satisfaction evaluation

Answer 13

• Overall satisfaction tracking in organizational performance, management, and staff rewards.
• Predict future customer behaviour, profitability, business growth.
• Identify service elements for investment
• Understand reasons for dis/satisfaction with service elements (across the customer journey)

Question 14

2 tools to measure Satisfaction as a Marketing Performance Metric

Answer 14

Single-item scales and Multi-item scales

Question 15

Single-item scales

Answer 15

Typically used as a general measure – cumulative or situation-specific. (ex: rate Skype call)

Question 16

Weakness of single-item scales

Answer 16

• Inconsistent interpretation by consumer.
• Scores are typically skewed.
• Weak relationship with loyalty (only 50% of ppl rate as good will reuse product)

Question 17

Strength of NPS

Answer 17

• Consistent interpretation by consumer.

- Strong relationship with loyalty and growth.

Question 18

Multi-item scales

Answer 18

Cover dimensions of product/service and/or elements of the service process.

Question 19

Three main types of Multi-item scales include

Answer 19

Satisfaction scales, Performance scales, Disconfirmation scales

Question 20

Satisfaction scales …

Answer 20

(dissatisfied to satisfied)

measures satisfaction, but does not examine its antecedents

Question 21

Performance scales …

Answer 21

(poor, fair, good, excellent)

is not synonymous with satisfaction. Neglects the role of expectations.

Question 22

(Dis)confirmation scales

Answer 22

(worse than expected to better than expected)

• Compresses the expectations – performance measure => more concise
• Good predictor of satisfaction and loyalty

Question 23

Semantic differential scales are …

Answer 23

(dirty - clean, warm - cold)

Measure attitude towards object or event by selecting an appropriate position on a scale between two bipolar adjectives.

Question 24

Performance and expectation scales

Answer 24

is too long and detailed, so consumers get fed up

Question 25

The Importance - Performance Matrix

Answer 25

evaluates service quality and customer satisfaction basrf on high importance and performed attributes.

Question 26

Zones of Tolerance Chart

Answer 26

Service quality perceptions relative to zones of tolerance

Question 27

The Consequences of Satisfaction and Dissatisfaction

Answer 27

- Continued patronage/Increased loyalty - Twist (positive and negative ways in restructuring meanings, roles and objects in the marketplace / attitude change and; dissonance reduction) - Voice (positive WOM or complaining) - Exit

Question 28

Customer satisfaction is contributed by ..

Answer 28

Expectations, Evaluations of performance and Consumption emotions.

Question 29

How to decide which measure satisfaction?

Answer 29

- The intention to use the insight | - Based on good understanding of strength/limitation of each approach

Question 30

Behavioural indicators

Answer 30

- frequency of purchase - % of spend in product category - probability of repeat patronage - monetary value & profitability of purchases - multiple aspects of purchase behaviour - WOM recommendations

Question 31

Attitudinal indicators (affective and cognitive aspects)

Answer 31

- brand preference - brand credibility (expertise, trust, likability) - brand commitment

Question 32

Benefits of data-driven services marketing (Kumar et al., 2013)

Answer 32

improved fact-based decision making and further developed analytical capabilities

Question 33

Three types of data (Kumar et al., 2013)

Answer 33

- Neurophysiological: eye tracking, electrocardiography, skin conductance response. - Traditional: focus group, surveys, transactions, product review, experiments, unstructured/structured interviews, observations. - Digital: search queries, clickstream, social media, blogs, community forums, incentivized referrals

Question 34

Forward-looking metrics

Answer 34

Since old metrics assume the future customer purchasing behaviour is the same as past ones, there's a need for forward-looking metrics. Ex: CLV, expected churn rate, expected SoW, expected service failure, and recovery rate.