We develop a framework to facilitate customer engagement in service (CES) based on the service-dominant (S-D) logic. A novel feature of this framework is its applicability and relevance for firms operating both in developed and emerging markets. First, we conduct a qualitative study involving service managers from multinational companies (MNCs) across the developed and emerging markets to understand the practitioner viewpoints. By integrating the insights from the interviews and the relevant academic literature, this framework explores how interaction orientation and omnichannel model can be used to create positive service experience. We also identify the factors that moderate the service experience, and categorize them as follows: offering-related, value-related, enabler-related, and market-related. Further, we also propose that perceived variation in service experience moderates the influence of service experience on satisfaction and emotional attachment, which ultimately impacts customer engagement (CE). From these factors, we advance research propositions that discuss the creation of positive service experience. One of the study's key contributions is that MNCs can focus their attention on the moderators to ensure consistency in positive service experience, in an effort to enhance CE.
Purpose – This paper aims to investigate customers’ motivations and the decision-making process when choosing a channel in a “social” multichannel environment that includes social media channels, and the complementary and competitive effects compared to traditional channels within the multichannel strategy of a major European telecoms provider. A conceptual framework of multichannel customer behaviour in a “social” multichannel environment is proposed. Design/methodology/approach – The study adopts an exploratory approach through 74 semi-structured interviews with customers of a major European telecoms provider who have also used social media channels to contact the company (customer-initiated contact, CIC). Findings – Users of distinct social media channels are driven by different motivations. For instance, the social motivation for using social media is evident for Facebook users, while Twitter users are mainly driven by utilitarian considerations. Although users of different social media channels represent distinct segments in terms of behaviours and motivations, complementary effects among channels (new and traditional) are generally detected in the sense that a better customer experience is driven by the presence of multiple channels. Research limitations/implications – Data collection was performed for only one company in one industry and should be extended to other industries, although our results were confirmed by discussions with social media managers of other companies. Practical implications – The research offers suggestions to develop multichannel strategies in a “social” multichannel environment. Originality/value – This study advances knowledge in the multichannel management field by investigating why and how customers utilize channels in a multichannel environment that includes social media channels. The authors develop a conceptual framework of multichannel customer behaviour for CIC in a “social” multichannel environment.
Many firms have experienced greater success through implementing relationship marketing strategies. This is achieved by gaining knowledge about their own customers through database marketing and about the general marketplace through marketing research. Over time, this has led firms to adopt a general framework which we call the conventional path to profitability. This conventional framework suggests that new product innovation leads to acquisition, acquisition combined with a rich experience leads to satisfaction, satisfaction leads to loyalty and customer retention, and loyalty/retention leads to profitability. However, we show that some of the links in the framework are weak based on both academic research and marketplace realities. Consequently, we reverse the logic of the conventional path to profitability. We introduce a new approach that starts the customer relationship management strategy with customer profitability and the notion that different customers should be rewarded and satisfied differently. In addition, we outline a strategy that relationship marketing firms can implement, leading to higher levels of customer profitability and offer directions for future research.
Purpose The purpose of this paper is to present a multichannel segmentation approach to identifying customer segments based on actual customer channel usage in the post-purchase phase in the health insurance industry. Design/methodology/approach A multinomial regression model and count regression models were estimated to describe the profiles of customer segments and the frequency of channel usage based on generations and sociodemographic variables. Findings This study identified generational differences in channel usage. Single female customers from the Pre-Boomer or Baby Boomer generation and customers living in states with lower incomes are more likely to use call centres. Website users tend to live in regions with higher per capita income. Multichannel users are, on average, more frequent users of both the website and call centres. In terms of sociodemographics, they display a more heterogeneous profile. Research limitations/implications The proposed segmentation needs to be enriched with additional variables such as customers’ health status or channel usage motivations. Practical implications Customers, who are male, married and from Generations Y and X, are more likely to use the website. Their propensity to switch to a digital channel could be investigated further to develop targeted migration strategies. Multichannel users are, on average, more frequent users of all channels. To avoid increased channel costs, segments should be analysed in terms of their size and profit potential to help allocate marketing investment more efficiently. Originality/value As opposed to existing research, the proposed segmentation approach is based on transactional data of channel usage from a real company, combined with analyses using generations and sociodemographic variables.
The scope of this paper is to propose an integrated strategy to support the decision process of a semiconductor company interested in entering a new market and launching a new product in the biotech industry. The complexity of the environment and the high numbers of factors involved, leads to the conclusion that the traditional tools and models of the strategic management are not enough to analyse fully the market and to elaborate a winning strategy. For this reason an integrated approach is developed, which is able to combine elements coming from different perspectives through the introduction of new ones. The proposed approach is then applied to a real situation.
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