Nomological validity of the Net Promoter Index question

Birgit Leisen Pollack (Department of Marketing and Supply Chain Management, University of Wisconsin Oshkosh, Oshkosh, Wisconsin, USA)
Aliosha Alexandrov (Department of Marketing and Supply Chain Management, University of Wisconsin Oshkosh, Oshkosh, Wisconsin, USA)

Journal of Services Marketing

ISSN: 0887-6045

Publication date: 24 May 2013

Abstract

Purpose

The purpose of this study is twofold. First, it aims to provide a review of the Net Promoter© Index (NPI), the evidence of its ability to predict financial performance, and the evidence of its superiority to other voice of customer metrics. Second, it seeks to investigate the nomological validity of the Net Promoter question. It aims to view the NP question as an alternative to the traditional word-of-mouth measure, which is one of the components of customer loyalty. The nomological validity of NP was evaluated in a model including customer satisfaction as an antecedent and repurchase intention as a consequence.

Design/methodology/approach

The data for empirically addressing a set of hypotheses related to the nomological validity were collected via self-administered questionnaire. A total of 159 participants completed questions for banking services, 153 individuals completed questions for hairdresser/barber services, and 132 completed questions for cell phone services. The hypotheses were tested using partial least square analysis.

Findings

The results provide evidence for the nomological validity of the NPI question; albeit, the traditional word-of-mouth measure seems to perform equally as well or even better.

Practical implications

A set of pros and cons related to NPI are developed. The paper recommends including the NPI in a portfolio of voice of customer metrics but not as a standalone diagnostic tool. Further, given the present state of evidence, it cannot be recommended to use the NPI as a predictor of growth nor financial performance.

Originality/value

The paper provides further insights into the validity of the Net Promoter Index as a measure of customer loyalty.

Keywords

Citation

Birgit Leisen Pollack and Aliosha Alexandrov (2013) "Nomological validity of the Net Promoter Index question", Journal of Services Marketing, Vol. 27 No. 2, pp. 118-129

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DOI

: https://doi.org/10.1108/08876041311309243

Publisher

:

Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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