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Article
Publication date: 25 December 2020

Laura Lucia-Palacios, Raúl Pérez-López and Yolanda Polo-Redondo

The aim of this paper is to examine the effects of the disconfirmation of expectations of crowding and mall accessibility, on stress and two marketing outcomes…

Abstract

Purpose

The aim of this paper is to examine the effects of the disconfirmation of expectations of crowding and mall accessibility, on stress and two marketing outcomes, satisfaction and promoter scoring.

Design/methodology/approach

Data were obtained through two face-to-face surveys from mall shoppers that answered them at two different moments of their shopping experience, before entering the mall and before leaving it. Results are obtained from 230 customers that answered the two questionnaires.

Findings

The findings suggest that stress indirectly influences customer promoter scoring through satisfaction, while disconfirmation of expectations influences it directly and indirectly.

Practical implications

These results also suggest that stress and disconfirmation of expectations about crowding and accessibility are important in determining promoter scoring. To reduce stress and increase satisfaction and promoter scoring, managers should focus on exceeding customers' expectations about mall accessibility and on ensuring that customers experience a lower level of crowding than they expected.

Originality/value

The article examines Net Promoter Scoring, an outcome that has attracted managers' attention but little is known about its antecedents. The paper provides evidence of the effect of disconfirmation of expectations and negative emotions on promoter scoring.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 5
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 4 September 2017

Raid A. Jastania, Gehan F. Balata, Mohamed I.S. Abd El-Hady, Ahmad Gouda, Mohamad Abd El-Wahab, Abeer Temraz, Nashwa M. Ibrahim, Eman Beshr, Abeer Y. Mahdi, Rabab Mousa, Batool F. Tag, Hadeel Hisham and Ibtehal El-Sofiani

For any educational institution, student satisfaction is an important goal. Thus, the purpose of the study is to use a structured improvement process…

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1074

Abstract

Purpose

For any educational institution, student satisfaction is an important goal. Thus, the purpose of the study is to use a structured improvement process, define–measure–analyse–improve–control (DMAIC) methodology, to improve students’ satisfaction regarding their learning experience at the College of Pharmacy/Umm Al-Qura University.

Design/methodology/approach

The study first defines the problem and develops the project charter. Then the study visualizes the students’ learning experience process that is defined using a flow chart and a value stream map. Students’ voices were captured through a modified version of a survey developed by Levitz (2015-2016) that covered different aspects of the students’ learning experience. Next, Pareto analysis and cause-and-effect diagrams were used to identify the few vital factors affecting students’ satisfaction. The net promoter score was chosen as a primary metric to measure students’ satisfaction regarding their learning experience.

Findings

The analysis results revealed that there were eight areas of dissatisfaction: poor catering services, improper physical environment, students’ feedback being overlooked, inappropriate measures for course delivery, absence of appropriate advice about future career, inefficient field experience and finally and poor academic support. Based on these results, an improvement plan was prepared and the first stage of the plan was implemented. The success of the plan was investigated by measuring the net promoter score which was increased by about 11.9 per cent after implementation of the first stage of the plan.

Originality/value

The study emphasizes that the DMAIC methodology can be applied successfully to improve students’ learning experience and to discover additional value for students.

Details

Quality Assurance in Education, vol. 25 no. 4
Type: Research Article
ISSN: 0968-4883

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Article
Publication date: 4 March 2014

Kai Kristensen and Jacob Eskildsen

In 2003 Reichheld published an article in HBR, in which he claims that the net promoter score (NPS), is the only number you need to grow, and the only number you need to…

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3551

Abstract

Purpose

In 2003 Reichheld published an article in HBR, in which he claims that the net promoter score (NPS), is the only number you need to grow, and the only number you need to manage customer loyalty. The purpose of this paper is to demonstrate that the NPS is inferior to the standard measures of loyalty used by the American Customer Satisfaction Index (ACSI) and EPSI rating.

Design/methodology/approach

In 2006 a customer satisfaction survey of the entire insurance sector in Denmark was conducted. The survey design was based on the questionnaires from EPSI rating and ACSI supplemented with insurance-specific questions, consumer sentiment questions and the basic Net Promoter Question. The sample consists of approximately 2,000 observations.

Findings

The analyses presented in this paper show that the NPS it not what it claims to be: the one number you need to grow. The NPS is found to be a very poor predictor of both customer loyalty and customer satisfaction. The measure is very sensitive to changes in the underlying distribution, and finally the precision of the NPS was found to be low compared to other measures of loyalty, and it is not possible to predict the NPS categorization and hence it is hard to say precisely, how organizations can influence corporate growth based on the NPS.

Research limitations/implications

The analysis is only conducted on data collected in a Danish business-to-consumer setting. More research is needed to shed light on the performance of the NPS across cultures as well as in a business-to-business setting.

Practical implications

The paper demonstrates the dangers of using the NPS as an input to managerial decision making. Organizations are far better off using a standard customer loyalty measure such as those employed by the ACSI or EPSI instead of the NPS.

Originality/value

Previous studies of the NPS have not replicated the methodology directly. Either there have been differences in scale length or in wording. The authors have constructed an experiment in the Danish insurance industry that answers some of the questions concerning the NPS without the shortcomings that most of the previous studies have suffered from.

Details

The TQM Journal, vol. 26 no. 2
Type: Research Article
ISSN: 1754-2731

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Article
Publication date: 24 May 2013

Birgit Leisen Pollack and Aliosha Alexandrov

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…

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1575

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.

Details

Journal of Services Marketing, vol. 27 no. 2
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 9 February 2021

Dyah Puspitasari Srirahayu, Esti Putri Anugrah and Khoirotun Layyinah

This study aims to determine the NPS score of state academic libraries users in Indonesia, the relationship between user loyalty and NPS scores and the relationship…

Abstract

Purpose

This study aims to determine the NPS score of state academic libraries users in Indonesia, the relationship between user loyalty and NPS scores and the relationship between user satisfaction with NPS.

Design/methodology/approach

The method used in this research is quantitative explanatory method, which surveyed the relationship between satisfaction, loyalty and NPS variables based on the development of previous studies and existing theories. The population in this study were students visiting the state university library in Surabaya, Indonesia, namely Library A, Library B, Library C and Library D. The total number of samples taken was 200 divided equally to each of the universities, with 50 respondents respectively. Data collection was done with a questionnaire.

Findings

The Result shows that NPS value for academic library in Indonesia was 8. (1) The probability value of satisfaction with NPS is 0.18 (greater than 0.01) so H1 is rejected, meaning that satisfaction has no significant effect on NPS, (2) The probability value of satisfaction with loyalty is < 0.01 so that H0 is accepted. This means that satisfaction has a significant effect on loyalty and (3) The probability value of loyalty to NPS is < 0.01 so that H0 is accepted. This indicates that loyalty has a significant effect on NPS.

Research limitations/implications

To get user satisfaction, libraries need to improve facilities and services in accordance with the characteristics and needs of users, so that user expectations will be met and achieve satisfaction. When user satisfaction has been fulfilled, user loyalty to library products will be formed, so the NPS score will increase which is manifested by users recommending the library to others. This research has limitations, namely that the object of research is only in public higher education centers, so for generalization it is necessary to add research objects such as private college libraries, public libraries or school libraries.

Originality/value

Research on loyalty by using NPS has not been done much especially in Indonesia. This study also examines the relationship between satisfaction and loyalty on NPS scores.

Details

Library Management, vol. 42 no. 6/7
Type: Research Article
ISSN: 0143-5124

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Article
Publication date: 7 March 2008

John Blasberg, Vijay Vishwanath and James Allen

Executives need a more advanced tool for examining consumers' loyalty, one that provides a sharper, more precise view. this paper aims to introduce such a tool.

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2545

Abstract

Purpose

Executives need a more advanced tool for examining consumers' loyalty, one that provides a sharper, more precise view. this paper aims to introduce such a tool.

Design/methodology/approach

The paper looks at Bain's Net Promoter Score (NPS).

Findings

The paper finds that the tool needs to focus not on satisfaction and market share but on consumer advocacy, which is key to creating enthusiastic consumers who come back to buy offerings again and again – and are happy about doing it. Bain's NPS can reveal whether consumers identify emotionally with a brand and feel listened to and understood by the company that makes it. NPS scores help identify groups of consumers who feel well served by your product and groups that do not, whose needs you can then probe further. NPS opens a window into how well mass brands are actually serving profitable consumer segments, as opposed to catering to a statistically “typical” consumer who exists only in theory.

Practical implications

Because NPS scores help uncover determinants of future behavior, they provide a much better basis for spotting product weaknesses, evaluating a brand's health and helping gauge whether new products will succeed.

Originality/value

By producing and evaluating NPS data on a regular basis, organizations can institutionalize a cultural shift, making consumer metrics just as practical and auditable as financial metrics like profit and return on equity. They can make performance in the eyes of consumers just as critical a goal as financial performance.

Details

Strategy & Leadership, vol. 36 no. 2
Type: Research Article
ISSN: 1087-8572

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Article
Publication date: 18 January 2021

Amitesh Singh Parihar and Vinita Sinha

The purpose of this paper is to identify the strengths and areas of improvement for taking organizations one step ahead in terms of adopting digitalization, analytics and…

Abstract

Purpose

The purpose of this paper is to identify the strengths and areas of improvement for taking organizations one step ahead in terms of adopting digitalization, analytics and governance. Also, the paper aims to identify the organizational cultural traits that influence the adoption of digitization and technology, analytics and governance.

Design/methodology/approach

A quantitative analysis of survey questionnaire collected from working professionals of various manufacturing industries to find out the driving traits and the restraining traits and to propose which is dominating. Sector: manufacturing, sample: working professionals across functions and sample size: 80–100 people.

Findings

This research suggests the cultural traits that influence the adoption of digitization and technology, analytics and governance in any organization.

Practical implications

As organizations explore new ways of working, their organizational culture and employee perspective would play an important role in prioritizing the interventions. This research aims to suggest a strategy to strengthen the driving forces and/or weaken the restraining forces.

Originality/value

There are various papers available on the individual topics but the uniqueness of this paper is that it represents all three factors in a single research and their influencers.

Details

International Journal of Innovation Science, vol. 13 no. 2
Type: Research Article
ISSN: 1757-2223

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Article
Publication date: 1 March 2006

Cornel Wisskirchen, Dirk Vater, Tim Wright, Philippe De Backer and Christine Detrick

To show that retail bank executives across the world are awakening to a realization that long‐term growth and profitability hinge on their ability to attract and retain

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3786

Abstract

Purpose

To show that retail bank executives across the world are awakening to a realization that long‐term growth and profitability hinge on their ability to attract and retain loyal customers.

Design/methodology/approach

In Bain's experience, the best tool for gauging the benefit of fostering customer advocacy is the “Net PromoterScore” (NPS), a measurement developed by Satmetrix Systems, a Silicon Valley‐based software and services firm that specializes in customer experience management.

Findings

US banks earn an average net promoter score of just 6 percent – far below those of leaders in the personal computer, property and casualty insurance and car rental industries. The NPS of German retail banks is just 13 percent, on average; meanwhile UK banks rate a dismal minus 6 percent.

Research limitations/implications

A recent global benchmarking study by Bain & Company reveals that bankers recognize they have a problem. In the study, bankers rated the building of strong customer relationships as one of their most important keys to success. Yet they acknowledged that they were not doing a good job of rising to that challenge.

Practical implications

The Bain study found that banks acknowledged six imperatives as crucial to winning over new customers, deepening relationships with existing account holders and reinforcing all customers' perception that they receive superior value:

Originality/value

Strategic managers in banking and other industries must manage to six imperatives: design products and services that offer a truly captivating value proposition and generate genuine consumer enthusiasm; understand their target customer segments in detail and communicate with laser like precision; systematic nurture of new‐customer relationships; manage the customer experience, not just the account; dare to be different; and concentrate on measurements that enable anticipation of customer behavior.

Details

Strategy & Leadership, vol. 34 no. 2
Type: Research Article
ISSN: 1087-8572

Keywords

Content available
Article
Publication date: 2 December 2020

Peter Madzík and Arash Shahin

The purpose of this study is to present and explain a new customer segmentation approach inspired by failure mode and effect analysis (FMEA) which can help classify…

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1547

Abstract

Purpose

The purpose of this study is to present and explain a new customer segmentation approach inspired by failure mode and effect analysis (FMEA) which can help classify customers into more accurate segments.

Design/methodology/approach

The present study offers a look at the three most commonly used approaches to assessing customer loyalty:net promoter score, loyalty ladder and loyalty matrix. A survey on the quality of restaurant services compares the results of categorizing customers according to these three most frequently used approaches.

Findings

A new way of categorizing customers through loyalty priority number (LPN) is proposed. LPN was designed as a major segmentation criterion consisting of customer loyalty rate, frequency of purchase of products or services and value of purchases. Using the proposed approach allows to categorize customers into four more comprehensive groups: random, bronze, silver and gold – according to their loyalty and value to the organization.

Practical implications

Survey will bring a more accurate way of categorizing customers even in those sectors where transaction data are not available. More accurate customer categorization will enable organizations to use targeting tools more effectively and improve product positioning.

Originality/value

The most commonly used categorization approaches such as net promoter score, loyalty ladder or loyalty matrix offer relatively general information about customer groups. The present study combines the benefits of these approaches with the principles of FMEA. The case study not only made it possible to offer a view of the real application of the proposed approach but also made it possible to make a uniform comparison of the accuracy of customer categorization.

Details

International Journal of Quality & Reliability Management, vol. 38 no. 8
Type: Research Article
ISSN: 0265-671X

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Book part
Publication date: 27 September 2021

Evert de Haan, Peter C. Verhoef and Thorsten Wiesel

Attitudes, perceptions, and intentions of a firm's customers, which can be captured via customer feedback metrics (CFMs), provide valuable information about the state of a…

Abstract

Attitudes, perceptions, and intentions of a firm's customers, which can be captured via customer feedback metrics (CFMs), provide valuable information about the state of a firm's customer base. CFMs can help capture the impact of marketing actions on future customer behavior and future firm performance, and thus can help make marketing become more accountable. CFMs have received much attention in marketing research and business practice since the 1970s. In this chapter, we provide a short historical overview of the development of, and research about, CFMs, we classify the different types of CFMs, we highlight the empirical findings of the drivers and consequences of CFMs, and we explore how CFMs can be integrated in a firm's customer dashboard in order to make marketing more accountable. We furthermore explore some of the challenges in accurately measuring CFMs, and in the end of this chapter, we provide information on how to capture CFMs in the age of social listening via modern tools involving text-, voice-, and video-mining.

Details

Marketing Accountability for Marketing and Non-marketing Outcomes
Type: Book
ISBN: 978-1-83867-563-9

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