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Article
Publication date: 10 April 2024

Weiting Wang, Yi Liao and Jiacan Li

The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism.

Abstract

Purpose

The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism.

Design/methodology/approach

This study develops a stylized game-theoretic model of delegating customer acquisition and retention, focusing on how firms choose delegation and wage information disclosure strategy.

Findings

The results confirm the necessity for enterprises to disclose salary information. When sales agents are risk neutral, firms should choose multi-agent (MA) delegation and disclose their wages. However, when agents are risk averse, firms may disclose the wages of acquisition agents or both agents in MA delegation, depending on the uncertainty of the retention market.

Originality/value

This paper contributes to the literature on delegation of customer acquisition and retention and demonstrates that salary disclosure can be used as a supplement to the incentive mechanism.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 31 July 2023

Chetanya Singh, Manoj Kumar Dash, Rajendra Sahu and Anil Kumar

Artificial intelligence (AI) is increasingly applied by businesses to optimize their processes and decision-making, develop effective and efficient strategies, and positively…

Abstract

Purpose

Artificial intelligence (AI) is increasingly applied by businesses to optimize their processes and decision-making, develop effective and efficient strategies, and positively influence customer behaviors. Businesses use AI to generate behaviors such as customer retention (CR). The existing literature on “AI and CR” is vastly scattered. The paper aims to review the present research on AI in CR systematically and suggest future research directions to further develop the field.

Design/methodology/approach

The Scopus database is used to collect the data for systematic review and bibliometric analysis using the VOSviewer tool. The paper performs the following analysis: (1) year-wise publications and citations, (2) co-authorship analysis of authors, countries, and affiliations, (3) citation analysis of articles and journals, (4) co-occurrence visualization of binding terms, and (5) bibliographic coupling of articles.

Findings

Five research themes are identified, namely, (1) AI and customer churn prediction in CR, (2) AI and customer service experience in CR, (3) AI and customer sentiment analysis in CR, (4) AI and customer (big data) analytics in CR, and (5) AI privacy and ethical concerns in CR. Based on the research themes, fifteen future research objectives and a future research framework are suggested.

Research limitations/implications

The paper has important implications for researchers and managers as it reveals vital insights into the latest trends and paths in AI-CR research and practices. It focuses on privacy and ethical issues of AI; hence, it will help the government develop policies for sustainable AI adoption for CR.

Originality/value

To the author's best knowledge, this paper is the first attempt to comprehensively review the existing research on “AI and CR” using bibliometric analysis.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 10 April 2024

Tsu-Wei Yu

This study explores the mediating effects of relationship marketing orientation (RMO) and service quality orientation (SQO) on market orientation, selling orientation, and…

Abstract

Purpose

This study explores the mediating effects of relationship marketing orientation (RMO) and service quality orientation (SQO) on market orientation, selling orientation, and policyholder retention in non-life insurance services. Additionally, it offers important recommendations for non-life insurers in Taiwan for policy development and improving policyholder retention.

Design/methodology/approach

Data were collected from a sample of policyholders belonging to the top five non-life insurance companies in Taiwan. The data were then analyzed with structural equation modeling.

Findings

RMO and SQO mediate the effects of the salesperson’s market orientation on policyholder retention. Thus, RMO and SQO are key factors influencing policyholder retention. Consequently, high levels of market orientation should be maintained to increase RMO and SQO, strengthening the retention rate of non-life insurance policyholders.

Research limitations/implications

The main limitation of this study is its cross-sectional nature. In the future, researchers should collect data from other countries and service industries (e.g. banks, securities, and other financial institutions), expand to different insurance contexts (e.g. life insurance), and conduct longitudinal studies or experimental research.

Practical implications

The results of this study can act as a guide for providers of non-life insurance services. Based on the research results, we recommend decision-makers pay increased attention to increasing policyholder retention rates by strengthening their firm’s RMO and SQO.

Originality/value

Few studies have investigated the relationships among market orientation, selling orientation, RMO, SQO, and policyholder retention in non-life insurance services within Asian contexts in general and specifically in Taiwan. Thus, this study’s theoretical contributions, managerial implications (especially for decision-makers), and the proposed future research directions represent timely and valuable additions to the literature.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 10 April 2024

Aslıhan Dursun-Cengizci and Meltem Caber

This study aims to predict customer churn in resort hotels by calculating the churn probability of repeat customers for future stays in the same hotel brand.

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Abstract

Purpose

This study aims to predict customer churn in resort hotels by calculating the churn probability of repeat customers for future stays in the same hotel brand.

Design/methodology/approach

Based on the recency, frequency, monetary (RFM) paradigm, random forest and logistic regression supervised machine learning algorithms were used to predict churn behavior. The model with superior performance was used to detect potential churners and generate a priority matrix.

Findings

The random forest algorithm showed a higher prediction performance with an 80% accuracy rate. The most important variables were RFM-based, followed by hotel sector-specific variables such as market, season, accompaniers and booker. Some managerial strategies were proposed to retain future churners, clustered as “hesitant,” “economy,” “alternative seeker,” and “opportunity chaser” customer groups.

Research limitations/implications

This study contributes to the theoretical understanding of customer behavior in the hospitality industry and provides valuable insight for hotel practitioners by demonstrating the methods that facilitate the identification of potential churners and their characteristics.

Originality/value

Most customer retention studies in hospitality either concentrate on the antecedents of retention or customers’ revisit intentions using traditional methods. Taking a unique place within the literature, this study conducts churn prediction analysis for repeat hotel customers by opening a new area for inquiry in hospitality studies.

Details

International Journal of Contemporary Hospitality Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-6119

Keywords

Open Access
Article
Publication date: 30 August 2023

Christoffer Weland Johannes Lindström, Behzad Maleki Vishkaei and Pietro De Giovanni

This study analyzes how tech firms can implement the modern wave of subscription-based business model (SBBM), including value proposition, value creation, value capture and…

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Abstract

Purpose

This study analyzes how tech firms can implement the modern wave of subscription-based business model (SBBM), including value proposition, value creation, value capture and performance. In fact, these elements push tech firms to move from traditional to SBBMs.

Design/methodology/approach

To achieve the objectives of this study, we initially construct a theoretical framework for applying SBBM. Subsequently, we employ qualitative research to examine the current implementation of the subscription-based economy within tech firms.

Findings

A successful SBBM necessitates capturing value through sustainable revenue transactions and revising aspects of the value proposition, creation and capture. Continuous improvement through business value analysis is imperative. Additionally, an agile operations system is vital to address revenue complexities, enable data collection and enhance value proposition, service innovation, churn rate and customer retention, which are essential for SBBM maintenance.

Originality/value

This study delves into how the subscription-based economy is reshaping the business models of tech firms. Beyond exploring the theoretical foundation of this transformative path, this study offers actionable insights on enhancing the value proposition, creation, capture and business value within subscription-based economy frameworks.

Details

International Journal of Industrial Engineering and Operations Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2690-6090

Keywords

Article
Publication date: 15 November 2023

Hasan Uvet, John Dickens, Jason Anderson, Aaron Glassburner and Christopher A. Boone

This research paper aims to examine two hybrid models of logistics service quality (LSQ) and its influence on satisfaction, loyalty and future purchase intention in a…

Abstract

Purpose

This research paper aims to examine two hybrid models of logistics service quality (LSQ) and its influence on satisfaction, loyalty and future purchase intention in a business-to-consumer (B2C) e-commerce context. This study extends the literature for LSQ by incorporating the second-order assurance quality construct, which comprises personnel contact quality, order discrepancy handling and order returns, into one of the hybrid models.

Design/methodology/approach

A survey-based approach is used to collect data. Participant responses to questions concerning multiple LSQ dimensions and behavioral perceptions from their most recent online shopping experience are measured using structural equation modeling.

Findings

Findings highlight the importance of including a second-order construct assurance quality as a more explanatory model. Results illustrate that online ordering procedures and assurance quality impact customer satisfaction more than other prominent LSQ dimensions. Furthermore, the findings revealed a customer loyalty is a partial mediator between customer satisfaction and future purchase intention. This underscores the significance of improved logistics services as a competitive edge for e-commerce retailers.

Research limitations/implications

Implications are limited to the e-commerce B2C domain.

Practical implications

The findings of this study underscore critical LSQ dimensions that garner greater satisfaction and retention in the online shopping experience. The results indicate that the effective and efficient handling of the initial order and any order problem significantly influences customer satisfaction and reaps the long-term benefits of customer retention.

Originality/value

The authors present and empirically test a hybrid model of LSQ in a B2C e-commerce domain that captures many of the important elements of the customer experience as espoused in the literature.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 26 September 2023

Awes Asghar, Ruba Asif and Naeem Akhtar

The existing literature has examined the determinants of post-purchase behavioral intentions. However, less attention has been devoted to the factors that contribute to perceived…

Abstract

Purpose

The existing literature has examined the determinants of post-purchase behavioral intentions. However, less attention has been devoted to the factors that contribute to perceived usefulness of fast-food restaurants attributes. The current study considers the servicescapes and social servicescapes of restaurants as well as their relationship with customers' perceived usefulness, with the moderating role of customer experience. It also explores how perceived usefulness influences choice process satisfaction and subsequent behavioral responses, including revisit intention and negative word-of-mouth.

Design/methodology/approach

Data from 485 fast-food restaurant consumers in Pakistan were collected using purposive sampling. The data were analyzed using both structural equation modeling (SEM) through AMOS 24.0 and the PROCESS macro in IBM SPSS 27.0.

Findings

The research revealed that perceived usefulness in fast-food restaurant industry is positively influenced by servicescapes and social servicescapes. Similarly, choice process satisfaction is primarily caused by perceived usefulness and affects behavioral responses. It also found that choice process satisfaction is positively associated with revisit intentions and negative word-of-mouth. Customer experience significantly moderates the relationship between ambient condition, facility aesthetic, layout, perceived similarity and perceived usefulness. However, customer experience insignificant moderates the relationships of physical appearance and suitable behavior with perceived usefulness.

Research limitations/implications

The findings provide insightful information for both academic and managerial fields, contributing to the literature on consumer psychology, consumer behavior, servicescapes and the stimulus-organism-response theory. The study also assists restauranteurs in the fast-food restaurant industry in overcoming the challenges posed by a highly competitive environment and developing strategies based on consumer perceptions.

Originality/value

This study, conducted in Pakistan, took a pioneer step in testing and confirming a novel perceived usefulness model that incorporates not only servicescapes but also social servicescapes in consumer behavior. It enhances the knowledge of consumer visit intentions by quantifying the significance of perceived usefulness developed by different servicescapes.

Details

Journal of Hospitality and Tourism Insights, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9792

Keywords

Article
Publication date: 8 November 2023

Vibhava Srivastava, Deva Rangarajan and Vishag Badrinarayanan

This study aims to investigate the role of three customer equity drivers on customer repurchase intent in business-to-business (B2B) markets. It also explores the interconnected…

Abstract

Purpose

This study aims to investigate the role of three customer equity drivers on customer repurchase intent in business-to-business (B2B) markets. It also explores the interconnected nature of equity drivers, specifically, the effects of brand equity and value equity on relationship equity. Further, it investigates how perceived switching costs moderates the interrelationships between customer equity drivers. The authors explore the interrelationships between the customer equity drivers in a B2B context involving commodity products in a developing market.

Design/methodology/approach

Data collection was done from a pool of 184 institutional customers of a lubricant brand in a developing market. The sample had representations of buyer organizations across sectors, namely, automobile, cement, metal, fertilizer, railway, defence and mining, etc. The final data were subjected to partial least squares-based structural equation modeling to test the hypothesized model.

Findings

The study found a direct effect of brand equity, and value equity on relationship equity and an indirect effect on repurchase intent, namely, relationship equity. Perceived switching cost was found to moderate the interaction between brand equity and relationship equity as well as between value equity and relationship equity. The direct effect of relationship equity on repurchase intent was also significant.

Practical implications

The study implies that B2B firms should ground their marketing program on these customer equity drivers, especially when dealing with commodity products. The absence of any of these drivers would be detrimental in customer retention. The study also establishes the relevance of switching cost(s) and its impact on the underlying dynamics between the different equity drivers in the context of commodity products. The customer equity drivers along with switching costs, if managed well, may become switching barriers for customers and eventually would ensure recurring revenue through repeat purchases.

Originality/value

To the best of the authors’ knowledge, this is one of the first studies that focuses on the disaggregated effect of customer equity on customer outcomes in the B2B context. Furthermore, this study investigates how perceived switching costs moderates the interrelationships between customer equity drivers in the industrial sales context in an emerging market.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 17 April 2024

Vibhav Singh, Niraj Kumar Vishvakarma and Vinod Kumar

E-commerce companies often manipulate customer decisions through dark patterns to meet their interests. Therefore, this study aims to identify, model and rank the enablers behind…

Abstract

Purpose

E-commerce companies often manipulate customer decisions through dark patterns to meet their interests. Therefore, this study aims to identify, model and rank the enablers behind dark patterns usage in e-commerce companies.

Design/methodology/approach

Dark pattern enablers were identified from existing literature and validated by industry experts. Total interpretive structural modeling (TISM) was used to model the enablers. In addition, “matriced impacts croisés multiplication appliquée á un classement” (MICMAC) analysis categorized and ranked the enablers into four groups.

Findings

Partial human command over cognitive biases, fighting market competition and partial human command over emotional triggers were ranked as the most influential enablers of dark patterns in e-commerce companies. At the same time, meeting long-term economic goals was identified as the most challenging enabler of dark patterns, which has the lowest dependency and impact over the other enablers.

Research limitations/implications

TISM results are reliant on the opinion of industry experts. Therefore, alternative statistical approaches could be used for validation.

Practical implications

The insights of this study could be used by business managers to eliminate dark patterns from their platforms and meet the motivations of the enablers of dark patterns with alternate strategies. Furthermore, this research would aid legal agencies and online communities in developing methods to combat dark patterns.

Originality/value

Although a few studies have developed taxonomies and classified dark patterns, to the best of the authors’ knowledge, no study has identified the enablers behind the use of dark patterns by e-commerce organizations. The study further models the enablers and explains the mutual relationships.

Details

Global Knowledge, Memory and Communication, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9342

Keywords

Article
Publication date: 27 March 2023

Thamaraiselvan Natarajan and Deepak Ramanan V

Building on Stimulus Organism Response theory, the current study examines the influence of Integrated store service quality (ISSQ) on the omnichannel customer experience…

Abstract

Purpose

Building on Stimulus Organism Response theory, the current study examines the influence of Integrated store service quality (ISSQ) on the omnichannel customer experience dimensions (Cognitive, Affective and Relational), subsequently leading to their psychological ownership of the store, which eventually explains their Augmenting, Co-developing, Influencing and Mobilizing behaviors. The moderating role of omnichannel shopper perceived relationship investment in a few proposed relationships was tested.

Design/methodology/approach

The research is a descriptive, quantitative and cross-sectional investigation. A purposive sampling technique was used. It was conducted using data collected from 554 Indian omnichannel shoppers using a validated self-administered questionnaire. The proposed conceptual model was tested using PLS-SEM.

Findings

The results indicate that ISSQ positively impacts all three dimensions of omnichannel customer experience (cognitive, affective and relational). All three dimensions directly affect psychological ownership, eventually impacting their (Augmenting, Co-developing, Influencing and Mobilizing) engagement behaviors. The moderating effect of the omnichannel shopper, perceived relationship investment, revealed that it had a significant positive impact on the relationship between dimensions of omnichannel customer experience and psychological ownership of shoppers towards the store, which eventually fosters the customer–retailer value co-creation like engagement behaviors.

Research limitations/implications

The study is conducted in the Indian population, where omnichannel retailing is still nascent.

Originality/value

This study addresses the need to investigate other dimensions (apart from cognitive and affective) of the omnichannel customer experience that might eventually influence various service firms' customer engagement behaviors. This study is the first to show that integrated store service quality might stimulate (Augmenting, Co-developing, Influencing and Mobilizing) engagement behaviors through customer experience dimensions and the customer's sense of belongingness to the store. The moderating role of omnichannel shoppers' perceived relationship investment in a few proposed relationships was tested.

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