Abstract
Recent evidence about the central role played by perceptual constructs in driving performance outcomes has produced a renewed interest in studying customer mindset metrics (CMMs; e.g., satisfaction, service quality, and loyalty intentions). However, we still lack a proper understanding of how (i.e., process) and to what extent (i.e., magnitude) these CMMs ultimately translate into profitability at the customer level. In this study, we integrate CMMs into an individual-level framework of customer behavior and profitability and provide a conceptual understanding of the process through which these metrics influence customer profitability. Specifically, we propose three mechanisms through which CMMs affect customer behavior and profitability: behavioral effect, marketing effectiveness effect, and marketing efficiency effect. We empirically test this framework across two distinct contexts, a B2B high-tech firm and a B2C telecommunications firm. The results demonstrate that these unobservable CMMs have a significant and multi-dimensional impact on customer behavior and customer profitability. Furthermore, we compute the increases in customer behavior and customer profitability that each firm can expect due to increases in CMMs to help firms improve resource allocation and make better decisions about how much (and when) to invest in CMMs.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 813-836 |
| Number of pages | 24 |
| Journal | Journal of the Academy of Marketing Science |
| Volume | 46 |
| Issue number | 5 |
| DOIs | |
| State | Published - Sep 1 2018 |
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All Science Journal Classification (ASJC) codes
- Business and International Management
- Economics and Econometrics
- Marketing
Cite this
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Unlocking the power of marketing : understanding the links between customer mindset metrics, behavior, and profitability. / Petersen, J. Andrew; Kumar, V.; Polo, Yolanda; Sese, F. Javier.
In: Journal of the Academy of Marketing Science, Vol. 46, No. 5, 01.09.2018, p. 813-836.Research output: Contribution to journal › Article
TY - JOUR
T1 - Unlocking the power of marketing
T2 - understanding the links between customer mindset metrics, behavior, and profitability
AU - Petersen, J. Andrew
AU - Kumar, V.
AU - Polo, Yolanda
AU - Sese, F. Javier
PY - 2018/9/1
Y1 - 2018/9/1
N2 - Recent evidence about the central role played by perceptual constructs in driving performance outcomes has produced a renewed interest in studying customer mindset metrics (CMMs; e.g., satisfaction, service quality, and loyalty intentions). However, we still lack a proper understanding of how (i.e., process) and to what extent (i.e., magnitude) these CMMs ultimately translate into profitability at the customer level. In this study, we integrate CMMs into an individual-level framework of customer behavior and profitability and provide a conceptual understanding of the process through which these metrics influence customer profitability. Specifically, we propose three mechanisms through which CMMs affect customer behavior and profitability: behavioral effect, marketing effectiveness effect, and marketing efficiency effect. We empirically test this framework across two distinct contexts, a B2B high-tech firm and a B2C telecommunications firm. The results demonstrate that these unobservable CMMs have a significant and multi-dimensional impact on customer behavior and customer profitability. Furthermore, we compute the increases in customer behavior and customer profitability that each firm can expect due to increases in CMMs to help firms improve resource allocation and make better decisions about how much (and when) to invest in CMMs.
AB - Recent evidence about the central role played by perceptual constructs in driving performance outcomes has produced a renewed interest in studying customer mindset metrics (CMMs; e.g., satisfaction, service quality, and loyalty intentions). However, we still lack a proper understanding of how (i.e., process) and to what extent (i.e., magnitude) these CMMs ultimately translate into profitability at the customer level. In this study, we integrate CMMs into an individual-level framework of customer behavior and profitability and provide a conceptual understanding of the process through which these metrics influence customer profitability. Specifically, we propose three mechanisms through which CMMs affect customer behavior and profitability: behavioral effect, marketing effectiveness effect, and marketing efficiency effect. We empirically test this framework across two distinct contexts, a B2B high-tech firm and a B2C telecommunications firm. The results demonstrate that these unobservable CMMs have a significant and multi-dimensional impact on customer behavior and customer profitability. Furthermore, we compute the increases in customer behavior and customer profitability that each firm can expect due to increases in CMMs to help firms improve resource allocation and make better decisions about how much (and when) to invest in CMMs.
UR - http://www.scopus.com/inward/record.url?scp=85023772926&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85023772926&partnerID=8YFLogxK
U2 - 10.1007/s11747-017-0554-5
DO - 10.1007/s11747-017-0554-5
M3 - Article
AN - SCOPUS:85023772926
VL - 46
SP - 813
EP - 836
JO - Journal of the Academy of Marketing Science
JF - Journal of the Academy of Marketing Science
SN - 0092-0703
IS - 5
ER -