does experience matters
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Introduction
In this article there are some studies carried out to examine the dynamics ofservice relationship.
Although customer relationship emerge through a process of time encounters
and experience.
This paper address this issue by examining the effect of experience on the
association between relational benefits and relationship quality, and between
relationship quality and loyalty.
Acquiring new customers costly then keeping existing ones.
Long Term relationships more profitable than short term .
Millions of dollars spend annually on customer relationship management
programs.
Customer relationship simply dont exists, they developed over period of time.
relationship change as experience grows, experience effect the development of
customer loyalty.
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Relationship Dynamics(Continued)
Attributes important to novice customers arenot as important that are important to
experience customers.
Difference between long relation and short
relation
Long Relation
More opportunities to gather information.
More stable because experienceunsatisfactory relations are terminated and
adjustments made for surveying relationship.
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Relationship Dynamics(Continued)
Customers benefits derive from engaging in aservice relationship will have a different impact
on satisfaction, trust and commitment
depending on the customers experience in
service usage.
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Research Model
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Confidence, Social and SpecialTreatment benefits
Competitive advantage often rests on the ability to createcustomer relationships that deliver value beyond the core
services.(advantages include: Confidence, Social and Special
Treatment benefits).
Confident benefits: Refers to perception of reduced anxiety and
comfort in knowing what to expect in the service come across.
Social benefits: Refers to the emotional part of the relationship
characterized by personal recognition of customers by
employees.
Special Treatment Benefits: Refers to price breaks, fasterservice or individual service for those customers with
established relation.
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Satisfaction, Trust andCommitment
Satisfaction :Important to relationship continuity, importantaspects for buyer and seller relationship. Customers affective
state resulting from overall appraisal of the service experience.
Trust: Related as confidence in an exchange partners reliability
and integrity. Trust captures the belief that the seller will stand
by their word and fulfill promised role obligations.
Commitment: Reflects the consumers voluntary willingness to
remain in and make efforts towards maintaining a relationship.
It encourages exchange parties to resists short term benefits in
favors of the expected long term benefits of remaining in the
relationship.
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Customer Loyalty
Favorable attitude toward the service provider,recommends the service provider to other
consumers and show repurchase behavior.
Loyalty of customer is important as it increase
the sales, share of wallet and customerretention.
Loyalty and experience gained over the
relationship are positively related.
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Hypothesis Development
Difference between novice(In experience) andexperience customers.
Effect of relationship benefits on satisfaction,
trust and commitment will deferent depending
on whether customer is novice or veryexperience service user.
We hypothesize that as experience grows the
customer become better able to evaluate the
relationship experience, including the benefitsof being in the relationship. This then results in
satisfaction, trust and commitment, and
ultimately customer loyalty.
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Relationship Benefits andsatisfaction, trust and commitment
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Satisfaction,trust,Commitmentand customer loyality
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Finding
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Conclusion
After all Research paper conclude that thereare significant differences between novice and
experience customers.
Specifically, the impact ofconfidence, social
and special treatment benefits on perceptionofsatisfaction, trust and commitment, and
ultimately customer loyalty, differ significantly
based on a customer level of relationship
experience.
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