Towards a better measure of customer experience

- Philip Klaus & Stan Makla

CUSTOMER EXPERIENCE

LOYALTY INTENTIONS

CUSTOMER SATISFACTION

WORD-OF-MOUTH+BEHAVIOUR

H2

H1

H3

H4

H5

HYPOTHESES

Experience Quality Scale (ExQ)

1. High value service (e.g. mortgage)

2. Mass service (e.g. fuel)

3. Utility service (e.g. retail banking)

4. Hedonic service (e.g. retailing of luxury lifestyle goods like sports fashion)

• ExQ=f(product experience, outcome focus, moments of truth, peace of mind)

Product Experience

Importance of customer’s perception of having choices and the ability to compare different things (offerings)

Outcome Focus

Reducing customer’s transaction cost such as seeking out and qualifying new providers, reflecting the importance of goal-oriented experiences in consumer behaviour

Moments of Truth

Importance of service recovery and flexibility in dealing with customers, once complications arise

Peace of Mind

Customer’s assessment of all the interactions with the service provider before, during and after purchase of service

INSIGHTS

Customer’s experience perceptions have a large influence on customer satisfaction for all services

• H1: Cust sat = 0.64 x Cust exp

• H2: Loyalty = 0.59 x Cust exp

• H3: WOM = 0.63 x Cust exp

• H4: Behavioral/Loyalty intention = 0.57 x Cust sat

• H5: WOM Behavior = 0.46 x Cust sat

Moments of Truth and Peace of Mind have greatest effect on customer satisfaction, loyalty and WOM behavior

• Cust sat = 0.37 x Peace of mind

• Cust sat = 0.34 x Moment of Truth + 0.32 x WOM

• Loyalty Intention = 0.37 x Moment of Truth

SUMMARY

Loyalty Intention

Customer Experience

Service Evaluation