Jun 20, · A Brief Literature Review: Customer Relationship Management. By John Dudovskiy. Customer relationship management has been defined as “a business approach that integrates people, processes, and technology to maximise relationships with customers” Goldenberg (, p.3).Estimated Reading Time: 6 mins The final section offers conclusions. Literature review An increasing tendency is occurring towards creating unique “experiences” for customers in order to gain a competitive advantage, particularly for those in the service sector. Hereafter, this article describes the existing economy as “the new experience economy” (Pine & Gilmore, ).Estimated Reading Time: 10 mins The first part of the thesis reviews the literature and research about customer experience management and defines the concept as a whole. It focuses on the prospects of customer ex-perience management and point out to executives, why customer experience management (CEM)
Literature Review On Customer Experience | blogger.com
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Ahmed R Ismail. Lynn Lim. Arch Woodside. Ahmed Yehia. Download PDF Download Full PDF Package This paper. A short summary of this paper. Despite its importance and the positive attention this concept is receiving in the literature, the explanation of customer experiences remains vague and a thorough theoretical foundation is lacking.
This paper addresses this gap in the literature facilitating a brand-management understanding of the concept of customer experience and its antecedents and consequences. The paper examines the impact of customer experience on brand loyalty via a comprehensive review of existing literature on the literature review customer experience management of customer experience and service brand literature. In addition, twelve propositions describe and explain the antecedents of customer experience and impacts upon brand loyalty within a service-centred marketing logic.
This paper contributes a novel customer-brand experience perspective and conceptual tools relevant for further theory development and for effectively managing customer-brand relationships. Vargo and Lusch propose that a service- versus product-centred view of exchange implies that the marketing goal is to customise offerings, to recognise that the customer is always the co-producer, and to strive to maximise consumer involvement in the customisation to better fit his or her needs.
Subsequently, Havlena and Holbrook and Westbrook and Oliver explicate the literature review customer experience management of emotions in consumption experiences. The Marketing Review,Vol. The focus on consumption experience in the area of marketing has a long history with germination in the s and empirical research take-off in the s. Norris in Holbrook, literature review customer experience management, refers to value creation through the experiences that brands provide to consumers.
Subsequently, Toffler in Future Shock stresses the concept of consumption experience. A careful review of the extant marketing literature reveals only a few attempts to define the concept of customer experience and its dimensions.
Customers seek much more than a product or service, or even a brand or its company to satisfy them. experience that suggests the elicitation of higher levels of emotion than those associated with either satisfaction or delight. Achieving such experiences is more likely to develop into long-term loyal customers.
Customer experience and its link to the bottom line remain largely unexplored in academic research. Therefore, this paper is aiming to address this gap in the literature and to facilitate better understanding of the concept of customer experience and its antecedents and consequences from the consumer perspective, literature review customer experience management.
The purpose of this paper is two-fold: first, to examine an under-researched construct of customer experience; and second, to investigate the antecedents and consequences of customer experience with particular attention paid to brand loyalty.
Thus, the various definitions and dimensionality of the customer experience are summarised in the first section of this paper. The first section also discusses the experience and its relationship to the service brand, and highlights the importance of consumption emotions as an integral part of the customer experience. Section two of this paper depicts the proposed conceptual framework and the antecedents and consequences of customer experience, in addition to the propositions.
The final section offers conclusions. Table 1 presents the different definitions of experience. The notion of customer experience is hardly a new concept, because market researchers have tended to focus on the consumption experience for the past few decades.
However, this phenomenon has not been an essential ingredient of the economy in the past decades. Therefore, this paper will address the re-emergence of experience and its importance at the present time, literature review customer experience management. Pine and Gilmore were among the first to write about the emergence of a new service economy named the experience economy. Schmittp. Researchers consider different approaches for defining customer experience.
Prahalad and Ramaswamy view the customers as co-creators of their own experiences. Csikszentmihalyi Flow is a state of experience which is characterized by an experience of intense concentration and enjoyment. Robinette et al. Direct contact generally occurs in the course of purchase, use and service, and is usually initiated by the customer.
Gentile et al. Authors Emotions provoked, sensations felt, knowledge gained and skills acquired through active involvement with the firm pre, during and post consumption. This argument suggests that experiences are distinct offerings. Addis and Holbrookp. The emotional arousal may be the major motivation for consumption of certain product classes such as novels, plays and sporting events Hirschman, Dimensionality of customer experience This section makes an attempt to study various dimensions of customer experience.
The following section reviews literature review customer experience management number of studies during Each of these studies represents a different point of view about experience configurations. Arnould and Price apply different research methods ranging from focus groups to observation over a seven-month period and the sample comprised participants and guides of the river rafting adventure. However, the authors claim that the findings may have implications for a broad array of services and consumption activities but could not generalise beyond the sample studied.
Otto and Ritchie offer another attempt to measure the construct of service experience across the tourism industry airlines, hotels, tours and attractions. However, the study of Otto and Ritchie is incomplete, in the sense that content validity, dimensionality, internal reliability of the service experience scales, and a factor analysis were completed but tests such as validity and reliability were not addressed.
This research by Otto and Ritchie identifies six dimensions of service experience: hedonic, novelty, stimulation, safety, comfort and interactive. The first three dimensions are consistent with the experiential benefits described by Bello and EtzelHavlena and Holbrook and Holbrook and Hirschmanas cited in Otto and Ritchie, In an operational view of experiential marketing, Pine and Gilmore define four realms of a consumption experience.
They describe two main dimensions: first, the level of guest participation, passive or active; second, environmental relationship absorption or immersion literature review customer experience management customer and occurrence. Connecting these dimensions defines the four areas of experience: entertainment, education, aestheticism and escape.
Although Pine and Gilmore introduce and develop this framework to understand the nature of customer experience in general, their report lacks a detailed analysis of these dimensions and its measurements and similarly there is a lack of sufficient research to measure these concepts. Additionally, the study introduced some relevant theoretical variables such as arousal, memories, overall quality and customer satisfaction Oh et al.
However, this study focuses only on one minor part in the service sector. Extending and supporting the work in this nascent area of research, Poulsson and Kale claimed that there is no clear differentiation between what they called the commercial experience discussed by Pine and Gilmore and other kinds of experiences encountered on a daily basis. Thus, they pose the question of what are the ingredients of a commercial experience that are most likely to provide product differentiation and a competitive advantage.
More recently, Mascarenhas, Kesevan and Bernacchi asserted that total customer experience encompasses both physical and emotional elements. They argued that experiences are customer-dependent and context-specific. Finally, in a recent article in the Journal of Marketing, Brakus, Schmitt and Zarantonello identified four factors of experience sensorial, affective, literature review customer experience management, behavioural literature review customer experience management intellectual ; in sum, with a plethora of different definitions and dimensions of customer experience which may be an umbrella construct with distinct dimensions.
However, no real consensus yet exists as to what these dimensions might be. Mascarenhas et al. Brakus et al. This paper attempts to shed light on a particular kind of experience in which customers interact with brands and how such interactions impact brand loyalties.
Specifically, the service sector was considered a good place to examine because of the close relationship between the customers and the brand that exists in the service sector Franzen, and usually firms attempt to strengthen this relationship with their consumers Randall, Consumers use a number of important cues to judge the quality of a service prior to consumption, such as price, brand name, advertising and word-of-mouth.
The next section discusses the propositions. Antecedents to customer experience in services On the basis of the reviewed literature, a set of antecedents is likely to influence customer experience as Figure 1 shows. Also, perceived service quality is likely to be a unique input to customer experience; perceived service quality is likely to have a direct relationship to brand loyalty.
The marketing literature identifies service quality as an antecedent to outcomes literature review customer experience management as customer satisfaction Grönroos, literature review customer experience management, Service researchers view perceived service quality to be a prerequisite for loyalty and frequently include loyalty in models as an outcome variable e.
Therefore, the study here includes the hypothesis that a positive relationship exists between service quality and brand loyalty. Consequently, the following hypotheses are made. H1 Perceived service quality has a positive effect on customer experience. The real challenge of service advertising, literature review customer experience management, then, is how to capture these subjective experiences effectively. Mittal suggested that to capture subjective experiences effectively the advertisement ought to be vivid, realistic, and vicariously rewarding.
Vicariously rewarding here means that the life experiences are nontrivial, positive and motivational. When those promises are not kept, customers have a poor experience. Therefore, when advertising raises customer expectations the customer experience literature review customer experience management go beyond expectations in order to deliver a great customer experience. Good experience offers a brilliantly simple summary of the relationship between advertising and customer experience.
H2 Advertising has a significant effect on customer experience during the service consumption. The customer perception of price is more important than the actual price Monroe, Price perception is concerned with how price literature review customer experience management is comprehended by customers and made meaningful to them Evans et al. Price is also a cue often used by customers to make patronage decisions, to determine what to expect, and to evaluate the quality of a service relative to how much they paid.
Customers use price as a good proxy for quality when they have insufficient information about the quality Evans et al.
What is Customer Experience Management (CEM or CXM)?
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Feb 15, · Feb 19, · In the course of literature review, it was found that the importance of customer experience management (CEM) for companies had already been proven by other researchers The literature pertaining to relationships among customer satisfaction, customer loyalty, and profitability has two dimenstions: The first, service management literature, proposes that customer satisfaction influences customer loyalty, which in turn affects profitability. Supporter of this theory include researchers such as
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