More than a feeling? Toward a theory of customer delight

PurposeResponding to an increasing call for a more comprehensive conceptualization of customer delight, the purpose of this paper is to expand the theory of customer delight and to examine the implications of such an expanded view for service theory and practice.Design/methodology/approachThis paper presents the results of three qualitative studies. The first study explores customer delight through self-reported consumption experiences in customer-selected contexts, followed by one-on-one in-depth interviews. The second involves focus groups and the third examines self-reported incidents of delightful customer experiences.FindingsThis research finds that customer delight goes beyond extreme satisfaction and joy and surprise to include six properties that—individually or in combination—characterize customer delight. An expanded conceptualization of how customer delight can be defined is proposed in which customer delight is associated with various combinations of six properties – the customer experiencing positive emotions, interacting with others, successful problem-solving, engaging customer’s senses, timing of the events and sense of control that characterizes the customer's encounter.Research limitations/implicationsIt is clear from the findings of this research that there is no single property that is associated with delight. Through the facilitation of multiple properties, managers have the potential to create a multitude of routes to delight. It is recommended that future research (1) identify and explicate these alternative routes for engendering delight using the six properties identified, and (2) develop a general typology based on service context and characteristics, customer segment, etc. that further stimulates scholarship on delight, and offers more industry-specific insights for managers.Practical implicationsInsights from this investigation will encourage managers and service designers to think more broadly and creatively about delight. Doing so will open up new opportunities for achieving customer delight, beyond merely focusing on extreme satisfaction or surprise and joy strategies currently dominating discussions of customer delight.Originality/valueThis paper makes several contributions to the service literature. First, it extends current conceptualizations of customer delight and offers an expanded definition. Next, it demonstrates how this new understanding extends the existing literature on delight. Finally, it proposes an agenda for future delight research and discusses managerial implications, opening up new opportunities for firms to design delightful customer experiences.</jats:sec

The effects of customer equity drivers on loyalty across services industries and firms

Customer equity drivers (CEDs)—value equity, brand equity, and relationship equity—positively affect loyalty intentions, but this effect varies across industries and firms. We empirically examine potential industry and firm characteristics that explain why the CEDs–loyalty link varies across services industries and firms in the Netherlands. The results show that (1) some previously assumed industry and firm characteristics have moderating effects while others do not and (2) firm-level advertising expenditures constitute the most crucial moderator because they influence all three loyalty strategies (significant for value equity and brand equity; marginally significant for relationship equity), while three industry contexts (i.e., innovative markets, visibility to others, and complexity of purchase decisions) each influence two of the three loyalty strategies. Our results clearly show that specific industry and firm characteristics affect the effectiveness of specific loyalty strategies

The cumulative effect of satisfaction with discrete transactions on share of wallet

Purpose - The purpose of this paper is to propose a theoretical model for how consumers aggregate satisfaction with individual service encounters to form a summary evaluation of satisfaction, and further examines its effect on customers' share of category spending (share of wallet (SOW)). Design/methodology/approach - The data used consist of 10,983 completed surveys from 1,448 customers whose transaction-specific satisfaction with a retailer and their subsequent purchase behaviors in the category were tracked for more than four transactions. Mixed effects models were employed to test the relationship between the cumulative effect of satisfaction with multiple service encounters on SOW. Findings - Cumulative satisfaction is a weighted average of satisfaction with specific encounters, with weights decaying geometrically so that more recent encounters receive more weight. More recent transaction-specific satisfaction levels tend to have greater influence on customers' next purchase SOW allocations; this, however, is only the case for customers who are less than highly satisfied, with a rating of 8 or lower on a ten-point scale. Additionally, the impact of transaction-specific satisfaction on SOW is not linear. Highly positive transaction-specific satisfaction levels have a greater impact on SOW than negative levels. Practical implications - Many companies monitor satisfaction across multiple service encounters. This study shows how one can aggregate these measures to arrive at a cumulative effect, and highlights the importance to discriminate between first, more and less recent encounters and second, low vs high levels of satisfaction to better understand customers' spending among different providers. Originality/value - Using a longitudinal data set with real customers, this paper identifies a new measure for taking into account the cumulative satisfaction, identifies the positivity bias, and shows how recency affects the relationship between satisfaction and SOW

A longitudinal examination of customer commitment and loyalty

Purpose - This study aims to provide the first longitudinal examination of the relationship between affective, calculative, normative commitment and customer loyalty by using longitudinal panel survey data. Design/methodology/approach - Repeated measures for 269 customers of a large financial services provider are employed. Two types of segmentation methods are compared: predefined classes and latent class models and predictive power of different models contrasted. Findings - The results reveal that the impact that different dimensions of commitment have on share development varies across segments. A two-segment latent class model and a managerially relevant predefined two-segment customer model are identified. In addition, the results demonstrate the benefits of using panel survey data in models that are designed to study how loyalty develops over time. Practical implications - This study illustrates the benefits of including both baseline level information and changes in the dimensions of commitment in models that try to understand how loyalty unfolds over time. It also demonstrates how managers can be misled by assuming that everyone will react to commitment improvement efforts similarly. This study also shows how different segmentation schemes can be employed and reveals that the most sophisticated ones are not necessarily the best. Originality/value - This research provides the first examination of models for change in customer loyalty by employing survey panel data on the three-component model of customer commitment (affective, calculative, and normative) and considers alternative segmentation methods