Customer value co-creation behavior : scale development and validation

This investigation reports a series of four studies leading to the development and validation of a customer value co-creation behavior scale. The scale comprises two dimensions: customer participation behavior and customer citizenship behavior, with each dimension having four components. The elements of customer participation behavior include information seeking, information sharing, responsible behavior, and personal interaction, whereas the aspects of customer citizenship behavior are feedback, advocacy, helping, and tolerance. The scale is multidimensional and hierarchical, and it exhibits internal consistency reliability, construct validity, and nomological validity. This study also shows that customer participation behavior and customer citizenship behavior exhibit different patterns of antecedents and consequences

"How May I Help You?": Modeling Twitter Customer Service Conversations Using Fine-Grained Dialogue Acts

Given the increasing popularity of customer service dialogue on Twitter, analysis of conversation data is essential to understand trends in customer and agent behavior for the purpose of automating customer service interactions. In this work, we develop a novel taxonomy of fine-grained "dialogue acts" frequently observed in customer service, showcasing acts that are more suited to the domain than the more generic existing taxonomies. Using a sequential SVM-HMM model, we model conversation flow, predicting the dialogue act of a given turn in real-time. We characterize differences between customer and agent behavior in Twitter customer service conversations, and investigate the effect of testing our system on different customer service industries. Finally, we use a data-driven approach to predict important conversation outcomes: customer satisfaction, customer frustration, and overall problem resolution. We show that the type and location of certain dialogue acts in a conversation have a significant effect on the probability of desirable and undesirable outcomes, and present actionable rules based on our findings. The patterns and rules we derive can be used as guidelines for outcome-driven automated customer service platforms.Comment: 13 pages, 6 figures, IUI 201

Bayesian modeling of networks in complex business intelligence problems

Complex network data problems are increasingly common in many fields of application. Our motivation is drawn from strategic marketing studies monitoring customer choices of specific products, along with co-subscription networks encoding multiple purchasing behavior. Data are available for several agencies within the same insurance company, and our goal is to efficiently exploit co-subscription networks to inform targeted advertising of cross-sell strategies to currently mono-product customers. We address this goal by developing a Bayesian hierarchical model, which clusters agencies according to common mono-product customer choices and co-subscription networks. Within each cluster, we efficiently model customer behavior via a cluster-dependent mixture of latent eigenmodels. This formulation provides key information on mono-product customer choices and multiple purchasing behavior within each cluster, informing targeted cross-sell strategies. We develop simple algorithms for tractable inference, and assess performance in simulations and an application to business intelligence

The antecedents and consequences of service customer citizenship and badness behavior

This paper presents an empirical test of the antecedents and consequences of customer extra-role behavior (i.e., customer citizenship behavior and badness behavior). The model posits that negative affect, perceived justice, and commitment lead to customer extra-role behavior. In turn, such extra-role behavior is expected to impact perceived service quality. The model was tested in an exercise class context of participants at sports center. Results from the empirical test indicated that managing customer extra-role behavior is as important as that of employee. Secondly, the study found that the organization have to manage the negative affect of customers to prevent customer badness behavior, and perceived justice and commitment to increase customer citizenship behavior. Implications are discussed, possible areas of further research are indicated, and limitations of the study are noted

Managing customer relationships through price and service quality

This paper examines the ways in which a service provider's policies on pricing and service level affect the size of its customer base and profitability. The analysis begins with the development of a customer behavior model that uses customer satisfaction and depth of relationship as mediators of the impact of price and service level on profitability. Based on this model of customer behavior, the system is analyzed as a queuing network from which the properties of the aggregate population's behavior are derived. The analysis reveals the counterintuitive result that a policy that involves a decrease in prices or an increase in service level may lead to a smaller customer base. However, this policy may also lead to higher profits. The novelty of this result lies in the explanation of the phenomenon: that when the customer base decreases due to a change in prices or service quality, companies may experience gains in profit that result not from a decrease in costs associated with serving fewer customers but from an increase in revenues resulting from the indirect effects of the lower prices or higher level of service on customer behavior. The application of optimization techniques to the model developed in this paper yields optimality conditions through which managers can assess the long-term profitability of their pricing and service-level policies.Customer relationship management; operations/marketing interface; two-part tariffs; service operations management; service quality;

Determinants of Shopping Behavior of Urban Consumers

This study explores the influence of geo-demographic settings of commercial centers, customer attractions in shopping malls, and route to shopping of urban shoppers. The present research analyzes retailing patterns in urban areas in reference to customer orientation strategies, product search behavior and enhancing the customer value. Interrelationship among urban retailing, marketplace ambiance, conventional shopping wisdom of customers, long-term customer services, and technology led selling processes are also addressed in the study based on empirical survey. Broadly, this study makes contributions to the existing research in urban retailing towards factors determining shopping attractions, routes to shopping, and establishing the customer-centric strategies of the firms.Shopping mall, multi-channel retailing, consumer behavior, customer-centric strategy, market attractiveness, customer satisfaction

Psychological Contracts, OCB and Customer Service: An Exploratory Examination

This paper examines the relationships among the psychological contract, fairness, OCB, and customer service. We report on two exploratory studies that provide insight into psychological contract violations and subsequent perceptions of fairness, as well as OCB activity. A linkage is made between psychological contracts and behavior directed internally and those directed externally (i.e., customer service). We extend the current theory to suggest implications for effectively managing customer service employee OCB. Finally, suggestions are made for both practice and future research to be conducted in a multidisciplinary design