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New insights from practice: Exploring online channel management strategies and the use of social media as a market research tool
Philipp 'Phil' Klaus, International Journal of Market Research, Vol. 55, No. 6, 2013, pp. 829-850
The concept of online customer experiences, and in particular the role of social media in online customer behaviour, has recently received great interest from academia, business and market researchers alike.
The concept of online customer experiences, and in particular the role of social media in online customer behaviour, has recently received great interest from academia, business and market researchers alike. Despite the belief that social media, imbedded in a corresponding online channel strategy, can be the key to successfully track and analyse consumer behaviour, most of the research focuses solely on the consumer rather than the companies’ strategic viewpoint. This study investigates current online channel management strategies of retail banking services, developing a much-needed typology of such practices. Based upon a thorough and rigorous data analysis process, we propose a typology of online channel strategies. The typology differentiates existing practices into initiators, reformers and consolidators, and discusses the differences between these categories with implications for theory and practice. We highlight the current and future roles of social media market research, and their strategic implications for the industry sector and market research in general, introducing the concept of ‘Strategic Social Intelligence (SSI)’.
Feel Nothing, Do Nothing: Unlocking the emotional secret of online spending
Tom Ewing, Joost Vastenavondt, Koen de Vos and Orlando Wood, ESOMAR, Congress, Istanbul, September 2013
This paper explains how MasterCard, the financial services company, used research to better understand online purchasing and payment behaviour.
This paper explains how MasterCard, the financial services company, used research to better understand online purchasing and payment behaviour. Despite the vast amount of data generated regarding consumer behaviour when purchasing online, the picture is incomplete. This paper identifies two gaps - intention and emotional response - and describes research methods that aim to fill these gaps. The research helped MasterCard to develop the positioning for their online payment services, taking into account how consumers feel and how they buy.
Benefits of Mobile Commerce in the Pay Parking Industry: How the Launch of the P$ Mobile Service Has Changed the Parking Experience in Montréal.
Brady Murphy, International Journal of Mobile Marketing, Vol. 8, No. 1, Summer 2013
Mobile smartphone usage in Canada has grown by double digits over the last five years, with 48% of Canadians using smartphones in March 2012, up from 33% in 2011 (CWTA, 2012).
Mobile smartphone usage in Canada has grown by double digits over the last five years, with 48% of Canadians using smartphones in March 2012, up from 33% in 2011 (CWTA, 2012). Canadian consumers are taking advantage of new features and functionality on their mobile devices that are meant to save them time, make their lives easier and more enjoyable, and generally, give them a better user experience. In this case study, you will learn how TC Media worked with the Société en Commandite Stationnement de Montréal to launch the P$ Mobile Service, a mobile commerce application that empowers Montréalers to use their handheld devices to simplify one of the most common and aggravating tasks faced by drivers: paying for parking. To date, the P$ Mobile Service has processed more than 1 million transactions, and continues to experience growth of more than 200,000 transactions per month. The success of this initiative illustrates the power of mobile technology to provide simple, engaging and cost-effective solutions to address consumers' needs.
Discriminating between behaviour using market data from panels
Hsiu-Yuan Tsao, Leyland Pitt and Colin Campbell, International Journal of Market Research, Digital First, August 2013
Considerable research exists on stochastic models of switching behaviour that uses sequences of individual-level purchase data.
Considerable research exists on stochastic models of switching behaviour that uses sequences of individual-level purchase data. While at the individual level, sample size and sequence length are limiting factors, at the aggregate level, heterogeneity with respect to purchase sequences may assist in interpreting results. The authors propose an approach to discriminate between the switching behaviour of variety seeking, indifference and reinforcement. Only the proportion of 100% loyal customers, market share data and an estimation of the promotional effect - information all available from consumer panel data - are necessary to fit the model.
The effect of engagement with social media on purchase behaviors
Edward Malthouse, Mark Vandenbosch, Su Jung Kim and Bobby Calder, ESOMAR, 3D Digital Dimensions, Boston, June 2013
This paper investigates whether the contribution of user generated content (UGC) in social media competitions affects consumer purchase behaviour, and then attempts to calculate the return on investment.
This paper investigates whether the contribution of user generated content (UGC) in social media competitions affects consumer purchase behaviour, and then attempts to calculate the return on investment. The paper also attempts to identify the key components of an effective social media competition, and investigates if there are any long-term effects on consumer buying behaviour. Data is analysed from two social media contests for Canada's Air Miles Reward Program (AMRP), one of the largest loyalty programs in the world.
Big Data, Better Decisions: How does business intelligence drive change in the Chinese automotive market?
Tiger Lee Weihan, ESOMAR, Automotive Research Forum, Wolfsburg, May 2013
This paper shows the process of generating an automotive customer repurchase model of customer relationship management in China, based on data warehousing after data integration.
This paper shows the process of generating an automotive customer repurchase model of customer relationship management in China, based on data warehousing after data integration. China has become the world's largest automotive market, but only in the new sales market. For most Original Equipment Manufacturers (OEMs) and dealers, new vehicle sales lead to a better market share and greater revenue, while after-sales deliver the main source of profit: after-sales profit margins are five to ten times higher than sales profit margins. Customer loyalty is key to avoiding customer churn and the model proposed in the paper offers a new solution for marketers to attract more customer loyalty in China's rapidly growing after-sales market.
Towards a better measure of customer experience
Philipp Klaus and Stan Maklan, International Journal of Market Research, Vol. 55, No. 2, 2013, pp. 227-246
Defining and improving customer experience is a growing priority for market research because experience is replacing quality as the competitive battleground for marketing.
Defining and improving customer experience is a growing priority for market research because experience is replacing quality as the competitive battleground for marketing. Service quality is an outgrowth of the total quality management (TQM) movement of the 1980s and suffers from that movement’s focus on the provider rather than the value derived by customers. Researchers today state that customer experience is generated through a longer process of company–customer interaction across multiple channels, generated through both functional and emotional clues. Our research with practitioners indicates that most firms use customer satisfaction, or its derivative the Net Promoter Score, to assess their customers’ experiences. We question this practice based on the conceptual gap between these measures and the customer experience. In IJMR 53, 6 (2011), we introduce a new measure appropriate for the modern conceptualisation of customer experience: the customer experience quality (EXQ) scale. In this article we extend that work and compare EXQ’s predictive power with that of customer satisfaction. We establish that EXQ better explains and predicts both, loyalty and recommendations, than customer satisfaction.
Choosing the right baskets for your eggs: deriving actionable customer segments using supervised genetic algorithms
Sam Davis, International Journal of Market Research, Vol. 54, No. 5, 2012, pp. 689-706
In the context of key driver analysis in applied customer satisfaction research, the assumption of sample homogeneity (that single models perform adequately over the entirety of a survey sample) can be shown to restrict the value of the insights derived.
In the context of key driver analysis in applied customer satisfaction research, the assumption of sample homogeneity (that single models perform adequately over the entirety of a survey sample) can be shown to restrict the value of the insights derived. While latent class regression has been used as a method of circumventing some of these issues, it is proposed that there are major barriers to both uptake and successful practical usage of the technique. Several of these issues are common to any multivariate technique, while others are specific to latent class regression. Following an examination of these issues, we introduce an alternative technique for deriving discrete latent classes, using a combination of genetic algorithms and (bivariate) correlations. This paper concludes that the proposed approach outperforms latent class regression in its ability to deliver action-orientated insights, and is better placed to assist marketers facing real-world research questions and datasets.
Money Talks: Unlocking transformational insight in banking through storytelling
Esther Garland, Henrietta De Souza and Riki Neill, ESOMAR, Congress, Atlanta, September 2012
This paper focuses on brand storytelling, centering on a case study for HSBC, the global bank, that aimed to increase loyalty with the "emerging middle class" in the UK and India.
This paper focuses on brand storytelling, centering on a case study for HSBC, the global bank, that aimed to increase loyalty with the "emerging middle class" in the UK and India. The paper looks into the research period of the campaign, centered on an online "storytelling community" with 48 members. Insights from this community were then fed into HSBC communications, tools and services. The paper further suggests that the opportunity with this emerging middle class audience is much bigger globally than perhaps the client had imagined - a fact only revealed via storytelling.
Online Anthropology: A new approach to advocacy measurement
Colin Utley, ESOMAR, Congress, Atlanta, September 2012
A discussion of online anthropology as a way of gaining fresh understanding of customer behavior. The case study used to illustrate this point is for Sprint, a US mobile provider.
A discussion of online anthropology as a way of gaining fresh understanding of customer behavior. The case study used to illustrate this point is for Sprint, a US mobile provider. This online anthropology project involved social listening, data harvesting and customer segmentation, and led to changes in Sprint's product development, HR policy, in-store environment and customer service, as well as its marketing communications. Since the effort launched, Sprint has seen major growth in brand advocacy.
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