PurposeUnderstanding and delivering total customer experience (TCE) in order to sustain lasting customer loyalty (LCL) is increasingly important given the pressures of commoditization, globalization and market saturation in developed countries. The purpose of this paper is to review the concepts of TCE and LCL.Design/methodology/approachThe concepts of TCE and LCL are discussed and defined and their combined importance for marketers is outlined and few key cases of their best practices are analyzed in order to derive a set of managerial frameworks for strategizing TCE to achieve LCL. Customer loyalty as a hierarchical ladder starting from random casual awareness in the bottom rung to high bonding loyalty of brand communities in the topmost rung is derivedFindingsTCE is captured in its three essential interactive elements: physical moments, emotional involvement moments, and its value chain moments. Accordingly, a typology of customer loyalties is proposed as a function of high vs low levels of the three constitutive elements of TCE.Practical implicationsThe loyalty ladder is a useful classification tool to monitor customer loyalty and dollar‐effectiveness of customer loyalty programs. Each rung offers a managerial challenge to ascend to the next rung of loyalty.Originality/valueLinking TCE with LCL is unique and challenging. Adding the third dimension of value chain moments makes TCE more focused and loyalty‐driven. The typology of TCE‐based customer loyalty is new and offers a broad strategic canvas for marketers. The loyalty ladder with each rung buttressed by differentiated value, interactive relationship and TCE makes it credible, viable and a strategic destiny. TCE and LCL are also distinguished from related concepts in marketing to derive managerial implications.
Traditional marketing strategies assume that customers involve (e.g. search, assess, purchase, use) with products or services mostly at the end of their value chain as finished market offerings. This article challenges managers to invite target customers to be involved at all stages of the value chain. The specific purpose of our new customer-value-chain involvement (CVCI) model is to enhance customer relationship management in conjunction with supply chain management, employee relationship management) and retailer partners' relationship management. There are definite advantages to CVCI as it can provide continuous customer feedback and enable more objective quality assessment and judgment, but most importantly, it can elevate customer satisfaction to customer delight that spawns lifetime loyalty and positive referrals. The importance and managerial implications of CVCI are discussed.
Buyer—seller information asymmetry (BSIA) is a growing problem despite electronic modes of free global communications. The authors investigate this BSIA phenomenon from a macromarketing perspective. They first identify the defective structures and outcomes of BSIA and then examine the underlying structures of injustice that BSIA implies from a distributive justice view. Although distributive justice focuses on a universal mission of distributing burdens and benefits among all stakeholders, a complementary system, corrective justice, is needed to rectify specific injustices inherent in individual exchanges. Accordingly, the authors propose a BSIA reduction protocol based on both distributive and corrective justice principles so that the risks and causes of consumer harm inherent in BSIA will be progressively reduced. Finally, the authors discuss managerial implications of this combined justice approach and the BSIA reduction protocol it grounds.
Argues that online privacy rights of consumers are not absolute rights but joint ownership privileges they share with online marketers. Consumers can voluntarily transfer these privileges to online marketers under certain mutually agreeable conditions. Accordingly, online marketers can facilitate, motivate and compensate such transfers by designing various innovative personalization strategies that, rather than jeopardize the privacy privileges of consumers, would benefit them. Technology and society can progress only through such partnerships. Cites two consistently successful net companies, Dell and eBay, as examples of such partnered personalizations.
Information asymmetry is a significant issue facing the U.S. health care system. In this article, we investigate some methods of reducing this asymmetry. We trace the information asymmetry using the "wicked problem" of the health care distribution system. An information asymmetry reduction method requiring joint responsibilities among health care stakeholders is developed. It is argued that information asymmetry is a contributor to enormous health care inflation. Hence, any reduction in such asymmetry will reduce health care costs. Concepts from both signaling and corrective justice theories are integrated in this article to help reduce the information asymmetry that exists in the U.S. health care system. Getting health care costs in line with other "advanced" nations, is the long-term solution to the wicked problem that currently exists in the U.S. health care system. There is an immediate need for a centralized health care database with adequate provisions for individual privacy. Both processes as well as an outcome-based control system are essential for reducing information asymmetries in the U.S. health care system.
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