5.6 Watson, Beck, Henderson & Palmatier (2015), Building, measuring, and profiting from customer loyalty Building

Question 1

What makes people loyal?
uotcomes: 2

Answer 1

Antecedents have differential effects on attitudinal vs behavioral loyalty
Both forms of loyalty have differing effects on outcomes

Question 2

Antecedents have differential effects on attitudinal vs behavioral loyalty 2

Answer 2

• Satisfaction & trust much stronger on attitudinal vs behavioural
• Incentives much less effective than ‘relational strategies’

Question 3

Both forms of loyalty have differing effects on outcomes 2

Answer 3

• However, when taken together effectiveness the strongest!
• Both evaluation–based ánd action-based mechanisms are needed for strong loyalty.

Question 4

Someone with a high level of attitudinal loyalty could report a high NPS but

Answer 4

but if behavioral loyalty is lacking the effect of this NPS on objective performance outcomes could be reduced.

Question 5

, the ultimate effect on a specific outcome depends largely on

Answer 5

which loyalty (attitudinal or behavioral) the firm considers.

Question 6

• Customer loyalty cannot be bought using incentive strategies but

Answer 6

can be built with relational strategies

Question 7

Customers with high attitudinal loyalty likely spread WOM, but might not contribute much to performance of a firm through their behaviors. Therefore, managers who

Answer 7

take a portfolio approach to marketing investments—such that they recognize customer referral value as separate from customer lifetime value—should invest in attitudinal loyalty only insofar as it maximizes their overall customer portfolio lifetime value

Question 8

true loyalty (2)

Answer 8

attidunal lyalty + behavioral loyalty

Question 9

hierarchy relational bonds (3)

Answer 9

financial, social emotional, structural

Question 10

Social/emotional bonds
By the brand
2 levels

Answer 10

• Recognition – individual level
  o Personal interaction with other customers or brand provider
• Recognition – group level
  o Social support in brand usage: Communities and clubs.

Question 11

Social/emotional bonds By consumers

Answer 11

• Social support from consumer networks

Question 12

Social/emotional bondsBrand identification (– if no interaction)

Answer 12

• Feeling emotional connection to the brand, cf. identification

Question 13

Structural bonds
Relationship investments by the brand:

Answer 13

• added value to loyal customers: privileges or specific adaptations based on relationship history (& knowledge)

Question 14

Structural bonds Investments by the customer:

Answer 14

• investments to gain added value: information, time, systems or money, eg. downloading & installing apps, synchronising computer systems etc

Question 15

These bonds can be positive or negative  Increased switching costs vs added value voorbee;d

Answer 15

Voordeel: Netflix knows all your info so makes recommendations for u
Nadeel: people feel locked because of privacy and infomrations and switch

Question 16

Hsieh: fact about relational bonds online

Answer 16

Different bonds are important to create customer commitment.