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How do firms handle variability in customer experience? A dynamic approach to better understanding customer retention

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  • Cambra-Fierro, Jesús
  • Gao, Lily (Xuehui)
  • Melero-Polo, Iguácel
  • Trifu, Andreea

Abstract

Firms invest in customer experience in the expectation that these investments will ultimately provide positive financial returns. In practice, however, customers are continuously exposed by the changes occurring in their personal perceptions of customer experience and market surrounding. Using a unique and comprehensive dataset containing customer-level and market-level information for a sample of 13,761 customers in the telecom market, we empirically test the proposed framework by applying multilevel modeling techniques. The results offer novel insights into the effects of customer experience, its variability (customer level), and market turbulence (market level) on customer retention, including the moderating effect of relationship age.

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  • Cambra-Fierro, Jesús & Gao, Lily (Xuehui) & Melero-Polo, Iguácel & Trifu, Andreea, 2021. "How do firms handle variability in customer experience? A dynamic approach to better understanding customer retention," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:joreco:v:61:y:2021:i:c:s0969698921001442
    DOI: 10.1016/j.jretconser.2021.102578
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    2. Michael Boakye Yiadom & Madéle Tait, 2021. "Integrating Approach to Build Customer Experiences: Lessons Learned from Mobile Customers in Ghana," Journal of Economics and Behavioral Studies, AMH International, vol. 13(2), pages 34-44.
    3. Yin, Chin-Ching & Chiu, Hung-Chang & Hsieh, Yi-Ching & Kuo, Chia-Yu, 2022. "How to retain customers in omnichannel retailing: Considering the roles of brand experience and purchase behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    4. Hongfan Zhang & Qurat Ul Ainn & Iram Bashir & Junaid Ul Haq & Mark A. Bonn, 2022. "Does Greenwashing Influence the Green Product Experience in Emerging Hospitality Markets Post-COVID-19?," Sustainability, MDPI, vol. 14(19), pages 1-16, September.
    5. Radia, Karan Nilesh & Purohit, Sonal & Desai, Shachi & Nenavani, Jitendra, 2022. "Psychological comfort in service relationships: A mixed-method approach," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).

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