Lars Grønholdt

The relationship between customer satisfaction and loyalty: Cross-industry differences

(2000). The relationship between customer satisfaction and loyalty: Cross-industry differences. Total Quality Management: Vol. 11, No. 4-6, pp. 509-514.

The drivers of customer satisfaction and loyalty: Cross-industry findings from Denmark

What drives customer satisfaction and loyalty? Which drivers have the largest impact on customer satisfaction and loyalty? Are there cross-industry diVerences in the drivers’ impact on customer satisfaction and loyalty? These questions are of great importance to companies. Customer satisfaction must not be a goal in itself, but only a means for improving the company’s performance. Several empirical studies have demonstrated a link between customer satisfaction, loyalty and the economic performance, measured in several ways. For example, return on investments, stock market value and market value added (Anderson et al., 1994; Bohte, 1996; EkloÈ f et al., 1999; Fornell, 1999; Fortune, 1998; Ittner & Larcker, 1996; Kristensen, 1997; Reichheld & Sasser, 1990). A profound knowledge about each driver’s impact on customer satisfaction and loyalty can help companies to optimize the allocation of limited resources. This knowledge will thereby have consequences for the company’s priority-setting and strategy development. The above-mentioned questions are the focus of this paper. The paper reports the development of a Danish Customer Satisfaction Index and the ® rst results from a pilot study. The methodology, which is based on the recently introduced European Customer Satisfaction Index (ECSI), is shortly presented. By using this ECSI approach, it is possible to obtain information about the levels of satisfaction, to understand customers’ perceptions and the reasons behind these, and to calculate the impact in terms of future loyalty. The drivers’ impact on satisfaction and loyalty is crucial for a company’s future performance. The impacts will vary in strength and oVer good opportunities for exploring possibilities of improving the future competitive situation of the individual company. The paper presents impacts of the drivers on customer satisfaction and loyalty, and industry diVerences are investigated. Managerial implications are discussed brie ̄ y, and consequences of the results for future customer satisfaction research are mentioned.

Customer satisfaction measurement at Post Denmark: Results of application of the European Customer Satisfaction Index Methodology

In this article the ideas behind the European Customer Satisfaction Index are introduced. The methodology is explained and various methods of estimation are discussed. The practical use of the index is shown on a data set collected for Post Denmark and the results for both the private and the business-to-business markets are shown. Special emphasis is put on the idea of combining the generic measurement of customer satisfaction with specific measurements chosen specifically for Post Denmark. Various ways of approaching this problem are discussed and a number of suggestions are given.

Improving library users’ perceived quality, satisfaction and loyalty: an integrated measurement and management system

Abstract This article describes the development and application of a structural equation model which allows librarians to quantitatively measure library users’ perceived quality, satisfaction and loyalty with a library as well as the degree to which specific elements of a library’s services, collections and environment contribute to those perceptions. The article reports the results of a survey among users at five Danish libraries with particular attention to the Copenhagen Business School Library.

Application of a Model for the Effectiveness of Event Marketing

ABSTRACT This article provides empirical evidence of a model for effectiveness of event marketing and illustrates the application of the model. The model is founded on research within sponsorship, advertising effectiveness, and the latest research on emotional responses within consumer behavior and neuropsychological theory. The model is formulated as a structural equation model with latent variables. Based on a golf tournament as the event activity for the well-known Danish corporate brand B&O, it is demonstrated how the model and measurement system can estimate the impact of the event on brand attitude as well as buying intention. It gives a better understanding of how an event influences the perception of a brand in the minds of the customers. Hereby the model can give directions for how an event should be designed to create positive brand attitude and buying intention.

Measuring and diagnosing innovation excellence - Simple contra advanced approaches : A Danish study

Purpose - The purpose of this paper is to examine two approaches to measure and diagnose innovation excellence. Design/methodology/approach - The paper is a conceptual model for innovation excellen ...

Measuring and managing brand equity

Purpose – A strong brand is among the most valuable intangible assets for any company. This paper aims to provide empirical evidence of a brand equity model and illustrates the application of the model on a Danish bank.Design/methodology/approach – The conceptual model is founded on a customer‐based approach to brand equity. The model links customer‐brand relationships to rational and emotional brand responses, which are in turn linked to six drivers including product quality and service quality. The conceptual model is operationalized by a structural equation model with latent variables and a measurement system. To validate, the model surveys were conducted for four brands in three industries, and the paper presents results from 351 interviews with customers of the largest Danish retail bank. The model is estimated and tested by using partial least squares.Findings – A high level of explanatory power is obtained, and the results indicate strong support for the proposed model. The estimated model gives pe...

Key Marketing Performance Measures

Marketers are understandably preoccupied with measuring marketing performance. However, among the many possible marketing performance measures available, which few should be chosen? On the one hand, the key measures must be simple enough to be usable and on the other hand they must be comprehensive enough to assess the marketing performance. This paper presents an annotated literature review that provides the foundation for the development of a list of the most valuable marketing performance measures. These performance measures are selected on the basis of a number of criteria, for instance the measures need to occur frequently in literature, they must be valuable to most companies as well as they must have predictive power. The performance measures are systematised on the basis of the Marketing Value Chain, which is a conceptual framework linking marketing actions to financial results. Finally, the implications for marketing practice and future research are discussed.

Measuring customer satisfaction: a key dimension of business performance

Customer satisfaction is an increasingly powerful dimension of business performance. Firstly, the article describes empirical evidence that customer satisfaction measures, based on a modelling approach, have an impact on business results and shareholder value; that is, customer satisfaction is a forward-looking performance measure. Secondly, the article presents the methodology behind the recently introduced European Customer Satisfaction Index (ECSI) and its successful application to measuring and managing customer satisfaction, customer loyalty and their drivers at Post Denmark. Finally, practitioner and academic implications are discussed.

Modelling purchases as a function of advertising and promotion

This article describes the preliminary studies of the effect of advertising and promotion on purchases. The British single-source database Adlab has been the basis for this study of advertising and promotion effectiveness. The ST AS measure and logit modelling have been used to estimate the effect of advertising. The results from the two measures have been compared to determine the extent to which the two measures give occasion for the same conclusions. To indicate the accuracy of the two measures, their respective levels of significance have been studied. Two logit models have been estimated; one only includes the effect of TV exposure, while the other also includes the effect of promotions. The results from the two logit models are compared to determine which model gives the most accurate estimate of the effect of advertising. When comparing the results from the STAS measure with the parameter estimates from the second logit model, it is found that these two different measures largely lead to similar conclusions. Suggestions for further research and developments of the models are given.