The Causal Effect of Service Satisfaction on Customer LoyaltyJul 8, 2019 Guofang Huang and K. Sudhir, 2019, 19-122-07
What is the real value of customer satisfaction and loyalty? The authors use an instrumental variables approach to overcome common methods bias and measurement error. They find that firms may be underestimating the gains in customer lifetime value from improving service satisfaction.
Not All Debt Is Created Equal: On the Mental Accounting of Debt FormsJun 26, 2019 Eesha Sharma, Stephanie Tully, and Cynthia Cryder, 2019, 19-121-06
Using real-world data and lab studies, researchers demonstrate that consumers are less likely to think of credit (versus loans) as "money to be repaid" rather than "money to be spent." These mental representations are consequential - they influence consumer willingness to incur debt and concerns about repaying.
Tuition Myopia: Myopic Focus on the Costs of Higher Education Induces Intertemporal TradeoffsJun 21, 2019 Haewon Yoon, Yang Yang, and Carey Morewedge, 2019, 19-120-06
Is calculating lifetime ROI the right way to think about the cost of a college education? Six studies show that financially-impatient consumers prefer low-cost, low-return colleges over high-cost, high-return colleges, thus failing to maximize their lifetime earnings. But changing the way financial information is presented may correct this "myopia."
Measuring Customer Experiences: A Text-Based and Pictorial ScaleJun 10, 2019 Markus Gahler, Jan F. Klein, and Michael Paul, 2019, 19-119-06
Two scales offer precise measures of CX performance across the consumer journey. Based on eight studies with nearly 3000 participants, researchers develop an 18-item text-based scale and an icon-based scale that captures six CX dimensions.
Last Place Aversion in QueuesMay 17, 2019 Ryan W. Buell, 2019, 19-118-05
Last-place aversion is consequential for customer satisfaction and firm profits - customers who are last in line are twice as likely to switch or renege from the queue. Queue transparency can help. So can "eliminating" last place - experimentally ensuring that no one ever perceived themselves to be in last place reduced defections by 43.5%.