The effects of relationship benefit on relationship quality and store loyalty from convergence environments--NPS analysis and moderating effects

Authors:
Jae Hun Jang;Sam Won Kim;Yang Sun Lee;Jongsung Kim
Affiliations:
Dept. of Business Administration, Busan Kyungsang College, Busan, Republic of Korea 611-701;Dept. of Business Administration, Donga University, Busan, Republic of Korea 602-760;Div. of Computer Engineering, Mokwon University, Daejeon, Republic of Korea 302-729;Dept. of Mathematics, Kookmin University, Seoul, Republic of Korea 136-72
Venue:
Electronic Commerce Research
Year:
2013

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Abstract

The primary concern of CRM is core customers from convergence environments. They show such passionate partnership with the company that they actively put forth their opinion to improve products and service through voluntary pro-company activities and participate in the development of new products through open innovation. Therefore, the top priority of a company should be given to defining its core customers and accurately understanding and managing them, which would contribute to the growth of the company. This study has the purpose to identify net promoter score (NPS) of company by adopting index that evaluates the degree of customer loyalty to the company in judging the relationship of company and customer, and later on establish strategy to increase the number of loyal customers by classifying customers by the score. It has become more important nowadays how to manage a long-term customer relationship, for it can assure the company of increased income in spite of steep competition with rival companies. Therefore strong customer relationship is an important means of proving the company with competitive edge and maximizing company income. In addition, as NPS serves as adjustment variable, net promoters were analyzed to contribute to store loyalty significantly. The way for bookstore `A' to grow as a company with potential for future growth would be re-establish customers through one more in-depth analysis of customers as well as seek for methods to raise NPS.