Does Experience Matters

7/30/2019 Does Experience Matters

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Introduction

In this article there are some studies carried out to examine the dynamics ofservice relationship.

Although customer relationship emerge through a process of time encounters

and experience.

This paper address this issue by examining the effect of experience on the

association between relational benefits and relationship quality, and between

relationship quality and loyalty.

Acquiring new customers costly then keeping existing ones.

Long Term relationships more profitable than short term .

Millions of dollars spend annually on customer relationship management

programs.

Customer relationship simply dont exists, they developed over period of time.

relationship change as experience grows, experience effect the development of

customer loyalty.


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Relationship Dynamics(Continued)

Attributes important to novice customers arenot as important that are important to

experience customers.

Difference between long relation and short

relation

Long Relation

More opportunities to gather information.

More stable because experienceunsatisfactory relations are terminated and

adjustments made for surveying relationship.


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Relationship Dynamics(Continued)

Customers benefits derive from engaging in aservice relationship will have a different impact

on satisfaction, trust and commitment

depending on the customers experience in

service usage.


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Research Model


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Confidence, Social and SpecialTreatment benefits

Competitive advantage often rests on the ability to createcustomer relationships that deliver value beyond the core

services.(advantages include: Confidence, Social and Special

Treatment benefits).

Confident benefits: Refers to perception of reduced anxiety and

comfort in knowing what to expect in the service come across.

Social benefits: Refers to the emotional part of the relationship

characterized by personal recognition of customers by

employees.

Special Treatment Benefits: Refers to price breaks, fasterservice or individual service for those customers with

established relation.


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Satisfaction, Trust andCommitment

Satisfaction :Important to relationship continuity, importantaspects for buyer and seller relationship. Customers affective

state resulting from overall appraisal of the service experience.

Trust: Related as confidence in an exchange partners reliability

and integrity. Trust captures the belief that the seller will stand

by their word and fulfill promised role obligations.

Commitment: Reflects the consumers voluntary willingness to

remain in and make efforts towards maintaining a relationship.

It encourages exchange parties to resists short term benefits in

favors of the expected long term benefits of remaining in the

relationship.


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Customer Loyalty

Favorable attitude toward the service provider,recommends the service provider to other

consumers and show repurchase behavior.

Loyalty of customer is important as it increase

the sales, share of wallet and customerretention.

Loyalty and experience gained over the

relationship are positively related.


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Hypothesis Development

Difference between novice(In experience) andexperience customers.

Effect of relationship benefits on satisfaction,

trust and commitment will deferent depending

on whether customer is novice or veryexperience service user.

We hypothesize that as experience grows the

customer become better able to evaluate the

relationship experience, including the benefitsof being in the relationship. This then results in

satisfaction, trust and commitment, and

ultimately customer loyalty.


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Relationship Benefits andsatisfaction, trust and commitment


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Satisfaction,trust,Commitmentand customer loyality


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Finding


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Conclusion

After all Research paper conclude that thereare significant differences between novice and

experience customers.

Specifically, the impact ofconfidence, social

and special treatment benefits on perceptionofsatisfaction, trust and commitment, and

ultimately customer loyalty, differ significantly

based on a customer level of relationship

experience.


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Documents

Does Experience Matters