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Journal of the Academy of Marketing Science

, Volume 46, Issue 5, pp 813–836 | Cite as

Unlocking the power of marketing: understanding the links between customer mindset metrics, behavior, and profitability

  • J. Andrew PetersenEmail author
  • V. Kumar
  • Yolanda Polo
  • F. Javier Sese
Original Empirical Research

Abstract

Recent evidence about the central role played by perceptual constructs in driving performance outcomes has produced a renewed interest in studying customer mindset metrics (CMMs; e.g., satisfaction, service quality, and loyalty intentions). However, we still lack a proper understanding of how (i.e., process) and to what extent (i.e., magnitude) these CMMs ultimately translate into profitability at the customer level. In this study, we integrate CMMs into an individual-level framework of customer behavior and profitability and provide a conceptual understanding of the process through which these metrics influence customer profitability. Specifically, we propose three mechanisms through which CMMs affect customer behavior and profitability: behavioral effect, marketing effectiveness effect, and marketing efficiency effect. We empirically test this framework across two distinct contexts, a B2B high-tech firm and a B2C telecommunications firm. The results demonstrate that these unobservable CMMs have a significant and multi-dimensional impact on customer behavior and customer profitability. Furthermore, we compute the increases in customer behavior and customer profitability that each firm can expect due to increases in CMMs to help firms improve resource allocation and make better decisions about how much (and when) to invest in CMMs.

Keywords

Customer mindset metrics Satisfaction Service quality Loyalty intentions Customer behavior Customer profitability 

Notes

Acknowledgements

We would like to thank Valarie Zeithaml, Bob Leone, Nita Umashankar, and the participants of the 2015 Theory + Practice of Marketing Conference for their valuable comments on an earlier version of this paper. We would also like to thank a telecommunications firm and a high-tech firm for providing the data for this study. Yolanda Polo and F. Javier Sese appreciate financial support from the projects ECO2014-54760 (MINECO, FEDER), and S09-PM062 (Gobierno de Aragon and Fondo Social Europeo). F. Javier Sese acknowledges financial aid from “Ayudas a la Investigación en Ciencias Sociales, Fundación Ramón Areces”.

Supplementary material

11747_2017_554_MOESM1_ESM.pdf (150 kb)
ESM 1 (PDF 150 kb)

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Copyright information

© Academy of Marketing Science 2017

Authors and Affiliations

  1. 1.Smeal College of BusinessThe Pennsylvania State UniversityUniversity ParkUSA
  2. 2.Richard and Susan Lenny Distinguished Chair, Center for Excellence in Brand and Customer Management, J. Mack Robinson School of BusinessGeorgia State UniversityAtlantaUSA
  3. 3.Huazhong University of Science TechnologyWuhanChina
  4. 4.Singapore Management UniversitySingaporeSingapore
  5. 5.Indian School of BusinessHyderabadIndia
  6. 6.Department of Marketing, Faculty of Economics and BusinessUniversity of ZaragozaZaragozaSpain

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