An insight into Drivers of Customer Satisfaction
Transcrição
An insight into Drivers of Customer Satisfaction
Arbeitspapier Nr. 35 An insight into Drivers of Customer Satisfaction – An empirical study of a global automotive brand Gondek, Christian / Heinemann, Stefan Arbeitspapiere der FOM Gondek, Christian / Heinemann, Stefan An insight into Drivers of Customer Satisfaction – An empirical study of a global automotive brand Arbeitspapier der FOM, Nr. 35 Essen 2013 ISSN 1865-5610 © 2013 by MA Akademie Verlagsund Druck-Gesellschaft mbH Leimkugelstraße 6, 45141 Essen Tel.0201 81004-351 Fax0201 81004-610 Das Werk einschließlich seiner Teile ist urheberrechtlich geschützt. Jede Verwertung außerhalb der engen Grenzen des Urhebergesetzes ist ohne Zustimmung der MA Akademie Verlags- und DruckGesellschaft mbH unzulässig und strafbar. Das gilt insbesondere für Vervielfältigungen, Übersetzungen, Mikroverfilmungen und die Einspeicherung und Verarbeitung in elektronischen Systemen. Die Wiedergabe von Gebrauchsnamen, Handelsnamen, Warenbezeichnungen usw. in diesem Werk berechtigt auch ohne besondere Kennzeichnung nicht zu der Annahme, dass solche Namen im Sinne der Warenzeichen- und Markenschutz-Gesetzgebung als frei zu betrachten wären und daher von jedermann benutzt werden dürfen. Oft handelt es sich um gesetzlich geschützte eingetragene Warenzeichen, auch wenn sie nicht als solche gekennzeichnet sind. ISSN 1865-5610 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction Foreword Due to the increasing equal distribution of Know-how and production technology within a global economic environment product innovations are imitated at ever-increasing speed; indeed it is getting more and more difficult to establish sustainable competitive advantages. This applies particularly to innovation-driven industries, such as the German automotive industry. As such, the German automotive industry keeps distinguishing itself from the competitors by providing additional services and shopping experience towards the customers and partners. Hence, entrepreneurial acting focuses more on customer satisfaction related to such service and process experience. On the one hand side, the conceptual one, several approaches such as a service level management, touchpoint management and customer experience management elaborated by academia and practice are already in place. On the other hand side, in terms of operational implementation, firms are facing challenges how to identify and derive causeeffect relations within the service and process conception. However, in order to establish an economically feasible approach of the concept the proof of a cause-effect relation as well as its realization up to the point of the determination of the ROI is essential. In the current edition of the FOM working papers the authors deal with exactly this need for research and makes a valuable contribution to the fundamental research of a systematical achievement of customer satisfaction for the German automotive industry on the one hand. Further, the present study might certainly serve as an inspiration for customer satisfaction research in other fields and industries. Prof. Dr. Lars Taimer FOM Hochschule Professor für allgemeine Betriebswirtschaftslehre, insbesondere Unternehmensführung Essen, April 2013 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction Credits The authors would like to thank P. Schulte and K. Waters for critical and important remarks. Further, the authors would like to thank the team of the FOM-Schriftleitung for its support and recommendations during the creation of the current working paper. FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction Table of Content List of Abbreviations ........................................................................................................... IV List of Figures ..................................................................................................................... V List of Tables ...................................................................................................................... VI 1 Introduction ..................................................................................................................... 1 1.1 Objectives .................................................................................................................2 1.2 Methodology .............................................................................................................2 2 The empirical Study ........................................................................................................ 3 2.1 Defining the Industry.................................................................................................3 2.2 Defining Customer Satisfaction ................................................................................3 2.3 The Methodology of research ...................................................................................3 3 Testing hypotheses of Customer Satisfaction ................................................................ 6 3.1 Hypothesis 1: Drivers of Customer Satisfaction .......................................................6 3.2 Hypothesis 2: Employee Satisfaction influences Customer Satisfaction ..................9 3.3 Hypothesis 3: Customer Satisfaction Strategies can be derived ............................11 4 Conclusion and Outlook ............................................................................................... 13 List of Appendix................................................................................................................. 14 List of References ............................................................................................................. 16 III FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction List of Abbreviations CL Customer Loyalty CS Customer Satisfaction CSI Customer Satisfaction Index CSR Customer Service Representative FMC Ford Motor Company IV FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction List of Figures Figure 1: The methodical overview of the working paper.................................................... 2 Figure 2: The methodology of research .............................................................................. 5 Figure 3: Concern Resolution vs. CSI – Part 1 ................................................................... 6 Figure 4: Concern Resolution vs. CSI – Part 2 ................................................................... 6 Figure 5: Soft-Skills vs. CSI ................................................................................................ 7 Figure 6: Competence vs. CSI ............................................................................................ 7 Figure 7: Dealer Satisfaction vs. CSI – Part 1..................................................................... 7 Figure 8: Dealer Satisfaction vs. CSI – Part 2..................................................................... 7 Figure 9: Approval Rights vs. CSI ....................................................................................... 9 Figure 10: Working Environment vs. CSI ............................................................................ 9 V FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction List of Tables Table 1: Drivers of Customer Satisfaction........................................................................... 8 Table 2: Drivers of Customer Satisfaction including significance value .............................. 8 Table 3: Employee and Customer Satisfaction ................................................................. 10 Table 4: Employee and Customer Satisfaction including significance value .................... 10 Table 5: Customer Satisfaction Strategies ........................................................................ 11 Table 6: Customer Satisfaction Strategies including significance value ........................... 12 VI FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction 1 Introduction In business classes and corporate management, it is often asserted that CS (Customer Satisfaction) and CL (Customer loyalty) influence a company’s development and growth.1 Especially since 1990, companies have increasingly recognized the value of their customers and integrated the focus towards CS into their strategic management whereas the concentration on their competitors has been the main topic of strategic corporate management beforehand.2 This paradigm shift was fostering a fresh view regarding CS, CL and the relationship between CS and CL. Problem: loyalty programs might be everywhere, but not loyalty, and even less so, satisfaction. Because satisfaction in itself might not be enough, it has to be a kind of "super satisfaction", a "loyalty-based and fostering" satisfaction.3 The focus on CS and CL leads to the question of which factors influence CS and CL and whether those factors can be managed by company leaders directly or indirectly.4 Loyalty and satisfaction and their relationship are a fundamental question for marketing theory and practice, especially when it comes down to numbers: Profitability and shareholder value.5 It would be reasonable to assume, that even the most effective executives need to understand the correlation between internal and external factors on the one hand and CS on the other hand to effectively manage their companies in order to develop effective action plans.6 Moreover, according to Heskett et al., a correlation between the satisfaction of the employees performing the service and CS exists.7 Therefore, the current working paper has applied empirical research in order to understand internal and external drivers of CS and to prove the hypotheses outlined in the objectives. This research has been undertaken for the FMC (Ford Motor Company) and the automotive market of Germany for 2011 based on the size and importance of this market for the economic development of Germany and consequently the European Union.8 Due to the constraints of this working paper, the assumption has been made by the authors, that CS and CL own equivalent abilities. Thus, the research has been concentrated on drivers of CS rather than CL. In addition to that, the authors have drawn the indirect conclusion that if a correlation between single factors and CS exists, changing those factors consequently changes CS based on the condition of ceteris paribus assuming all other factors remain unchanged.9 1 2 3 4 5 6 7 8 9 See Reichheld, F. (2006), p. 55. See Hinterhuber, H. H. / Matzler, K. (2009), p. 36. See Bowen, J. T. / Chen, S. L. (2001), passim. Of course it is not possible to address all theoretical aspects and remaining problems in this working paper. See Hallowell, R. (1996), p. 27. See Anderson, E. W. / Fornell, C. / Mazvancheryl, S. K. (2004), Gupta, S. / Zeithaml, V. (2006), passim. See Drucker, P. F. (2006) p. 115. See Heskett, J. L. / Sasser, W. E. / Schlesinger, L. A. (1997), p. 99. See Gottschalk, B. / Kalmbach, R. (2007), p. 4. See Earman, J. / Glymour, C. / Mitchell, S. (2002), p. 124. 1 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction 1.1 Objectives The objectives of the current working paper are the evaluation and analysis of three hypotheses created by the authors of this working paper: Drivers of CS exist: By analyzing the correlation of specific factors and CS, the finding of valid correlation confirms existing drivers10 Employee Satisfaction influences CS: By analyzing the correlation of specific factors of employee satisfaction and CS, the finding of valid correlation points towards causality positing that satisfied employees lead to satisfied customers11,12 CS Strategies can be derived: Based on the recognized factors of the research of hypotheses 1 and 2 in Chapter 3, the ability of those factors being managed by company leaders can be used to derive CS strategies and avoids that managers follow myths of CS and CL, consequently resulting in inefficient management.13 1.2 Methodology The broad overview of the scope of work of this working paper is demonstrated in Figure 1. After the preface, the empirical study will be defined based on the industry, the definition of CS and the methodology of research. Consequently, each of the following Chapters 3.1 to 3.3 analyzes the three hypotheses created by the authors. Ultimately, the conclusion and outlook have been drawn based on the findings of the research. Figure 1: The methodical overview of the working paper 10 11 12 13 See Hartung, J. / Elpelt, B. / Hösener, K.-H. (2005), p. 545. See Heskett, J. L. / Sasser, W. E. / Schlesinger, L. A. (1997), p. 11. See Hartung, J. / Elpelt, B. / Hösener, K.-H. (2005), p. 545. See Keiningham, T. L. / Vavra, T. G. / Aksoy, L. et al. (2005), p. 64. The main body of this research is based on previous research on the first named author focussing on a loyalty-based adjustment-approach for the marketing mix of the Product Ford Fiesta. 2 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction 2 2.1 The empirical Study Defining the Industry The subject of the empirical study is the German automotive market. On the one hand, the German automotive market is characterized by a high local economic impact and a focus on exports leading to international influence.14 Moreover, the German automotive market is characterized by its maturity concluding into an increase of the importance of CS.15 Within this market, all FMC customers interacting with the customer service department for the business year 2011 have been invited to complete a post-experience CS survey. In total, the amount of 3,548 surveys can be classified as an adequate and statistically valid sample space representing the total CS of FMC’s customer base for 2011.16 2.2 Defining Customer Satisfaction In general, CS is defined by customers’ evaluation of a specific product or service provided by a manufacturer or service provider. It is interesting to consider that CS is mainly created by meeting customers’ expectation.17 In the applied research, CS is defined by the evaluation of the customer within the survey after the interaction with the customer service department. In this survey, CS is measured by applying an interval scale from 1 (very dissatisfied) to 10 (very satisfied).18 The outcome of the measurement is classified as CSI (Customer Satisfaction Index). 2.3 The Methodology of research As for the theory of correlation, if applying the product-moment correlation formula of Pearson shown below for two interval scaled continuous values x and y, the result will be a so called correlation coefficient r between -1 and 1.19 Whereas r = -1 can be defined as a perfect negative linear relation and r = 1 can be defined as a perfect positive relation, r = 0 can be defined as no correlation at all.20 To determine the probability that a calculated correlation coefficient is a systematic one and not a chance occurrence, a significance test has to be conducted: The probability value p is calculated for each correlation coefficient r and is then compared to a predefined critical alpha level. 14 15 16 17 18 19 20 See Gottschalk, B. / Kalmbach, R. (2007), p. 11. See Gottschalk, B. / Kalmbach, R. (2007), p. 214. See Bamberg, G. / Baur, F. / Krapp, M. (2008), p. 137. See Grigoroudis, E. / Siskos, Y. (2009), p. 4. See Grigoroudis, E. / Siskos, Y. (2009), p. 23. See Bamberg, G. / Baur, F. / Krapp, M. (2008), p. 36. See Bamberg, G. / Baur, F. / Krapp, M. (2008), p. 37. 3 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction If the calculated p is below the critical alpha level, it is assumed that the found correlation is a systematic one. In all reported tests of significance, a one-tailed relationship (based on theoretical assumptions about the direction of the relationships) has been assumed, and a significance level of alpha = 0.05. Ultimately, correlation analyzes and measures the relationship between the two variables x and y and no causality.21 In order to fulfill the authors’ requirement of an empirical research, the correlation between the CS evaluated by the 3,548 different customers analyzed and selected other evaluations of the customers within those surveys have been analyzed as demonstrated in Figure 2. Another way of looking at the question of CS is the ability to manage factors that influence CS. As current research has proven, CS and CL consist of a so called loyalty pie based on different factors.22 Therefore, the authors have separated internal and external factors within the survey and analyzed each of those factors and its single correlation with CS. Due to the restraints of this working paper, no adjustment for seasonal variations has been applied, e.g. the launch of new products or services.23 Moreover, a high correlation has been defined for r ≥ 0.75.24 In addition to that, the internal factors have been separated into process and service related on the one hand and employee satisfaction on the other hand. First of all, resolving the concern has been analyzed based on current researches proving a high correlation between meeting customers’ expectations and CS.25 Moreover, value orientated factors like courtesy, competence and speed of response have been selected to analyze their value from the customer perspective regarding the quality of the service.26 Then, the external factor has been added by analyzing the CS about the service provided of the dealer assuming that partly, factors that influence CS are out of the manufacturers’ or service providers’ control.27 All factors except resolving the customers’ concern have been measured within the 3,548 surveys on the same interval scale as CS from 1 to 10 whereas resolving the concern has been measured on a ratio scale in percentages.28 However, all values have been collected and reported on a monthly basis to demonstrate the development throughout 2011.29 Ultimately, based on Heskett et al., the internal factor of employee satisfaction has been added analyzing the correlation between satisfied employees and customers.30 Due to the fact that employee satisfaction is an internal research and not part of the 3,548 surveys returned by customers of FMC, an additional interview has been applied measuring the employee satisfaction by closed questions about the satisfaction in total, the satisfaction of the employees towards their approval- 21 22 23 24 25 26 27 28 29 30 See Hartung, J. / Elpelt, B. / Hösener, K.-H. (2005), p. 545. See Dixon, M. / Freeman, K. / Torman, N. (2010), p. 118. See Hartung, J. / Elpelt, B. / Hösener, K.-H. (2005), p. 672. See De Vaus, D. (2002), p. 258; See Cohen, J. (1988), p. 77 ff. for the idea that r > .5 shows a massiv effect. See Dixon, M. / Freeman, K. / Torman, N. (2010), p. 118. See Grigoroudis / Siskos (2009), p. 69. See Gondek, C. (2011), p. 10. See Grigoroudis, E. / Siskos, Y. (2009), p. 23. See Probst, H.-J. (2008), p. 280. See Heskett, J. L. / Sasser, W. E. / Schlesinger, L. A. (1997), p. 11. 4 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction rights and the working environment.31 Then, the individual CSI scores of the employees have been analyzed according to their own satisfaction for the period of October to December 2011 resulting into an amount of 193 surveys with individual CSI scores. The result has been recapped into three areas of employee satisfaction for the fourth quarter of 2011, the related individual CSI score and the amount of surveys demonstrating the sample size.32 Figure 2: The methodology of research 31 32 See McBurney, D. H. / White, T. L. (2010), p. 246. See Bamberg, G. / Baur, F. / Krapp, M. (2008), p. 137. 5 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction 3 Testing hypotheses of Customer Satisfaction 3.1 Hypothesis 1: Drivers of Customer Satisfaction As described, the empirical research of the current working paper analyzes the CS according to the service provided by the customer service department of the FMC. According to Kotler et al., services can be classified by differences in the quality of service and a strong relation to the CSR (Customer Service Representative) performing the service.33 Other current research has analyzed the correlation between meeting customers’ expectations and recognized a correlation between fulfilling customers’ requirement on the basis that the service quality remains unchanged.34 To recap, the quality of the service provided can be evaluated partly on the outcome and partly on the interaction between customers and CSRs.35 From the authors’ viewpoint, it would be reasonable to assume that those two criteria need to be analyzed from both an internal and external point of view. According to the FMC’s two-level distribution channel, the degree of CS might be influenced by previous contacts with FMC’s retailers, especially if the first contact with the retailer has not been successful and consequently led to the contact with the customer service department.36 Therefore, the following analysis has been applied on the service provided by the customer service department as well as on the service provided by FMC’s retailers. The outcome of the research has been demonstrated in Figure 3 until Figure 8. 9,0 90% 9,0 80% 8,0 8,0 70% 60% 7,0 50% 6,0 40% CSI 30% Concern Resolution 20% 5,0 CSI 7,0 6,0 5,0 10% 0% Dec. 11 Oct. 11 Nov. 11 Sep. 11 Jul. 11 Aug. 11 Jun. 11 Apr. 11 May 11 Mar. 11 Jan. 11 Feb. 11 4,0 Figure 3: Concern Resolution vs. CSI – Part 1 4,0 50% 70% 90% Concern Resolution Figure 4: Concern Resolution vs. CSI – Part 2 According to Figure 3, Concern Resolution and CSI seem to have taken a parallel linear development in 2011. As demonstrated in Figure 4, a positive linear correlation of both values seems to be obvious. According to Figure 5, performance in all analyzed soft skills exemplified by courtesy, competence and speed of response closely mirror the performance trend of the CSI in 2011 for the customer service department of the FMC based on the amount of 3,548 surveys researched. In Figure 6, the soft-skill of 33 34 35 36 See Kotler, P. / Armstrong, G. / Wong, V. et al. (2011), p. 694. See Dixon, M. / Freeman, K. / Torman, N. (2010), p. 119. See Chen, Y.-C. / Shen, Y.-C. / Liao, S. (2009), p. 269. See Levens, M. (2011), p. 151. 6 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction competence has been selected and again, a positive linear correlation of both values seems to be obvious. 9,0 9,0 8,0 8,0 7,0 7,0 CSI Courtesy Competence 6,0 6,0 Speed of Response CSI 5,0 5,0 4,0 Dec. 11 Oct. 11 Nov. 11 Sep. 11 Jul. 11 Aug. 11 Jun. 11 Apr. 11 May 11 Mar. 11 Jan. 11 Feb. 11 4,0 6,8 7,0 7,2 7,4 7,6 7,8 8,0 8,2 8,4 Competence Figure 5: Soft-Skills vs. CSI Figure 6: Competence vs. CSI There is a marked contrast between this and the external factor of dealer’s service intention which does not seem to have a high correlation with CSI. Therefore, the analysis has been extended to the factor of dealer satisfaction demonstrated in Figure 7 and 8. However, it would appear that there is still no evidence of a relationship between the analyzed external factors and CS whereas the satisfaction with the dealer seems to correlate even less than the dealer’s service intention with CS. 9,0 9,0 8,0 8,0 7,0 6,0 7,0 4,0 Dealer Satisfaction 3,0 CSI CSI 5,0 6,0 2,0 5,0 1,0 4,0 Dec. 11 Nov. 11 Oct. 11 Sep. 11 Aug. 11 Jul. 11 Jun. 11 May 11 Apr. 11 Mar. 11 Jan. 11 Feb. 11 0,0 Figure 7: Dealer Satisfaction vs. CSI – Part 1 5,2 5,4 5,6 5,8 6,0 6,2 6,4 Dealer Satisfaction Figure 8: Dealer Satisfaction vs. CSI – Part 2 To recap, the specific correlations have been demonstrated in Table 1 by applying the formula of Pearson.37 By this outcome, hypothesis 1 can be confirmed as drivers of CS exist. However, contrary to previous assumptions by the first named author, those seem to be rather internal factors and therefore within FMC’s control.38 However, it is interesting to consider that competence and speed of response of the CSR providing the service have got the highest correlation to CS for the German automotive market exemplified by customers of the FMC. In Table 1 and 2, potential drivers of CS have been analyzed by applying the formula of Pearson and including significance value p of each factor analyzed. 37 38 See Bamberg, G. / Baur, F. / Krapp, M. (2008), p. 37. See Gondek, C. (2011), p. 10. 7 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction Table 1: Drivers of Customer Satisfaction Criteria Correlation value r 0.90 0.87 0.94 0.91 0.50 0.10 Concern Resolution Soft-Skill: Courtesy Soft-Skill: Competence Soft-Skill: Speed of Response External Dealer Service Intention External Dealer Satisfaction Driver of Customer Satisfaction Yes Yes Yes Yes No No Table 2: Drivers of Customer Satisfaction including significance value Criteria Concern Resolution Soft-Skill: Courtesy Soft-Skill: Competence Soft-Skill: Speed of Response External Dealer Service Intention External Dealer Satisfaction 0.90 0.87 0.94 Significance (one-sided) value p ≤.001 ≤.001 ≤.001 0.91 ≤.001 Yes 0.50 ≤.05 No 0.10 .380 No Correlation value r Driver of Customer Satisfaction Yes Yes Yes 8 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction 3.2 Hypothesis 2: Employee Satisfaction influences Customer Satisfaction According to Maslow, all human beings seek basic needs to fulfill their need satisfaction.39 Moreover, according to Herzberg those basic needs can be separated into two areas, hygiene factors transforming dissatisfaction into non-dissatisfaction and motivators transforming non-satisfaction into satisfaction.40 From a corporate point of view, the relation between specific factors and the satisfaction of employees needs a detailed analysis due to the fact that current researches have proven satisfied employees lead to higher productivity and sales.41 Already in 2003, Heskett et al. advised companies to treat their employees similar to their customers including an adequate amount of training and development opportunities in order to deliver the fulfillment of basis employees’ needs.42 Moreover, an analysis has shown that often even an increase of 100 % of profit can be achieved by increasing employee satisfaction.43 According to the authors and based on the two dimensions researched by Herzberg, employee satisfaction has been researched selecting one hygiene factor, the working environment, and one motivation factor, the approval-rights each CSR has been offered by FMC.44 Moreover, general information about the overall satisfaction of employees has been asked in order to research factors that are out of the employer’s control, e.g. private dissatisfaction of the employees. 9,0 9,0 8,0 8,0 7,0 7,0 Individual CSI Individual CSI The relation between the employees’ satisfaction on the one hand and CS on the other hand has been demonstrated in Figure 9 and 10, whereas no obvious correlation can be recognized. 6,0 5,0 4,0 6,0 5,0 4,0 3,0 3,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 Satisfaction about approval rights Figure 9: Approval Rights vs. CSI 8,0 9,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 Satisfaction about working environment Figure 10: Working Environment vs. CSI To recap, the specific correlations of different areas of employee satisfaction and CS have been demonstrated in Table 2 by applying the formula of Pearson.45 Ultimately, no correlation between employee satisfaction and CS has been recognized and therefore, hypothesis 2 cannot be confirmed by the empirical research. However, for the authors’ part, one reason for not having found a correlation could be due to ceteris paribus being 39 40 41 42 43 44 45 See Jung, H. (2011), p. 385. See Jung, H. (2011), p. 391. See Achor, S. (2011), p. 102. See Heskett, J. L. / Sasser, W. E. / Schlesinger, L. A. (2003), p. 166. See Heskett, J. L. / Sasser, W. E. / Schlesinger, L. A. (2003), p. 75. See Jung, H. (2011), p. 391. See Bamberg, G. / Baur, F. / Krapp, M. (2008), p. 37. 9 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction not the right approach for measuring individually. Especially due to the fact that individual scores can be influenced by different working areas or maturity status of single employees, an overall approach might be more useful. In Table 3 and 4, the impact of employee satisfaction on CS has been analyzed by applying the formula of Pearson and including significance value p of each factor analyzed. Due to the restraints of this working paper, this approach has not been analyzed further. Table 3: Employee and Customer Satisfaction Criteria Correlation value r Driver of Customer Satisfaction 0.32 No -0.25 No 0.07 No Employee Satisfaction about approval rights Employee Satisfaction about working environment Overall Employee Satisfaction Table 4: Employee and Customer Satisfaction including significance value Criteria Employee Satisfaction about approval rights Employee Satisfaction about working environment Overall Employee Satisfaction Correlation value r Significance (one-sided) value p Driver of Customer Satisfaction 0.32 .113 No -0.25 .171 No 0.07 .400 No 10 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction 3.3 Hypothesis 3: Customer Satisfaction Strategies can be derived It is often said that efficient mouth-to-mouth propaganda results into reduction of marketing budgets.46 Other research has outlined that growing specific variables of CS or CL, consequently profitability and growth of companies increase.47 The ultimate focus of all research is the common requirement of focusing a company’s strategy and activity on selected criteria in order to efficiently manage the corporate development.48 For the authors’ part, it would be reasonable to assume that internal factors can be managed directly and external factors are partly out of a company’s control. Therefore, external factors can only be influenced indirectly. Due to the fact that the empirical research has proven that internal drivers of CS exist (and those are factors that can be managed), the third hypothesis can be confirmed. The derived strategies, actions and the results of the correlation analysis leading to those conclusions have been outlined in Table 5 whereas Table 6 includes the significance value of each factor analyzed. On the basis of the recognized drivers, CS strategies are demonstrated in Table 3 based on the assumption that if those factors are drivers of CS, increasing the factors leads to increased service quality, which can be defined as one differentiation strategy of companies.49 Finally, although the strategies described are partly long-term orientated, current researches have recognized long-term focus of companies as a valid differentiation advantage.50 Table 5: Customer Satisfaction Strategies Strategy Efficient Customer Service Efficient Customer Service Develop employees Research & Development Research & Development 46 47 48 49 50 Action Focus all customer service activities on resolving the customer concern Increase speed of response by minimizing process barriers Support training of Employees Focus on dealers Focus on employees Background Concern Resolution: r = 0.90 Speed of Response: r = 0.91 Courtesy: r = 0.87 Competence: r = 0.94 No data yet No data yet See Reinartz, W. / Kumar, V. (2002), p. 93. See Reichheld, F. (2003), p. 53. See Drucker, P. F. (2006), p. 115. See Grant, R. M. (2008), p. 244. See Kanter, R. M. (2011), p. 71. 11 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction Table 6: Customer Satisfaction Strategies including significance value Criteria Efficient Customer Service Efficient Customer Service Action Focus all customer service activities on resolving the customer concern Increase speed of response by minimizing process barriers Develop employees Support training of employees Research & Development Research & Development Focus on dealers Focus on employees Correlation value r Concern resolution: 0.90 Speed of response: 0.91 Courtesy: 0.87 Competence: 0.94 Significance (onesided) value p ≤.001 ≤.001 ≤.001 ≤.001 No data yet No data yet Regarding the current CS strategies, the following background can be recommended to FMC as part of their corporate management: Efficient Customer Service: Based on the correlation of concern resolution and speed of response, efficient process management needs to be in place in order to resolve the initial customer concern under maximum speed of response; this includes detailed definition of the nature of the customer concern during the first customer contact by the CSR.51, 52 Develop employees: Due to the fact that soft-skills have the highest correlation to CS amongst the analyzed criteria, individual training and development need to be the basis for customer relation, including communication training and the johari window approach allowing CSRs to reduce their potential blind spots.53 The basic principle of the johari window is to use perception of others and by that process reducing the individual blind spot of individuals.54 Research and Development: Still, the empirical research has not found any correlation between dealer or employee satisfaction and CS. However, dealers are the basis of FMC’s retailer structure and employees are the predominant factor performing the service.55 Therefore, a further empirical research is recommended due to its high potential from the authors’ point of view. However, before implementing those strategies, they needed further strategic testing.56 Due to the restraints of this working paper, no further analysis will be undertaken. 51 52 53 54 55 56 See Olfert, K. (2006), p. 161. See Dixon, M. / Freeman, K. / Torman, N. (2010), p. 119. See West, R. / Turner, L. H. (2011), p. 274. See Jung, H. (2011), p. 489. See Levens, M. (2011), p. 151. See Kaplan, R. S. / Norton, D. P. (2008), p. 36. 12 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction 4 Conclusion and Outlook By the current working paper and the demonstrated empirical research, two of the three hypotheses could be proven. It has been analyzed, that drivers of CS exist. Whereas the predominant drivers seem to be internal in nature, external drivers, such as satisfaction with the service provided by the dealer, have not been validated yet. Moreover, a correlation between employee satisfaction and CS could not be proven within the research. However, compared to Heskett’s research published in 1997, the current working paper only carefully analyzed links between employee satisfaction and CS. Therefore, further research could lead to alternative conclusions regarding the aforementioned factors. Due to the fact that internal drivers of CS could be recognized, the third hypothesis has been proven and an action plan has been created by the authors of this working paper based on the drivers of CS. However, the basic assumption of the current analysis has been defined as CS having an impact on profitability and growth whereas other researches has proven that CS is interlinked with CL and the latter is interlinked with profitability.57 Moreover, a high correlation as defined in the empirical research as r ≥ 0.75 does not necessarily reveal causality between the analyzed factors.58 Referring to the employee satisfaction, the sample space is predominantly influenced by the restraints of the current research and needed to be extended and regularly monitored to represent a statistically valid research.59 Moreover, the individual CSI scores of the employees interviewed might be impacted by differentiation criteria like different work areas, e.g. technical and basic area. In addition to that, due to the restraints of the current working paper, the empirical research and the derived strategies can be classified as static as they have not been combined with a further research of the customer relationship cycle. Contrary, several pieces of research have proven the point of time is the deciding attribute of whether a customer can be turned into a brand advocate and increases associated repurchase potential.60, 61 Therefore, the first named author has decided to analyze the dynamic factor of CL and deriving strategies exemplified by a research of two business years for the German and British automotive market. Referring to FMC’s international character, due to the authors, the marketing information analyzed needs to be applied internationally to derive global marketing strategies.62 57 58 59 60 61 62 See Hallowell, R. (1996), p. 27. See Eckey, H.-F. / Kosfeld, R. / Türck, M. (2008), p. 186. See Bamberg, G. / Baur, F. / Krapp, M. (2008), p. 137. See Schweidel, D. A. / Fader, P. S. / Bradlow, E. T. (2008), p. 830. See Edelman, D. C. (2010), p. 64. See Yip, G. S. / Tomas, G. / Hult, M. (2012) p. 158. 13 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction List of Appendix Appendix 1: Customer Satisfaction Survey ....................................................................... 15 Appendix 2: Employee Satisfaction Survey ...................................................................... 15 14 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction Appendix 1: Customer Satisfaction Survey Criteria Content of question (Measurement) (Original item was formulated in German) Customer Satisfaction (Scale 1-10) Concern Resolution (in %) Soft-Skills (Scale 1-10) Customer evaluates her/his satisfaction regarding the delivered service Customer considers her/his concern being resolved Dealer Service Intention (Scale 1-10) Dealer Satisfaction (Scale 1-10) Customer evaluates her/his satisfaction regarding Attitude & Courtesy Competence Speed of Response Customer evaluates her/his intention to use the dealer service in the future Customer evaluates her/his satisfaction regarding the dealer Appendix 2: Employee Satisfaction Survey Criteria Content of question (Scale 1-10) (Original item was formulated in German) Approval Rights Working Environment Employee evaluates her/his satisfaction regarding approval rights Employee evaluates her/his satisfaction regarding working environment Employee evaluates her/his overall satisfaction Overall Satisfaction 15 FOM Arbeitspapier Nr. 35, Gondek/Heinemann: An insight into Drivers of Customer Satisfaction List of References Achor, S. 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(2012): Total Global Strategy, Boston: Pearson Education. 18 Folgende Bände sind bereits erschienen Band 1: Essen 2005, ISSN 1865-5610 Ergebnisse und Effekte des Modellprojektes „Fit machen fürs Rating...“ Hermeier, Burghard / Frère, Eric / Heuermann, Marina Band 2: Essen 2006, ISSN 1865-5610 Ergebnisse der ersten bundesweiten FOM-Marktstudie „Industrie-Dienstleistungen“ Hermeier, Burghard / Platzköster, Charlotte Band 3: Essen 2006, ISSN 1865-5610 Die Stärkung des traditionellen 3-stufigen Vertriebswegs im Sanitärmarkt durch den Einsatz neuer Medien Kern, Uwe / Pankow, Michael Band 4: Essen 2006, ISSN 1865-5610 Die unternehmensinterne Wertschöpfungskette bei Dienstleistungen am Beispiel der TV-Programmveranstalter Kürble, Peter Band 5: Essen 2007, ISSN 1865-5610 Begriff und Konzept Berufswertigkeit Klumpp, Matthias Band 6: Essen 2007, ISSN 1865-5610 Efficient Consumer Response (ECR) in der Logistikpraxis des Handels Klumpp, Matthias / Jasper, Anke Band 7: Essen 2007, ISSN 1865-5610 Kooperationsanforderungen im Supply Chain Management (SCM) Klumpp, Matthias / Koppers, Laura Band 8: Essen 2008, ISSN 1865-5610 Das deutsche System der Berufsbildung im europäischen und internationalen Qualifikationsrahmen Klumpp, Matthias Band 9: Essen 2008, ISSN 1865-5610 Homo oeconomicus im Hörsaal – Die Rationalität studentischer Nebengespräche in Lehrveranstaltungen Göke, Michael Band 10: Essen 2008, ISSN 1865-5610 Internationaler Vergleich und Forschungsthesen zu Studienformen in Deutschland Klumpp, Matthias / Rybnikova, Irma Band 11: Essen 2008, ISSN 1865-5610 Eine ökonomische Analyse einer Ausweitung des Arbeitnehmer-Entsendegesetzes Kratzsch, Uwe Band 12: Essen 2009, ISSN 1865-5610 Organisationsentwicklung – Lernprozesse im Unternehmen durch Mitarbeiterbefragungen Friedrich, Klaus Band 13: Essen 2009, ISSN 1865-5610 Die Outsourcing/Offshoring Option aus der Perspektive der Neuen Institutionenökonomie Chaudhuri, Arun Band 14: Essen 2009, ISSN 1865-5610 Der Bologna-Prozess Hintergründe – Zielsetzung – Anforderungen Seng, Anja / Fleddermann, Nicole / Klumpp, Matthias Band 15: Essen 2009, ISSN 1865-5610 Qualitätssteigerung bei gleichzeitigen Einsparungen – Widerspruch oder Zukunft in der hausärztlichen Versorgung? Jäschke, Thomas Band 16: Essen 2010, ISSN 1865-5610 Beiträge zur Gesundheitsökonomie Schütte, Michael Band 17: Essen 2010, ISSN 1865-5610 Die Einführung eines Mindestlohns in Deutschland – Eine Makroökonomische Analyse Introduction of a Minimum Wage in Germany – A Macroeconomic Analysis Bode, Olaf H. / Brimmen, Frank / Redeker, Ute Band 18: Essen 2011, ISSN 1865-5610 Wirtschaftsethik – Einflussfaktoren ethischen Verhaltens in Unternehmen Nietsch, Cornelia / Weiffenbach, Hermann Band 19: Essen 2011, ISSN 1865-5610 Ausgewählte steuerliche Einflussfaktoren der Unternehmensbewertung Frère, Eric / Schyra Andreas Band 20: Essen 2011, ISSN 1865-5610 Das Direktionsrecht des Arbeitgebers – Einsatzmöglichkeiten und Grenzen Schulenburg, Nils / Jesgarzewski, Tim Band 21: Essen 2011, ISSN 1865-5610 Interaktive Hochschuldidaktik als Erfolgsfaktor im Studium für Berufstätige – Herausforderung und kompetenzorientierte Umsetzung Fichtner-Rosada, Sabine Band 22: Essen 2011, ISSN 1865-5610 Needs of the Internet Industry Kern, Uwe / Negri, Michael, Whyte, Ligia Band 23: Essen 2011, ISSN 1865-5610 Management in ambulanten Sektor des Gesundheitswesens Schütte, Michael Band 24: Essen 2011, ISSN 1865-5610 Intuition, Risikowahrnehmung und Investmententscheidungen – Behaviorale Einflussfaktoren auf das Risikoverhalten privater Anleger Holtfort, Thomas Band 25: Essen 2012, ISSN 1865-5610 Die Mindestliquiditätsquote – Konkrete Auswirkungen auf den Wertpapier-Eigenbestand der Sparkassen Heinemann, Stefan / Hüsgen, Thomas / Seemann, Volker Band 26: Essen 2012, ISSN 1865-5610 Rating und Risikomanagement – Chancen und Risiken der Architektur des Ratingprozesses für die Validität der Ratingergebnisse Hose, Christian / Lübke, Karsten / Nolte, Thomas / Obermeier, Thomas Band 27: Essen 2012, ISSN 1865-5610 Illustrating the distortive impact of cognitive biases on knowledge generation, focusing on unconscious availability-induced distortions and SMEs Serfas, Sebastian Band 28: Essen 2012, ISSN 1865-5610 Customer Relationship Management im Mittelstand Wollenweber, Leif-Erik Band 29: Essen 2012, ISSN 1865-5610 Ökonomische Fitness Nentwig, Holger / Obermeier, Thomas / Scholl, Guido Band 30: Essen 2012, ISSN 1865-5610 Führungspraxis und Motivation – Empirische 360-Grad-Analyse auf Grundlage des MoKoCha-Führungsmodells und des Team Management Systems (TMS) Büser, Tobias / Stein, Holger / von Königsmarck, Imke Band 31: Essen 2012, ISSN 1865-5610 Altersgerechte Personalentwicklung – Bewertung von Instrumenten vor dem Hintergrund des demografischen Wandels Schulenburg, Nils / Knauer, Stefan Band 32: Essen 2013, ISSN 1865-5610 Balanced Governance – Komplexitätsbewältigung durch ausgewogenes Managen im Spannungsfeld erfolgskritischer Polaritäten Kinne, Peter Band 33: Essen 2013, ISSN 1865-5610 Beiträge zur Verhaltensökonomie: Einfluss von Priming-Effekten auf rationale vs. intuitive Entscheidungen bei komplexen Sachverhalten Holtfort, Thomas Band 34: Essen 2013, ISSN 1865-5610 Labelisation and Certification of e-Jobs – Theoretical considerations and practical approaches to foster employability in a dynamic industry Mahood, Ed / Kameas, Achilles / Negri, Micheal Christian Gondek B.A., MBA is an experienced expert in creating and applying operational and strategic tools to understand and optimize Customer Satisfaction and Customer Loyalty. As Managing Director of Percepta Deutschland GmbH, an international customer service provider, he has great management experience with a variety of international companies. Based on his interest and activities in Corporate Social Responsibility, an inherent part of Christian Gondek‘s leadership focuses on client and employee satisfaction on the basis of sustainable growth. Since 2012, he is a research fellow of the KompetenzCentrum for Corporate Social Responsibility (KCC) at the FOM, University of Applied Sciences. Also since 2012, Christian Gondek teaches at the FOM, focusing on Strategic Management. Besides that, he completed his MBA degree at the FOM and was awarded „best graduate“ in 2011/2012. Finally, he is a guest speaker for international companies in a variety of industries, and publisher in the field of brand loyalty, customer loyalty, customer retention, marketing, strategy and management. Prof. Dr. Stefan Heinemann is Vicerector and responsible for Cooperation‘s and Sustainability at the FOM Hochschule (Germany). He is also committed as the Director of the FOM Open Business School and represents the foundation BildungsCentrum der Wirtschaft within the zdi-Zentrum MINT-Netzwerk Essen. He is also committed as a Member of the workgroup „tertiary institutions“ of the UNESCO World Decade of Education for Sustainable Development, as a Member of the Supervisory Board of the FOM-dips German Institute for Portfolio Strategies and research Professor at the FOM-ild Institute for Logistics and Service Management. In the field of University Management he is a Member of the scientific advisory bord of the HKR NRW Hochschulkompetenzzentrum Rechnungswesen at the University of Duisburg-Essen. Prof. Dr. Heinemann‘s teaching and research is focused on Business Ethics and Public Management (Finance and Strategy). Die 1993 von Verbänden der Wirtschaft gegründete staatlich anerkannte gemeinnützige FOM Hochschule verfügt über 32 Studienorte in Deutschland. An der FOM studieren ausschließlich Berufstätige mit Hochschulberechtigung sowie Auszubildende, die nach dem Abitur parallel zum Studium eine betriebliche Ausbildung absolvieren. Großunternehmen wie Aldi, Bertelsmann, Daimler, Deutsche Bank, Deutsche BP, E.ON, Evonik, RWE, Siemens und Telekom aber auch viele mittelständische Betriebe kooperieren bei der Ausbildung von Führungsnachwuchs mit der FOM. Bereits seit 2001 können die Studierenden an der FOM auch international bekannte Grade wie Bachelor und Master erwerben. Seit dem Wintersemester 2007 hat die FOM ihr Angebot um Bachelor-Studiengänge in den Richtungen Business Administration, International Management, Business Law, Steuerrecht und Wirtschaftsinformatik erweitert. 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