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Susan M. Keaveney

Bio: Susan M. Keaveney is an academic researcher from University of Colorado Denver. The author has contributed to research in topics: Service (business) & Marketing research. The author has an hindex of 14, co-authored 21 publications receiving 4268 citations.

Papers
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Journal ArticleDOI
TL;DR: In this paper, customer switching behavior damages market share and profitability of service firms yet has remained virtually unexplored in the marketing literature, and the author reports results of a critical incid...
Abstract: Customer switching behavior damages market share and profitability of service firms yet has remained virtually unexplored in the marketing literature. The author reports results of a critical incid...

2,756 citations

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TL;DR: In this article, the authors investigated the degree to which selected behavioral (information that customers used when making the online service decision, their service usage), attitudinal (risk-taking propensity), and demographic (income and education) factors are effective in discriminating between continuers and switchers.
Abstract: With a quarter of a billion Internet users worldwide and estimates of more than one-half billion people online by the year 2003, growth in the online services industry has been exponential. With this growth has come concern about customer “churn”, a concern that parallels issues of customer switching behavior in services industries in general. This manuscript reports results of two field studies, conducted among two randomly selected samples of online service users, that investigate the degree to which selected behavioral (information that customers used when making the online service decision, their service usage), attitudinal (risk-taking propensity), and demographic (income and education) factors are effective in discriminating between continuers and switchers. The research in Study 1 is replicated in Study 2 and extended to consider additional attitudinal factors of satisfaction and involvement. Implications for managers and researchers are discussed.

537 citations

Journal ArticleDOI
TL;DR: It is argued that inconsistencies between retail store image conceptualization and operationalization signal a critical separation between theory and measurement within the paradigm, and that the time has come for a new information processing theory—category-based information processing—to challenge piecemeal processing as the positive heuristic within the store image paradigm.
Abstract: This article presents the case that inconsistencies between retail store image conceptualization and operationalization signal a critical separation between theory and measurement within the paradigm. The authors attribute the separation to the influence of two rival, middle-level information processing theories. The first, piecemeal-based processing theory, has historically dominated retail store image operationalization and measurement within the area. The authors argue, however, that the time has come for a new information processing theory—category-based information processing—to challenge piecemeal processing as the positive heuristic within the store image paradigm. The advantages of adopting category-based processing over piecemeal processing are discussed both from a positive and normative perspective. Recommendations for managers and propositions for future research are offered.

260 citations

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TL;DR: In this article, the authors present a portfolio of experiential learning exercises that can be used in services marketing courses to facilitate the integration of course concepts, teamwork and team building, communication and listening skills, and critical thinking and problem solving.
Abstract: Business schools are often accused of focusing too much on quantitative and technical skills and spending too little time on interpersonal and communication skills. Experiential learning assignments provide an effective vehicle for addressing these concerns and are particularly well suited for services marketing courses. The objective of this article is to present a portfolio of experiential learning exercises that can be used in services marketing courses to facilitate the integration of course concepts, teamwork and team building, communication and listening skills, and critical thinking and problem solving.

204 citations


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TL;DR: Both practitioners and academics understand that consumer loyalty and satisfaction are linked inextricably. But they also understand that this relation is asymmetric as mentioned in this paper. Although loyal consumers are most...
Abstract: Both practitioners and academics understand that consumer loyalty and satisfaction are linked inextricably. They also understand that this relation is asymmetric. Although loyal consumers are most ...

8,021 citations

Journal ArticleDOI
TL;DR: In this article, the authors describe the results of a critical incident study based on more than 800 incidents involving self-service technologies solicited from customers through a Web-based survey, and present a discussion of the resulting critical incident categories and their relationship to customer attributions, complaining behavior, word of mouth, and repeat purchase intentions.
Abstract: Self-service technologies (SSTs) are increasingly changing the way customers interact with firms to create service outcomes. Given that the emphasis in the academic literature has focused almost exclusively on the interpersonal dynamics of service encounters, there is much to be learned about customer interactions with technology-based self-service delivery options. In this research, the authors describe the results of a critical incident study based on more than 800 incidents involving SSTs solicited from customers through a Web-based survey. The authors categorize these incidents to discern the sources of satisfaction and dissatisfaction with SSTs. The authors present a discussion of the resulting critical incident categories and their relationship to customer attributions, complaining behavior, word of mouth, and repeat purchase intentions, which is followed by implications for managers and researchers.

2,721 citations

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TL;DR: In this article, the authors develop a model of custom recovery efforts for service failures, based on the model of customer reaction to service failures in the context of an organization's recovery efforts.
Abstract: Customers often react strongly to service failures, so it is critical that an organization's recovery efforts be equally strong and effective. In this article, the authors develop a model of custom...

2,390 citations

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TL;DR: In this paper, the authors examined the benefits customers receive as a result of engaging in long-term relational exchanges with service firms and found that consumer relational benefits can be categorized into three distinct benefit types: confidence, social, and special treatment benefits.
Abstract: This research examines the benefits customers receive as a result of engaging in long-term relational exchanges with service firms. Findings from two studies indicate that consumer relational benefits can be categorized into three distinct benefit types: confidence, social, and special treatment benefits. Confidence benefits are received more and rated as more important than the other relational benefits by consumers, followed by social and special treatment benefits, respectively. Responses segmented by type of service business show a consistent pattern with respect to customer rankings of benefit importance. Management implications for relational strategies and future research implications of the findings are discussed.

2,374 citations

Journal ArticleDOI
TL;DR: In this paper, the authors developed and estimated a dynamic model of the duration of the provider-customer relationship that focuses on the role of customer satisfaction, and the model is estimated as a left-truncated, proportional hazards regression with cross-sectional and time series data describing cellular customers perceptions and behavior over a 22-month period.
Abstract: Many service organizations have embraced relationship marketing with its focus on maximizing customer lifetime value. Recently, there has been considerable controversy about whether there is a link between customer satisfaction and retention. This research question is important to researchers who are attempting to understand how customers' assessments of services influence their subsequent behavior. However, it is equally vital to managers who require a better understanding of the relationship between satisfaction and the duration of the provider-customer relationship to identify specific actions that can increase retention and profitability in the long run. Since there is very little empirical evidence regarding this research question, this study develops and estimates a dynamic model of the duration of provider-customer relationship that focuses on the role of customer satisfaction. This article models the duration of the customer's relationship with an organization that delivers a continuously provided service, such as utilities, financial services, and telecommunications. In the model, the duration of the provider-customer relationship is postulated to depend on the customer's subjective expected value of the relationship, which he/she updates according to an anchoring and adjustment process. It is hypothesized that cumulative satisfaction serves as an anchor that is updated with new information obtained during service experiences. The model is estimated as a left-truncated, proportional hazards regression with cross-sectional and time series data describing cellular customers perceptions and behavior over a 22-month period. The results indicate that customer satisfaction ratings elicited prior to any decision to cancel or stay loyal to the provider are positively related to the duration of the relationship. The strength of the relationship between duration times and satisfaction levels depends on the length of customers' prior experience with the organization. Customers who have many months' experience with the organization weigh prior cumulative satisfaction more heavily and new information relatively less heavily. The duration of the service provider-customer relationship also depends on whether customers experienced service transactions or failures. The effects of perceived losses arising from transactions or service failures on duration times are directly weighed by prior satisfaction, creating contrast and assimilation effects. How can service organizations develop longer relationships with customers? Since customers weigh prior cumulative satisfaction heavily, organizations should focus on customers in the early stages of the relationship-if customers' experiences are not satisfactory, the relationship is likely to be very short. There is considerable heterogeneity across customers because some customers have a higher utility for the service than others. However, certain types of service encounters are potential relationship "landmines" because customers are highly sensitive to the costs/losses arising from interactions with service organizations and insensitive to the benefits/gains. Thus, incidence and quality of service encounters can be early indicators of whether an organization's relationship with a customer is flourishing or in jeopardy. Unfortunately, organizations with good prior service levels will suffer more when customers perceive that they have suffered a loss arising from a service encounter-due to the existence of contrast effects. However, experienced customers are less sensitive to such losses because they tend to weigh prior satisfaction levels heavily. By modeling the duration of the provider-customer relationship, it is possible to predict the revenue impact of service improvements in the same manner as other resource allocation decisions. The calculations in this article show that changes in customer satisfaction can have important financial implications for the organization because lifetime revenues from an individual customer depend on the duration of his/her relationship, as well as the dollar amount of his/her purchases across billing cycles. Satisfaction levels explain a substantial portion of explained variance in the durations of service provider-customer relationships across customers, comparable to the effect of price. Consequently, it is a popular misconception that organizations that focus on customer satisfaction are failing to manage customer retention. Rather, this article suggests that service organizations should be proactive and learn from customers before they defect by understanding their current satisfaction levels. Managers and researchers may have underestimated the importance of the link between customer satisfaction and retention because the relationship between satisfaction and duration times is very complex and difficult to detect without advanced statistical techniques.

1,900 citations