| List of Figures | ix |
| Preface | xi |
| Acknowledgments | xv |
| Chapter 1 | Customer Satisfaction, Retention, and Profitability | 1 |
| Introduction | 1 |
| History of Customer Satisfaction Research | 2 |
| Customer Satisfaction and Business Outcomes | 3 |
| An Intervening Variable: Customer Retention | 4 |
| Customer Satisfaction, Share, and Profitability | 6 |
| A Return on Quality Model | 8 |
| The ACSI Study | 12 |
| What Is Loyalty? | 14 |
| Chapter 2 | Tracking and Reporting Customer Satisfaction Metrics | 19 |
| Introduction | 19 |
| The Roles of Customer Satisfaction Measurement | 20 |
| The Customer Satisfaction Program Life Cycle | 21 |
| Reporting Issues | 27 |
| Customer Comment Data | 28 |
| Defining Loyalty Segments | 33 |
| Chapter 3 | Linking CSM to Management Incentives: Theoretical Foundation | 37 |
| Introduction | 37 |
| The Nature of Human Motivation | 38 |
| Needs-Based Theories of Motivation | 38 |
| Process Theories of Motivation | 43 |
| Reward and Recognition Programs | 46 |
| Customer Feedback in Incentive Systems | 51 |
| Relationship and Transaction Surveys | 53 |
| Hybrid Surveys | 58 |
| Summary | 58 |
| Chapter 4 | Linking CSM to Management Incentives: Quantitative Approaches | 59 |
| Introduction | 59 |
| Incentive Systems and Customer Satisfaction | 59 |
| Accommodating Measurement Error | 60 |
| Case Study: SuperCam Dealer Bonus Program | 62 |
| Summary | 72 |
| Chapter 5 | Implementing Key-Driver Results | 75 |
| Introduction | 75 |
| Derived Versus Stated Importance: Managerial Implications | 75 |
| Marginal Resource Allocation Models | 79 |
| Key-Driver Quantification | 80 |
| Bivariate Measures of Importance | 81 |
| Multivariate Measures of Importance | 82 |
| Multivariate Regression Models | 84 |
| Interaction Terms | 85 |
| Hierarchical Bayes Regression | 86 |
| Effects of Collinearity | 87 |
| Strategies for Dynamic Key Drivers | 91 |
| Summary | 95 |
| Chapter 6 | CRM and Customer Satisfaction | 97 |
| Introduction | 97 |
| CRM as a Business Strategy | 97 |
| CRM: The Promise | 99 |
| CRM: The Reality | 100 |
| Marketing Research Data and CRM | 103 |
| Customer Satisfaction Data and CRM | 106 |
| The Future of the CRM/CSM Relationship | 112 |
| Chapter 7 | Linking Customer Satisfaction to Business Outcomes | 115 |
| Introduction | 115 |
| Linkage Research Techniques | 116 |
| Direct Linkage Dependent Measures: Market Share | 119 |
| Direct Linkage Dependent Measures: Profitability | 121 |
| Cross-Sectional Linkage Techniques | 125 |
| Longitudinal Linkage Techniques | 128 |
| Summary | 130 |
| Chapter 8 | Managing Global CSM Projects | 133 |
| Introduction | 133 |
| Global Program Management | 134 |
| Data Collection Considerations | 138 |
| Telephone Surveys | 139 |
| Mail Surveys | 140 |
| Personal Interviews | 141 |
| The Internet | 142 |
| Interactive Voice Response (IVR) | 144 |
| Panels | 145 |
| Instrument Design | 146 |
| The Data Dictionary | 148 |
| Psychometric Issues: Cultural Bias | 154 |
| Chapter 9 | Linking Customer Feedback to Business Processes | 157 |
| Introduction | 157 |
| Key Drivers and Improvement Costs | 159 |
| Improvement Cost Functions | 167 |
| Managerial Strategies: Product Quality | 169 |
| Managerial Strategies: Service Quality | 174 |
| Summary | 175 |
| Chapter 10 | Creating and Managing Loyalty Segments | 177 |
| Introduction | 177 |
| Loyalty: Operational Definitions | 177 |
| Loyalty Segment Drivers | 179 |
| Assessing Driver Homogeneity | 180 |
| Introduction to Binary Logistic Regression | 182 |
| Case Study: MNL Regression and Loyalty Segments | 187 |
| Traditional Model Development | 189 |
| MNL Model Development | 192 |
| Segment Dynamics Forecasting | 193 |
| Implementation Issues | 195 |
| Implications for Incentive Systems | 196 |
| Future Directions | 197 |
| Appendix A | Customer Satisfaction Data Analysis Tips | 199 |
| Introduction | 199 |
| Documentation | 199 |
| Data Management | 201 |
| Validation | 202 |
| Appendix B | Useful Statistical Tests for Customer Satisfaction Research | 205 |
| Role of Inferential Statistics | 205 |
| Finite Population Correction Factor | 211 |
| Glossary | 217 |
| References | 233 |
| Index | 239 |