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Customer Win Back Role of Attributions and Perceptions in Customers 2
Customer Win Back Role of Attributions and Perceptions in Customers 2
(2016) 44:218240
DOI 10.1007/s11747-015-0453-6
Received: 9 January 2014 / Accepted: 28 May 2015 / Published online: 16 June 2015
# Academy of Marketing Science 2015
GWR on second relationship duration. Furthermore, we demonstrate that satisfaction prior to defection and the length of
time absence provide a reasonable basis for distinguishing
defected customers who differ in their GWR. By applying
our findings, we derive recommendations for firms on how to
position marketing communications to recapture defected
customers according to their general willingness to return.
Keywords Customer relationship management . Relationship
revival . Consumer attributions
Introduction
Win-back, or customer reacquisition, is the process of revitalizing relationships with customers with whom the company
has failed to maintain an active relationship (Thomas et al.
2004). As reacquisition becomes a more prominent part of a
firms customer marketing strategy, it is important to understand the mechanisms that drive customer return and assess
the process with relevant metrics. Consequently, metrics that
are analogous to the popular measures applied to customer
acquisition or retention have been extended to the win-back
context. For example, Bsecond lifetime value^ (SLTV), defined as the expected LTV of a customer who has returned to
a former relationship, has been discussed as a valuable metric
for targeting and assessing the quality of a recaptured customer (Griffin and Lowenstein 2001; Stauss and Friege 1999;
Thomas et al. 2004). Using SLTV as an objective, Thomas
et al. (2004) present a two-stage econometric model to develop a pricing strategy for recapturing lost customers. In addition to SLTV, there is a long history in direct marketing for
firms to use recency, frequency, and monetary value (RFM)
models when determining who to target for reacquisition or
repurchase (e.g., Elsner et al. 2004; Hughes 1996) or to
determine the allocation of marketing expenditure on customers (Reinartz and Kumar 2000).
A common strength of all of these metrics is that they are
objective assessments of customers past behaviors, or objective predictions of future behavior and economic value, based
on past interactions with a firm. Additionally, a notable limitation of these measures is that they do not reflect or measure
the customers cognitive state or disposition at defection, nor
the development of a return decision. This distinction highlights an opportunity to consider the behavioral and cognitive
aspects of customers as they progress from defection to an
actual return decision.
A review of the customer win-back literature shows that
research has focused on the defection intention or decision
(e.g., Capraro et al. 2003), has taken the firms point of view,
has focused on the conceptual aspects of winning customers
back (e.g., Reichheld and Sasser Jr. 1990; Stauss and Friege
1999), has considered customers return intentions (Tokman
et al. 2007) and the classification of revocable relationships
(Roos 1999), has investigated customers perceptions of specific win-back offers or activities (Homburg et al. 2007;
Tokman et al. 2007), and has paid attention to behaviors after
win-back (Thomas et al. 2004). In general, these streams of
research reveal that researchers usually choose to address a
specific phase of the customer defection to win-back process.
Unifying these disparate examinations of customer win-back,
we posit that customer win-back can be conceptualized into
stages that represent the interplay between external customer
actions, internal customer processing, and firm actions toward
the customer. This approach is particularly relevant for contractual relationships where customer defection can be determined by firms. To frame this research, we present the following stages of win-back:
Stage 1: customer defection decision and relationship
termination
Stage 2: customer rationalization of the defection decision
Stage 3: win-back offer extended
Stage 4: customer processing of win-back offer
Stage 5: customer return decision
Stage 6: second lifetime relationship
We seek to expand research that relates to customers rationalization resulting from internal processing of the defection decision (stage 2). In this research on contractual relationships, the defection involves an action and some involvement
on the part of the consumer. Thus when rationalizing the decision, customers might evaluate the effort involved with the
relationship termination and also consider their willingness to
return independent of a win-back offer by the firm. This contemplation reflects their affinity to return after a defection.
This reasoning is in line with the theory of cognitive dissonance that argues that individuals generally assess former
219
220
b). Sweeney and Soutar (2001), for example, believe that several dimensions of value may be simultaneously considered.
While their context is not specific to customer return or winback, these authors focus on how consumers assess an actual
product on the basis of the following value dimensions: quality, emotional value, price, and social value. They find that
each dimension affects a persons willingness to buy. However, the emotional value dimension has a particularly strong
effect on willingness to buy. Their findings are consistent with
Gassenheimer et al.s (1998) argument that asserts that economic and social values are both critical for successful exchange relationships.
Jointly, all of these research streams suggest that the study
of how consumers rationalize the possibility of rejuvenating
past relationships could be enhanced by investigating
economic-oriented value perceptions in the same framework
as social- or emotional-oriented value perceptions. Attribution
theory, which focuses on how individuals evaluate or assess
circumstances, has also been suggested as a possible theoretical framework that might explain defected customers propensity to reactivate former relationships, (e.g., by how customers attribute their defection reasons to the firm or themselves, i.e., locus) (Homburg et al. 2007).
In this research, we make use of these suggestions by
integrating different theoretical perspectives. Specifically,
we integrate attribution theory and prior theories on customer win-back into a systematic study, using both survey and
transactional data from defected subscribers of a publishing
house, and test the appropriateness of our theoretical framework. Theory combination is therefore an important aspect
of our research. However, since we primarily focus on the
neglected effects of attribution theory on customers willingness to return, phenomena identified in other theoretical concepts such as equity theory will be addressed only to a
limited degree.
This research differs from prior work on switchback intentions in that we do not examine intentions in light of a specific
win-back offer (i.e., stage 4). Instead, we focus on consumers
willingness to return prior to a potential win-back attempt or
specific offer (i.e., stage 2). We refer to this attitude as a
defected clients general willingness to return (GWR) to a
former supplier, which is independent of expectations of a
specific offer from such a firm. Specifically, we define GWR
as the unconditional willingness of a customer to return to a
former supplier.
While there clearly is an overlap between GWR and measures of intentions, we posit that GWR is distinct from traditional constructs of customer intention, namely repurchase
intentions, revisit intentions, and loyalty. First, an important
distinction of the GWR measure is that it pertains to the
revision of a previously established decision, which may or
may not be the case with a measure of intention to repurchase.
This is a significant distinction because changing a prior
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222
Stability Stability refers to the perception that the circumstances of a relationship termination will either be fairly
223
Differentiation variables
Satisfaction
Time absence before the survey
General
willingness to
return
Customer
win-back
Time absence
after the survey
Second
relationship
duration
Relationship characteristics
Number of trial subscriptions
Number of regular subscriptions
Relationship duration before
defection
224
of returning to a relationship because they might feel an obligation to give the firm something back (Bagozzi 1995). Accordingly, these customers might subscribe for a longer period
of time and thus have longer second lifetime durations.
One can also argue that customers with a long history of
defecting from and returning to regular subscriptions might
get used to the processes of canceling and renewing their subscriptions. Accordingly, these customers should have much experience with switching suppliers. In accordance with our assumptions about switching experience in our perceptual model,
we expect that customers who are highly experienced with
switching or renewing their contracts have a higher probability
of returning to their former relationship after they have
defected. Given these contextual considerations, we introduce
number of prior trial subscriptions and number of prior regular
subscriptions as control variables in our transactional model.
Methodology
Data collection
To test our research hypotheses, we surveyed subscription
customers of a publishing house that sells a variety of romance novels in Germany. A survey of 600 regular romance
readers found that they mirror the general population in terms
of age, education, and marital and socioeconomic status
(Thurston 1983).
Specifically, we surveyed customers who had canceled
their subscriptions and had been inactive for at least
12 months. The firms database contained about 25,000
defected customers, from which we drew a random sample
of 6411 individuals. We sent each individual a questionnaire
and incentivized their participation by offering them an opportunity to win one of 20 vouchers worth EUR 20 for a purchase
from a major retailer. Two weeks after our initial mailing,
reminder postcards were sent to the non-responding defectors.
Those who responded after our reminder postcard were
marked as late respondents. A comparison between the early
and late respondents regarding all the key variables indicated
that they were similar (p>.10). Accordingly, non-response
bias does not seem to be an issue in the study.
A total of 748 questionnaires were returned, yielding a
response rate of 12%. After eliminating 205 surveys due to
incomplete answers and removing three participants as outliers in the subsequent cluster analysis, we achieved a final
sample of 540 respondents. We are aware of higher response rates in other study contexts and attribute this to
the home mailing procedure and the specific context of
defected customers in our study.
Of these respondents, 99.6% were female and 56% were
married. Our participants mean age was 40 years (range: 17
to 82 years), and the median annual household income was
225
EUR 12,000 to EUR 18,000. Because our sample is not representative of the German population in gender and income,
our findings may not be generalized to the overall population.
However, this is not unusual as magazine subscriptions are
typically targeted to specific customer groups.
In addition to our survey data, we obtained transactional
data about the surveyed customers from the cooperating
publishing house. Hence, we were able to derive whether
our respondents actually returned and when they did, the
duration of their second relationship. Information on two
surveyed customers in the cooperation partners database
was missing. Hence our transactional model accounts for
538 out of 540 customers we examined in the perceptual
model. We also obtained transactional data from 789 customers who did not receive the survey but did defect in the
same manner as the customers who did participate in our
survey in order to account for a potential measurement bias.
Despite our attempt to rigorously collect both survey data
and post-defection transactional data from defected customers, the product category of this research presented a
natural limitation. This limitation is a result of the fact that
some customers could purchase the novels at retail locations
without a subscription. While executives of the publishing
house judged that the impact of the retail sales on the subscription sales were minimal, we acknowledge this as a
potential limitation of our data.
Statistical analysis overview
To test our hypotheses, we took several steps in our statistical
analyses. First, in order to deeply understand the value of integrating attribution theory with existing theories on customer
return and win-back, we sought to identify differences in
defected customers that may blur interesting insights. Thus we
decided to perform a cluster analysis to account for heterogeneity among defectors. Second, we tested the proposed antecedents of the general willingness to return with regression analysis
(perceptual model). Finally, we set up regression models to
derive how the general willingness to return related to the actual
return of defected customers and, if they did return, how long
they maintained the relationship (transactional model).
Perceptual model
Measures and validation
With the exception of a measure for GWR, we made use of
established measures, which we either applied directly or
adapted for our survey. Details about the exact items, their loading, the construct composite reliability, and the source of the
scale are described in the Appendix. All the scales were assessed
using a seven-point Likert scale. Their respective means, standard deviations, and correlations are provided in Table 1.
0.07
0.03
0.05
0.13*
4.29
0.02
0.00
0.04
0.03
6.16
*p<0.05 (two-sided)
Standard Deviation
1.70
0.03
0.09
0.06
0.02
0.91
0.09*
0.10*
0.37*
0.22*
9. Reactivation costs
0.27*
10. Attractiveness of alternatives 0.05
Transactional measures
11. Time absence before the survey0.12*
12. Time absence after the survey 0.03
0.08
0.03
0.02
0.13*
3.62
0.04
0.18*
8. Controllability
0.11*
0.42*
0.08
0.04
0.11*
0.22*
0.07
0.15*
0.05
0.45*
4. Variety seeking
5. Switching experiences
6. Locus
7. Stability
0.03
0.04
0.51*
0.17*
0.25*
0.39*
2. Prior satisfaction
3. Affective Commitment
Constructs
1. General willingness to return
Variables
Table 1
1.54
0.14*
0.01
3.91
0.04
0.13*
0.14*
0.08
0.12*
0.26*
0.08
0.39*
0.13*
0.17*
1.53
0.19*
0.21*
0.19*
0.00
3.91
0.17
0.06
0.13*
0.38*
0.13*
0.12*
0.16*
0.13*
0.05
0.06
0.39*
0.25*
0.37*
1.21
0.01
0.03
0.07
0.08
1.66
1.53
0.10*
0.09*
0.11*
0.05
3.91
0.06
0.03
0.19*
0.00
0.05
0.20*
0.05
1.81
0.04
0.09*
0.06
0.02
3.23
0.03
0.50
0.23*
1.17
0.00
0.03
0.07
0.07
2.22
0.08
0.03
1.22
0.06
0.04
0.12*
0.05
2.58
0.07
0.01
10
277.86
0.04
0.15
0.14*
0.04
970.30
0.02
11
312.86
0.06
0.02
0.01
0.10
256.78
12
0.91
0.46*
0.34*
0.10
0.85
13
0.75
0.65*
0.10
0.66
14
1,151.11
0.07
738.54
15
972.44
631.02
16
226
J. of the Acad. Mark. Sci. (2016) 44:218240
227
Clustering approach
From a managerial perspective, it is appealing to differentiate
between different segments of defected customers since
groups of lapsed customers are assumed to be heterogeneous
(Bogomolova 2010). Prior research has considered satisfaction and time absence in the context of customer win-back and
Relationship duration Relationship durations before defection were measured as the length of the customers subscriptions before their defection, whereas the second relationship
duration (transactional model) represents the length of their
subscriptions after the customers return to their former relationship. On average, the 538 survey participants had a
228
Results
Perceptual model clustering results
We used prior relationship satisfaction and time absence before
the survey as cluster variables in a three-stage clustering procedure in accordance with the approaches used by e.g., Homburg et al. (2008). Hence, we removed three outliers from the
dataset, which were identified by single linkage clustering and
by PROC FASTCLUS of SAS. We identified four clusters of
defected customers prior satisfaction and time absence before
survey (see Fig. 2). The number of clusters was determined by
using the cubic clustering criterion (Sarle 1983) and the
pseudo-F statistic (Calinski and Harabasz 1974) in
combination with Wards (1963) hierarchical clustering algorithm. Both criteria implied a four-cluster solution. We also
derived ten subsamples, each of which contained two-thirds
of the sample, and found strong support for a four-cluster solution. To assess the generality of the cluster solution, we performed as cross-validation procedure as proposed by McIntyre
and Blashfield (1980) and found stable results according to
Rands (1971) index (0.84) which ranges from 0 to 1 (perfect
agreement). We performed a post hoc comparison of the means
to characterize clusters derived from the cluster analysis. Table 2 shows our results.
Based on our post hoc comparisons of the means and findings from cluster-wise regressions (see Table 4), we define
defectors in cluster 1 as migrant birds with a medium satisfaction level and a long time absence (n=110). This label is in
line with a high level of variety seeking among the defectors in
this cluster, which indicates that these customers might return,
e.g., for exciting new products. However, it might take some
time to recover these former relationships as these defectors
have a low level of GWR.
In cluster 2, the respondents seem to be committed but
unsure with high satisfaction levels and a medium time absence (n=212) but the shortest second lifetime duration. Furthermore, these defectors appear to have a high level of affective commitment and GWR to their former relationship. Notably, they have the highest level of switching experience but
their evaluation of competitive alternatives has the lowest level
among all clusters.
The respondents in cluster 3 are rather disillusioned with
low satisfaction levels and a medium time absence (n=81).
This is evident from the high means on the attribution theory
elements. In particular, these customers reveal very high
means in locus, stability, and controllability indicating that
they believe that the firm is to blame for the defection, the
defection reasons are stable (i.e., not likely to change), and
the firm can control the reason for defection (see Table 2,
Post-hoc Comparison of Means). The GWR for this cluster
is also very low.
Finally, in cluster 4, the defected customers can be labeled
as remorseful, and are characterized by a medium satisfaction
level and a short time absence (n=137). The return to the firm
seems likely since reactivation costs are low, the client feels
responsible for the termination (internal locus) and is not interested in variety seeking. These defectors may also be more
likely to return compared to defectors in clusters 1 and 3 based
on their mean GWR.
Perceptual model regression results
We estimated regression models for the aggregate data and by
cluster to test our Hypotheses 1 to 3. First we estimated the
regressions without the attribution theory variables. We refer
to this as our Bbaseline^ model. In order to measure the
229
Time Absence
adj. R2
High
Medium
Cluster 1 (0.333)
Migrant birds
1. Commitment (0.466)
2. Stability (-0.376)
3. React. Costs (-0.186)
4. Controllability (0.155)
Cluster 2 (0.249)
Committed but unsure
1. Commitment (-0.331)
2. Stability (-0.268)
3. React. Costs (-0.219)
4. Controllability (0.085)
Cluster 3 (0.460)
Disillusioned
1. Stability (-0.725)
2. React. Costs ( -0.392)
3. Switch.exp (-0.235)
4. Controllability ( 0.210)
5. Commitment (0.163)
Cluster 4 (0.381)
Remorseful
1. Stability (-0.437)
2. Commitment (0.392)
3. Alt. Attr. (-0.211)
Low
Low
Medium
High
Prior Satisfaction
Table 2
Percentage of Observations
1
Bmigrant birds^
20%
(n=110)
2
Bcommitted but unsure^
39%
(n=212)
3
Bdisillusioned^
15%
(n=81)
4
Bremorseful^
25%
(n=137)
0.84c
0.87b
0.51b
0.93c
0.51b
0.61a
0.19a
0.89b
0.156a,b
0.050b
0.039a
0.081a
0.029a
0.181b
0.052a
0.070a,b
0.157b
0.146b
0.243b
0.117a
0.166a
0.142a
0.077b
0.077a
0.143a
0.068b
0.359a
0.673a
0.424b
0.886b
0.749b
0.054b
0.281b
0.376b
0.010a,b
0.112b
0.062b
0.101a
0.202a
0.199a
0.296a
0.005a,b
0.058a
0.236a
47 (43%)
188.47
618.74
124 (58%)
275.94
529.95
41 (51%)
299.54
592.34
81 (59%)
245.44
812.44
Means within a row that have matching superscripts are not significantly different (p<0.05) on the basis of Waller and Duncans (1969) multiple-range
test. If variances across clusters were not homogeneous, we performed a Games-Howell test and marked the associated constructs with a superscript .
The lowest means are designated with a superscript a; the next highest with b, and so on. Italic means highlight the lowest means; bold means represent
the highest level. Cluster and regression variables were standardized by range
230
Table 3
Model
Goodness-of-fit statistics
Sample Size R2
BIC
131.5
32.79*
1386.9
7.63*
9.74*
7.98*
7.76*
275.4
541.6
192.0
387.6
540
133.6
0.235 0.228
Cluster 1 110
0.268
Cluster 2 212
0.191
Cluster 3 81
0.347
Cluster 4 137
0.228
B. Attribution theory included
24.81
48.07
25.83
23.64
0.233
0.172
0.304
0.199
Overall 540
Cluster 1 110
Cluster 2 212
0.350 0.341
0.382 0.333
0.277 0.249
0.113
0.100
0.077
Cluster 3 81
Cluster 4 137
0.514 0.460
0.418 0.381
0.156
0.182
22.13
45.72
22.89
21.09
1298.5
256.8
517.7
88.4*
18.6*
23.9*
168.1
314.6
23.9*
73*
0.00
0.00
7.28***
Intercept
Affective commitment
0.35
0.12
0.38
0.10
0.19
0.09
0.04 0.98
0.05 0.11
0.04 2.31*
0.07 0.19
0.04 1.96*
0.05 0.05
0.04 8.23*** 0.40 0.29
0.04
0.09
0.08
0.33
0.01 0.06
SE
Cluster 2
t
0.17
0.05 0.13
SE
Cluster 3
t
0.37
0.10
0.11 0.06
1.73*
0.04
0.09 1.25
0.15 0.07
0.09 2.10*
0.14 0.12
0.10 0.56
0.04 0.13
0.09 3.36*** 0.38 0.24
0.06 1.11
0.08 0.05 0.09 0.57
0.08
0.07 1.87*
0.08 0.19 0.09 2.09*
0.21
0.08 1.60
0.07 0.02 0.07 0.29
0.03
0.07 3.72*** 0.27 0.42 0.10 4.20*** 0.73
0.08 1.55
0.03 0.06 0.51
0.08 0.12 0.64
0.08 4.71*** 0.47 0.27 0.06 4.27*** 0.33 0.16 0.10 1.67*
0.16
0.08 1.13
0.10 0.00 0.07 0.03
0.01 0.03 0.08 0.43
0.05
0.09 2.06*
0.19 0.30 0.07 4.30*** 0.22 0.28 0.07 3.85*** 0.39
0.09 1.08
0.08 0.03 0.07 0.49
0.02 0.26 0.09 2.83**
0.24
0.00 0.03
0.30 0.04
0.17
Variety seeking
Controllability
Locus
Stability
SE
Cluster 1
b
0.12 0.08
SE
Cluster 4
t
1.43
0.09
0.05
0.13
0.44
0.06
0.35
0.24
0.12
0.15
0.03
0.09 1.02
0.09
0.07 0.72
0.04
0.11 1.18
0.07
0.07 6.43*** 0.47
0.08 0.75
0.07 4.82*** 0.39
0.09 2.77** 0.21
0.09 1.4
0.12
0.11 1.39
0.10
0.04 8.65*** 0.42 0.46 0.08 5.48*** 0.57 0.32 0.07 4.80*** 0.39 0.29 0.10 2.79**
0.30
0.35 0.08 4.37*** 0.41
0.04 0.41
0.01 0.09 0.09 0.96
0.07 0.00 0.08 0.04
0.00 0.04 0.08 0.47
0.04
0.17 0.10 1.76*
0.11
0.04 6.62*** 0.16 0.19 0.09 2.15*
0.13 0.32 0.07 4.47*** 0.17 0.29 0.08 3.81*** 0.29
0.23 0.10 2.37** 0.12
0.04 3.72*** 0.12 0.17 0.09 1.91*
0.14
0.06 0.07
0.93 0.04 0.36 0.10
3.60*** 0.32 0.32 0.12
2.71***
Variety seeking
0.01 0.04
B. Attribution theory included
Affective commitment
0.36
Attractiveness of alternatives0.02
Reactivation costs
0.26
Switching experiences
0.17
Intercept
SE t
0.00 0.04
Overall
Parameter
Table 4
232
233
Intercept
General willingness to return (GWR)
Prior satisfaction
Time absence before the survey
Time absence after the survey
GWR x Time absence after the survey
0.33
0.17*
0.14
0.00
SE
0.55
0.10
238.54
266.84***
267.60
70.45
0.10
0.00
34.93
0.07
0.50
0.50*
68.67
0.23
0.31
0.24
0.00
0.84***
0.00
0.17
0.02
23.60
0.06
75.85
0.33
0.19
54.49
108.64
Several Brands
1.58*
0.78
32.95
280.93
Brand 1
Brand 2
0.44
0.19
0.38
0.43
255.86
59.52
159.65
176.04
Brand 3
0.57
0.43
113.51
179.89
Brand 4
Brand 5
Brand 6
0.84
1.83*
1.48**
0.47
0.72
0.47
845.71*
113.28
723.67*
359.78
208.61
329.21
538
292
Discussion
Theoretical implications
Combining theories improves our understanding of customer willingness to return Given that customer win-back is
arguably one of the least researched areas of CRM, integrating
theories and then testing the applicability of hypotheses derived from those theories contributes to a better understanding
of this important field of research. In detail, we draw upon a
theory that has not been applied in a customer win-back context (i.e., attribution theory) and compare our model to a baseline model that reflects individual theories that are focused on
234
factor, but a distant second behind the most influential factor of stability (elasticities for stability are -0.73, and -0.39
for perceived reactivation costs).
Based on these results, and the economic practices that
firms typically use to win customers back, firms could very
easily focus on the wrong activities, namely those that do
not drive the GWR. For example, a firm may focus on
devising promotions and economic incentives to recapture
valuable lost customers who have switched suppliers, when
the defected customers may actually be more concerned
with the bonds that they had with their former supplier, or
with special treatments that they previously received (Lam
et al. 2010; Tokman et al. 2007). A recent study supports
this rationale by finding that the efficacy of some marketing
activities such as advertising are quite low and even negative
in the long term (Ataman et al. 2010).
General willingness to return is a relevant and measurable
win-back metric Our focal measure, GWR, is new in the
CRM research domain. Prior research in this domain
accounted for demographics (e.g., the duration of the relationship prior to defection), emotion-based customer characteristics such as customers overall satisfaction prior to their
defection (Homburg et al. 2007), and their intentions to reactivate a (non-contractual) relationship given a specific
win-back offer (Tokman et al. 2007). To our knowledge,
prior research has not fully investigated the rationalization
and disposition of defected customers prior to any win-back
offer. While the GWR concept has similarities to the concept
of consumers affinity for a firm, product, or brand, we
emphasize that a key distinction between GWR and general
intention is that GWR measures the inclination to revise a
prior decision without any firm offered incentives. Thus
GWR is not a broad measure of repurchase intentions but
instead it is a specific measure of a customers disposition
toward relationship revival.
Managerial implications
Leveraging GWR and its antecedents to position win-back
communications Because the consumers defection reasons
can influence GWR and win-back performance, effective
marketing communications should address the consumers
concerns. The antecedents to GWR and how they vary
across customer groups can help CRM managers to position
their win-back communications. For example, if controllability is a key explanation for a specific customers GWR, a
firm could approach such a defected customer with a statement that communicates, Bthis incident can be prevented.^
With such a statement, the firm is tapping into the customers perception that it can change the situation for the
235
236
237
and therefore encourage future research to conduct neuroscientific studies to validate or qualify our findings on the
outcomes of the internal mental workings of customers.
We further suggest conducting experimental studies to
broaden our knowledge on the impact of concrete winback offers (besides pricing issues) on customer return
behavior. Further, experimental studies might also help to
further enlighten the cognitive processes that a defected
customer goes through while forming her or his general
willingness to return.
Our theoretical framework and empirical findings can
provide managers with very specific guidance and suggestions on how to segment defected customers and
engage them through specific communication messages.
Hence, additional research on proxy measures will be
helpful to translate the high level constructs studied in
this research into actionable insight. Future studies
might also consider the important revenue, cost, and
profit implications of new customer acquisition and retention vis--vis win-back of former clients. Finally, future research might also reveal how characteristics of a
prior relationship other than prior satisfaction or affective commitment might influence customer responses toward the firm.
While we are not aware of any win-back activities by
the firm before the survey, the possibility of this is a
potential limitation of this research. We also note that
the subscription context is another potential limitation to
the generalizability of this research. It would be fruitful
if the theoretical framework presented here were to be
examined in a non-subscription context and contexts
that have a higher risk associated with the purchase
(e.g., prepaid legal service or medical insurance) than
the one studied in this research (i.e., novels, media
content).
Another possible limitation of this research is the
ratio of women to men in the data sample. The study
participants were mostly women. It is possible that attitudes could differ if the sample was more balanced. For
example, Melnyk et al. (2009) find that men are more
loyal to groups (e.g., companies), whereas women tend
to be more loyal to individuals, such as certain service
employees.
Despite the potential limitations and several ways to
extend this study, this research can be viewed as a catalyst to expand our knowledge of customer reactivation.
Specifically, this research contributes to the literature by
expanding our theoretical knowledge about customer revitalization and provides recommendations that are highly relevant to practitioners responsible for managing
customer relationships.
238
Appendix
Table 6
Measurement items (1=I do not agree at all to 7=I fully agree; r=reverse coded)
Loadings
Composite reliabilities
0.82
0.91
0.88
0.87
0.93
The relationship I shared with your publishing house was very important to me.
Since the termination of my subscription, I still feel very committed to your publishing house.
Variety Seeking (Van Trijp et al. 1996):
0.90
0.90
0.89
I enjoy taking chances by trying out unfamiliar companies, products/contracts to provide variety to my life.
I like trying things out that I am not familiar with.
I always try something different.
I like to try something I am not very sure of.
I enjoy trying out new products.
Switching Experiences (Burnham et al. 2003):
0.85
0.89
0.86
0.80
0.83
0.93
0.87
0.83
0.89
0.90
0.87
0.90
0.89
0.92
0.86
0.76
0.85
0.86
0.91
0.91
0.91
0.59
0.62
0.81
0.86
0.83
0.86
0.83
0.82
0.89
0.83
0.70
0.91
0.77
0.89
0.86
0.92
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