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Summary of lectures + notes and articles CEM (2024/2025)

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Summary of lectures, guest lectures, and articles of course Customer Experience Management, part of MsC Marketing at the Vrije Universiteit Amsterdam

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December 11, 2024
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Inhoudsopgave
Articles lecture 1 .......................................................................................................................... 4
Lemon & Verhoef (2016) - Understanding Customer Experience Throughout the Customer Journey ......4
FOCUS:.......................................................................................................................................5
De Keyser (2020) - Moving the Customer Experience Field Forward: Introducing the Touchpoints,
Context, Qualities (TCQ) Nomenclature ............................................................................................7
FOCUS:.......................................................................................................................................7
Homburg et al. (2017) - Customer experience management: toward implementing an evolving
marketing concept ......................................................................................................................... 12
FOCUS:..................................................................................................................................... 12

Lecture 1 - What is customer experience management? ................................................................16

Articles lecture 2 .........................................................................................................................29
Thomke (2019) - The Magic That Makes Customer Experiences Stick ................................................. 29

Lecture 2.1 – Guest lecture ..........................................................................................................30

Lecture 2.2 – Case assignment .....................................................................................................35

Articles lecture 3 .........................................................................................................................36
Gahler et al. (2023) - Customer Experience: Conceptualization, Measurement, and Application in
Omnichannel Environments ........................................................................................................... 36
FOCUS:..................................................................................................................................... 37
Reichheld (2003) - The One Number You Need to Grow .................................................................... 39
Darnell, and Burns (2021) - Net Promoter 3.0, Reichheld .................................................................. 41
Teixeira and Mendes (2019) -How to Improve Your Company’s Net Promoter Score ............................ 43

Lecture 3 - CX Measurement: How to measure the customer experience? ......................................45
3.1 Measuring the drivers of customer experience............................................................................ 46
3.2 Measuring CX with attitudes/intentions ...................................................................................... 49
3.3 Measuring CX with behaviors..................................................................................................... 54

Articles lecture 4 .........................................................................................................................57
Anderson and Simester (2011) - A Step-by-Step Guide to Smart Business Experiments ...................... 57
Langhe et al. (2017) - Linear Thinking in a Nonlinear World ................................................................ 59
Herhausen et al. (2019) - Loyalty Formation for Different Customer Journey Segments ....................... 61
Kranzbühler et al. (2019) - Outsourcing the Pain, Keeping the Pleasure .............................................. 63
Li and Kannan (2014) - Attributing Conversions in a Multichannel Online Marketing Environment ........ 65

Lecture 4 - CX Optimization: How to manage touchpoints in the customer journey? .......................67
4.1 Attribution modeling in the customer journey ............................................................................. 67
4.2 A/B testing & experiments ......................................................................................................... 74

Lecture 5 - “Social Value Creation” Prof. Daniel Wentzel, RWTH Aachen (Guest lecture) .................77

, 5.1 Social value creation ................................................................................................................ 77
5.2 Data driven segmentation and personas .................................................................................... 81
5.3 Guest lecture – Social value creation (Daniel Wentzel) ................................................................ 83
Why do (brand)communities exist and what do consumers get out of them? ................................. 84
How can you build a brand community from scratch? .................................................................. 86
How do you ensure that members behave as they should behave? ............................................... 88
How do you encourage members to contribute to the brand community? ..................................... 89

Articles lecture 6 .........................................................................................................................91
Van Vaerenbergh et al. (2019) – The Service Recovery Journey: Conceptualization, Integration, and
Directions for Future Research ....................................................................................................... 91
Herhausen et al. (2019) – Detecting, Preventing, and Mitigating Online Firestorms in Brand
Communities ................................................................................................................................ 93
Herhausen et al. (2023) - Complaint De-Escalation Strategies on Social Media .................................. 94

Lecture 6 - CX Disruptions: How to manage failures in the customer journey? ................................95
The service recovery journey ........................................................................................................... 95

Articles lecture 7 ....................................................................................................................... 105
Miller et al. (2011) - How Should Consumers’ Willingness to Pay Be Measured? An Empirical
Comparison of State-of-the-Art Approaches .................................................................................. 105
Homburg et al. (2005) - Do Satisfied Customers Really Pay More? A Study of the Relationship Between
Customer Satisfaction and Willingness to Pay ............................................................................... 106
Rafi (2023) - Expand Your Pricing Paradigm .................................................................................... 107

Lecture 7 - CX Appropriation: How to best capture value from customers? ................................... 108
Detecting, preventing, and mitigating online firestorms .................................................................. 108
The service recovery paradox ........................................................................................................ 115
Customer experience appropriation .............................................................................................. 116
A framework of creating, capturing, and eroding value .................................................................... 116
Capturing value with value-based pricing ...................................................................................... 118
Understanding the willingness to pay ............................................................................................ 120

Lecture 8 - “Implementing CX Management” Prof. Marcus Schoegel, U. St.Gallen (Guest lecture) . 123

Articles lecture 9 ....................................................................................................................... 142
Huang and Rust (2018) - Artificial Intelligence in Service ................................................................ 142
Hume & Taylor (2021) - 3. Why AI That Teaches Itself to Achieve a Goal Is the Next Big Thing ............. 144
Luca et al. (2016) - ALGORITHMS NEED MANAGERS, TOO .............................................................. 145
Siggelkow & Terwiesch (2023) - Create Winning Customer Experiences with Generative AI ............... 146

Lecture 9 - Automated CX: How to use AI and ML in the customer experience? ............................. 147
Customer experience appropriation part 2 .................................................................................... 147
Expanding the price paradigm ....................................................................................................... 147
Automated customer experience .................................................................................................. 149
Stages of artificial intelligence ...................................................................................................... 149

, Predictive machine learning ......................................................................................................... 154
Reinforcement learning ................................................................................................................ 158
Generative AI ............................................................................................................................... 159

Articles lecture 11 ..................................................................................................................... 163
Porter & Heppelmann (2014) - How Smart, Connected Products Are Transforming Competition ....... 163
Porter & Heppelman (2015) – How smart, connected products are transforming companies ............ 164
Siggelkow & Terwiesch (2019) - The Age of Continuous Connection ................................................. 165
Wortmann et al. (2020) - Capturing Value in the Internet of Things ................................................... 166

Lecture 11 - Connected CX: How to manage experiences in a connected world? ........................... 167
Experience and the internet of things ............................................................................................ 167
Creating value in a connected world ............................................................................................. 168
Capturing value in a connected world ........................................................................................... 171

EXAM ........................................................................................................................................ 174

, Articles lecture 1
Lemon & Verhoef (2016) - Understanding Customer Experience
Throughout the Customer Journey
Summary
Customer experience encompasses cognitive, emotional, and social responses to
interactions with a firm across the customer journey. It builds on foundational marketing
concepts like satisfaction, service quality, and engagement. Firms must manage diverse
touchpoints and coordinate internally to create seamless experiences. Key focus areas
include mapping customer journeys, measuring experiences with metrics like NPS, and
adapting to dynamic influences for continuous improvement.

Main Points
1. Customer Experience is Complex: Customers interact with companies through
many touchpoints (e.g., websites, stores, social media) across different
channels, which creates complex "customer journeys."

2. Importance of Customer Experience Management: Managing the customer
journey is now a top priority for companies. Good experiences increase customer
loyalty and improve business results, so companies need to focus on every stage
of the customer journey.

3. Defining Customer Experience:
- Customer experience includes all of a customer’s thoughts, feelings, and
actions during interactions with a brand.
- It’s a mix of cognitive (thinking), emotional (feeling), sensory, and social
elements across the entire journey.

4. Stages in the Customer Journey:
- Prepurchase: Initial interaction with the brand, including research and
consideration.
- Purchase: The moment of buying, including choice and payment.
- Postpurchase: After buying, covering usage, reviews, and loyalty.

5. Types of Touchpoints:
- Brand-Owned: Directly controlled by the company (e.g., ads, website).
- Partner-Owned: Shared control, like third-party retailers.
- Customer-Owned: Influenced by the customer alone, like their personal
thoughts.
- Social/External: Influences from other customers or social media.

6. Challenges for Companies:
- The customer journey is more social now, with customers sharing their
experiences online.
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