FIRST DAY: 5 APRIL 2018 THURSDAY

THEME: HOW TO PUBLISH IN PREMIER SCHOLARLY JOURNALS

SECOND DAY: 6 APRIL 2018 FRIDAY

THEME: CUSTOMER AND BUSINESS ANALYTICS

*Program language is English and participation is free of charge.
**RSVP ([email protected]) by 30 March 2018, Friday.

LOCATION: KADIR UNIVERSITY, CIBALI CAMPUS, GALATA SALON

Regaining Lost Customers but only to Lose them Again

V. Kumar
Georgia State University

ABSTRACT

This presentation will share the findings of three studies that focus on lost customers and their behaviors afterward. Service firms, which have high attrition rates, are finding it exceedingly difficult to grow their customer base. Despite their extensive retention efforts, customers still defect. The first study empirically demonstrates how (a) the lost customers’ first lifetime experiences and behaviors, (b) the reason for defection, and (c) the nature of the winback offer made to lost customers are all related to the second lifetime profitability. Even after firms develop win-back strategies to rectify issues that cause customer churn and rebuild the relationship with lost customers some customers churn again. In the second study, to examine customers’ repeat churn behavior, we develop a Mixture Cure Competing Risks model, jointly estimating the second lifetime duration, multiple churn reasons, and customers’ heterogeneity in exhibiting a related churn reason. We find support for the existence of a cured group of returning customers, defined as those who are not susceptible to churn due to a repeated reason. Our findings suggest that mitigating repeat churn behavior can extend customers’ second lifetime tenure and increase profitability by $150,000 over the lifetime of the customers in the sample (leading to gains of over $15 million for deferring second lifetime churn in a million returning customers), depending on the type of churn. Finally, in the third study, we show that it is possible to predict to which competing firms the lost customers might end up with leading to understanding of the marketplace dynamics.

Learning from Product Recalls: Roles of the Stock Market and Organizational Defense Mechanisms

Alok Saboo
Georgia State University

ABSTRACT

Product recall is a marketing failure that should prompt firms to invest in improving their marketing capabilities to avoid future recalls. Yet, firms need to divert resources for short-term crisis management immediately after the recall. Therefore, firms may not want to expend additional resources for learning unless the incentive to do so is strong. In the context of public firms, we consider the mediating role of the stock market in incentivizing recalling firms to improve their marketing capability post-recall, as well as the impact of these changes on the rate of future recalls. Further, we argue that this mediating role is contingent on several moderators, as predicted by organizational defense theory. The resulting moderated-mediation model reveals that severity, as perceived by investors (i.e., stock market penalty), completely mediates the effect of recall severity (i.e., consumer injuries) on improvements in marketing capability. Multiple contingent factors such as branding strategy, operational capability, competitors’ recall and customer relationship intensity significantly influence this mediated effect. Finally, post-recall improvements in marketing capability reduces the rate of future recalls.

How Does Marketing Work on MARS?

Neil A. Morgan
Indiana University

ABSTRACT

The past decade has witnessed a dramatic shift in the landscape for marketing and marketers. An explosion of digitally enabled data, devices, media, and channels and shifting uses and preferences among consumers and customers have radically altered the environment in which marketing takes place and presented enormous challenges for firms who seek to be successful in the new landscape. We use the acronym M.A.R.S. (Mobile, Analytics, Real-time, Social) as the descriptor of some of the most disruptive changes, and to indicate just how different the environment is from the traditional marketing environment (Earth). To better understand the nature of the challenges and the effectiveness of different responses, the Mobile Marketing Association and Forbes has funded a Marketing Organization Structure Think tank (MOSST) to study the evolution in the marketing organization (structure, process, knowledge, and culture). In this session the results of the first phase of this research involving 75 companies across a range of marketplaces will be presented—unpacking the source and nature of the challenges, how they are manifest, and offering a roadmap for how firms can best navigate these challenges.