Customer Engagement Behavior: a New Perspective in CRM
Chun-yu Gao, Ming-liang Chen
1
Department of Management Science and Engineering, University of Zhejiang, Hangzhou, China
(ziwanr@163.com)
II. CONCEPT OF CEB
Abstract - Customer engagement behavior (CEB) is a
new research domain of customer relationship management,
which receives increasing attention from academics and
business practitioners. Based on existing researches, we give
an overview look of CEB by introducing several dimensions
of CEB including definition, form and classification. A
conceptual model of CEB which consists of antecedents,
consequences and moderators is proposed in the paper.
Finally, we suggest a virtuous circle in the conceptual model
of CEB for firms.
Keywords – Co-creation, customer engagement behavior,
customer relationship management, word-of-mouth
I. INTRODUCTION
Customer engagement behavior (CEB) is an
important concept of customer non-transactional behavior.
The term “consumer engagement (CE)” has emerged in
the academic marketing and service literature for only 5
years, which differs from involvement, participation and
commitment [7][8] . Many researchers develop their
definition of CE from cognitive, emotional and behavioral
dimensions [7][9][10]. In general, CE involves customer
experience and interaction with other customers or firms
(see Table I). A widely accepted definition of CEB is
given by van Doorn, who posits that CEBs go beyond
transactions, and may be specifically defined as a
customer's behavioral manifestations that have a brand or
firm focus, beyond purchase, resulting from motivational
drivers [1]. Different from van Doorn, Kumar thinks that
customer engagement should include transactions [11].
CEBs include many forms of behavioral
manifestations such as word-of-mouth(WOM), customer
recommendation, customer complaints, blogging, writing
reviews, participating in brand community, as well as all
behaviors which affect firm and brand such as co-creation,
helping and guiding suppliers [1][5]. As one of the most
important forms of non-transactional behaviors, WOM
has already attracted plenty of attention at current
literature [12][13]. To broad the scope of WOM, Libai et al
focus on the customer-to-customer interactions in new
online environment, giving significant research directions
in this new domain [14]. Co-creation plays an important
role in CEBs, which is still in its infancy of research [15].
Co-creation is defined as collaborative new product
developments (NPD) activity in which consumers actively
contribute and select various elements of a new product
offering [16]. Hoyer et al. build a conceptual model of cocreation in new product development and explore the
impact and outcome of co-creation at each stage of NPD.
Blogs and brand communities are fast emerging as new
Traditionally, product quality and value are driving
force for organizational performance. With a conceptual
shift from product-centric to customer-centric, customerbased metrics has become a new measurement for
organizational performance [1], which makes customer
endogenous to firms [2]. Since long-term and sustainable
competitive advantage relies on the ability of maintain,
retain and cultivate customer base, many firms have view
customer relationship management (CRM) as a top
priority, making heavy investments in CRM
implementation.
Studies on CRM are widely focused on the
transactional behaviors of customers, such as customer
life value (CLV) and customer cross-buy behavior [3][4].
However, with a rise of social network and new media
channels including Facebook, twitter and YouTube,
customers are able to exchange information at anywhere
and anytime. They can also easily interact with firms and
other customers and take active part in marketing
activities [5][6]. These non-transactional behaviors are
increasingly popular among customers, becoming more
and more important to firms.
TABLE I
THE DEFINITION OF CEB
Author
Concept
Definition
Van Doorn et al. (2010)
Customer engagement
behavior (CEB)
Customer engagement behaviors go beyond transactions, and may be specifically defined
as a customer's behavioral manifestations that have a brand or firm focus, beyond
purchase, resulting from motivational drivers [1].
Brodie et al. (2011)
Customer engagement (CE)
Customer engagement (CE) is a psychological state that occurs by virtue of interactive,
co-creative customer experiences with a focal agent/object (e.g., a brand) in focal service
relationships [7].
Patterson et al. (2006)
Customer engagement (CE)
The level of a customer’s physical, cognitive, and emotional presence in their
relationship with a service organization [9].
Vivek, Beatty, and
Morgan. (2010)
Customer engagement (CE)
The intensity of an individual’s participation & connection with the organization’s
offerings & activities initiated by either the customer or the organization [10].
Kumar et al. (2010)
Customer engagement value
(CEV)
Four core dimensions: Customer purchasing behavior, Customer referral behavior,
Customer influencer behavior, Customer knowledge behavior [11].
organizational tools for marketing [17]. By setting up a
variety of brand communities spontaneously, customer
can engage in CEBs such as sharing experiences and
giving recommendations [18].
Different forms of CEBs may be classified in many
ways. Based on the Hirschman’s classic model [19], CEBs
can be divided into pure voice (i.e., complaints,
recommendations and WOM) and pure exit (i.e., reducing
consumption and nonrenewal of contracts). Particularly,
behaviors such as taking part in brand communities,
blogging and giving design suggestions comprise both
voice and exit. From valence perspective, customer
engagement can be classified as positive and negative [20].
Positive customer engagement behaviors, such as posting
positive brand information on the blog and spreading
positive WOM, can bring financial and nonfinancial
benefits to firms, while organizing boycott, giving
negative online reviews, and customer complaints are
negative customer engagement behaviors.
III. CONCEPTUAL MODEL
A lot of studies have been done on some forms of
CEBs such as WOM [13][21], co-creation [15], and customer
recommendation [22]. These behaviors share similar
structural features but lack a unified and systematic
conceptual model. By integrating the present researches,
we discuss a conceptual model of antecedents and
consequence of CEB, as well as the moderators (see Fig.
1).
A. Antecedents
Customer-based factors include demographics [23],
customer goals [1], affective states [24], customer
satisfaction [4] and so on. Both high and low level of these
factors will bring about customer engagement. For
example, customers with high design of self-enhancement
or social identity are more willing to engage in WOM
behavior [25]. Goals for social identification will positively
influence
customers’
online
brand
community
engagement intentions [18].
Firm-based factors including firm characteristics and
strategies can also affect CEB. Researches show that
positive CEBs are more likely to be found in firms with
high reputation or high brand equity [21]. Providing
convenient platforms (i.e., company-initiated chat forum
and brand community) and using new media for customer
interaction can be effective strategies for firms to affect
CEBs positively [26]. Incentives and rewards can also be
provided to spur customer input in co-creation [15].
Other factors such as marketing status (i.e.,
competition and industry structures) and macro
environment will also affect customer engagement
behavior [1]. For example, due to the development of
computer network and IT technology, the cost of
information dissemination is reduced to almost zero,
creating great chance for online product reviews [27].
B. Consequences
CEBs have emotional consequences on customers.
Sundaram et al find that WOM spread can help relieve
customer emotions of anger, anxiety and regret [28].
Further, CEBs can affect customer cognition, attitude and
behavior as well. Research shows that a customer
satisfaction survey can positively affect service purchases,
responsiveness to promotions, cross-buy time, and
spending, thus enhancing their customer equity [29].
Besides, CEBs can strengthen the social identity of
customers. Sometime customers purchase for a sake of a
symbol of social status or uniqueness, while identities will
be reinforced by related CEBs such as being a member of
brand community or fan club [30].
Moderators
Antecedents
-Customer
characteristic
-Firm characteristic
and firm strategies
-Market status and
Macro environment
(PEST)
- Strategies
- Benefit and cost
- Channel
CEBs
-Form
(WOM,cocreation
,blogging, et al)
-Valence
-Scope
Consequences
Customer
-Emotional
-Cognitive
Firm value
-CEV
-Customer base
-Brand reputation
Environment perspective
-Industry progress
-Social surplus
Fig.1.A conceptual model of CEB
In firm terms, CEBs can enhance customer value for
firms. Although transaction behavior can generate
immediate cash flows for firms, customer engagement
behavior is of same importance, which can result in both
transactional value and non-transactional value. For
example, both quality and quantity of online reviews can
have positive effect on customer purchase intention and
customer recommendation [31]. In study of transaction
behaviors, customer lifetime value (CLV) is an important
measurement method of marketing. Apart from CLV,
Kumar et al [11] propose three non-transactional
components-customer referral behavior (CRV), customer
influencer behavior (CIV), and customer knowledge
behavior (CKV)-for the measurement of customer
engagement value (CEV).
In addition, customers who are highly involved are
crucial source of know1edge, helping firms in design and
development of new products, modifying existing brands,
and testing beta products [1].Customer co-creation in new
product development can help firm gain rapid response to
market [32], reduce risk of product failure and reduce
inventory holding costs, thus saving cost and improving
performance [15]. CEBs will also effect reputation. In the
long run, CEBs such as taking part in brand community
and giving feedback can improve brand awareness and
brand recognition [33].
Apart from the consequence to customer and firm,
CEBs have broad impacts on the environment including
the entire industry and society [34].
C. Moderators
First, different antecedents can moderate the effect of
each other on CEBs. Factors related to the firm as well as
the context can moderate the effect of customer factors on
CEBs [1]. For example, strategies used by firms such as
providing certain incentives to customers to be involved
in CEBs may weaken the effects of customer
characteristics.
Second, the benefits and costs of CEBs can serve as
moderators of CEBs. Stimulators are firm-level
moderators of the relationship between consumer
motivators and the degree of CEBs [1][15]. Consumers who
are predisposed to active participation in co-creation
activities may not intend to engage if the benefits
involved are too low or the costs involved are too high [15].
The perceived cost of engaging in certain activities can
also negatively moderate the impact of customer
satisfaction on CEBs.
Third, the channels of CEBs can serve as moderators
of CEBs. The traditional ways of CEBs can be carried out
through face-to-face communication, phone, and e-mail.
With progress of information technology, the new media
channels such as blog, Facebook and mobile termination,
are becoming more and more important in social contact
and information communication [14][34], which will affect
the interaction between customers and firms [25].
D. A Virtuous Circle
As discussed above, CEBs have antecedents and
consequences in three levels-customer, firm and context.
What is notable is that the consequences can affect the
antecedents of CEBs as well, thus forming a circle of the
conceptual model.
For example, suggestions made by customers can
make firms run more efficiently, resulting in lower prices
and higher customer satisfaction. Higher customer
satisfaction may in turn induce positive CEBs such as
WOM and customer recommendation. Moreover, CEBs
like customer feedback and taking part in brand
community can improve brand awareness and thus attract
more positive CEBs in turn [21] [33].
Therefore, if well managed, the antecedents and
consequences of CEBs can become a virtuous circle. In
practical management, firms can encourage positive CEBs
through related strategies such as implementing incentive
mechanisms and smoothing communication channels.
With enormous financial and nonfinancial benefits
brought by CEBs, firms will have the capability to
allocate more resources in CRM including CEBs, thus
forming a virtuous circle.
V. CONCLUSION AND FUTRUE RESEARCH
As one of the newest research domains of customer
relationship management, CEB owns significant research
value. CEBs are behavioral manifestations of nontransactional customer behavior, including WOM,
customer recommendation, blogging, co-creation and so
on. Based on the current researches on CEB, we give a
broad view of CEB by introducing several dimensions
including definition, form and classification. A conceptual
model of CEB which consist of antecedents,
consequences and moderators is proposed in the paper
and a virtuous circle of CEB is discussed for firms’
practical management.
For future study of CEB, the conceptual model can
be refined further. For example, researches can be done
on the interaction of customer-based, firm-based and
context-based factors of antecedents. CEB models can be
constructed on the background of different industries like
service, manufacture and retail. Expand the range of
influence of CEBs by taking suppliers and competitors
into account. Besides, introduce multiple methods like
empirical study, behavioral study, and neuroscience into
researches and analysis of CEB.
ACKNOWLEDGMENT
First and foremost, sincere thanks should be
extended to Prof. Chen, who has provided valuable
guidance in writing this paper. Besides, deepest gratitude
should also be given to all the friends and classmates for
their kindness and help.
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