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Behavioral and Attitudinal Customer Loyalty in the Power Sector
Journal
Zeitschrift für Energiewirtschaft
ISSN
0343-5377
ISSN-Digital
1866-2765
Type
journal article
Date Issued
2016-12
Author(s)
Abstract
The emergence of smart grids changes the customer-utility relationship. To facilitate the transition towards a sustainable, reliable and economically viable energy system, utilities need to develop smart grid products and services that have strong customer acceptance and enable different customer segments to engage in energy efficiency. Thus, integrating customer feedback on innovative smart grid services early in the innovation process is of crucial importance. Further, energy providers need to increase customer loyalty and invest in relationship marketing in order to survive and be successful in a competitive market environment.
This article presents the findings of a five-month field experiment that investigated the effectiveness of different reward programs in increasing customer loyalty and customer feedback provision in the energy sector. The results demonstrate that reward programs have a positive effect on behavioral (customer feedback provision) and attitudinal (e.g. satisfaction with the energy provider) aspects of customer loyalty. The reward type matters, however. While monetary reward programs are effective in increasing customer feedback provision, only social reward programs can improve attitudinal aspects of customer loyalty. Energy providers should therefore consider tailoring the reward type to meet their program objectives when employing reward programs.
This article presents the findings of a five-month field experiment that investigated the effectiveness of different reward programs in increasing customer loyalty and customer feedback provision in the energy sector. The results demonstrate that reward programs have a positive effect on behavioral (customer feedback provision) and attitudinal (e.g. satisfaction with the energy provider) aspects of customer loyalty. The reward type matters, however. While monetary reward programs are effective in increasing customer feedback provision, only social reward programs can improve attitudinal aspects of customer loyalty. Energy providers should therefore consider tailoring the reward type to meet their program objectives when employing reward programs.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
Springer Vieweg, Springer Fachmedien Wiesbaden
Publisher place
Wiesbaden
Volume
40
Number
4
Start page
211
End page
232
Subject(s)
Division(s)
Contact Email Address
Karoline.Gamma@unisg.ch
Eprints ID
250230