Strategic Customer Research Articles

The role of emotional marketing in enhancing strategic customer behavior through financial knowledge: An analytical study of a sample of shopping malls in Iraq

The research aims to diagnose the logical relationships between emotional marketing and its role in enhancing strategic customer behavior through financial knowledge to reach results in the dynamic environment of shopping malls. The paper was designed in light of adopting the descriptive analytical approach to variables and collecting data and information through the questionnaire tool distributed to the shopping malls of the research sample. Using statistical analysis programs to reach the results, the study sample reached (25) shopping malls in the local environment of the country. The results showed that there is a threat in the local environment in which these malls operate through the entry of foreign investment projects in this field, which led to an increase in supply and competition in terms of quality, prices and delivery services to gain customers. The studied malls had to develop a strategy on how to attract and retain customers by using emotional marketing practices and relying on financial knowledge to influence strategic customer behavior, as the current and future customer has become rapidly changing in tastes, needs, desires and transformation through technological development and the world has become a small village that can be viewed at any time and in short periods of time. The research also concluded that the threat of new investment through the establishment of new malls as new investment projects affects supply and demand in the environment in which these studied malls operate. The research also concluded that there is a correlation and influence relationship between the research variables of the studied malls, which includes a package of results that benefit the research community. The paper aims to bridge the knowledge gap between the variables of the paper in the dynamic environment by using emotional marketing as a competitive tool in influencing strategic customer behavior through financial knowledge to gain and maintain the current customer and gain the potential customer.

Influence of Strategic Customer Retention Practices on the Performance of Automotive Firms in Nairobi City County, Kenya

Purpose: The main focus of the study was to establish how strategic customer retention practices influences performance of automotive firms in Nairobi City County, Kenya. The study specifically focused on establishing the influence of customer support programs, technological advancements, and strategic communication practices and customer’s motivation programs on performance of automotive firms in Nairobi City County, Kenya. The study was anchored on Expectancy Theory, Diffusion of Innovation Theory, Communication Theory and Customer Service Theory. Methodology: The study employed a descriptive survey research design and targeted 18 franchised automotive firms registered by Kenya Motor Industry Association. The unit of observation comprised of employees in strategic, marketing and IT departments. A total of 80 respondents were involved in the study. Primary data was utilized in the study and was gathered through 5-point Likert scale structured questionnaires. Both descriptive and inferential statistics were adopted in analyzing the collected data. The statistics were generated by help of SPSS software and results presented in form of tables and figures. The study conducted a pilot test before the main study on two randomly selected automotive firms to assess the reliability and validity of questionnaires. Respondents involved in the pilot study was not be included in the main study. Findings: The study established that strategic customer retention practices accounts for 61.8% in variations of performance of automotive firms in Nairobi County. The study further established that strategic customer retention practices comprising of customer support programs, technological advancements, and strategic communication practices and customer’s motivation programs positively and significantly influences performance of the firm. This was depicted by beta values of 0.508, 0.324, 0.216, and 0.196 and significant values of 0.000, 0.000, 0.007, and 0.012. Unique Contribution to theory, Policy and Practice: The study concluded that enhancing the strategic customer retention practices leads to enhanced performance levels of the firms. The study provided recommendations to the management of the automotive firms to enhance aspects of customer support programs, technological advancements, and strategic communication practices and customer’s motivation programs since the practices leads to enhanced performance levels of the firms.

FASECO: A Framework for Advanced Support of E-Commerce and digital transformation in SMEs with natural language processing-enhanced analysis

ObjectivesThe primary aim of this study is to develop a framework that identifies the factors, organizational processes, and mechanisms that facilitate the successful integration of e-commerce within the digital transformation journey of Small and medium-sized enterprises (SMEs). The FASECO framework seeks to enhance strategic alignment, IT infrastructure, customer experience, and data analytics in SMEs, and is compared with existing theoretical frameworks to provide a holistic solution. Methods/ApproachThe research employs a mixed-methods approach, starting with an extensive literature review on digital transformation and e-commerce integration in SMEs, followed by qualitative semi-structured interviews with 13 industry professionals. The data is analysed using thematic analysis, significantly enhanced by Natural Language Processing (NLP) tools, which allowed for the extraction of deeper insights into e-commerce adoption challenges and organizational dynamics that traditional methods might overlook. ResultsThe study reveals that effective e-commerce integration in SMEs requires robust IT infrastructure, strategic alignment, personalized customer experiences, and data-driven decision-making. The FASECO framework supports SMEs by providing a comprehensive structure that bridges the gap between strategy and technology, enhancing their digital maturity and competitiveness. The framework’s holistic approach and detailed comparison with existing models underscore its effectiveness. ConclusionsThe FASECO framework offers a novel approach tailored to SMEs for digital transformation and e-commerce integration, highlighting the critical role of strategic and technological alignment in achieving digital maturity and competitive advantage. The use of NLP techniques in this study enhanced the analysis of qualitative data, providing deeper insights into organizational processes. Future research should explore the adaptation of this model for micro-SMEs and the integration of emerging technologies.

Information Freshness in Service Queues With Strategic Customers

We examine a scenario in which a service provider updates its queue length information to customers at a specific frequency. Customers decide whether to join the queue based on the most recent update. Our objective is to determine the optimal updating frequency that benefits both the service provider and customers. Using a two-dimensional continuous-time Markov process, we model the actual and announced queue length processes. By proving the identical distributions of these two processes under a Poisson updating scheme, we derive closed-form solutions for customers’ utility functions. Our findings demonstrate that customers adopt a generalized mixed-threshold strategy at equilibrium, and their certainty about whether to join the queue or balk does not always increase with fresher information. Furthermore, we reveal that due to customers’ different sensitivities to information freshness, system performance metrics such as throughput and total customer utility exhibit non-monotonic behavior in response to the updating frequency. Consequently, providing fresher information does not necessarily lead to improved system performance. To address this, we propose algorithms to determine the optimal updating frequency for each system performance metric and identify the conditions under which different updating frequencies are optimal. We demonstrate that any positive updating frequency can achieve customer utility no worse than the no-information system. Additionally, in systems with high customer arrival rates, updating with a positive updating frequency can improve throughput. Furthermore, we prove conditions under which a positive and finite updating frequency can yield higher throughput and total customer utility compared to real-time information systems.

Demand cannibalization during product rollovers in the presence of strategic customers

This paper studies how different types of demand cannibalization take place during product rollovers and their effects on a firm’s profitability. Due to continuous product upgrades, demand cannibalization among various generations of products has become a common practice, raising interesting investigations from professionals and academics. Within this context, we model firms’ and customers’ decision-making as a two-period sequential game and derive equilibrium results under a dual rollover strategy, with and without a trade-in program. We find that demand cannibalization is essentially caused by customers’ strategic comparison of available purchase options. Our analysis further reveals that both the cannibalization effect and the postponement effect resulting from customers’ waiting for upgraded products are necessary for firms to improve profits. On the contrary, the postponement effect due to waiting for a discount is entirely detrimental to the firm. We propose effective launch strategies to avoid unfavorable demand cannibalization under different conditions. In addition, offering trade-in programs helps not only suppress strategic waiting, but also foster demand for an upgraded product. These strategies are particularly effective when the firm holds a greater quantity of inventory or when the degree of incremental innovation is high.

Methodology for the Selection of Risk Response Actions while Considering Corporate Objectives in the Metalworking Industry

Context: Projects in metalworking companies are affected by risk. Proper risk management depends on the responses provided to improve the project plan. However, multiple potential actions may result in constraints due to multiple factors. The purpose of this article is to propose a hybrid approach to solve the problem of selecting risk response actions while considering strategic objectives, fuzzy logic, and simulation. Method: First, 334 risks were identified through a literature review and a discussion with experts. These were then filtered, resulting in 70 operational risks. Subsequently, the ten critical risks were prioritized using the risk matrix. Then, using Monte Carlo simulation and correlation analysis, the activities most affected by the risks were identified. Finally, potential response actions were designed for each case, and fuzzy logic and quality function deployment were applied to evaluate them. Results: The selected responses were framed within the strategic objectives, i.e., customer satisfaction, business profitability, and implementation of new technologies. This, while considering some corporate attributes that the actions had to meet finishing the project on time, having low costs, and meeting the scope. The selected actions had a better profile than others seeking to minimize time or costs. Conclusions: EPCC projects are complex and often suffer from gaps in scope, time, and cost. Risk analysis and the selection of responses in the planning phase help to improve performance. This study developed a risk response plan for a project executed in Brazil. Risks were identified, classified, and mitigated using simulations, resulting in an 11-day reduction in the project’s estimated duration.

Strategic Organizational Resources and Customer Satisfaction in Selected Public Universities in Nairobi County Kenya

Strategic Organizational Resources and Customer Satisfaction in Selected Public Universities in Nairobi County Kenya

Strategic Customer Segmentation: Harnessing Machine Learning For Retaining Satisfied Customers

This research paper explores the burgeoning field of machine learning and its application in strategic customer segmentation within the aviation industry. Leveraging the Airline Passenger dataset, this study assesses the potential of various machine learning classifiers to enhance customer retention by effectively segmenting satisfied customers. Our methodology involves a comparative analysis of five machine learning classifiers: Random Forest, K-Nearest Neighbors (KNN), Decision Tree, Naive Bayes, and Artificial Neural Network (ANN). Each classifier is rigorously tested and evaluated based on key performance metrics including accuracy, precision, recall, and F1-score. The results indicate a diverse range of classifier effectiveness. Notably, the Random Forest classifier outperforms others with outstanding metrics: accuracy, precision, recall, and F1-scoreof 0.96. Decision Tree follows closely, also achieving high performance with a score of 0.95 across all metrics. Naive Bayes and ANN demonstrate respectable performance, with accuracyscores of 0.86 and 0.90 respectively. In contrast, KNN presents lower but consistent performance, with all metrics at 0.75. These quantitative findings highlight the nuanced performancedifferences among classifiers, emphasizing the critical role of algorithm selection in achieving precise customer segmentation. This study provides significant insights into the application of machine learning for strategic customer retention in the aviation sector, presenting practical implications for airlines aiming to optimize their segmentation strategies and retain satisfied customers. By showcasing the varying performances of different classifiers, this research contributes to the broader discourse on integrating machine learning into customer-centric strategies, ultimately aiding airlines to engage and retain their customer base more effectively.

How Do Supply Chain Management Practices Influence Organizational Performance? A Case Study of Bangladesh's Agro-Food Industry

Introduction: Supply chain management practices are essential for enhancing organizational performance, particularly in the Agro-food industry. This study examines the impact of specific SCM factors—Strategic Supplier Partnership, Customer Relationship, Level of Information Sharing, and Quality of Information Sharing—on organizational performance in Bangladesh. Methodology: Data were collected via a structured questionnaire targeting key stakeholders in Bangladesh's Agro-food industry, using a 5-point Likert scale to measure responses. Structural equation modeling (SEM) was utilized to analyze the relationships between SCM practice factors and organizational performance factors such as marketing and financial performance. Findings: The analysis revealed that customer relationships, quality of information sharing, and strategic supplier partnerships have significant positive relationships with organizational performance, particularly in terms of financial and marketing outcomes. However, the level of information sharing did not show a significant impact on both financial and marketing performance. Managerial Implications: The study emphasizes the significance of prioritizing strategic supplier partnerships, customer relationships, and high-quality information sharing for improving organizational performance in Bangladesh's Agro-food industry. Strengthening these SCM practices can lead to better financial and marketing performance, providing valuable insights for managers to develop targeted strategies.

An analysis of the equilibrium strategies for route-choosing customers in a two-station queueing system

We investigate a two-station queueing system where strategic customers must be sequentially serviced at both stations. We prove that an established property — that the distribution of the total time spent in a two-station system is independent of the chosen route when services times are exponentially distributed — is not a general one by providing a counterexample with deterministic service times. In doing so, we also prove a concomitant property — that any routing strategy is an equilibrium — is peculiar to a system with a particular assumption of an exponential service time distribution. Using simulations, we show that — depending on the distribution of service times — there can be (1) cases with three equilibria, (2) cases with one pure strategy equilibrium, and (3) cases with one mixed strategy equilibrium.

Secure Horizons: Strategic Customer Data Management in the Open Banking Evolution

Secure Horizons: Strategic Customer Data Management in the Open Banking Evolution

Enhancing Sales through Marketing Strategy and Customer Satisfaction in Culinary MSMEs

This quantitative study investigates the impact of marketing strategy and consumer satisfaction on sales growth in Micro, Small, and Medium Enterprises (MSMEs) within the culinary sector of Krembung District, Sidoarjo Regency. Data collected from 100 MSME owners via questionnaire surveys using Google Forms reveals significant positive effects of both marketing strategy (Tcount = 3.568, p = 0.001) and consumer satisfaction (Tcount = 2.325, p = 0.022) on increasing sales. The findings highlight the critical role of strategic marketing planning and customer satisfaction in enhancing business performance and competitiveness, underscoring the need for MSMEs to prioritize these factors to achieve sustainable growth and profitability in competitive markets. Highlight: Quantitative study on marketing impact in culinary MSMEs. Significant influence of customer satisfaction on sales growth. Practical implications for enhancing business strategies in MSMEs. Keywords: Sales enhancement, marketing strategy, customer satisfaction, MSMEs, culinary sector

A congested facility location problem with strategic customers

This study addresses a user-equilibrium congested facility location problem with delay-, accessibility-, and price-sensitive customers. A profit-maximizing service provider first makes location, service rate, and pricing decisions, and then strategic customers decide which facilities to patronize (if any). By incorporating the customers’ choice behavior as a set of equilibrium constraints into the service provider’s decision problem, the problem is modeled as a mixed integer non-linear program which is then reformulated as a mixed integer second-order cone program. The proposed model, tested on several standard instances, is shown to be efficiently solvable using commercial software packages.

ОСОБЛИВОСТІ МЕНЕДЖМЕНТУ ТУРИСТИЧНОГО БІЗНЕСУ В УМОВАХ ГЛОБАЛЬНОЇ НЕСТАБІЛЬНОСТІ

The article examines the peculiarities of managing the tourism business in the context of global instability. The authors investigate the impact of global trends, economic crises, natural disasters, and political conflicts on the tourism industry. The paper discusses strategies of strategic planning, marketing, and customer service in changing conditions, as well as practices of sustainable development and responsible tourism. The authors emphasize the importance of adaptability and innovation in addressing the challenges facing the tourism business in today's unpredictable world. Furthermore, the article analyzes the impact of crisis situations on the tourism sector and provides recommendations for survival and recovery strategies post-crisis. It highlights the significance of collaboration among various stakeholders to ensure the sustainable functioning of the tourism industry amidst unpredictability and global challenges. The conclusions of the article underscore the necessity of implementing innovative approaches and utilizing modern technologies in tourism business management to ensure its resilience and competitiveness in the contemporary world. The article also delves into the importance of integrating ethical standards into tourism activities, particularly considering the socio-cultural aspects of destination sites. Strategies for mitigating negative environmental impacts and benefiting local communities are discussed, alongside the preservation of cultural heritage. It underscores that in a constantly changing world, adaptability and innovation are key success factors. The paper's conclusions highlight the necessity for collaboration among all stakeholders, joint efforts to address challenges, and leveraging opportunities in the tourism industry to stimulate sustainable economic growth and cultural exchange. Additionally, the article emphasizes the need for proactive crisis management strategies in the

Strategic Management Practices and Customer Retention: The Role of Technology of Tier 1 Banks in Nigeria

The capability of corporate financial organisations to set its vision within the frontiers of achievable objectives is crucial for long term effectiveness. Hence our focus on strategic management practices and customer retention in tier-1 banks in Nigeria; leveraging on the place of technology. The study further aims to deepen the relationship between the dimensions of strategic management and the measures of customer retention, while bringing to bear on the relationships the impact of technology within the financial space. The study utilized cross-sectional survey research based stratified sampling; where data collection from 248 employees of six tier-1 banks in Port Harcourt were conducted. The Spearman Rank Correlation Coefficient was deployed with the aid of the Statistical Package for Social Sciences (SPSS) version 26 for our analyses. The result showed strong and positive correlation coefficient (r = 0.649) between strategy formulation and customer loyalty; also positive and a significant relationship existed between strategy formulation and customer satisfaction; a positive and significant relationship existed between strategy implementation and customer satisfaction; significant relationship between strategy evaluation and customer loyalty, and a significant relationship subsisted between strategy evaluation and customer satisfaction . But, technology significantly moderates the relationship between strategic management and customer retention. It was however recommended that the management of tier-1 banks in Nigeria should adopt recent technologies to improve services and provide more value to its customers. With technology, tier-1 banks can effectively and efficiently implement strategic management in order to increase customer retention. Managers should focus on integrating the appropriate technology that will improve its operation and ensure efficient service delivery. The adoption of strategy formulation by tier-1 banks in Nigeria should emphasize assessing existing strategies and the environment before developing new strategies and strategic plans. The strategy formulation process provides a framework for tier-1 banks to take the actions leading to the anticipated results. Keywords: Tier-1 banks; Strategic Management Practices; Bank; Customer Retention

Exploring access-based consumption in last-mile logistics: a customer foresight study

PurposeDue to e-commerce growth, technological advancements and environmental concerns, developing a more nuanced service portfolio has become a critical issue for last-mile logistics service providers. Concurrently, consumers are adopting new modes of consumption. This paper aims to investigate the potential for last-mile logistics service providers to act as intermediaries in access-based consumption and to revitalise their service offerings through product-service systems – a pioneering strategy not executed in the market yet.Design/methodology/approachThis strategic customer foresight study uses a quantitative survey of 1,000 respondents and an online focus group comprising 10 early adopter consumers to investigate emerging last-mile service models. Potential service concepts were identified through the survey, and two distinct concepts were subsequently selected for evaluation and co-development within the focus group. The research was conducted in partnership with an SME logistics company in Finland.FindingsThe consumers expressed selective interest in access-based consumption related to the proposed offering of essential household goods. Young adults and consumers in early middle age living in the city centre emerged as the most potential user groups. Economic reasons and short-term needs were the primary motivations for adopting access-based consumption.Practical implicationsThe study showed that engaging consumers in a customer foresight process is viable for SMEs innovating their offerings and demonstrates how the process works in practice.Originality/valueDocumented cases of customer integration into foresight processes are rare in earlier research, and this paper extends the knowledge base through a multidisciplinary examination of future consumer behaviour in the last-mile logistics domain. The paper also expands the limited literature on the role of logistics in access-based consumption.

Customer identity concealing and insider selling profitability: Evidence from China

This study investigates whether insiders exploit the information advantage arising from customer identity concealment to profit from selling their shares. We examine this issue in the context of China, given the voluntary nature of customer information disclosure there. We find that insider selling profitability is significantly greater when firms conceal customer identities than when they disclose them, especially when customer identities are more informative. We also find evidence of significant trading profitability for both insiders and their relatives, as well as both core and general executives. Furthermore, we find that the results are weaker for firms with more effective internal monitoring and those with more attention from sophisticated market participants but are stronger for firms with more information disclosure manipulation. These findings are consistent with the hypothesis that insiders opportunistically trade on customer-related private information rather than unintentionally sell shares. In additional tests, we find that insiders deliberately conceal customer identities in response to their personal trading incentives, indicating that insiders may increase their information advantage through strategic customer information disclosure. Overall, our research sheds light on the black box of information sources of insider trading from the perspective of supply chains and the insider trading incentives behind firms' concealment of customer identities.

The Mediating Role of Customer Relationship Managment (CRM) in the Effect of Innovation on Perceived Service Quality: The Case of Airlines System

Today, businesses apply the Customer Relationship Management approach to ensure customer satisfaction and sustain customer loyalty. In this approach, it is aimed to go beyond satisfaction by putting the customer at the center. This research conducted at Antalya Airport aims to examine the impact of technological innovations by airline companies on the perceived service quality of passengers and how this impact is shaped through customer relationship management practices. The results of the study provide strategic recommendations and guidance for companies in the aviation sector. This presents an innovation in facilitating companies to make direct inferences from the research findings, aiding them in deriving practical insights. Through face-to-face interviews with passengers arriving at Antalya Airport, a sample of 430 respondents was reached, and all completed surveys were utilized. The data obtained from these passengers were analyzed using IBM SPSS 21 and SmartPLS 4 programs within the framework of established hypotheses. The results of the Structural Equation Analysis indicate a direct partial impact of innovative activities implemented by airline companies on the perceived service quality. This direct effect is found to create a complete impact indirectly. Additionally, it has been determined how customer relationship management practices shape this impact by acting as a mediator. The findings provide guidance to airline companies in understanding the influence of technological innovations on customer satisfaction and optimizing strategic customer relationship management practices. This study recommends that companies in the aviation sector focus on technological innovations to gain a competitive advantage and enhance customer satisfaction.

Evaluation of strategic orientation-led competitive advantage: the role of knowledge integration and service innovation

PurposeThis paper aims to derive a model that explores how the interplay between knowledge integration capability and innovation impacts strategic orientation, leading to the attainment of sustainable competitive advantage. The study considers the constituents of strategic orientation, namely, customer orientation, competitor orientation and technology orientation, as the basis for achieving sustainable competitive advantage. The study suggests that the firm’s capacity for integrating external and internal knowledge shapes how strategic orientation influences sustainable competitive advantage through service innovation.Design/methodology/approachThis empirical research relies on qualitative and quantitative data gathered from telecom professionals to assess how knowledge integration and service innovation influence sustained competitive advantage. Structured equation modeling is used to examine the model and its interrelationships.FindingsThe research establishes significant relationships between strategic orientations, knowledge integration capability, service innovation and sustainable competitive advantage. Knowledge integration capability and service innovation are found to mediate the relationship between strategic orientations and the achievement of sustainable competitive advantage.Practical implicationsThe study highlights the significant contribution of a firm’s knowledge integration capability in driving service innovation, especially in technology-intensive service industries facing hypercompetition. It also advocates prioritizing technology orientation and integrating knowledge from internal and external sources for competitive advantage.Originality/valueTo the best of the authors’ knowledge, this study is the first to model the effect of knowledge integration capability and service innovation on strategic orientation-led sustainable competitive advantage.

A deep Q-learning approach to optimize ordering and dynamic pricing decisions in the presence of strategic customers

In this paper, we present an optimization method to analyze the simultaneous decisions on dynamic pricing and ordering quantities for seasonal products, by a retailer in monopolistic condition. Customers are assumed to be strategic and may postpone their purchase to get a lower price in future. The problem has been investigated in the context of multiple substitute products. We have developed a model based on deep neural networks to estimate customers’ demand. The problem is complex and cannot be solved using classical optimization methods. Therefore, we have developed a reinforcement learning algorithm called deep Q-learning algorithm (DQL) to solve the problem. The proposed algorithm is a combination of a Q-learning algorithm and two deep neural networks for the primary and discount sales periods, which uses the neural network to estimate the Q-values in a large space of states and actions. The performances of the demand model and the proposed optimization algorithm have been tested using a real-world dataset taken from the clothing industry. The results of our experiments demonstrate that the proposed demand model performs better than a fully connected neural network-based model and a latent class model tested in this paper. Furthermore, the performance of the DQL algorithm is significantly superior to those of two simulated annealing and genetic algorithms. In addition, the results of a comparison between the DQL algorithm and another reinforcement learning algorithm called State-Action-Reward-State-Action (SARSA) indicate that the proposed algorithm results in higher revenues and takes less time to converge. Consequently, the proposed algorithm has a high potential for solving such a large scale integrated pricing and ordering optimization problem.