Allocation of Resources to Customer Satisfaction and Delight Based on Utilitarian and Hedonic Benefits

Journal of Research in Marketing, Vol. 2 (1), 106-112

7 Pages Posted: 6 Mar 2014 Last revised: 11 Sep 2014

See all articles by Florian Pallas

Florian Pallas

Center for Customer Management; University of Groningen

Vikas Mittal

Rice University

Christopher Groening

University of Missouri at Columbia - Department of Marketing

Date Written: 2014

Abstract

In this article, a strategic typology is introduced to improve a firm’s return on investment (ROI) based on understanding whether to devote additional resources to improve customer satisfaction and increase delight. The framework is based on the recognition that customers seek two types of benefits — utilitarian and hedonic — from products and services. Companies need to determine when resources devoted to customer satisfaction and delight for a particular product or service will produce sufficient achievements in loyalty, word-of-mouth recommendations, and purchase behaviour. By understanding when firms need to focus on improving customer satisfaction and delight, firms can make judicious strategic decisions about their resource allocation to improve customer satisfaction and/or customer delight.

Keywords: Customer Management, Customer Satisfaction, Customer Delight; Benefit, Hedonic, Utilitarian

Suggested Citation

Pallas, Florian and Mittal, Vikas and Groening, Christopher, Allocation of Resources to Customer Satisfaction and Delight Based on Utilitarian and Hedonic Benefits (2014). Journal of Research in Marketing, Vol. 2 (1), 106-112 . Available at SSRN: https://ssrn.com/abstract=2404450

Florian Pallas

Center for Customer Management ( email )

Schlossplatz 2
Muenster, D-48149
Germany

University of Groningen ( email )

P.O. Box 800
9700 AH Groningen, Groningen 9700 AV
Netherlands

Vikas Mittal

Rice University ( email )

6100 South Main Street
250 McNair
Houston, TX 77005-1892
United States

Christopher Groening (Contact Author)

University of Missouri at Columbia - Department of Marketing ( email )

College of Business
Columbia, MO 65211
United States

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