SavedAdd your journal

Journals / Yaşar Üniversitesi E-Dergisi / 2024 / Cilt: 19 Sayı: 76

Examining the Net Promoter Score (NPS) for Convenience Store: Is NPS Impacted by Consumer Demographics?

Musa Pınar(Valparaiso University)0000-0002-8900-9313
Tulay Girard(Penn State Altoona)0000-0002-5891-146X
Faruk Guder(Loyola University Chicago)0000-0002-2428-5325
Pages
541–558
Publication Date
2024-10-31
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

By focusing on enhancing customer recommendations and NPS scores, businesses can potentially elevate their sales and profits.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study aims to investigate whether Net Promoter Score (NPS) is affected by consumer demographic characteristics and how customer demographics influence Net Promoter Score (NPS in the context of convenience stores.
📊
Key Findings & Data:A questionnaire was developed, and the link was distributed to the entire list of over 50,000 loyalty members.
💡
Conclusion & Impact:By focusing on enhancing customer recommendations and NPS scores, businesses can potentially elevate their sales and profits.
🔬Design:Survey & Empirical Study
📍Scope:Comprehensive Sample
⚙️Variables:Net Promoter Score · Demographics and NPS · Recommending convenience stores

Abstract

This study aims to investigate whether Net Promoter Score (NPS) is affected by consumer demographic characteristics and how customer demographics influence Net Promoter Score (NPS in the context of convenience stores. A questionnaire was developed, and the link was distributed to the entire list of over 50,000 loyalty members. About 6,000 valid responses were received for analysis. Significantly different effects of demographics on NPS were found. Among regular customers and loyalty card holders, males purchased more frequently than females, and younger customers exhibit a higher NPS than older cohorts. The results have important implications for companies operating in both domestic and international markets. By focusing on enhancing customer recommendations and NPS scores, businesses can potentially elevate their sales and profits.

Özet

This study aims to investigate whether Net Promoter Score (NPS) is affected by consumer demographic characteristics and how customer demographics influence Net Promoter Score (NPS in the context of convenience stores. A questionnaire was developed, and the link was distributed to the entire list of over 50,000 loyalty members. About 6,000 valid responses were received for analysis. Significantly different effects of demographics on NPS were found. Among regular customers and loyalty card holders, males purchased more frequently than females, and younger customers exhibit a higher NPS than older cohorts. The results have important implications for companies operating in both domestic and international markets. By focusing on enhancing customer recommendations and NPS scores, businesses can potentially elevate their sales and profits.

🔖

Cite This Article

Pınar, M., Girard, T., Guder, F. (2024). Examining the Net Promoter Score (NPS) for Convenience Store: Is NPS Impacted by Consumer Demographics?. Yaşar Üniversitesi E-Dergisi, Cilt: 19 Sayı: 76, 541–558. https://ajindex.com/articles/1230643

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (71)

  1. Agarwal, S., & Teas, K. (2001). Perceived value: Mediating role of perceived risk. Journal of Marketing Theory Practice, 9(4), 1-14. https://doi.org/10.1080/10696679.2001.11501899
  2. Akgözlü, E., & Kılıç, S. (2021). The meditating effect of brand love in the relationship between brand experience and brand equity. Business and Management Studies an International Journal, 9(2), 625-648. https://doi.org/10.15295/bmij.v9i2.1809
  3. Al-Adwan, A. S., & Al-Horani, M. A. (2019). Boosting customer E-loyalty: an extended scale of online service quality. Information 10, 380. https://doi.org/10.3390/info10120380
  4. AMA (2016), The American Marketing Association Dictionary. https://www.ama.org
  5. Anderson, E. W., Fornell, C., & Mazvancheryl, S. K. (2004). Consumer satisfaction and shareholder value. Journal of Marketing, 68, 172–185. https://doi.org/10.1509/jmkg.68.4.172.42723
  6. Anderson, E. W., and Mittal, V. (2000). Strengthening the satisfaction-profit chain. Journal of Services Research, 3, 107–120. DOI: 10.1177/109467050032001
  7. Baehre, S., O’Dwyer, M., O’Malley, L., & Lee, N. (2022). The use of Net Promoter Score (NPS) to predict sales growth: Insights from an empirical investigation. Journal of the Academy of Marketing Science, 50, 67-84. https://doi.org/10.1007/s11747-021-00790-2
  8. Barros-Arriete, D. & Garcia-Cail, E. (2021). Internal branding: conceptualization from a literature review and opportunities for future research, Journal of Brand Management, 28, 133–151 https://doi.org/10.1057/s41262-020-00219-1
  9. Beig, F. A., & Khan, M. F. (2018). Impact of social media marketing on brand experience: A study of select apparel brands on Facebook. Vision, 22(3), 264-275. https://doi.org/10.1177/0972262918785962
  10. Belli, A., O’Rourke, A-M., François A. Carrillat, F.A., Pupovac, L., Melnyk, V., and Napolova, E. (2022). 40 years of loyalty programs: How effective are they? Generalizations from a meta-analysis. Journal of the Academy of Marketing Science, 50, 147–173 (2022). https://doi.org/10.1007/s11747-021-00804-z
  11. Brown, M. (2020). Comparing the validity of net promoter and benchmark scoring to other commonly used employee engagement metrics. Quantitative Study, 31(4), 355-370. https://doi.org/10.1002/hrdq.21392
  12. Burnham, T. A., & Wong, J. A. (2018). Factors influencing successful net promoter score adoption by a nonprofit organization: A case study of the Boy Scouts of America. International Review on Public and Nonprofit Marketing, 15(4), 475-495. https://doi.org/10.1007/s12208-018-0210-x
  13. Carlson, B. D., Donavan, D. T., & Cumiskey, K. J. (2009). Consumer‐brand relationships in sport: brand personality and identification. International Journal of Retail & Distribution Management, 37(4), 370-384. https://doi.org/10.1108/09590550910948592
  14. Chaudhuri, M., Voorhees, C. M., & Beck, J. M. (2019). The effects of loyalty program introduction and design on short- and long-term sales and gross profits. Journal of the Academy of Marketing Science, 47(4), 640–658. https://doi.org/10.1007/s11747-019-00652-y
  15. Chauke, X. D., and Dhurup, M. (2017). A generation X cohort analysis of E-shoppers: satisfaction, loyalty and repurchase intentions in a developing country. Journal of Social Sciences, 52, 145–154. DOI: 10.1080/09718923.2017.135 9908
  16. Churchill, G. A., Jr., & Iacobucci, D. (2005). Marketing Research: Methodological Foundations, 9th ed., Thomson/South-Western, Mason, OH.
  17. Cooil, B., Keiningham, T. L., Aksoy, L., & Hsu, M. (2007). A longitudinal analysis of customer satisfaction and share of wallet: Investigating the moderating effect of customer characteristics. Journal of Marketing, 71, 67–83. DOI: 10.1509/jmkg.71.1.67
  18. Crosby, L., Evans, K. R., & Deborah, C. (1990). Relationship quality in services selling: an interpersonal influence perspective. Journal of Marketing, 54, 68–81. DOI: 10.1177/002224299005400306
  19. de Haan, E., Verhoef, P. C., & Wiesel, T. (2015). The predictive ability of different customer feedback metrics for retention. International Journal of Research in Marketing, 32(2), 195–206. https://doi.org/10.1016/j.ijresmar.2015.02.004
  20. Denning, S. (2011). Another Myth Bites the Dust: How Apple listens to its customers, https://www.forbes.com/sites/stevedenning/2011/08/ 26/another-myth-bites-the-dust-how-apple-listens-to-its-customers. Accessed April 10, 2023.
  21. Eger, L., & Mičík, M. (2017). Customer-oriented communication in retail and Net Promoter Score. Journal of Retailing and Consumer Services, 35, 142-149. https://doi.org/10.1016/j.jretconser.2016.12.009
  22. Eskildsen, J.E. and Kristensen K. (2011). The gender bias of the net promoter score. IEEE International Conference on Quality and Reliability, Bangkok, September 16-17, 1-5.
  23. Gadkari, D. (2018). Factors Influencing the Net Promoter Score: A Case of Funnel. Master Programme in Industrial Management and Innovation. Master’s Thesis, Uppsala Universitet. Available at: http://uu.diva-portal.org/smash/get/diva2:1229265/FULLTEXT01.pdf
  24. Gill, L. (2013). Capture the Mindshare and the Market Share will Follow: The Art and Science of Building Brands. New York: Palgrave Macmillan.
  25. Grisaffe, D. B. (2007). Questions about the ultimate question: Conceptual considerations in evaluating Reichheld’s net promoter score (NPS). Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 20, 36-53.
  26. Gruen, T. W., Osmonbekov, T., and Czaplewski, A. (2006). EWOM: the impact of C2C online know-how exchange on customer value and loyalty. Journal of Business Research, 59, 449–456. DOI: 10.1016/j.jbusres.2005.10.004
  27. Gupta, S., & Zeithaml, V. A. (2006). Customer metric and their impact on financial performance. Marketing Science, 25(6), 718–739. https://doi.org/10.1287/mksc.1060.0221
  28. Hamilton D.F., Lane J.V., Gaston P., Patton J.T., Macdonald D.J., Simpson A.H., & Howie C.R. (2014). Assessing treatment outcomes using a single question: The net promoter score. Bone Joint Journal, 96-B(5), 622-8. DOI: 10.1302/0301-620X.96B5.32434. PMID: 24788496.
  29. Iyer, P., Davari, A., & Paswan, A. (2018). Determinants of brand performance: The role of internal branding. Journal of Brand Management, 25, 202–216. https://doi.org/10.1057/s41262-018-0097-1
  30. Javed, M. K., Wu, M., Qadeer, T., Manzoor, A., Nadeem, A. H., & Shouse, R. C. (2020). Role of online retailers’ post-sale services in building relationships and developing repurchases: A comparison-based analysis among male and female customers. Frontiers in Psychology, 11, 594132. DOI: 10.3389/fpsyg.2020.59413
  31. Karanges, E., Johnston, K.A., Lings, I., & Beatson, A.T. (2018). Brand signaling: An antecedent of employee brand understanding. Journal of Brand Management, 25, 235–249. https://doi.org/10.1057/s41262-018-0100-x
  32. Keiningham, T., Aksoy, L., Cooil, B., Andreassen, T.W., Williams, L. (2008). A holistic examination of Net Promoter. Journal of Database Marketing Customer Strategy Management, 15(3), 79–90. https://doi.org/10.1057/dbm.2008.4
  33. Keiningham, T. L., Cooil, B., Andreassen, T. W., & Aksoy, L. (2007). A longitudinal examination of net promoter and firm revenue growth. Journal of Marketing, 71(3), 39–51. https://doi.org/10.1509/jmkg.71.3.039
  34. King, C., & Grace. D. (2012). Examining the antecedents of positive employee brand-related attitudes and behaviours. European Journal of Marketing, 46(3/4), 469–488. https://doi.org/10.1108/03090561211202567
  35. Korneta, P. (2014). What makes customers willing to recommend a retailer – The study on roots of positive net promoter score. Central European Review of Economics & Finance, 5(2), 61-74. http://cejsh.icm.edu.pl/cejsh/element/bwmeta1.element.cejsh-element-000171322089/c/Korneta_CEREF_5.pdf
  36. Korneta, P. (2018). Net promoter score, growth, and profitability of transportation companies. International Journal of Management and Economics, 54(2), 136–148. https://doi.org/10.2478/ijme-2018-0013
  37. Kristensen, K. & Eskildsen, J. E. (2011). Is the net promoter score a reliable performance measure? IEEE International Conference on Quality and Reliability, Bangkok, September 16-17, pp. 1-5. https://doi.org/10.1109/icqr.2011.6031719
  38. Kristensen, K. & Eskildsen, J. (2014). Is the NPS a trustworthy performance measure? The TQM Journal, 26(2), 202-214. https://doi.org/10.1108/TQM-03-2011-0021
  39. Kunkel, T., Funk, D., & King, C. (2014). Developing a conceptual understanding of consumer-based league brand associations. Journal of Sport Management, 28(1), 49-67. https://doi.org/10.1123/jsm.2011-0153
  40. Lee, N. (2021, September 6). 7 benefits of NPS: why use it over other customer satisfaction tools? Perceptive. Available from https://www.customermonitor.com/blog/benefits-of-net-promoter-score.
  41. Mecredy, P., Wright, M. J., & Feetham, P. (2018). Are promoters valuable customers? An application of the net promoter scale to predict future customer spend. Australasian Journal of Marketing, 26, 3–9. https://doi.org/10.1016/j.ausmj.2017.12.001
  42. Morgan, N. A., Anderson, E. W., & Mittal, V. (2005). Understanding firms' customer satisfaction information usage. Journal of Marketing, 69(3), 131–151. https://doi.org/10.1509/jmkg.69.3.131.66359
  43. Morgan, N. A., & Rego, L. L. (2006). The value of different customer satisfaction and loyalty metrics in predicting business performance. Marketing Science, 25(5), 426–439. https://doi.org/10.1287/mksc.1050.0180
  44. NPS Benchmark (2021). Benchmarking guides your goals and planning, accessed on Aug. 2, 2022 at https://www.netpromoter.com/compare/
  45. Nysveen, H., & Pedersen, P. E. (2014). Influences of cocreation on brand experience. International Journal of Market Research, 56(6), 807-832. https://doi.org/10.2501/ijmr-2014-016
  46. Qualtrics (2021). How to measure & calculate Net Promoter Score (NPS). Available from https://www.qualtrics.com/experience-management/customer/measure-nps/
  47. Piehler, R., King, C., Burmann, C., & Xiong, L. (2016). The importance of employee brand understanding, brand identification, and brand commitment in realizing brand citizenship behaviour. European Journal of Marketing, 50(9/10), 1575–1601. https://doi.org/10.1108/ejm-11-2014-0725
  48. Pingitore, G., Morgan, N.A., Rego, L.L., Gigliotti, A. and Meyers, J. (2007). The single-question trap. Marketing Management, 19(2), 9-13.
  49. Pollack, B. L., & Alexandrov, A. (2013). Nomological validity of the net promoter index question. Journal of Services Marketing, 27(2), 118–129. https://doi.org/10.1108/08876041311309243
  50. Punjaisri, K., & Wilson, A. (2011). Internal branding process: Key mechanisms, outcomes and moderating factors. European Journal of Marketing, 45(9/10), 1521–1537. https://doi.org/10.1108/03090561111151871
  51. Raasens, N., & Haans, H. (2017). NPS and online WOM: Investigating the relationship between Customer's promoter scores and eWOM behavior. Journal of Service Research, 20(3), 322–334. https://doi.org/10.1177/1094670517696965
  52. Ragheb, S., Ahmed, A., & Hussein, H. (2018). Internal corporate branding impact on employees’ brand supporting behaviour. Journal of Product & Brand Management, 27(1), 79–95. https://doi.org/10.1108/jpbm-03-2016-1112
  53. Rajasekaran, N., & Dinesh, N. (2018). How net promoter score relates to organizational growth. International Journal of Creative Research Thoughts, 6(2), 972-981. https://www.ijcrt.org/download1.php?file=IJCRT1807351.pdf
  54. Reichheld, F. F. (2003). The one number you need to grow. Harvard Business Review, 81(12), 46–54. https://dialnet.unirioja.es/servlet/articulo?codigo=844595
  55. Reichheld, F. (2006). The ultimate question. Driving good profits and true growth. Boston: Harvard Business School Press.
  56. Reichheld, F. F., & Markey, R. (2011). The Ultimate question 2.0. HBR Press.
  57. Reichheld, F., Darnell, D., & Burns, M. (2021). Winning on purpose. 288 pages. Harvard Business Review Press.
  58. Rowe, J. (2021). NPS Best Practices: What is Net Promoter Score℠ and how does it help me? Zendesk Support Help. Available at https://support.zendesk.com/hc/en-us/articles/4408832663450-NPS-Best-Practices-What-is-Net-Promoter-Score-and-how-does-it-help-me-
  59. Safdar, K. & Pacheco, I. (2019). The Dubious Management Fad Sweeping Corporate America, https://www.wsj.com/articles/thedubious-management-fad-sweeping-corporate-america11557932084. Accessed April 10, 2023.
  60. Schneider, D., Berent, M., Thomas, R. & Krosnick, J.A. (2008). Measuring Customer Satisfaction and Loyalty: Improving the ‘Net-Promoter’ Score. Available from: https://www.semanticscholar.org/paper/Measuring-Customer-Satisfaction-and-Loyalty%3A-the-Schneider-Krosnick/f29fc09aa1d71da71a502963525affbbf1b59f6e
  61. Sharp, B. (2008). Net promoter score fails the test. Marketing Research, 20(4), 28–30. https://www.dropbox.com/scl/fi/ik33jk2bi4vz8vj9a8bxk/NPS.pdf?rlkey=h2zhdz3ot8rozat2e3266n8ue&e=1&dl=0
  62. Sharp, B., & Sharp, A. (1997). Loyalty programs and their impact on repeat-purchase loyalty patterns. International Journal of Research in Marketing, 14(5), 473–486. https://doi.org/10.1016/s0167-8116(97)00022-0
  63. Spreng, R. A., Harrell, G. D., & Mackoy, R. D. (1995). Service recovery: impact on satisfaction and intentions. Journal of Services Marketing, 9, 15–23. https://doi.org/10.1108/08876049510079853
  64. Srirahayu, D. P., Anugrah, E. P., & Layyinah, K. (2021). Influence of satisfaction and loyalty on Net Promoter Score (NPS) in academic libraries in Indonesia. Library Management, 42(6/7), 325-339. https://doi.org/10.1108/lm-06-2020-0090
  65. Taylor, G. A., & Neslin, S. A. (2005). The current and future sales impact of a retail frequency reward program. Journal of Retailing, 81(4), 293–305. https://doi.org/10.1016/j.jretai.2004.11.004
  66. Teagarden, M.B., & Schotter, A. (2013). Leveraging intellectual capital in innovation networks: Growing, sharing and exploiting mindshare. Organizational Dynamics, 42(4), 281-289. https://doi.org/10.1016/j.orgdyn.2013.07.006
  67. Trout, J. (2004). Trout on Strategy: Capturing Mindshare, Conquering Markets. New York: McGraw-Hill, 1-159.
  68. Yi, Y., & Jeon, H. (2003). Effects of loyalty programs on value perception, program loyalty, and brand loyalty. Journal of the Academy of Marketing Science, 31(3), 229–240. https://doi.org/10.1177/0092070303031003002
  69. van Doorn, J., Leeflang, P. S. H., & Tijs, M. (2013). Satisfaction as a predicator of future performance: A replication. International Journal of Research in Marketing, 30(3), 314–318. DOI: 10.1016/j.ijresmar.2013.04.002
  70. Vochin, O. A., Sârbu, M. A., Stanciu, S., & Mansour, J. (2020, June). Implementing net promoter score in the public sector organizations. In 6th BASIQ International Conference on New Trends in Sustainable Business and Consumption. Messina, Italy, 532-539.
  71. Wani, A. (2017). A comprehensive review of brand equity: Conceptualization, origin and evolution. International Academic Institute for Science and Technology, 4(3), 82-91.