Examining the Net Promoter Score (NPS) for Convenience Store: Is NPS Impacted by Consumer Demographics?
Year 2024,
Volume: 19 Issue: 76, 541 - 558
Musa Pınar
,
Tulay Girard
,
Faruk Guder
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.
Ethical Statement
We do not have any potential or perceived conflicts of interest related to this research. Specifically, we affirm that we have neither financial nor non-financial interests or relationships within the sector that could potentially influence the conduct or presentation of our research. This includes, but is not limited to, any close relationships that may pose a conflict of interest. We assure you that our manuscript is an impartial and unbiased representation of our research findings.
References
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- 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
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- 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
- 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
- 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
- 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
- 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
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- 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
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Examining the Net Promoter Score (NPS) for Convenience Store: Is NPS Impacted by Consumer Demographics?
Year 2024,
Volume: 19 Issue: 76, 541 - 558
Musa Pınar
,
Tulay Girard
,
Faruk Guder
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.
Ethical Statement
We do not have any potential or perceived conflicts of interest related to this research. Specifically, we affirm that we have neither financial nor non-financial interests or relationships within the sector that could potentially influence the conduct or presentation of our research. This includes, but is not limited to, any close relationships that may pose a conflict of interest. We assure you that our manuscript is an impartial and unbiased representation of our research findings.
References
- 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
- 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
- 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
- AMA (2016), The American Marketing Association Dictionary. https://www.ama.org
- 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
- Anderson, E. W., and Mittal, V. (2000). Strengthening the satisfaction-profit chain. Journal of Services Research, 3, 107–120. DOI: 10.1177/109467050032001
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- Churchill, G. A., Jr., & Iacobucci, D. (2005). Marketing Research: Methodological Foundations, 9th ed., Thomson/South-Western, Mason, OH.
- 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
- 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
- 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
- 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.
- 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
- 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.
- 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
- Gill, L. (2013). Capture the Mindshare and the Market Share will Follow: The Art and Science of Building Brands. New York: Palgrave Macmillan.
- 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.
- 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
- 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
- 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.
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
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