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  • Publication
    Behavioral and Attitudinal Customer Loyalty in the Power Sector
    (Springer Vieweg, Springer Fachmedien Wiesbaden, 2016-12)
    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.
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