Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value
By Sander F. M. Beckers, Jenny van Doorn, Peter C. Verhoef. 2018
280 citations recorded by the source corpus.
In today’s connected world, customer engagement behaviors are very important. Many companies launch initiatives to stimulate customer engagement. However, despite evidence that customer engagement behavior also matters to shareholders, academic research on the firm value consequences of customer engagement campaigns is limited. This study is the first to investigate the value-related consequences of firm-initiated customer engagement behaviors, using shareholder evaluations of the public announcements of such initiatives. We find that companies’ customer engagement initiatives, on average, decrease market value, which is likely because the shareholders are sensitive to the risk of these initiatives backfiring. Nevertheless, initiatives that stimulate word-of-mouth are viewed less negatively than initiatives that solicit customer feedback, as are initiatives that are supported by social media. Companies that operate in a competitive environment or do not advertise much can create value by stimulating customer engagement, while companies with a strong corporate reputation are likely to not benefit from it.
Subfields: Organizational Behavior and Human Resource Management, Sociology and Political Science, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/1b163b4f926c70023deff707a932cf745f71ab93
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- Wei-Hung Chen
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Citations in the corpus
- Engaging and retaining customers with AI and employee service (2020, unknown): “…various definitions and con-ceptualisations, the level of customer engagement has implications for organisational outcomes such as firm performance, customer purchase and loyalty, as well as shareholder value (Beckers et al., 2017; Pansari & Kumar, 2017; Prentice et al., 2018; So et al., 2016).”
- Digital transformation: A multidisciplinary reflection and research agenda (2021, unknown): “Digital technologies allow consumers to co-create value by designing and customizing products, perform last-mile distribution activities, and help other customers by sharing product reviews (Beckers, van Doorn, & Verhoef, 2018; Grönroos & Voima, 2013).”
- Role of Government to Enhance Digital Transformation in Small Service Business (2021, background): “Digital technologies allow customers to co-create value by giving suggestions for product improvement, influencing product development, and participating in customizing products or services [63,84,85].”