Sunday Morning Keynote | Customer Engagement

Engagement Orientation: A Catalyst to Profits

V Kumar

V. Kumar, Georgia State University

A critical review of the “orientation” constructs by multiple scholars in marketing has suggested a specific set of requirements – should be multidimensional and cater to multiple stakeholders - for any new “orientation” construct. Accordingly, we advance an “orientation” construct that we term as the Engagement Orientation, which comprises of two primary stakeholders of the firm- Customers and Employees.

We define Customer Engagement (a 4-dimensional construct) as the total value the customers provide by engaging with the firm through their purchase transactions (CLV), ability to refer other customers to the firm (CRV), power to positively influence other customers in social media (CIV), and feedback to the firm (CKV).

Subsumed in this Customer Engagement is the notion of Brand Engagement by the Customers, which we argue to be the foundation for the four dimensions of Customer Engagement. We discuss the components of the Brand Engagement and show the ways to link it to each of the 4-dimensions of Customer Engagement.

Lastly, we define Employee Engagement as the degree to which we observe Employee satisfaction, identification, commitment, loyalty and the overall performance. We link the multidimensional measures of the engagement from the two stakeholders to firm profits both conceptually and empirically.  Finally, we propose the steps that a firm can take to implement Engagement Orientation and realize higher profits.

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*V Kumar (VK) is Regents’ Professor, Richard and Susan Lenny Distinguished Chair, Professor of Marketing, and Executive Director, Center for Excellence in Brand & Customer Management, J. Mack Robinson College of Business, Georgia State University, Atlanta, GA. Phone: (404) 413-7590; Email: vk@gsu.edu
 

Co-authored with Anita Pansari who is a doctoral student in marketing, Center for Excellence in Brand & Customer Management, J. Mack Robinson College of Business, Georgia State University, Atlanta, GA.