Considering Culture to Win Back Lost Customers: Comparing Chinese and American Consumers

Abstract

Successfully convincing a defected customer to switch back is the strategic second half of CRM. Global firms need to know the interplay of culture in customers' switch back decisions. This study proposes a triadic model for customer reacquisition in the service sector and applies the model to compare Chinese and American consumers in their respective decision-making processes. The results show that the economic incentive is the most important determinant for both samples. Cultural differences suggest that a worthy win-back offer for Chinese customers should incorporate special treatments/favors to promote social/relational value, while for American customers, it should elicit post-switching regret.