Recalculating the Net Promoter Score

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Recalculating the

Net Promoter Score

Ta c k l i n g t h e C u l t u r a l B i a s i n t h e L i k e l i h o o d o f R e c o m m e n d a t i o n Q u e s t i o n

Thesis Defense Maylen de Koning MSc Marketing Intelligence

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Introduction

•  Customer surveys to collect feedback data are commonly used.

•  Net Promoter Score (NPS) generated by the likelihood of recommendation question

International

service providers

experience

divergent NPS

scores across

countries.

•  Countries differ in their level of response style:

The tendency to respond systematically to questionnaire items in a manner other than what the items were specifically designed to measure (Paulhus, 1991).

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Individualism Uncertainty avoidance Power distance Masculinity Positive ERS Midpoint RS Negative ERS NPS H1a-c H2a-c H3a-c H4a-c H5-7

Research questions

1.  Is there a relationship between national culture and Net Promoter Score, which is mediated by response style?

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The data

2.5% of the customers Customer information Service characteristics

Subjective service experience

360,000 respondents

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Statistical Mediation Analysis

+  Accounts for partial mediation, can capture all effects in one model.

-  All relationships are assumed to be linear, adjustments are not easily made.

NPS Individualism Uncertainty avoidance Power distance Masculinity Positive ERS Midpoint RS Negative ERS a-paths b-paths c‘(c)-paths Individualism Uncertainty avoidance Power distance Masculinity Positive ERS Midpoint RS Negative ERS NPS Model 1 Model 2 Model 3 Model 4 Model 5

Multiple linear regressions

+  Linear regression assumptions required can be met rather easily.

-  Does not capture all effects, i.e. direct, indirect, and mediation, in one model.

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Results multiple linear regressions

Positive ERS Midpoint RS

x  NPS

Negative ERS

-  NPS

Individualism Uncertainty

avoidance Power distance Masculinity

Positive ERS - + x x

Midpoint RS + x x x

Negative ERS x x x x

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1

3

2

4 Address the issue and importance of

correcting NPS scores to make them more comparable across countries.

Managerial implications

Include questions to measure response style in customer satisfaction surveys.

Focus on understanding the different factors that influence customer

satisfaction instead of boosting the overall company NPS.

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1 2

Limitations & future research

The country of nationality of the respondents might not be the true culture the respondent feels most connected to.

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