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The Effects of Quality Uncertainty on the Choice of Timing of Rewards
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics.
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics.
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Background- Today online subscription based information products are becoming all the more common. A lot of them are using a immediate reward to compensate the quality uncertainty customer's experience. Even though an immediate reward creates a lot of customer attraction, some services today struggle with customer retention. Purpose- The purpose of this study is to examine how timing of rewards and quality uncertainty affects the choice of products. Method- For this study, four different surveys were conducted all representing one condition each. The survey was distributed to a total of 120 industrial workers from two different companies. A deductive reasoning lay as foundation for the construction of surveys. Result- Our result shows that under specific circumstances an immediate-and-delayed reward is preferable over an immediate reward alone. Also, when it comes to customer retention, a immediate-and-delayed reward is better at retaining customers when quality uncertainty becomes a factor. Conclusion- If customers have a reward upcoming, it is less likely they switch to the uncertain service even if there are an immediate reward present for the competing service. If they are going to switch service and have to give up their upcoming reward, they demand a significantly better quality at the competing service. Delimitations- This study focuses on the effects of timing of reward and quality uncertainty when customers choose or switch to an online subscription based information product. The study isolates timing of reward and quality uncertainty as major drivers for affecting purchase behaviour. 

Abstract [sv]

Bakgrund- Idag blir abonnemangsbaserade informationsprodukter allt vanligare. Många av dem använder en omedelbar belöning för att kompensera för kundens kvalitetsosäkerhet. Trots att en omedelbar belöning skapar stor kundattraktion, klarar flertalet av tjänsterna idag inte av att behålla kunder i samma utsträckning. Syfte- Syftet med denna studie är att undersöka hur timing av belöningar och kvalitetsosäkerhet påverkar valet av produkter. Metod- För denna studie genomfördes fyra olika enkätundersökningar med olika villkor. Undersökningen distribuerades till totalt 120 industriarbetare från två olika företag. Ett deduktiv resonemang låg som grund för utformandet av enkäterna. Resultat- Vårt resultat visar att under specifika omständigheter skulle en omedelbar-ochuppskjuten belöning vara att föredra framför enbart en omedelbar belöning. När det gäller att bibehålla kunder är det emellertid en omedelbar-och-uppskjuten belöning som bättre bibehåller kunder om kvalitetsosäkerhet är en faktor. Slutsats- Om kunderna har en kommande belöning, är det mindre troligt att de byter till tjänsten med osäker kvalité även om det finns en omedelbar belöning hos den konkurrerande tjänsten. Om de dock ska byta tjänst och måste ge upp sin kommande belöning, kräver de en betydligt bättre kvalitet vid den konkurrerande tjänsten. Avgränsningar- Denna studie fokuserar på effekterna av timing av belöning och kvalitetsosäkerhet när kunder väljer eller byter till en abonnemangsbaserad informationsprodukt. Studien isolerar timing av belöningar och kvalitetsosäkerhet som viktiga faktorer som påverkar köpbeteendet.

Place, publisher, year, edition, pages
2017. , 72 p.
Keyword [en]
timing of rewards, quality uncertainty, delayed reward, immediate reward, customer retention
Keyword [sv]
timing av belöningar, kvalitetsosäkerhet, uppskjuten belöning, direkt belöning, bibehålla kunder
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:bth-14714OAI: oai:DiVA.org:bth-14714DiVA: diva2:1115365
Subject / course
Degree Project in Master of Science in Engineering 30.0
Educational program
IEACI Master of Science in Industrial Management and Engineering
Supervisors
Examiners
Available from: 2017-06-28 Created: 2017-06-26 Last updated: 2017-06-28Bibliographically approved

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