8th Business & Management Conference, Venice

ADAPTABILITY OF THE NET PROMOTER SCORE IN THE JAPANESE MARKET: RELATIONSHIPS BETWEEN CUSTOMERS’ RECOMMENDATION SCORES AND CUSTOMER VALUE

TATSUYA KIMURA

Abstract:

Due to its simplicity of structure and ease of use for management, the Net Promoter Score (NPS) proposed by Reichheld (2003) is being used by many companies as a replacement for conventional customer satisfaction indices to measure the relationship between customer loyalty and company growth. Because of the simplicity of the NPS, however, there are many criticisms that this scoring concept does not consider the culture and consumer characteristics of the country where it is used. This study aims to examine the adaptability of the NPS in the Japanese market from the perspective of measurement criteria. In general, surveys are often affected by response bias, where participant responses may be influenced by various factors unknown to the researchers, one of which is response style. Focusing on the response style of Japanese consumers, the author investigates a more appropriate adaptation of the NPS measurement scale based on empirical analysis of customer response data from multiple companies and proposes a new NPS measurement framework.

Keywords: NPS, customer value, response style

PDF: Download