Presentation given at the 2nd International Consumer Brand Relationships Conference, www.consumer-brand-relationships.org Copyright by John Wittenbraker

1. 1
CBR in the real world
a practitioner's pov
john.wittenbraker@gfk.com
Copyright, GfK Custom Research North America, 2011

2. 2
There is nothing so
practical as a
good theory
- Kurt Lewin
Lewin, K. (1951) Field theory in social science; selected theoretical papers. D. Cartwright (ed.). New York: Harper &
Row.

3. 3
Some good theories
• Exit, Voice & Loyalty
– Albert O. Hirschman, 1970
• Commitment and satisfaction in
romantic relationships: A test of
the investment model
– Caryl Rusbult, 1980 & ff
Hirschman, A.. (1970) Exit, voice & loyalty: Responses to decline in firms, organizations and states. Cambridge, MA:
Harvard University Press.
Rusbult, C. (1980) Commitment and satisfaction in romantic relationships: A test of the investment model. Journal of
Experimental Social Psychology. 3

4. 4
Responses to decline in firms,
organizations and states
Destructive Constructive
Active Exit Voice
Passive Neglect Loyalty
commitment higherlower
alts
better
worse

5. 5
Rusbult
investment model
COM = f(SAT + INV – ALTs)

6. 6
Investments
Intrinsic Extrinsic
Material
• Unique/proprietary
channel paths or ways
of interacting
• Rewards programs
• Supplies/gear
• Property (shared)
• Contracts
Psychological/
Social
• Time/tenure
• Predictability
• Emotional involvement/
participation
• Identification with
the brand
• Mutual friends/
acquaintances or co-
worker relationships
• Normative/social/
moral pressures
• Community ties

7. 7
Brand commitment
Performance
Alternatives
Investment
Persistence
Pro-Relationship
Behaviors
> Devaluing alternatives
> Positive illusions
> Accommodation behaviors
> Willingness to sacrifice
> Forgiveness
> Cognitive interdependence
Trust
Commitment

8. 8
GfK relationship model
Trapped Committed
Exit/
Inert
Switchable
A>altsalt>A
High
Low
Competitive Performance
Investment

9. 9
39%
54%
39%
30%
12%
8%
11% 8%
0%
25%
50%
75%
100%
Low Profit High Profit
Model validation
63%
24%
7% 6%
0%
25%
50%
75%
100%
Committed Switchable Trapped Exit
Share of Deposits/Investments
Trapped
Committed
Exit
Switchable
0%
25%
50%
75%
100%
1 2 3 4 5 6 7 8
DDA Price Sensitivity
Trapped
Committed
Exit
Switchable
Account Price Difference ($)
8.0
4.7
3.3
-1.7
-20
-15
-10
-5
0
5
10
15
20
Committed Switchable Trapped Exit
Business With Bank In Next 12 Mos.
IncreaseDecrease SOW $ sensitivity
∆ SOW profitability

10. 10
Time series validation
99% 99% 99% 99% 99% 99% 98% 98% 98% 98% 98% 98%
95%96%96%96%
96%97%97%97%98%
98%
95%
100%
93%94%
94%94%95%
95%
96%
96%
97%
97%
98%
86%
87%
88%
88%
89%
90%
91%
92%
93%
93%
97%
95%
84%
86%
88%
90%
92%
94%
96%
98%
100%
102%
0 1 2 3 4 5 6 7 8 9 10 11 12
Months
HouseholdRetention
Committed
Exit
Switchable
Trapped
Average Modeled Customer
Retention for a 12 Month Period
0.000.00
0.02
0.03
0.05
0.06
0.08
0.10
0.11
0.13
0.14
0.16
0.18
0.19
0.10
0.09
0.08
0.07
0.06
0.06
0.05
0.04
0.03
0.02
0.11
0.04
0.040.040.030.030.020.020.020.010.01
0.01
-0.04-0.04-0.03-0.03-0.03-0.02-0.02
-0.02-0.01-0.010.00 -0.01
-0.10
-0.05
0.00
0.05
0.10
0.15
0.20
0.25
0 1 2 3 4 5 6 7 8 9 10 11 12
Months
TotalServicesQuantityGrowth
Committed
Exit
Switchable
Trapped
Average Modeled Growth
In Total Services for a 12 Month Period
attrition growth

11. 11
Practical application
• Size & Trend
• Stimulators & Simulators
Trapped Committed
Exit/
Inert
Switchable
A>altsalt>A
High
Low
Competitive Performance
Investment

12. 12
Size & trend
3 5 % 3 4 %
3 9 % 4 1%
3 8 %
3 3 %
3 9 % 3 8 % 3 9 % 3 6 %
3 3 %
4 3 %
3 9 % 3 9 % 3 8 %
4 2 %
3 7 % 3 9 % 4 1%
4 5 %
4 0 % 4 1%
4 7 %
4 3 %
4 6 % 4 4 %
3 3 %
4 4 %
3 8 % 3 8 %
4 1%
3 8 %
3 0 %
3 4 % 3 6 %
29% 29%
29%
28% 31%
27%
26%
33% 31%
32%
25%
26% 31% 31% 32% 27%
29% 26%
29%
33%
35%
37%
23%
35% 31%
28% 47%
39%
41% 40% 36%
22%
34%
30% 29%
13% 15%
15% 10% 12%
12%
11%
12% 12% 14%
9%
6%
10% 11%
14%
14%
15%
12%
11%
7% 12%
9%
11%
6%
9%
3%
7%
6% 8% 8%
12%
24% 23%
17%
21% 19%
28%
24%
17% 18% 18%
33%
25%
20%
16% 18% 20%
23%
19% 16%
13% 13%
20%
13%
19% 16%
26% 24%
28%
10%16%
7%
9%
19% 24%16%
11%
14%
17%
15%
0%
20%
40%
60%
80%
100%
1 2 3 4 1 1 1 1 1 1 1
C*
S
T
E
Brand A Brand B Brand ZBrand DBrand C Brand YBrand X
Favorability/Intention
Target>AltAlt>Target
High
Low
Psychological
Investment
*Committed (C)
Switchable (S)
Trapped (T)
Exit/Inert (E)

13. 13
Stimulators & simulators
Exit Switchable Committed Trapped
Customer Care Makes cust feel valued
Will be there when need them
Reps make cust feel cared for
Reps resolve problems quickly
Confidence best interest rate
Is flexible
Is caring
Is innovative
Practical/Usability Is for people like me
Takes hassle out of cc use
Is practical
Good for big ticket purchases
Acceptance Incr accepted at places want to use
Good for everyday purchases
Accepted at upscale places I go
(Not) will. make primary cc/not accepted
Rewards Offer rewards I value most
Offer best rewards in mkt
Protection Cares about protect my privacy
Proactive against id theft
Late Fees Doesn't charge many fees when late
Primary Secondary Tertiary

14. 14
New directions
• Pro-relationship behaviors
• CBR in social networks
• CBR metaphors