Applied Marketing Science Conjoint Research Study to Be Presented by Twitter, Inc. at Upcoming Conferences

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The study, which analyzed customer interactions between airlines and their customers, demonstrated that quick customer service via Twitter is highly effective.

Applied Marketing Science, Inc. (AMS) announces the presentation of the results of a recent research study conducted by AMS on behalf of Twitter, Inc. The study, which analyzed customer interactions between airlines and their customers, demonstrated that quick customer service via Twitter is highly effective. Consumers who receive a prompt response to Tweets are willing to spend more for tickets on that airline than those who had a less positive experience.

“This research shows that providing quick and helpful customer service through Twitter can increase a brand’s value, in terms of customer loyalty, willingness to recommend, and above all, willingness to pay,” said AMS President & Managing Principal John Mitchell.

The study, which involved more than 1,000 Twitter users, utilized a market simulation task known as conjoint, or choice-based, analysis. AMS used the results to develop a statistical model that measured the willingness of customers to spend on major airlines based on customer service interactions.

“Conjoint analysis is widely used by product and service developers to understand how consumers trade off features and price when making purchase decisions, but this application was quite unusual, perhaps unique in marketing science. We used conjoint analysis to measure the value a brand creates, in dollars, by delivering positive customer service interactions through Twitter as well as other channels. Our analysis demonstrated that consumers are more willing to pay a premium for a future flight on a particular airline if they had a recent positive interaction—a complaint resolved or a question answered—with that airline through Twitter, than through more costly or cumbersome channels like email or telephone service,” explained AMS President & Managing Principal John Mitchell.

Wayne Huang and Jeff Lesser of Twitter, Inc., will present the study results at the 12th Annual Customer Experience Conference in New York, NY on March 23-24 and at the Marketing Analytics & Data Science Conference in San Francisco, CA on June 8-10.

About Applied Marketing Science

Applied Marketing Science (AMS) provides market research and consulting to improve product and service innovation and deliver expert witness testimony in business litigation. Established in 1989 with roots in the MIT Sloan School of Management, AMS offers an array of services to meet client needs and specializes in developing customized solutions for each situation. AMS has utilized conjoint analysis to help clients answer a variety of business questions in both innovation and litigation research.

For more information, please visit http://www.ams-inc.com.

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