Global Customer Engagement
Shaphali Gupta, Anita Pansari, and V. Kumar
ABSTRACT
Advances in technology and analytics have stimulated competition in the global marketplace and augmented interactions
among customers globally. It is therefore imperative for firms to understand the behavioral activities of customers around
the world to keep them engaged. To do so, the authors recommend that managers familiarize themselves with countries’
cultural and economic factors. The authors use Hofstede’s cultural dimensions and country-level economic factors to
explain the national differences in customer motives while engaging with the firm. This study explains that national
cultural dimensions exert an effect on the relationships in the customer engagement (CE) framework proposed by Pansari
and Kumar (2017). The authors discuss and develop research propositions on the impact of the relevant cultural and
economic dimensions that affect the various proposed relationships in the original CE framework. Through this modified
CE framework, they introduce the concept of global customer engagement to help firms design marketing strategies
aligned with a country’s culture and economy to obtain improved CE and enhanced firm performance.
Keywords: global customer engagement, national culture, level of involvement, level of brand value, economic growth
M
ultinational corporations (MNCs) have grown
in number and size over the last 50 years, from
7,000 in the 1960s to more than 80,000 in 2006
(Ghemawat and Pisani 2013). This increase indicates that
managers should focus on understanding the attitudes
and behaviors of customers across the globe to use the
most efficient and effective strategies. Customer manage-
ment strategies have evolved from analyzing transactions
to relationship marketing to engagement (Pansari and
Kumar 2017). This is evident from the metrics used to
measure customer value in the various phases of marketing.
Until the early 1990s, managers analyzed customers’ trans-
actional data by using past customer value, share of wallet,
recency, frequency, and monetary value of purchases. In
the late 1990s and early 2000s, firms gradually shifted
their focus from transaction marketing to relationship
marketing, based on the commitment-trust theory (Morgan
and Hunt 1994). In this era, firms focused on retaining
profitable customers by applying the metric of customer
lifetime value (CLV; Kumar 2008).
In the last decade, owing to the advent of social media and
digital technology, marketers realized that there are other
ways beyond purchases through which customers can
contribute to the firm, such as discussing the brand on
social media or leaving feedback on the company’s
website. This led to the rise of the concept of customer
engagement (CE), which is defined as “the mechanics of a
customer’s value addition to the firm, either through direct
or/and indirect contribution” (Pansari and Kumar 2017,
p. 2). The direct contribution to the firm by the customer
is in the form of purchases, because these purchases directly
Shaphali Gupta is Assistant Professor in Marketing, Management Devel-
opment Institute, Gurgaon, India, and Research Fellow, Center for Excel-
lence in Brand & Customer Management, J. Mack Robinson College of
Business, Georgia State University (email: shaphali.gupta@mdi.ac.in). Anita
Pansari is Assistant Professor in Marketing, Eli Broad College of Business,
Michigan State University (email: pansaria@msu.edu). V. Kumar (VK)
(corresponding author) is the Regents’ Professor, Richard and Susan Lenny
Distinguished Chair, & Professor of Marketing, and Executive Director,
Center for Excellence in Brand & Customer Management, J. Mack Rob-
inson College of Business, Georgia State University (email: vk@gsu.edu). VK
has also been honored as the Chang Jiang Scholar, Huazhong University of
Science and Technology; Fellow, Hagler Institute for Advanced Study, Texas
A&M University; and Senior Fellow, Indian School of Business. The authors
thank the JIM review team for their valuable guidance in the revision
process. They also thank the participants of various conferences worldwide
and Gayatri Shukla for their valuable feedback on the earlier versions of the
manuscript. They thank Renu for copyediting a previous version of the
manuscript. Seigyoung Auh served as associate editor for this article.
Journal of International Marketing
©2018, American Marketing Association
Vol. 26, No. 1, 2018, pp. 4–29
DOI: 10.1509/jim.17.0091
ISSN 1069-031X (print) 1547-7215 (electronic)
4 Journal of International Marketing