Showing papers in "International Journal of Service Industry Management in 1998"
TL;DR: Based on theory from consumer behavior and cognitive psychology, the purpose of this paper is to discuss and test corporate image and customer satisfaction as two routes to customer loyalty as mentioned in this paper, which is consistent with high and low service expertise.
Abstract: Based on theory from consumer behavior and cognitive psychology, the purpose of this paper is to discuss and test corporate image and customer satisfaction as two routes to customer loyalty. Based on data from 600 individual customers categorized as having high or low service expertise of three companies within the package tour industry, a conceptual model is proposed and tested empirically using structural equation modeling. The data used in the study are included in The Norwegian Customer Satisfaction Barometer. The paper concludes by claiming that for complex services, corporate image and customer satisfaction are not two separate routes to customer loyalty. Corporate image impacts customer loyalty directly whereas customer satisfaction does not. This finding was consistent with high and low service expertise. These results challenge the disconfirmation paradigm which predicts customer satisfaction as the primary route to customer loyalty. From a managerial perspective, information regarding the relative strength of the two routes is vital with regard to resource allocation in order to improve customer loyalty.
1,442 citations
TL;DR: In this paper, a theoretical framework for service loyalty consisting of three dimensions: preference loyalty, price indifference loyalty, and dissatisfaction response is developed, and the role of service quality and switching costs as antecedents to these types of service loyalty is investigated.
Abstract: In the services marketing literature it has been argued that the concept of service loyalty needs further conceptual and empirical investigation. In this paper a theoretical framework for service loyalty consisting of three dimensions: preference loyalty; price indifference loyalty; and dissatisfaction response is developed. We subsequently focus on the role of service quality and switching costs as antecedents to these types of service loyalty. The results of an empirical study of a large sample of customers from five different service industries provide support for service loyalty as a three‐dimensional construct. Moreover, we find that the influence of service quality on service loyalty varies significantly per industry and that, hence, findings from one industry cannot be generalised to other industries. Furthermore, we establish that in industries characterised by relatively low switching costs, customers will be less loyal as compared to service industries with relatively high switching costs.
609 citations
TL;DR: In this article, the form of the relationship between customer satisfaction and customer behaviour is investigated under conditions of low and high satisfaction, and the results point to the fact that differences in the form do exist.
Abstract: Explores the extent to which the form of the relationship between customer satisfaction and customer behaviour is different under conditions of “low” satisfaction and “high” satisfaction. Three behavioural variables (word‐of‐mouth, feedback to the supplier, and loyalty) were examined. The results point to the fact that differences in the form do exist. Moreover, the results show that differences exist between the differences, in the sense that different patterns emerge for each behavioural variable.
475 citations
TL;DR: In this article, the authors empirically test a model of relationships among service quality, satisfaction and selected behavioural outcomes and find that the affective aspects of satisfaction have more impact than cognitive factors on patients' propensity to continue the relationship.
Abstract: The objective of this study was to empirically test a model of relationships among service quality, satisfaction and selected behavioural outcomes. Particular attention was paid to delineating the cognitive aspects of the service provider‐consumer relationship from the affective, emotive factors. Using doctor‐patient relationships in Turkey as the study setting, results of a LISREL analysis suggest that the affective aspects of satisfaction have more impact than cognitive factors on patients’ propensity to continue the relationship. The most critical managerial implication of the study findings is that doctors need to place more emphasis on the functional (how it is done) aspects of care giving than the technical (what is done) ones.
433 citations
TL;DR: The desirability of transferring manufacturing logic and practices to service operations, strongly advocated by Levitt (1972; 1976) in two classic Harvard Business Review articles two decades ago, is now commonly challenged by both service researchers and practitioners.
Abstract: The desirability of transferring manufacturing logic and practices to service operations, strongly advocated by Levitt (1972; 1976) in two classic Harvard Business Review articles two decades ago, is now commonly challenged by both service researchers and practitioners We defend a “production‐line approach to service” by arguing that services can “reindustrialize” by applying revised, progressive manufacturing technologies We describe how services businesses such as Taco Bell, Southwest Airlines, and Shouldice Hospital have mastered what we call “lean” service ‐ the application of lean manufacturing principles to their own service operations Overall, services tend to be innovation laggards, compared to manufacturing Looking ahead, mass customization can be viewed as the convergence of service and manufacturing logic
387 citations
TL;DR: In this article, a relationship dissolution model is developed that depicts some of the key antecedents of relationship commitment as revealed in the context of the dissolution of a buyer-seller relationship.
Abstract: A relationship dissolution model is developed that depicts some of the key antecedents of relationship commitment as revealed in the context of the dissolution of a buyer‐seller relationship. Despite the importance of the dissolution of marketing relationships, there has been little research on this topic. The level of commitment determines intentions to remain in the relationship. However, it is difficult to measure true commitment in a relationship until that relationship ends. In addition to adding to our knowledge about the dissolution of marketing relationships, this paper will also provide a new conceptual representation of the relationship commitment construct.
297 citations
TL;DR: In this paper, the authors investigated the impact of pre-service failure perceptions on customers' satisfaction with the recovery effort of a service failure and found that the most important dimension most important to customers in their assessment of the service recovery effort was the firm accepting the blame, followed by empowerment and apology, and that customers prefer to deal with staff who are empowered to solve their problem quickly.
Abstract: The production of most services depends heavily on human involvement which, by definition, implies variability The difficulty of standardising human behaviour during service delivery at a level expected by customers is exacerbated by the simultaneity of production and consumption When service failures occur, the presence of customers leaves little scope for corrective action without the customer being aware of the mishap The difficulty in avoiding visible service failures does not have to result in dissatisfied customers, however Service firms can go a long way towards turning dissatisfied customers who have had a negative service experience into ones who are likely to remain loyal to the firm That, however, requires an effective service recovery programme This study pursued two objectives The empirical results show that attribution (the firm accepting blame) is, relatively speaking, the dimension most important to customers in their assessment of the service recovery effort, followed by empowerment and apology Once a service failure has occurred, customers prefer to deal with staff who are empowered to solve their problem quickly and they do not want to hear that someone else is to blame An apology in person or, alternatively, by telephone is preferable Surprisingly, pre‐service failure perceptions do not influence the customer’s satisfaction with the recovery effort, suggesting that service recovery is situation‐specific
259 citations
TL;DR: In this article, the authors present an empirical study of satisfaction with waiting for service in a fast food environment and demonstrate that the relative importance of each of these variables in predicting satisfaction depends on the differences in the needs of the customers.
Abstract: The experience of waiting for service is often the first direct interaction between customers and most service delivery processes. The literature on satisfaction with waiting has paralleled the literature on general service satisfaction, in which the relative importance of actual performance, perceived performance, and the disconfirmation between expected performance and perceived performance has been the subject of much debate. This paper presents an empirical study of satisfaction with waiting for service in a fast food environment. The study demonstrates that actual waiting time, perceived waiting time, and the disconfirmation between expected waiting time and perceived waiting time are all related to satisfaction with the waiting experience. It further demonstrates that the relative importance of each of these variables in predicting satisfaction depends on the differences in the needs of the customers. The implications for both theory and practice are significant: the importance of the perception of the experience increases as the importance of the satisfaction measure increases. More specifically, for customers who are concerned about time, the perception of the time spent waiting is a better predictor of satisfaction than the actual waiting time.
220 citations
TL;DR: In this article, the authors examined qualitative and quantitative differences between service expectations and perceived performance in the foodservice industry, using the profile accumulation technique, and found that customers structured their perceptions of the service into a common set of elements (termed aspects) and attached quality attributes to each of these elements.
Abstract: This study examines qualitative and quantitative differences between service expectations and perceived performance in the foodservice industry, using the profile accumulation technique. Parallel series of data were obtained for service performance perceptions from actual customers at two pizza restaurants. The three sets of data were compared qualitatively and quantitatively. Results showed that customers structured their perceptions of the service into a common set of elements (termed aspects) and attached quality attributes to each of these elements. The three data series exhibited very similar dimensionalities in terms of both aspects and attributes of the service. Attributes were identified as satisfiers or dissatisfiers. In order to gain insight about their structure they were separately recoded using four different authors’ lists of quality dimensions. The significance of their quantitative differences for positive and negative disconfirmation was also examined. Aspects and attributes were used to calculate matrices of quality metrics referring to both the “aspects” dimensions provided by respondents and the dimension lists of the four authors. The work demonstrates that it is possible to obtain and analyse customers’ expectations and perceptions without making pre‐assumptions about them, and will therefore be of interest to managers and marketers of restaurants and other services.
154 citations
TL;DR: In this article, the authors present evidence from two industry studies which suggests that satisfaction and/or quality as currently conceptualized are not sufficient diagnostic tools to assess the health of a relationship, certainly not sufficient when only one relationship partner's outcomes are assessed.
Abstract: This paper examines the current literature and trends in the measurement of service relationships. The authors present evidence from two industry studies which suggests that satisfaction and/or quality as currently conceptualized are not sufficient diagnostic tools to assess the health of a relationship, certainly not sufficient when only one relationship partner’s outcomes are assessed. Two studies which explore service relationship satisfaction, are presented as illustrations to demonstrate that firms engaged in partnering relationships need to consider changing the way they evaluate the ability of their systems to satisfy partners as the relationship progresses. Process issues and value‐enhancing components in addition to satisfaction and quality are among the critical dimensions to evaluate in order to fully assess the health of a relationship.
148 citations
TL;DR: In this article, the authors elucidate the concept and measurement of productivity in the service sector, which is divided into quantity and quality dimensions, and further into output and input elements.
Abstract: The purpose of this article is to elucidate the concept and measurement of productivity in the service sector. The concept of service productivity is divided into quantity and quality dimensions, and further into output and input elements. Moreover, the issue of measurement is analysed to show the problems related to the elaborated concept of productivity. The content and measurement of the dimensions of service productivity are illustrated through a case study focusing on the second largest insurance group in Finland. The various elements of quantity and quality dimensions were distinguished in the target firm, but especially the quality elements seem to require more serious attention in the future. The article ends with a plea for more interdisciplinary research between scholars on service productivity.
TL;DR: In this article, the authors used data envelopment analysis to evaluate the relative efficiency of 34 commercial banks in Taiwan and identified 15 banks as efficient ones and divided them into four subgroups.
Abstract: The main contribution of this paper is empirical in nature. We use data envelopment analysis to evaluate the relative efficiency of 34 commercial banks in Taiwan. Fifteen banks are identified as efficient ones and they are divided into four sub‐groups. Conversely, 19 banks are attributed as inefficient ones and the slack analysis are followed. The inefficient banks can effectively promote resource utilization efficiency by better handling their labour and capital operating efficiency and enlarging bank investment function. In addition, we compare the data envelopment analysis results to the financial ratios and show that a consistent effect cannot be obtained. This is to say that we cannot derive which bank has a higher performance from financial ratio analysis only.
TL;DR: In this paper, the authors considered the appropriateness of the relationship approach for retail banking given the prerequisite conditions suggested by the literature and proposed a personal banker strategy as a means to implement the relationship strategy in retail banking.
Abstract: This paper is concerned with the challenge posed by the management of customer relationships in services. The focus is on banks, although similar service businesses (with long‐term customers) may be expected to encounter like challenges. The relationship approach for businesses is discussed and is judged to be quite fundamental with wide‐ranging implications. The paper considers the appropriateness of the relationship approach for retail banking given the prerequisite conditions suggested by the literature. The personal banker strategy is considered as a means to implementing the relationship approach in retail banking. Empirical findings from a study examining the role of personal bankers in New Zealand are presented. It is concluded that a relationship strategy can be a double‐edged sword: implemented well it can have the desired effects; implemented badly it can have a negative impact that will leave the organization with more problems than if they had done nothing at all.
TL;DR: In this article, the authors investigated three types of service processes: a hotel stay, a day conference and a restaurant visit, which represent different levels of complexity and found similar and dissimilar patterns of overall and cumulative evaluations across the three processes.
Abstract: How service evaluations are influenced by the complexity of the service delivery process has not been adequately studied. Therefore, this study investigates three types of service processes: a hotel stay, a day conference and a restaurant visit, which represent different levels of complexity. Cumulative satisfaction was measured for each service attribute and their subattributes along the path of the service process. In addition, overall satisfaction, service quality, disconfirmation of expectations and likelihood to recommend and return were measured after completion of the service delivery. Both similar and dissimilar patterns of overall and cumulative evaluations were found across the three processes. In terms of the relative importance of process attributes and subattributes, both common and core attributes across the three processes exhibited similar importances.
TL;DR: In this paper, a methodology to delineate relevant indicators of productivity and quality for services is developed, where insights from activity-based management are introduced to work out productivity indicators, and an approach based on quality function deployment is used to define relevant quality indicators.
Abstract: Notes that the nature of the service process makes the measurement of productivity and quality more difficult. In this paper a methodology to delineate relevant indicators of productivity and quality for services is developed. For both types of indicators, process analysis is a starting point. Insights from activity‐based management are introduced to work out productivity indicators. An approach based on quality function deployment is used to delineate relevant quality indicators. Both approaches are illustrated with case study material. During the process of developing these indicators, it became clear that realizing quality and productivity simultaneously within the service delivery process might imply a trade‐off. Implications and further extensions of this dynamic relationship are discussed within a larger service strategy framework.
TL;DR: In this paper, the authors consider how the adoption of a process view affects an organization's perspective on productivity and the way it is managed and present the development of a case study of the Royal Mail.
Abstract: Business process management is coming into the lexicon through the concepts associated with business process re‐engineering (BPR) and total quality management (TQM). TQM and BPR have been adopted by service organizations. Two questions are considered. What are the implications of this focus on processes for service productivity? In particular, how does the adoption of a process view affect an organization’s perspective on productivity and the way it is managed? Considers the nature of BPR and the development of approaches to business process management, based on the literature; and presents the development of a case study of the Royal Mail.
TL;DR: In this article, the authors developed an operationalization of emotional labour and presented hypotheses about consumer responses to emotional labor and emotional effortlessness, and tested these hypotheses in two laboratory experiments, concluding that perceptions of emotional effortless can have a significant and positive impact on customer evaluations, but only in relational (as opposed to discrete) service situations.
Abstract: As part of their jobs, many service employees are required to express certain emotions, such as positive affect toward service customers. Sometimes employees do not actually feel the emotions that they are expressing, resulting in what has been called “emotional labour.” Although a number of scholars have examined how service employees respond to requirements for emotional labour, few have studied how customers respond to employees who are enacting emotional labour ‐ or its opposite, emotional effortlessness. Building from the impression management framework, this paper develops an operationalization of emotional labour and presents hypotheses about consumer responses to emotional labour and emotional effortlessness. It also proposes an adaptation of previous marketing applications of the impression management framework. The hypotheses are then tested in two laboratory experiments. Results suggest that perceptions of emotional effortlessness can have a significant and positive impact on customer evaluations, but only in relational (as opposed to discrete) service situations.
TL;DR: In this paper, the authors examined the impact of service culture and internal politics on the design, introduction success and rejection of new service design proposals and found that existing service culture can have a significant impact on modifying the new service proposal making implementation success and high customer satisfaction levels more difficult to achieve.
Abstract: The design of new services is a fundamental element of a firm’s growth strategy but, despite some recent work, our knowledge of the new service design process remains weak. This paper examines the impact of service culture and internal politics on the design, introduction success and rejection of new service design proposals. The extant literature is reviewed, a conceptual framework is developed and several longitudinal case examples are discussed. The results indicate that existing service culture can have a significant impact on modifying the new service design proposal making implementation success and high customer satisfaction levels more difficult to achieve. Several propositions for future research are presented.
TL;DR: In this paper, the authors used four short financial services case studies to examine the application of segmentation and consider the implementation barriers, and found that the extent of any barriers may vary in different areas of the financial services market and even in different organisations and that this variation may feasibly translate into different levels of market segmentation usage.
Abstract: Market segmentation is widely regarded as a panacea for a variety of marketing ailments. Yet research in the financial services market highlights a number of significant barriers to the implementation of segmentation schemes. These barriers range from weaknesses in customer data and inappropriate organisational structure, to lack of marketing orientation and difficulties in obtaining a fit within the existing distribution structure. While the marketing literature acknowledges that these difficulties exist, there has been little formal analysis to capture the characteristics of these barriers. This problem is compounded by the considerable size and diversity of the sector which make it difficult to generalise about the implementation problems. This means that the extent of any barriers may vary in different areas of the financial services market and even in different organisations and that this variation may feasibly translate into different levels of segmentation usage. This research uses four short financial services case studies to examine the application of segmentation and consider the implementation barriers. Although the case studies cover a range of financial services companies, the analysis focuses on the provision of charge/credit cards by these organisations. The growth rate and increasing importance of the charge/credit card business make this a particularly pertinent area to analyse and allow a comparison with retail banking services more generally. The findings support the notion that a range of barriers to segmentation exists and shows how the importance of these barriers varies in different organisations.
TL;DR: In this article, the authors analyzed over 800 critical incidents across six service industries and found that responsiveness, courtesy/understanding the customer and communication frequently function as satisfiers driving the occurrence of positive incidents.
Abstract: Analyzing over 800 critical incidents across six service industries this study finds that responsiveness, courtesy/understanding the customer and communication frequently function as satisfiers driving the occurrence of positive incidents. Lack of competence, credibility and, particularly, reliability function as dissatisfiers driving the occurrence of negative incidents. Two generic dimensions emerge from multiple correspondence analysis: service system versus service people, and customer initiative versus employee initiative. The service system is associated with negative incidents, and service people with positive incidents. Substantial differences between service industries in antecedents of critical incidents emerge. Implications and recommendations for service delivery design and management are offered.
TL;DR: In this paper, the issue of productivity in services from a phenomenological perspective is addressed, with an emphasis on embodiment, expression and emotion in working life of services, and an understanding of post-industrial service work and a corresponding service productivity culture.
Abstract: Approaches the issue of productivity in services from a phenomenological perspective. Refers to embodiment, expression and emotion in working life of services. Discusses an understanding of post‐industrial service work and a corresponding service‐productivity culture. Presents the concept of “communities of productive practice”. Offers managerial and organizational implications for an embodied productivity.
TL;DR: In this paper, the authors examined the benefit of incorporating a group of employees that exhibit dynamic service rates into scheduling tours in a service operation and found that the performance improvement of schedules generated with the most precise learning curve method was substantially and significantly better than the other methods.
Abstract: This paper examines the benefit of incorporating a group of employees that exhibit dynamic service rates into scheduling tours in a service operation. The service operation that is examined includes a fully productive core (full‐time) workforce along with a contingent (full‐ and part‐time) workforce that experiences the learning effect. Two methods that account for the learning effect are analyzed along with two methods that do not consider learning effects. The schedules generated by each method are tested in a simulation of the service environment. The results of a full‐factorial experiment indicate that methods that account for learning effects will yield superior solutions over a variety of operating conditions when compared to alternative methods that do not consider learning effects. The performance improvement of schedules generated with the most precise learning curve method was substantially and significantly better than the other methods. The conditions in which the learning curve methods provide the most benefit are explored.
TL;DR: In this paper, a stepwise method based on linguistic theory is developed to record, analyse and interpret transcriptions of verbal and non-verbal behaviour by means of audio and video recordings.
Abstract: The importance of service encounters for the purpose of creating and maintaining good customer relationships is widely recognised. This study focuses on the quality of face‐to‐face communication during service encounters between service providers and their customers at a help desk of a hotel conference department. Communication is believed to be influenced by the social activities that are pursued in a particular encounter. A stepwise method based on linguistic theory is developed to record, analyse and interpret transcriptions of verbal and non‐verbal behaviour by means of audio and video recordings. Utterances have been coded with regard to their function and content and are organised in a so called molecular coding scheme. This scheme models the dynamic interplay between communicators and makes it possible to analyse contextual influences on communication. It is believed that the approach advocated here could be of use for managers of service operations where communication is paramount.
TL;DR: In this paper, the authors present a collection of refereed articles from leading academics in the field of services management and is a welcome collection of important work, starting with an impressive introduction, the book places individual articles in five sensible and relevant sections: The Classics; Service Experiences; Service Quality and Satisfaction; Service Management; and Services Marketing in Context.
Abstract: This Reader brings together a first-class collection of refereed articles from leading academics in the field of services management and is a welcome collection of important work.
Beginning with an impressive introduction, the book places individual articles in five sensible and relevant sections: The Classics; Service Experiences; Service Quality and Satisfaction; Service Management; and Services Marketing in Context. Each section includes between five and seven articles, ranging from original classic works from Shostak (1977) and Rathmell (1966), to Edvardsson (1992), Silvestro et al. (1992), Gronroos (1994), and not forgetting Parasuraman et al. (1988) and the excellent work from Buttle (1996).
While the collection is a highly welcome addition to publishers’ lists, there are nevertheless important areas of omission, as is often the case in such publications. The inclusion of the masterly review of emergent literature from Brown, Fisk and Bitner (1994), and the excellent case for creating a customer-oriented culture made by Parasuraman (1987) may well have improved the volume. Other notable absences include work pertaining to the services marketing mix - such as Murray (1991), Guiltinan (1987), and the pioneering work in customer demographics and marketing communications by FitzGerald and Arnott (1996) - and new service development, where the inclusion of the excellent work by Edvardsson and Haglund (1995) and Scheuing and Johnson (1989) would have been beneficial.
One must accept, however, that the creation of a Reader means that decisions have to be taken as to what must be included, and this text realistically reflects work in services so far. However, for a text entitled Services Marketing Management there seems to be a bias towards services management and too little towards services marketing. Thus, a title which reflects this might have been more appropriate.
Overall, and despite certain shortcomings, this text is recommended to any student of services - marketing or operations - as a useful and relevant collection of important literature.
TL;DR: In this article, the authors consider the pertinent literature surrounding management competencies in the context of decision making for services management and present a case description of a consumer services company, focusing on the progression of the management decision makers' competencies over a three year period.
Abstract: Although much has been written about management competencies, the literature is sparse in its consideration of specific competencies for services marketing decision making. This article considers the pertinent literature surrounding management competencies in the context of decision making for services management. A case description of a consumer services company is used to develop the argument. The case description focuses on the progression of the management decision makers’ competencies over a three‐year period. The importance of continually developing the competencies of the key decision makers in an organisation is emphasised, particularly in relation to the changing nature of managerial roles and responsibilities.