Showing papers in "Journal of Marketing in 2005"
TL;DR: In this article, the authors develop and estimate a conceptual model of how different aspects of customers' relationships with the brand community influence their intentions and behaviors, and test their hypotheses by estimating a structural equation model with survey data.
Abstract: The authors develop and estimate a conceptual model of how different aspects of customers' relationships with the brand community influence their intentions and behaviors. The authors describe how identification with the brand community leads to positive consequences, such as greater community engagement, and negative consequences, such as normative community pressure and (ultimately) reactance. They examine the moderating effects of customers' brand knowledge and the brand community's size and test their hypotheses by estimating a structural equation model with survey data from a sample of European car club members.
2,081 citations
TL;DR: In this paper, the authors conduct a meta-analysis that aggregates empirical findings from the market orientation literature and find that market orientation-performance relationship is stronger in samples of manufacturing firms, in low power-distance and uncertainty-avoidance cultures, and in studies that use subjective measures of performance.
Abstract: The authors conduct a meta-analysis that aggregates empirical findings from the market orientation literature. First, the study provides a quantitative summary of the bivariate findings regarding the antecedents and the consequences of market orientation. Second, the authors use multivariate analyses of aggregate study effects to identify significant antecedents of market orientation and the process variables that mediate the relationship between market orientation and performance. In addition, using regression analysis, the authors find that the market orientation–performance relationship is stronger in samples of manufacturing firms, in low power-distance and uncertainty-avoidance cultures, and in studies that use subjective measures of performance. The authors also find that the market orientation–performance correlation is stronger for both cost-based and revenue-based performance measures in manufacturing firms than in service firms. On the basis of the findings, the authors conclude with a ...
2,031 citations
TL;DR: In this article, the authors developed a conceptual framework for customer relationship management (CRM) that helps broaden the understanding of CRM and its role in enhancing customer value and, as a result, shareholder value.
Abstract: In this article, the authors develop a conceptual framework for customer relationship management (CRM) that helps broaden the understanding of CRM and its role in enhancing customer value and, as a result, shareholder value. The authors explore definitional aspects of CRM, and they identify three alternative perspectives of CRM. The authors emphasize the need for a cross-functional, process-oriented approach that positions CRM at a strategic level. They identify five key cross-functional CRM processes: a strategy development process, a value creation process, a multichannel integration process, an information management process, and a performance assessment process. They develop a new conceptual framework based on these processes and explore the role and function of each element in the framework. The synthesis of the diverse concepts within the literature on CRM and relationship marketing into a single, process-based framework should provide deeper insight into achieving success with CRM strategy...
1,871 citations
TL;DR: In this paper, the authors explore key factors that influence the initial self-service technology trial decision, specifically focusing on actual behavior in situations in which the consumer has a choice among delivery modes, and show that the consumer readiness variables of role clarity, motivation, and ability are key mediators between established adoption constructs (innovation characteristics and individual differences) and the likelihood of trial.
Abstract: Electronic commerce is an increasingly popular business model with a wide range of tools available to firms. An application that is becoming more common is the use of self-service technologies (SSTs), such as telephone banking, automated hotel checkout, and online investment trading, whereby customers produce services for themselves without assistance from firm employees. Widespread introduction of SSTs is apparent across industries, yet relatively little is known about why customers decide to try SSTs and why some SSTs are more widely accepted than others. In this research, the authors explore key factors that influence the initial SST trial decision, specifically focusing on actual behavior in situations in which the consumer has a choice among delivery modes. The authors show that the consumer readiness variables of role clarity, motivation, and ability are key mediators between established adoption constructs (innovation characteristics and individual differences) and the likelihood of trial.
1,594 citations
TL;DR: In this paper, the authors examined the effects of customer satisfaction, affective commitment, and calculative commitment on retention of telecommunications services and further examined the potential for situational and reactional trigger conditions to moderate the satisfaction-retention relationship.
Abstract: In a study of telecommunications services, the authors examine the effects of customer satisfaction, affective commitment, and calculative commitment on retention. The study further examines the potential for situational and reactional trigger conditions to moderate the satisfaction–retention relationship. The results support consistent effects of customer satisfaction, calculative commitment, and prior churn on retention. Prior churn also moderates the satisfaction–retention relationship. The results have implications for both customer relationship managers and researchers who use satisfaction surveys to predict behavior.
1,562 citations
TL;DR: In this paper, the authors conceptualize and empirically test a model that links different types of strategic orientations and market forces, through organizational learning, to breakthrough innovations and firm performance.
Abstract: Does market orientation impede breakthrough innovation? To date, researchers have presented opposing arguments with respect to this important issue. To address this controversy, the authors conceptualize and empirically test a model that links different types of strategic orientations and market forces, through organizational learning, to breakthrough innovations and firm performance. The results show that a market orientation facilitates innovations that use advanced technology and offer greater benefits to mainstream customers (i.e., technology-based innovations) but inhibits innovations that target emerging market segments (i.e., market-based innovations). A technology orientation is beneficial to technology-based innovations but has no impact on market-based innovations, and an entrepreneurial orientation facilitates both types of breakthroughs. Different market forces (demand uncertainty, technology turbulence, and competitive intensity) exert significant influence on technology- and market-...
1,501 citations
TL;DR: In this paper, the authors empirically examine the potential business performance benefits available from benchmarking the marketing capabilities of top-performing firms and suggest that benchmarking has the potential to become a key learning mechanism for identifying, building, and enhancing marketing capabilities to deliver sustainable competitive advantage.
Abstract: Market-based organizational learning has been identified as an important source of sustainable competitive advantage. One particular learning mechanism, benchmarking, is a widely used management tool that has been recognized as appropriate for identifying and enhancing valuable marketing capabilities. However, despite widespread admonitions to managers, the benchmarking of marketing capabilities as a route to sustainable competitive advantage has received scant empirical attention. The authors empirically examine the potential business performance benefits available from benchmarking the marketing capabilities of top-performing firms. The results suggest that benchmarking has the potential to become a key learning mechanism for identifying, building, and enhancing marketing capabilities to deliver sustainable competitive advantage.
1,422 citations
TL;DR: In this paper, the authors argue that market orientation provides a key to the capability-rigidity paradox in product innovation, and that customer and competitor orientations ensure simultaneous investments in exploiting existing product innovation competencies and exploring new ones.
Abstract: Managers face an important strategic dilemma in product innovation: how to exploit existing product innovation competencies (competence exploitation) while avoiding their dysfunctional rigidity effects by renewing and replacing them with entirely new competencies (competence exploration). Although the resolution of what is termed the “capability–rigidity paradox” is considered a fundamental managerial task in enhancing product innovation outcomes and the firm's competitive advantage, it has received little research attention. The author argues and finds support that market orientation provides a key to this paradox. Specifically, customer and competitor orientations ensure simultaneous investments in exploiting existing product innovation competencies and exploring new ones. The author also finds that the effects of these orientations on competence exploitation and exploration are differentially moderated by interfunctional coordination and perceived market opportunity. Regarding outcomes, compet...
1,297 citations
TL;DR: In this article, the authors developed a conceptual model that links Web site and consumer characteristics, online trust, and behavioral intent, and estimated this model on data from 6831 consumers across 25 sites from eight Web site categories, using structural equation analysis with a priori and post hoc segmentation.
Abstract: The authors develop a conceptual model that links Web site and consumer characteristics, online trust, and behavioral intent. They estimate this model on data from 6831 consumers across 25 sites from eight Web site categories, using structural equation analysis with a priori and post hoc segmentation. The results show that the influences of the determinants of online trust are different across site categories and consumers. Privacy and order fulfillment are the most influential determinants of trust for sites in which both information risk and involvement are high, such as travel sites. Navigation is strongest for information-intensive sites, such as sports, portal, and community sites. Brand strength is critical for high-involvement categories, such as automobile and financial services sites. Online trust partially mediates the relationships between Web site and consumer characteristics and behavioral intent, and this mediation is strongest (weakest) for sites oriented toward infrequently (frequ...
1,129 citations
TL;DR: In this article, two experimental studies reveal the existence of a strong, positive impact of customer satisfaction on willingness to pay, and they provide support for a nonlinear, functional structure based on disappointment theory (i.e., an inverse S-shaped form).
Abstract: Two experimental studies (a lab experiment and a study involving a real usage experience over time) reveal the existence of a strong, positive impact of customer satisfaction on willingness to pay, and they provide support for a nonlinear, functional structure based on disappointment theory (i.e., an inverse S-shaped form). In addition, the second study examines dynamic aspects of the relationship and provides evidence for the stronger impact of cumulative satisfaction rather than of transaction-specific satisfaction on willingness to pay.
1,044 citations
TL;DR: In this article, the authors examine the key drivers and outcome of relational information processes and the role of technology in implementing CRM using data collected from a diverse sample of firms and show that relational information process play a vital role in enhancing an organization's customer relationship performance.
Abstract: Drawing on the relationship marketing and market information processing literature streams, the authors conceptualize and measure relational information processes, or organizational routines that are critical for customer relationship management (CRM). The authors examine the key drivers and outcome of relational information processes and the role of technology in implementing CRM using data collected from a diverse sample of firms. The results show that relational information processes play a vital role in enhancing an organization's customer relationship performance. By moderating the influence of relational information processes on customer relationship performance, technology used for CRM performs an important and supportive role. The study provides insights into why the use of CRM technology might not always deliver the expected customer relationship performance outcome.
TL;DR: In this paper, the relationship between satisfaction and repurchase behavior is moderated by customer, relational, and marketplace characteristics, and the authors further hypothesize that the moderating effects emerge if repurchase is measured as objective behavior but not if it is defined as repurchase intentions.
Abstract: In this research, the authors propose that the relationship between satisfaction and repurchase behavior is moderated by customer, relational, and marketplace characteristics. They further hypothesize that the moderating effects emerge if repurchase is measured as objective behavior but not if it is measured as repurchase intentions. To test for systematic differences in effects, the authors estimate identical models using both longitudinal repurchase measures and survey measures as the dependent variable. The results suggest that the relationship between customer satisfaction and repurchase behavior is contingent on the moderating effects of convenience, competitive intensity, customer involvement, and household income. As the authors predicted, the results are significantly different for self-reported repurchase intentions and objective repurchase behavior. The conceptual framework and empirical findings reinforce the importance of moderating influences and offer new insights that enhance the understanding of what drives repurchase behavior.
TL;DR: In this article, the authors describe how the special section on customer relationship management (CRM) was developed and describe the activities that were designed to promote interactions among marketing academics and practitioners.
Abstract: The goal of this preface is to describe how the special section on customer relationship management (CRM) was developed. In May 2003, Richard Staelin, Executive Director of the Teradata Center for Customer Relationship Management at Duke University, proposed that Journal of Marketing (JM) publish a special section. The proposal included activities that were designed to promote interactions among marketing academics and practitioners; the goal was to stimulate dialogue and new research on CRM. I found the proposal attractive because CRM is a broad-based topic that interests many marketers. After extensive discussion, the American Marketing Association (AMA) and the Teradata Center formally agreed to cosponsor the special section. Subsequently, there was a conference on Relationship Marketing and Customer Relationship Management (cochaired by Michael Ehret, Wesley Johnston, Michael Kleinaltenkamp, and Lou Pelton) that took place at Freie Universitat Berlin in the summer of 2003; a conference on Cus...
TL;DR: In this paper, the authors present and test a fit-as-moderation model that posits that overall firm performance is influenced by how well the marketing organization's structural characteristics and strategic behavioral emphases (i.e., customer, competitor, innovation, and cost control) complement alternative business strategies.
Abstract: Adopting a contingency perspective, the authors present and test a fit-as-moderation model that posits that overall firm performance is influenced by how well the marketing organization's structural characteristics (i.e., formalization, centralization, and specialization) and strategic behavioral emphases (i.e., customer, competitor, innovation, and cost control) complement alternative business strategies (i.e., prospector, analyzer, low-cost defender, and differentiated defender). Responses from 228 senior marketing managers provide support for the model and demonstrate that each strategy type requires different combinations of marketing organization structures and strategic behaviors for success.
TL;DR: In this article, an analysis of archival data for a cross-section of U.S. firms showed that the use of CRM applications is positively associated with improved customer knowledge and improved customer satisfaction.
Abstract: This research evaluates the effect of customer relationship management (CRM) on customer knowledge and customer satisfaction. An analysis of archival data for a cross-section of U.S. firms shows that the use of CRM applications is positively associated with improved customer knowledge and improved customer satisfaction. This article also shows that gains in customer knowledge are enhanced when firms share their customer-related information with their supply chain partners.
TL;DR: In this paper, the authors address how an organization's complaint management affects customer justice evaluations and, in turn, customer satisfaction and loyalty, and they draw a distinction between two fundamental approaches, the mechanistic approach (based on establishing guidelines) and the organic approach(based on creating a favorable internal environment).
Abstract: This article addresses how an organization's complaint management affects customer justice evaluations and, in turn, customer satisfaction and loyalty. In delineating an organization's complaint management, the authors draw a distinction between two fundamental approaches, the mechanistic approach (based on establishing guidelines) and the organic approach (based on creating a favorable internal environment). The empirical analysis is based on a dyadic data set that contains managerial assessments of companies' complaint management and complaining customers' assessments with respect to perceived justice, satisfaction, and loyalty. Findings indicate that though both the mechanistic and the organic approach significantly influence complaining customers' assessments, the mechanistic approach has a stronger total impact. Moreover, the study provides evidence of a primarily complementary relationship between the two approaches. Another key facet of the study is related to the moderating influences of ...
TL;DR: In this article, the authors review the published literature on reference price in both the behavioral and modeling streams and offer an integrative framework to review prior research on the formation of reference price, retrieval and use of reference prices, and the influences of the reference price on various purchase decisions and evaluations.
Abstract: A substantial body of research evidence has now accumulated in the reference price literature. One stream of research has identified the antecedents of reference price and has assessed their effects through experimentation. Others have calibrated a variety of reference price models on panel data and reported the effects on brand choice and other purchase decisions. In this article, the authors review the published literature on reference price in both the behavioral and modeling streams. They offer an integrative framework to review prior research on (1) the formation of reference price, (2) retrieval and use of reference price, and (3) influences of reference price on various purchase decisions and evaluations. In doing so, the authors examine the influences of consumers' prior purchase history and contextual moderators, such as specific purchase occasions, promotional environment of the store, and product category characteristics. They summarize the key findings, identify the unresolved issues,...
TL;DR: In this paper, the authors present a modeling framework for balancing resources between customer acquisition efforts and customer retention efforts, and the key question that the framework addresses is, "What is the customer profitability maximizing balance?"
Abstract: In this research, the authors present a modeling framework for balancing resources between customer acquisition efforts and customer retention efforts. The key question that the framework addresses is, “What is the customer profitability maximizing balance?” In addition, they answer questions about how much marketing spending to allocate to customer acquisition and retention and how to distribute those allocations across communication channels.
TL;DR: In this article, the authors investigated the effect of corporate brand dominance on the relationship between corporate associations and product evaluations, and found that corporate dominance determines the degree to which associations with the company's corporate ability and corporate social responsibility influence product attitudes, as well as the nature of the moderating effects of fit and involvement.
Abstract: This study investigates the effect of corporate brand dominance—that is, the visibility of a company's corporate brand in product communications—on the relationship between corporate associations and product evaluations. The results show that corporate brand dominance determines the degree to which associations with the company's corporate ability and corporate social responsibility influence product attitudes, as well as the nature of the moderating effects of fit and involvement.
TL;DR: In this article, the authors strengthen the chain of effects that link customer satisfaction to shareholder value by establishing the link between satisfaction and two characteristics of future cash flows that determine the value of the firm to shareholders: growth and stability.
Abstract: In this article, the authors strengthen the chain of effects that link customer satisfaction to shareholder value by establishing the link between satisfaction and two characteristics of future cash flows that determine the value of the firm to shareholders: growth and stability. Using longitudinal American Customer Satisfaction Index and COMPUSTAT data and hierarchical Bayesian estimation, the authors find that satisfaction creates shareholder value by increasing future cash flow growth and reducing its variability. They test the stability of findings across several firm and industry characteristics, and they assess the robustness of the results using multimeasure and multimethod estimation.
TL;DR: In this article, the authors developed a latent model of the reactive effects of measurement that is applicable to intentions, attitude, or satisfaction data, and they showed that this model can be estimated with a two-stage procedure.
Abstract: Studies of the relationship between purchase intentions and purchase behavior have ignored the possibility that the very act of measurement may inflate the association between intentions and behavior, a phenomenon called “self-generated validity.” In this research, the authors develop a latent model of the reactive effects of measurement that is applicable to intentions, attitude, or satisfaction data, and they show that this model can be estimated with a two-stage procedure. In the first stage, the authors use data from surveyed consumers to predict the presurvey latent purchase intentions of both surveyed and nonsurveyed consumers. In the second stage, they compare the strength of the association between the presurvey latent intentions and the postsurvey behavior across both groups. The authors find large and reliable self-generated validity effects across three diverse large-scale field studies. On average, the correlation between latent intentions and purchase behavior is 58% greater among surveyed consumers than it is among similar nonsurveyed consumers. One study also shows that the reactive effect of the measurement of purchase intentions is entirely mediated by self-generated validity and not by social norms, intention modification, or other measurement effects that are independent of presurvey latent intentions.
TL;DR: In this article, the authors study how organizational culture affects these decisions and the effectiveness of these decisions in curtailing the partner's opportunistic behavior and find that selecting a close partner shows a marked ability to hedge against partner opportunism, but beyond a certain point, it encourages the opportunism it is designed to discourage.
Abstract: Firms face two strategic decisions when engaging in a new purchase transaction: the decision whether to draft a detailed contract and the decision whether to select a partner with which they share a close tie. The authors study how organizational culture affects these decisions and the effectiveness of these decisions in curtailing the partner's opportunistic behavior. The results suggest that organizational culture exerts an important but different influence on both decisions. Selecting a close partner shows a marked ability to hedge against partner opportunism, but beyond a certain point, it encourages the opportunism it is designed to discourage. Contracting becomes effective only when a nonclose partner is selected and when the focal relationship is embedded in a network of close mutual contacts.
TL;DR: In this paper, the extent to which suppliers of a major retailer adopt ECR has a beneficial impact on their outcomes is investigated, and the results demonstrate that whereas ECR adoption has a positive impact on supplier economic performance and capability development, it also generates greater perceptions of negative inequity on the part of the supplier.
Abstract: Collaborative manufacturer–retailer relationships based on efficient consumer response (ECR) have become ubiquitous over the past decade. Yet academic studies of ECR adoption and its impact on marketing relationships are relatively scarce. Inspired by the relational view of competitive advantage, the authors empirically investigate whether the extent to which suppliers of a major retailer adopt ECR has a beneficial impact on their outcomes. The results demonstrate that whereas ECR adoption has a positive impact on supplier economic performance and capability development, it also generates greater perceptions of negative inequity on the part of the supplier. However, retailer capabilities and supplier trust moderate some of these main effects. The overall results are robust with respect to differences in supplier size as well as between branded and private-label suppliers.
TL;DR: This paper examined the basic assumptions underlying individual marketing and presented a process model of customers' responses to customized offers, addressing preference development, evaluation of personalized offers, likelihood of purchasing the customized offers and maintenance of relationships with one-to-one marketers.
Abstract: Marketers have been challenged by proponents of individual (one-to-one) marketing to shift from focusing on market segments to making individually customized offers. Building on current knowledge regarding the construction of customers’ preferences, the author examines the basic assumptions underlying individual marketing and presents a process model of customers’ responses to customized offers. The model addresses (1) preference development, (2) evaluation of customized offers, (3) likelihood of purchasing the customized offers, and (4) maintenance of relationships with one-to-one marketers. The analysis leads to specific propositions regarding determinants of customers’ responses to customized offers. The author discusses future research directions and managerial implications.
TL;DR: In this article, the authors examine the potential chain of effects from customer service employee work-family conflict and family-work conflict, to job stress and job performance, to customer purchase intent (CPI), and find that job stress has a more pronounced effect on IRP than on CDERP.
Abstract: Because customer service employees often represent the sole contact a customer has with a firm, it is important to examine job-related factors that affect customer service employee performance and customer evaluations. In two diverse customer settings, the authors capture matched responses from service employees, supervisors, and customers. The authors use the data to examine the potential chain of effects from customer service employee work–family conflict and family–work conflict, to job stress and job performance, to customer purchase intent (CPI). The results show direct (and indirect) effects of work–family conflict and family–work conflict on service employee customer-directed extra-role performance (CDERP). The results also show direct effects of job stress on service employee in-role performance (IRP) and CDERP and on CPI. Furthermore, the findings show that job stress has a more pronounced effect on IRP than on CDERP and that CDERP has a greater effect on CPI than does IRP. The authors c...
TL;DR: In this paper, the authors show that customer relationship management strategies change as more is discovered about the value of the customer and that these changes lead to better firm performance, and that a relatively straightforward analysis of the value in the customer can make a real difference.
Abstract: Customer relationship management (CRM) is perceived to be failing, and there is an urgent need for some practical ways to address this issue. The research presented in this article demonstrates that the implementation of CRM activities delivers greater profits. Using calculations of the lifetime value of customers in two longitudinal case studies, the research finds that customer management strategies change as more is discovered about the value of the customer. These changes lead to better firm performance. The contribution of this article is to show that CRM works and that a relatively straightforward analysis of the value of the customer can make a real difference.
TL;DR: In this paper, the authors present an alternative view that for firms that first engage in internal knowledge development, the knowledge-based view suggests that acquisitions can help innovation; that is, they can be a tonic for innovation.
Abstract: Do acquisitions increase, decrease, or have no effect on innovation? The empirical research on this question suggests that acquisitions may hurt innovation; that is, they may be a “poison pill” for innovation. The authors present an alternative view. For firms that first engage in internal knowledge development, the knowledge-based view the authors present suggests that acquisitions can help innovation; that is, they can be a tonic for innovation. Analysis of cross-sectional, time-series data on a sample of pharmaceutical firms during 1988–97 provides evidence to support the thesis.
TL;DR: In this article, the authors examined the shape and competitive dynamics of technological evolution and found that technological evolution seems to follow a step function, with sharp improvements in performance following long periods of no improvement.
Abstract: Technological change is perhaps the most powerful engine of growth in markets today. To harness this source of growth, firms need answers to key questions about the dynamics of technological change: (1) How do new technologies evolve? (2) How do rival technologies compete? and (3) How do firms deal with technological evolution? Currently, the literature suggests that a new technology seems to evolve along an S-shaped path, which starts below that of an old technology, intersects it once, and ends above the old technology. This belief is based on scattered empirical evidence and some circular definitions. Using new definitions and data on 14 technologies from four markets, the authors examine the shape and competitive dynamics of technological evolution. The results contradict the prediction of a single S-curve. Instead, technological evolution seems to follow a step function, with sharp improvements in performance following long periods of no improvement. Moreover, paths of rival technologies may...
TL;DR: In this article, the authors examine consumers' behavior with respect to expiration dates for grocery store perishable products and propose a better understanding of such behavior can both guide efforts to educate consumers about the risks associated with perishables that are approaching their expiration dates and help managers implement effective promotional strategies for these products throughout the course of their shelf lives.
Abstract: In this article, the authors examine consumers' behavior with respect to expiration dates for grocery store perishable products. A better understanding of such behavior can both guide efforts to educate consumers about the risks associated with perishables that are approaching their expiration dates and help managers implement effective promotional strategies for these products throughout the course of their shelf lives. Both of these approaches can help reduce waste due to spoilage.
TL;DR: In this article, the authors consider the effects of two key strategic commitments of online retailers on the performance effect of CRM: their bricks-and-mortar experience and their online entry timing, and test the proposed model with a multimethod approach that uses manager ratings of firm CRM and strategic commitments and third-party customers' ratings of satisfaction from 106 online retailers.
Abstract: Academic studies offer a generally positive portrait of the effect of customer relationship management (CRM) on firm performance, but practitioners question its value. The authors argue that a firm's strategic commitments may be an overlooked organizational factor that influences the rewards for a firm's investments in CRM. Using the context of online retailing, the authors consider the effects of two key strategic commitments of online retailers on the performance effect of CRM: their bricks-and-mortar experience and their online entry timing. They test the proposed model with a multimethod approach that uses manager ratings of firm CRM and strategic commitments and third-party customers' ratings of satisfaction from 106 online retailers. The findings indicate that firms with moderate bricks-and-mortar experience are better able to leverage CRM for superior customer satisfaction outcomes than firms with either low or high bricks-and-mortar experience. Likewise, firms with moderate online experie...