Showing papers in "Journal of Service Research in 1998"
TL;DR: In this article, the authors developed a utility-based model of the relationship between customer satisfaction and word of mouth and found that dissatisfied customers engage in more or less word-of-mouth than satisfied customers.
Abstract: Do dissatisfied customers engage in more or less word of mouth than satisfied customers? There is theoretical and empirical support for both possibilities. To better understand this issue, the authors developed a utility-based model of the relationship between customer satisfaction and word of mouth. The hypothesized functional form-an asymmetric U-shape-cannot be rejected based on data from the United States and Sweden. In addition, the estimation results based on the two samples are similar, suggesting that the proposed relationship is generalizable. The findings also indicate that although dissatisfied customers do engage in greater word of mouth than satisfied ones, common suppositions concerning the size of this difference appear to be exaggerated.
1,981 citations
TL;DR: In this article, the authors developed a model that addresses the following: (a) How does a customer's satisfaction with a service failure and recovery encounter affect cumulative satisfaction judgments and repatronage intentions?
Abstract: This study develops a model that addresses the following: (a) How does a customer's satisfaction with a service failure and recovery encounter affect cumulative satisfaction judgments and repatronage intentions? (b) To what extent do a customer's prior assessments of overall satisfaction and repatronage intentions formed before the service failure and recovery encounter carry over to influence subsequent overall satisfaction and repatronage intentions? (c) Can a highly satisfying service failure and recovery encounter enhance a customer's overall satisfaction with a service organization and increase repatronage intentions? The model is operationalized with data from two experiments conducted in different service settings in which actual customers "experienced" a hypothetical service failure and recovery encounter at an organization they had recently patronized. The results suggest that although excellent service recoveries can enhance customer satisfaction and increase repatronage intentions, viewing serv...
797 citations
TL;DR: In this article, the authors study the effect of consumers' cultural orientation on their perceived service performance and expected service level and find that consumers tend to be more satisfied with perceived service quality than the actual service quality.
Abstract: Service quality has been conceptualized as the difference between perceived service performance and expected service level. The authors study the effect of consumers' cultural orientation on their ...
742 citations
TL;DR: In this paper, the service profit chain's series of hypothesized relationships between employee, customer, and financial outcomes has been rigorously tested using data that span all components of the model.
Abstract: The service profit chain is a simple conceptual framework linking employee satisfaction and loyalty, customer satisfaction and loyalty, and financial performance. Although widely used by practitioners, the service profit chain's series of hypothesized relationships between employee, customer, and financial outcomes has not been rigorously tested using data that span all components of the model. Panel data from the branches of a large regional bank are used to test individually each of the service profit chain's constituent hypotheses. The results generally support the model, but there are some exceptions. Further work is needed to refine and simplify several critical measures and to enhance the analysis to test the service profit chain as a complete system of related hypotheses.
676 citations
TL;DR: Based on theory from consumer behavior; cognitive psychology; and social cognitive psychology, the authors explored the effect of corporate image in the formation of customer loyalty and found that corporate image has a significant but indirect impact on customer loyalty.
Abstract: Based on theory from consumer behavior; cognitive psychology, and social cognitive psychology, this article explores the effect of corporate image in the formation of customer loyalty. Findings from the goods and service sector indicate that corporate image has a significant but indirect impact on customer loyalty. In conclusion, the authors claim that customer loyalty is driven both by disconfirmation of expectations and corporate image.
352 citations
TL;DR: Yield management, controlling customer demand through the use of variable pricing and capacity management to enhance profitability, has been examined extensively in the services literature as mentioned in this paper, where most of the studies focus on variable pricing.
Abstract: Yield management, controlling customer demand through the use of variable pricing and capacity management to enhance profitability, has been examined extensively in the services literature. Most of...
154 citations
TL;DR: In this article, the benefits of generous refunds as part of overall complaint management service policy was emphasized. But recent empirical evidence suggests that many retailers have concerns about......,
Abstract: Previous research emphasizes the benefits of generous refunds as part of overall complaint management service policy, yet recent empirical evidence suggests that many retailers have concerns about ...
150 citations
TL;DR: In this article, the benefits of customer retention (BCR) have been characterized by the lack of a psychometrically adequate criterion, which has been addressed by using only psychometric criteria.
Abstract: Past research on the benefits of customer retention (BCR) has been characterized by the lack of a psychometrically adequate criterion. Research has primarily operationalized the BCR by using only r...
124 citations
68 citations
TL;DR: Possible customer heterogeneity is ignored in most customer satisfaction survey analyses as discussed by the authors, which is surprising given the prominence that customer segmentation has in many other marketing disciplines, such as advertising.
Abstract: Possible customer heterogeneity is ignored in most customer satisfaction survey analyses, which is surprising given the prominence that customer segmentation has in many other marketing disciplines...
64 citations
TL;DR: In this paper, the authors show that bundling strategies that manage demand by combining peak with off-peak service delivery can be very profitable, and that increases in price during the peak period have a greater impact on profits than increases in demand during the off peak period because, when operating at maximum capacity, the greatest profits are achieved.
Abstract: This article shows that although not-for-profit services may find that demand-shifting strategies are effective, these strategies usually offer no improvement in profits. These strategies are, therefore, ineffective for private service providers who seek to improve profits. It is better for these private service providers to eliminate excess demand during peak periods than to attempt to shift some of this demand to the off-peak period. For-profit service providers should, instead, focus on demand-stimulating strategies. The authors show that bundling strategies that manage demand by combining peak with off-peak service delivery can be very profitable. Increases in price during the peak period have a greater impact on profits than increases in demand during the off-peak period because, when operating at maximum capacity, the greatest profits are achieved.
TL;DR: The dangers of focusing too much on a single organizational goal or constituent, including the potential for service organizations to overemphasize a focus on end user consumer service quality, are discussed in this paper.
Abstract: The authors discuss the dangers for organizations of focusing too much on a single organizational goal or constituent, including the potential for service organizations to overemphasize a focus on end user consumer service quality. Several examples of "too much of a good thing" are presented, including examples of too much emphasis on service quality. A multiple-constituency perspective for organizational effectiveness is then introduced. This is followed by a proposal to use employees as sensors of the climates that exist in organizations for the achievement of various goals and the gratification of various constituents. Evidence is presented for the validity of employee perceptions. The authors conclude that it is dangerous for long-term organizational health to over focus on one goal or one constituency and that asking employees about the various climates to which they are responding is a useful way to know which goals the organization is attempting to achieve.
TL;DR: In this paper, the authors argue that product-sharing services, where companies offer customers the use of a physical product on a limited basis at a lower cost, offer an overlooked opportunity for growth.
Abstract: The authors argue that product-sharing services, where companies offer customers the use ofa physicalproduct on a limited basis at a lower cost, offer an overlooked opportunity for growth. The primary advantage of productsharing services is that they leverage afirm 's core product development and production capabilities to expand their portfolio of offerings and market segments. A framework is developedfor distinguishing likely candidates for product sharing from unlikely candidates based on product, customer; and company-strategy considerations. An empirical study of a new car-sharing service at Daimler-Benz is then used to illustrate the development of such a service, its strategic advantages, and the challenges involved.
TL;DR: In this article, the authors examine qualities of service industries, focusing on five service sectors as exemplars: airlines, tourism, health care, social issues, and religions, and compare them with each other.
Abstract: In this article, the author examines qualities of service industries, focusing on five service sectors as exemplars: airlines, tourism, health care, social issues, and religions. The author compare...