Showing papers in "Journal of Service Theory and Practice in 2016"

Improving service quality through customer journey analysis

Abstract: Purpose The purpose of this paper is to propose a framework based on customer journeys for a structured portrayal of service delivery from the customer’s point of view. The paper also introduces customer journey analysis (CJA) for empirical investigation of individual service experiences in a multichannel environment. Design/methodology/approach The paper presents case studies for onboarding new customers on broadband services. CJA starts with modeling of the service process in terms of touchpoints. The individual customer journeys are reconstructed through methodological triangulation of interviews, diary studies, and process tracking. Findings The paper provides empirical insights into individual customer journeys. Four types of deviations during service delivery are identified: occurrence of ad hoc touchpoints, irregularities in the sequence of logically connected touchpoints, occurrence of failures in touchpoints, and missing touchpoints. CJA seems effective in revealing problematic and incoherent service delivery that may result in unfavorable customer experiences. Practical implications For a service company, the proposed framework may serve as a unifying language to ease cross-departmental communication and approach service quality in a systematic way. CJA discloses the gap between the planned and actual service delivery and can be used as a tool for service improvement. Originality/value The framework provides concepts, definitions, and a visual notation to structure and manage services in terms of customer journeys. CJA is a novel method for empirical studies of the service delivery process and the associated customer experience.

Institutions as resource context

Abstract: Purpose – The purpose of this paper is to examine the role of institutions and institutional complexity in the process through which resources-in-context get their “resourceness.”Design/methodology ...

Engagement platforms: The role of emotions in fostering customer engagement and brand image in interactive media

Abstract: Purpose The purpose of this paper is to explore the role of emotions in developing customer engagement and brand image during virtual service interactions. The authors explore the concept of engagement platforms (EPs) and how their extrinsic characteristics or cues (i.e. C2C interactions–and personalization-related cues) originate both non-transactional (i.e. customer engagement and brand image) and transactional (i.e. purchase intentions) responses. Specifically, the authors propose that customer emotions (i.e. pleasure, arousal and dominance) mediate the influence of EP cues on customer responses. The authors also analyze how the engagement developed during interactions in EPs contributes to brand image perceptions and the effect of these two concepts on purchase intentions. Design/methodology/approach Building on servicescapes and stimulus-organism-response theories, the present paper carries out two studies. Study 1 adopts an experimental approach to explore C2C interactions–and personalization-related cues. Study 2 focusses on the importance of customer emotions to foster engagement and brand image, and also analyzes their effect on purchase intentions. It employs structural equations modeling techniques. Both studies analyze the effect of customer engagement on brand image. Findings Findings corroborate that, during interactions in the platform, customer engagement with the firm influences brand image. Moreover, the pleasure and arousal experienced by customers influence their engagement while dominance modifies brand image. Finally, customer engagement and brand image have a positive effect on purchase behavior. Research limitations/implications This paper contributes to research demonstrating the key role of emotions in interactions with EPs. The authors demonstrate the importance of fostering pleasant and arousing experiences to enhance the level of customer engagement with the firm in first interactions. Dominance constitutes a key dimension to improve brand image in EPs. Finally, the research demonstrates that engagement develops customers’ transactional behaviors and not only non-transactional ones, as seen in previous literature. Originality/value In digital worlds, EPs emerge as touch points beyond purchase that allow individuals to integrate resources and co-create value between them and with the firm. Despite the interest of BCPs, few works have analyzed how interactions with these platforms and the elicited emotions contribute to developing customer engagement and brand image, key factors for understanding customer participation and behavior in interactive media.

The influence of market orientation on innovation strategies

Abstract: Purpose – The purpose of this paper is to examine the effects of market orientation on exploratory and exploitative innovation, and the moderating effects of family ownership on these relationships. Design/methodology/approach – This study utilizes multi-group path analysis and confirmatory factor analysis in LISREL on data from 228 firms in the Australian service sector. Findings – This study establishes that both customer and competitor innovation are positively related to exploitative and exploratory innovation. However, customer orientation does not lead to significantly stronger effects on exploitative innovation than on exploratory innovation, and competitor orientation does not lead to significantly stronger effects on exploratory innovation than on exploitative innovation. In addition, the study found that the relationship between customer orientation and exploratory innovation was stronger for family firms, while the relationships between competitor orientation and both exploratory and exploitati...

Value proposition test-driving for service innovation: how frontline employees innovate value propositions

Abstract: Purpose – The purpose of this paper is to investigate the role of frontline employees in service innovation from a service-dominant logic (SDL) perspective. Frontline employees lack a formal innova ...

Managing online service recovery : procedures, justice and customer satisfaction

Abstract: The internet has changed the way services are delivered and has created new forms of customer-firm interactions. Whilst online service failures remain inevitable, the internet offers opportunities for delivering efficient service recovery through the online channel. Notwithstanding, research evidence on how firms can deliver online service recovery remains scarce. The purpose of this paper is to investigate the impact of two online service recovery strategies – online information and technology-mediated communication – on customer satisfaction, switching and word of mouth intentions.,A scenario-based experiment is employed. Data are analysed using partial least squares structural equation modelling.,Online information and technology-mediated interactions can be used as online service recovery strategies. When fair, online service recovery can restore customer satisfaction, lower switching and enhance positive word of mouth. Interactional justice delivered through technology-mediated communication is a strong predictor of satisfaction with online service recovery. Yet, customers in subscription services show greater expectations of online service recovery than those in non-subscription services.,Further research could examine the impact of online service recovery on relational constructs, such as trust. Since customers participate in the online recovery process, future research could investigate the role of customers as co-creators of online service recovery.,Service managers should design online recovery strategies that meet customer need for interactional justice, for example, bespoke e-mails, and virtual chat communications with genuine customer care.,Online information and technology-mediated communication function as online service recovery strategies. Customer perceptions of justice towards online service recovery restore satisfaction, and encourage loyal behaviour.

Trends in quality management research in higher education institutions

Abstract: Purpose – The purpose of this paper is to determine the state of research in quality management (QM) in higher education institutions based on a review of the academic literature. The aim is to provide universities with the best evidence for informing their focus and models for quality improvement. Despite quality’s role growing in importance as universities strive to compete in an increasingly underfunded market for students and research funds the review shows that current research is limited in volume and scope. Design/methodology/approach – To ensure the widest coverage in our systematic literature review we use three databases: ScienceDirect, ABI/Inform, and Emerald. Findings – The findings show that the three most common topics are QM implementation issues, QM models, techniques and tools, and QM dimensions. The key QM enabling dimensions found are: people management, process management and information and analysis, while the results dimension is predominantly focused on an understanding of stakehold...

The role of emotions and social influences on consumer loyalty towards online travel communities

Abstract: Purpose The purpose of this paper is to analyse the role of emotions and social influences on loyalty formation towards online travel communities. Design/methodology/approach The individual (perceived risk) and social (subjective norm and social presence) antecedents of emotions as well as the impact of emotions on attitude and loyalty towards online travel communities are tested through structural equation modelling techniques. The sample consists of 385 active users of online travel communities in Spain. Findings Data analysis shows that perceived privacy and security risk elicit negative emotions such as stress, frustration and fear towards the online travel community. Normative influences (subjective norm) and feeling the presence of other community members (social presence) boost positive emotions towards the online travel community. Interpersonal influences have a positive effect on subjective norm but not external influences. Positive and negative emotions affect preferences towards the online travel community (attitudes) as proposed by social impact theory. Subjective norm and attitude have a direct influence on loyalty towards an online travel community, confirming previous research grounded on theory of reasoned action models. Originality/value Despite the crucial impact of consumers’ affective states on loyalty formation, research on social media is mainly focused on the technological nature of consumer information exchanges, neglecting other drivers of consumer behaviour beyond the technology employed. This paper develops a model that integrates the relationships between consumer emotions and their individual (perceived risk) and social (social presence and subjective norm) antecedents and outcome variables (attitude and loyalty). The role of social influences is analysed, assessing the conjoint impact of one-way communication (interpersonal influences and mass media) and Web 2.0 communications (social presence) on positive emotions and loyalty formation towards the online travel community.

Eight challenges of servitisation for the configuration, measurement and management of organisations

Abstract: Purpose There is an extensive research literature on servitisation and the related field of product-service systems that has emerged independently from different fields including engineering, management, design and environmental studies. The purpose of this paper is to conduct a structured literature review to explore, identify and synthesise the multi-disciplinary research challenges in the journey towards servitisation. Design/methodology/approach The research approach is a systematic literature review using key word searches and citation tracking for research reported between 1990 and 2013 in research databases that cover the fields which have generated the body of knowledge. Findings One of the key findings from the extant literature on servitisation is that it suffers from three fundamental weaknesses. First, numerous studies are conceptual in nature with limited practicality. Second, there are relatively few empirical studies, and often the findings relate to a single case study based on the insights of a limited number of senior managers. Third, often the dynamics are insufficiently studied in these organisations because data for most cases are collected post-event. Research limitations/implications Based on the literature review and its shortfalls, this paper proposes a holistic framework of eight themes that require further attention from academic researchers in order that a more complete conceptual understanding of servitisation is developed to support practice. Practical implications Each theme in the framework has an associated list of questions that can be addressed through research and presented to managers as a challenge agenda to improve their servitisation efforts. That servitisation is associated with differentiation and competitive advantage makes this a valuable approach for managing corporate performance. Originality/value Research from multi-disciplinary sources is synergised in order to develop an overarching servitisation agenda that transcends domain-based boundaries. This paves the way for an approach to servitisation that is coherent and harmonious.

Electronic word-of-mouth and information overload in an experiential service industry

Abstract: Trust and purchase intent are established, dependent variables in electronic commerce research. Recent studies have highlighted the importance of online product reviews in the development of purchase intention, which has led to the development of a substantial research effort in the realm of electronic word-of-mouth (e-WOM). The purpose of this paper is to incorporate e-WOM, information processing and decision-making theories to propose a model of the development of trust and purchase intention based on online product reviews, and incorporate information overload as a moderating factor.,This study tests the hypotheses using a scenario-based experiment. In total, 157 working adults were asked to read three hotel reviews of different information load. Upon completion, they were then asked to respond to Likert-based questions regarding their trust in the review and purchase intention.,An inverted U-shaped relationship exists between information load and both trust and purchase intention, where low-information load is ineffective at fostering trust and purchase intention, moderate information load is effective at fostering trust and purchase intention, and high-information load is less effective than moderate information load at fostering trust and purchase intention.,Although the authors supported the inverted U-shaped relationship between information load and two outcomes, the authors only tested three different review lengths, resulting in limited precision, it is not clear where the inflection point is (i.e. exactly how many words results in information overload). Future studies might both seek more precision, and also consider more consumer characteristics, such as risk propensity.,Review platform operators with a stake in encouraging a sale should prioritize and highlight reviews of moderate length (which can be assessed automatically via word count), and consider restricting new reviews of products to minimum and maximum word counts.,This study enhances the relevant and growing body of online review research by: bringing uncertainty reduction theory to bear on the consumer’s information search efforts; using information overload, an important construct from classic information processing and decision-making literature to explain consumer behavior; and identifying a review characteristics (information load) which influences consumer attitudes about a review (trust) and the product (purchase intention). Finally, this study enhances research understanding of a specific experiential service: hospitality.

Engaged customers as job Resources or demands for frontline employees

Abstract: Purpose – The purpose of this paper is to empirically test a theoretical model on how different customer engagement behaviors (CEBs), such as giving feedback and helping other customers, affect the role stress-job strain relationship among frontline employees. Design/methodology/approach – Drawing from the job demands-resources model, this paper hypothesizes that some CEBs weaken the role stress-job strain relationship among frontline employees, whereas the opposite holds for other CEBs. To test these hypotheses, the study involved a survey among 279 frontline employees in 20 nursing home teams in Belgium. Findings – The results reveal that the impact of role stress on job strain is stronger when frontline employees notice more helping behaviors among customers and weaker when frontline employees receive more customer feedback or notice that customers spread positive word-of-mouth about the nursing home. Originality/value – This research contributes to the customer engagement and frontline employee litera...

Is negative eWOM more influential than negative pWOM

Abstract: Purpose – The purpose of this paper is to examine the influence of various sources of negative electronic word-of-mouth (eWOM) and negative personal word-of-mouth (pWOM) on trust in the Word-of-mouth (WOM), attitude toward the service provider and purchase intention. Design/methodology/approach – Data were gathered from 336 Moroccan workers who responded to an online survey. Findings – Results show that negative pWOM is more influential than negative eWOM in the form of written Facebook testimonials, written review site testimonials and written testimonials on a corporate website. However, there is a relative ranking of importance among eWOM sources, with review site testimonials found to be more influential than either Facebook or corporate website testimonials. Research limitations/implications – This work responds to a call for research on differences and similarities between pWOM and eWOM. The findings extend understanding of the relative influence of negative pWOM and negative eWOM. Practical implica...

Brand meaning cocreation: toward a conceptualization and research implications

Abstract: The purpose of this paper is to consolidate and advance the understanding of brand meaning and the evolving process by which it is determined by introducing and explicating the concept of brand meaning cocreation (BMCC).,In-depth review and integration of literature from branding, cocreation, service systems, and practice theory. To support deep theorizing, the authors also examine the role of institutional logics in the BMCC process in framing interactions and brand meaning outcomes.,Prior research is limited in that it neither maps the process of cocreation within which meanings emerge nor provides theoretical conceptualizations of brand meaning or the process of BMCC. While the literature acknowledges that brand meaning is influenced by multiple interactions, their nature and how they contribute to BMCC have been overlooked.,This paper reveals a significant gap in knowledge of how brand meaning is cocreated, despite the essential role of brand meaning for firm success and increasing academic interest in the notion of cocreation. Ultimately, this paper builds a conceptual foundation for empirical research in this regard.,This paper proposes that brand meaning is cocreated through the interconnection of different social and service systems, across system levels, time, and geographic space. Marketing theory is advanced by outlining a set of research propositions pertaining to the BMCC process. The authors consider how discrete actor-based brand meanings contribute to an overall brand gestalt and how such a gestalt potentially evolves along a continuum. Additionally, the authors provide a managerially and theoretically relevant research agenda to guide much needed empirical research into BMCC.

How do brand personality, identification, and relationship length drive loyalty in sports?

Abstract: Purpose – The purpose of this paper is to extend brand identification theory to the sports team context by testing the direct and indirect effects of a sports team’s personality, sports fans’ identification with the team, and the effect of the length of fans’ relationship with a team on their loyalty to it. Design/methodology/approach – The authors conducted a quantitative study among ice hockey fans of one Finnish hockey team before play-off games. Data came from an online questionnaire generating 1,166 responses. Findings – The authors find that: first, identification with a team mediates the effects of brand personality on attitudinal loyalty and behavioral loyalty; second, brand personality is a stronger driver of identification among newer fans; and third, brand personality has a stronger influence on both attitudinal and behavioral loyalty among newer fans. These findings stress the importance of sports brand’s personality in driving fans’ identification with the team and their loyalty to it. Origin...

The antecedents and consequences of humour for service: A review and directions for research

Abstract: Purpose – While researchers in other disciplines seek to determine the impact that humour has in personal interactions, studies of humour in service delivery are lacking. The purpose of this paper is to examine whether it is beneficial to deliberately use humour in service encounters. Design/methodology/approach – This paper provides a comprehensive review of humour research in multiple disciplines to assess the applicability of their key findings to the service domain. By establishing the antecedents, types, and consequences of humour, the authors build a framework and propositions to help service researchers uncover the potential of injecting humour into service interactions. Findings – The authors find that using humour in service encounters is an ingenious affiliative behaviour which strengthens rapport between service employees and their customers. Humour also permits frontline service employees to better cope with the emotional challenges of their work, thus promising to reduce emotional labour and ...

Service flexibility: conceptualizing value creation in service

Abstract: Purpose - The purpose of this paper is to analyze the subject-specific literature on service and flexibility and derive a conceptualization of the linkages between provider flexibility and customer ...

Can advanced technology affect customer-based brand equity in service firms? An empirical study in upscale hotels

Abstract: Purpose – The purpose of this paper is to empirically test the impact of perceived information and communication technology (ICT) on creation of brand equity within service firms, more specifically upscale hotels. The relationships between ICT and three brand equity dimensions, i.e. brand image, perceived quality, and brand loyalty are examined. Design/methodology/approach – The empirical research was conducted in 20 upscale hotels in Rome-Italy, collecting data from 335 guests. Findings – Advanced ICT directly influences perceived quality and image, while the impact of ICT on loyalty is mediated by perceived quality. Additionally, positive and significant relationships are found between the three brand equity dimensions. Research limitations/implications – The lack of significance of ICT impact on loyalty needs further attention. Future studies could center on this specific relationship, examining whether hotel companies that implement technology efficiently are able to deal with loyalty. Practical impli...

Human resource management impact on knowledge management

Abstract: Purpose – The purpose of this paper is to explain and empirically test the dependence of organizational processes related to knowledge on the nature of assumptions operating in processes of human resource management (HRM) in organizations. It concentrates on practices related to training, career development and retention. Design/methodology/approach – This empirical study as a quantitative nature and the sample is made up of 5,306 collaborators in 634 organizations belonging to an economic group in the banking sub-sector. Data were collected through two questionnaires: human resource management practices questionnaire and knowledge management questionnaire – short form. The model was tested by applying univariate and multivariate multiple regression analyses. Findings – Findings provide support for the proposed model and show the predictive capacity of the HRM practices regarding knowledge management (KM) processes, revealing a strong direct relationship between the two constructs. It stands out that the ...

Attachment relationship study of trust and trust transfer

Abstract: Purpose The purpose of this paper is to apply trust perspective and attachment theory and determined that relational embeddedness, anxiety attachment, and avoidance attachment are major factors influencing the trust of tenants in owners/developers of shopping centers. The authors also examined whether tenants transfer this trust to new shopping center developers and the consequent effect on relational performance. Design/methodology/approach This research was empirically based on primary data collected from new shopping center developers and the consequent effect on relational performance. Structure equation modeling was employed to verify and validate the research model. Findings Data collected from 250 shopping center tenants were analyzed, and the findings indicate that relational embeddedness, anxiety attachment, and avoidance attachment positively affect the trust of store tenants in the owners or developers of shopping centers. Furthermore, the authors determined that trust in existing shopping center developers was transferred to new shopping center developers, which consequently enhanced relational performance. Originality/value The findings contribute to trust transfer research and provide actionable guidelines to organizations intending to provide intermediary business services.

Understanding the impact of internal marketing practices on both employees ' and managers ' organizational commitment in elderly care homes

Abstract: Purpose – The purpose of this paper is to unfold the relationship between the antecedents of employee and manager commitment, using internal marketing (IM) practices, in elderly care homes. Design/methodology/approach – Based on survey data drawn from elderly care homes in Finland, the authors tested several literature driven hypotheses of how IM practices (internal value exchange, internal communication and training) relate with employee and manager commitment. Hence, the authors compare the organizational commitment of two groups. Additionally, the authors tested the moderating role of public residence on these relationships. Findings – The study revealed that there are differences in the antecedents to employee and manager commitment in terms of internal value exchange. This is an important extension to the literature of employee and management commitment in which the antecedents to management commitment, especially, are under-investigated, and where the relationship between the antecedents of the two ...

Social servicescape effects on post-consumption behavior: The moderating effect of positive emotions in opera-goers

Abstract: Purpose The purpose of this paper is to determine the role played by the social servicescape and positive emotions in the post-use in terms of response – satisfaction, perceived value and consumer loyalty – in hedonic services. Design/methodology/approach A quantitative study was conducted to gather data from 867 opera-goers through e-mail with a link to a questionnaire. Hypotheses were tested using structural equation modeling based on partial least squares. The effects of the social servicescape and emotions as moderators were examined using interaction techniques. Findings The paper provides empirical support on the multidimensional configuration of the social servicescape composed by both characteristics and interactions of employees and customers. The results demonstrate significant relationships between the social servicescape and positive emotions in perceived value, satisfaction and loyalty of consumers. Positive emotions are a moderating variable, intensifying the relationship between the social servicescape and perceived value. The opposite effect in the relationship between the social servicescape and loyalty is found. Research limitations/implications Further research is required to generalize the findings to other hedonic services. Practical implications Knowledge on both social servicescape and emotional effects on consumer behavior may enable cultural managers to improve the consumption experience of performing arts attendees. Originality/value This paper fulfills a research gap in the area of social servicescape as well as the effects of emotions in hedonic services. It makes two main contributions. First, it provides knowledge on social servicescape conceptualization and measurement. Second, the moderation, by interaction effect, of emotions and social servicescape in consumer behavior are confirmed.

Improving customer well-being through two-way online social support

Abstract: Purpose – The purpose of this paper is to explore the dynamics of online health care communities and the impact of two-way online social support on customers’ well-being and patients’ quality of life, at different social exclusion levels. Design/methodology/approach – An online survey in China’s Anti-Hepatitis B Online Community includes 326 respondents. A combined hierarchical regression analysis and structural equation model test the hypotheses. Findings – Both receiving and giving online social support, as reciprocal altruism behaviors, enhance patients’ well-being. Receiving online social support influences psychological well-being most; giving has the largest impact on existential domains. Social exclusion boosts the benefits of giving online social support but attenuates the benefits of receiving it. Research limitations/implications – This research focusses on the effects of online social support among socially excluded patients. Extensions could rely on objective instead of subjective measures and...

Managing knowledge to create customer service value

Abstract: Purpose – The purpose of this paper is to contribute to the services management literature by identifying a sequence of the different processes of knowledge management (KM) to create customer service value. Design/methodology/approach – The context for the research hypotheses is the Spanish banking industry. The authors conducted a study including 76 banks and 1,832 customers of these banks. This paper uses the partial least squares method to conduct the data analysis. Findings – The authors find support for all the hypotheses proposed in the model. The results show that service firms that are able to apply more knowledge or apply knowledge more effectively are likely to generate more benefits for their customers, and/or reduce their sacrifices, contributing significantly to a higher perception of service value. Research limitations/implications – The study focusses on one particular industry in a single point in time. A longitudinal analysis of a variety of service industries would enrich the study. Prac...

Validating and extending the sport brand personality scale

Abstract: Purpose – The purpose of this paper is to validate Tsiotsou’s (2012) sport team brand personality scale in a new country (Australia) and segment (Generation Y) and extend its use from sport teams to individual athletes. This paper also explores the scale’s predictive power in an athlete’s role model influence. Design/methodology/approach – An online panel survey with 560 responses from Australian Generation Y consumers was obtained. Structural equation modelling was used to test and validate the scale. Findings – This paper confirmed the sport team brand personality scale can be applied to an individual athlete. Three dimensions of the scale, namely, competitiveness, morality and authenticity, were found to have predictive power in an athlete’s role model influence. Authenticity was the strongest predictor, followed by morality and competitiveness. Practical implications – Individual athlete brand personality is powerful in influencing how Australian Generation Y consumers identify with their favourite at...

A critical incident technique investigation of customers’ waiting experiences in service encounters

Abstract: Purpose – The purpose of this paper is to explore customers’ reactions to waiting experiences in service encounters. It seeks to explore the key driving features determining customer satisfaction and dissatisfaction with waiting experiences during service encounters. The main challenge for service organisation is to understand the satisfactory and dissatisfactory features of the waiting experiences so as to design and deliver a memorable experience leading to positive post-consumption reactions. Design/methodology/approach – The critical incident technique (CIT) was used to explore the salient factors on which customers forged their evaluation and based their satisfaction while waiting in lines in the context of various service encounters. To elicit incidents, semi-structured interviews were conducted with 25 customers in Mauritius and a total of 297 critical incidents involving customers’ waiting experiences in service encounters were identified. Findings – Based on the CIT analysis, four distinctive fea...

Learning in the service environment: the influence of diversity climate

Abstract: Purpose – The purpose of this paper is to examine how diversity climate in service organizations influence employee learning behavior. Additionally, the study examined the mediating effects of psychological safety and communication satisfaction between diversity climate and learning behavior. Design/methodology/approach – Data were collected from 128 hotel and lodging managers by administering survey questionnaires. The dual mediational model was tested using the mediation test suggested by Preacher and Hayes (2008). Findings – Results indicated that when managers perceived a positive diversity climate they also reported high engagement in learning behavior. Additionally, the study found the mediating effects of psychological safety and communication satisfaction. Originality/value – The importance of learning behavior has been noted by researchers and practitioners because of its influence on service performance. Learning behavior is especially important in complex, error prone, and fast changing busines...

What drives the intention to complain

Abstract: [Lervik-Olsen, Line] BI Norwegian Business Sch, Dept Mkt, Oslo, Norway [Lervik-Olsen, Line] Norwegian Sch Econ, Ctr Serv Innovat, Dept Strategy & Mkt, Bergen, Norway [Andreassen, Tor Wallin] Norwegian Sch Econ NHH, Dept Strategy & Management, Bergen, Norway [Streukens, Sandra] Hasselt Univ, Dept Mkt & Strategy, Fac Business Econ, Hasselt, Belgium

An examination of relative satisfaction and share of wallet: Investigating the impact of country and customer characteristics

Abstract: Purpose – Absolute satisfaction ratings are widely used, but demonstrate a poor link to share of wallet (SOW), in part because this relationship is mediated and/or moderated by customer characteristics (including total spend in the category) and heterogeneity of scale usage. Relative satisfaction metrics, such as the Wallet Allocation Rule, have been shown to produce a much stronger link to SOW than absolute monadic ratings. The purpose of this paper is to compare absolute and relative satisfaction models after controlling for these mediating and moderating factors and re-examine the impact of these factors when using relative, rather than absolute metrics. Design/methodology/approach – In total, 3,793 satisfaction ratings by 1,172 unique grocery customers across five countries (USA, Brazil, Chile, France and Germany) are used to evaluate the mediating and moderating impacts of scale usage and customer characteristics on the relationship between satisfaction and SOW. Findings – Relative metrics continue t...

Impact of initial trust, involvement, and mood on trusting belief: Evidence from the financial industry in Taiwan

Abstract: Purpose – The purpose of this paper is to incorporate social exchange theory to elaborate on the antecedents that underlie consumers’ trust of innovative financial product providers. In particular, this study investigates the mediating role of positive moods in stimulating customer trust. Design/methodology/approach – The research model was tested using data collected from 440 elite customers from top-ten financial holding companies in Taiwan. Structure equation modeling was employed to verify and validate the research model. Findings – The findings suggest that initial trust and customer involvement significantly and positively impact customer moods. In addition, customer initial trust, involvement, and positive moods significantly influence customers’ trusting belief of service providers. Research limitations/implications – This study focussed on the financial services industry only. While this industry represents an ideal new product development context, future research is needed to test the theory in ...

The service-profit chain in call centre services

Abstract: Purpose The purpose of this paper is to investigate the explanatory power of the service-profit chain (SPC) model in a context that differs from its original conception. The authors do so by considering whether the main relationships it proposes apply in the context of call centre services, characterised by remote services and cost cutting business models. Design/methodology/approach The data were gathered from a survey of call centre management with a sample of 937 call centres from 14 countries. The analysis was carried out using structural equation modelling. Findings Findings reveal that the SPC model behaves somewhat differently in call centres. Although there is general support for most of the links in the model, the results indicate that customer satisfaction in the call centre industry is a separate outcome, rather than a precursor to company performance. Research limitations/implications As is common in most research of this type, the present study is based on cross-sectional data. Practical implications Managers would be well advised to keep in mind that even minimum investments in human capital can make a difference in customer satisfaction and company results. Originality/value This is the first study to examine the main links in the SPC in non-traditional, non-face-to-face services. It demonstrates that the basic logic of the model is upheld, thus providing evidence that the boundaries of the SPC model may be further pushed in line with the peculiarities of the evolving service economy. Also, the authors make a methodological contribution by proposing a series of organisational level proxies for measuring elements of the chain that are typically assessed using individual level data that is expensive to gather.