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Showing papers in "Journal of the Academy of Marketing Science in 2016"


Journal ArticleDOI
TL;DR: In this paper, an eleventh foundational premise (fifth axiom) is introduced, focusing on the role of institutions and institutional arrangements in systems of value cocreation: service ecosystems.
Abstract: Service-dominant logic continues its evolution, facilitated by an active community of scholars throughout the world. Along its evolutionary path, there has been increased recognition of the need for a crisper and more precise delineation of the foundational premises and specification of the axioms of S-D logic. It also has become apparent that a limitation of the current foundational premises/axioms is the absence of a clearly articulated specification of the mechanisms of (often massive-scale) coordination and cooperation involved in the cocreation of value through markets and, more broadly, in society. This is especially important because markets are even more about cooperation than about the competition that is more frequently discussed. To alleviate this limitation and facilitate a better understanding of cooperation (and coordination), an eleventh foundational premise (fifth axiom) is introduced, focusing on the role of institutions and institutional arrangements in systems of value cocreation: service ecosystems. Literature on institutions across multiple social disciplines, including marketing, is briefly reviewed and offered as further support for this fifth axiom.

2,225 citations


Journal ArticleDOI
TL;DR: In this article, a content analysis of articles published in seven leading marketing journals from 1996 to 2012, the authors demonstrate that three tests, constrained phi (Joreskog 1971), AVE-SV (Fornell and Larcker 1981), and overlapping confidence interval (Anderson and Gerbing 1988), are by far most common.
Abstract: The results of this research suggest a new mandate for discriminant validity testing in marketing. Specifically, the authors demonstrate that the AVE-SV comparison (Fornell and Larcker 1981) and HTMT ratio (Henseler et al. 2015) with 0.85 cutoff provide the best assessment of discriminant validity and should be the standard for publication in marketing. These conclusions are based on a thorough assessment of the literature and the results of a Monte Carlo simulation. First, based on a content analysis of articles published in seven leading marketing journals from 1996 to 2012, the authors demonstrate that three tests—the constrained phi (Joreskog 1971), AVE-SV (Fornell and Larcker 1981), and overlapping confidence intervals (Anderson and Gerbing 1988)—are by far most common. Further review reveals that (1) more than 20% of survey-based and over 80% of non-survey-based marketing studies fail to document tests for discriminant validity, (2) there is wide variance across journals and research streams in terms of whether discriminant validity tests are performed, (3) conclusions have already been drawn about the relative stringency of the three most common methods, and (4) the method that is generally perceived to be most generous is being consistently misapplied in a way that erodes its stringency. Second, a Monte Carlo simulation is conducted to assess the relative rigor of the three most common tests, as well as an emerging technique (HTMT). Results reveal that (1) on average, the four discriminant validity testing methods detect violations approximately 50% of the time, (2) the constrained phi and overlapping confidence interval approaches perform very poorly in detecting violations whereas the AVE-SV test and HTMT (with a ratio cutoff of 0.85) methods perform well, and (3) the HTMT.85 method offers the best balance between high detection and low arbitrary violation (i.e., false positive) rates.

993 citations


Journal ArticleDOI
TL;DR: This work conducts a rigorous review of the diverse scholarly literature on VCC, utilizing the results from this review to isolate the two main theoretical dimensions of VCC and expose the three conceptual elements which underlie each dimension.
Abstract: The surge in academic and practical interest in the topic of value co-creation (VCC) highlights an equivocal understanding of its conceptual boundaries and empirical constituents. Our search of the diverse scholarly literature on VCC identified 149 papers, from which we extract the two primary conceptual VCC dimensions of co-production and value-in-use. Though the combination of these two distinct dimensions is theoretically necessary to describe VCC, 79% of the studies in our dataset consider only one or the other. Such underlying theoretical ambiguity may explain conflicting results in earlier studies and motivates our effort to offer four contributions to the literature. First, we conduct a rigorous review, integrating existing work to expose the theoretical core of VCC. Second, we utilize the results from our review to isolate the two main theoretical dimensions of VCC and expose the three conceptual elements which underlie each dimension. Third, we apply our theoretical findings to derive empirical measurement constructs for each dimension. Fourth, we refine, analyze, and test the resulting measurement index in an investigation into consumer satisfaction.

734 citations


Journal ArticleDOI
TL;DR: In this article, the antecedents and impact of three forms of customer involvement in innovation are examined: customer involvement as an information source (CIS), customer involvement with co-developers (CIC), and customer involvement of innovators (CIN).
Abstract: This study examines the antecedents and impact of three forms of customer involvement in innovation: customer involvement as an information source (CIS), customer involvement as co-developers (CIC), and customer involvement as innovators (CIN). We propose that the three forms of customer involvement employ different ways of utilizing customer knowledge and thus are influenced differently by the nature of customer knowledge, the firm’s knowledge management strategy, and organizational support for knowledge management implementation. Using primary data from multiple industries, we test a set of drivers along these three dimensions and find that the three forms of customer involvement are driven by different factors. Furthermore, the impact of customer involvement on product performance is contingent upon the firm’s technological capability, and the contingent effect also varies across different forms of customer involvement. These findings provide important theoretical implications as well as practical guidance for adopting and managing customer involvement in innovation.

352 citations


Journal ArticleDOI
TL;DR: In this article, the authors extended the relationship marketing framework to the domain of online retailing to identify what strategies help build relationships with online customers and also examined the relationship between the four mediators, trust, commitment, relationship quality, and relationship satisfaction.
Abstract: Building on the meta-analytic model suggested by Palmatier et al. Journal of Marketing, 70, 136–153, (2006), this study extends the relationship marketing framework to the domain of online retailing to identify what strategies help build relationships with online customers. Specifically, this meta-analytic study identifies key antecedents and consequences of relationship marketing in online retailing. The study also examines the relationship between the four mediators—trust, commitment, relationship quality, and relationship satisfaction— and the antecedents and consequences of relationship marketing. Similarity and seller expertise were found to have the strongest impact on relational mediators, and word of mouth was the most critical outcome of relationship marketing efforts. The model proffered in this study will motivate hypotheses to be examined by future researchers. The model also helps managers to identify the key drivers of relationship marketing in online retailing.

189 citations


Journal ArticleDOI
TL;DR: In this paper, the authors investigate the effects of consumer activity in online media (paid, owned, and earned) on sales and their interdependencies with the traditional marketing mix elements of price, advertising and distribution.
Abstract: This study investigates the effects of consumer activity in online media (paid, owned, and earned) on sales and their interdependencies with the traditional marketing mix elements of price, advertising and distribution. We develop an integrative conceptual framework that links marketing actions to online consumer activity metrics along the consumer’s path to purchase (P2P). Our framework proposes that the path to purchase has three basic stages–learning (cognitive), feeling (affective), behavior (conative)—and that these can be measured with novel online consumer activity metrics such as clicking on a paid search ads (cognitive) or Facebook likes and unlikes of the brand (affective). Our empirical analysis of a fast moving consumer good supports a know–feel–do pathway for the low–involvement product studied. We find, for example, that earned media can drive sales. However, we find that the news is not all good as it relates to online consumer activity: higher consumer activity on earned and owned media can lead to consumer disengagement in the form of unlikes. While traditional marketing such as distribution (60%) and price (20%) are the main drivers of sales variation for the studied brand, online owned (10%), (un)earned (3%), and paid (2%) media explain a substantial part of the path to purchase. It is noteworthy that TV advertising (5%) explains significantly less than online media in our case. Overall, our study should help strengthen marketers’ case for building share in consumers’ hearts and minds, as measured through consumer online activity and engagement.

184 citations


Journal ArticleDOI
TL;DR: In this article, the authors present three studies, two experiments and one survey, in support of the notion that a greater understanding of loyalty program performance demands an expanded theoretical framework, and they provide insights into why and when loyalty programs fail and into the complex trade-offs managers face.
Abstract: Loyalty programs are a ubiquitous marketing tactic, yet many of them perform poorly and the reasons for loyalty program failure remain unclear to both marketing managers and researchers. This article presents three studies—two experiments and one survey—in support of the notion that a greater understanding of loyalty program performance demands an expanded theoretical framework. Specifically, researchers and managers must account for loyalty programs’ effects on both target and bystander customers in the firm’s portfolio, the simultaneous effects of three performance-relevant mediating mechanisms (gratitude, status, unfairness), and the contingent effects of program delivery (rule clarity, reward exclusivity, reward visibility) on specific mediating linkages. The results provide insights into why and when loyalty programs fail and into the complex trade-offs managers face. Loyalty programs have opposing effects on target and bystander customers’ loyalty and sales. While rule clarity suppresses both negative bystander as well as positive target effects, reward visibility enhances both types of effects. Exclusive rewards offer a means to alleviate negative bystander effects without affecting targets. The article both conceptually and empirically establishes a comprehensive analysis framework that can help marketing managers and researchers evaluate and improve loyalty program effectiveness.

162 citations


Journal ArticleDOI
TL;DR: In this paper, a marketing-centric definition and a systematic taxonomy and framework for intelligent agent technologies (IATs) is proposed, using a grounded theory approach, and interviews with managers from 50 companies in 22 industries reveal the importance of understanding IAT applications and adopting them.
Abstract: In this digital era, marketing theory and practice are being transformed by increasing complexity due to information availability, higher reach and interactions, and faster speeds of transactions. These have led to the adoption of intelligent agent technologies (IATs) by many companies. As IATs are relatively new and technologically complex, several definitions are evolving, and the theory in this area is not yet fully developed. There is a need to provide structure and guidance to marketers to further this emerging stream of research. As a first step, this paper proposes a marketing-centric definition and a systematic taxonomy and framework. The authors, using a grounded theory approach, conduct an extensive literature review and a qualitative study in which interviews with managers from 50 companies in 22 industries reveal the importance of understanding IAT applications and adopting them. Further, the authors propose an integrated conceptual framework with several propositions regarding IAT adoption. This research identifies the gaps in the literature and the need for adoption of IATs in the future of marketing given changing consumer behavior and product and industry characteristics.

135 citations


Journal ArticleDOI
TL;DR: It is concluded that mobile automated adaptive personalization systems that take advantage of social networks may be a promising approach to making personalization more effective.
Abstract: This research provides insights into the following questions regarding the effectiveness of mobile adaptive personalization systems: (1) to what extent can adaptive personalization produce a better service/product over time? (2) does adaptive personalization work better than self-customization? (3) does the use of the customer’s social network result in better personalization? To answer these questions, we develop and implement an adaptive personalization system for personalizing mobile news based on recording and analyzing customers’ behavior, plus information from their social network. The system learns from an individual’s reading history, automatically discovers new material as a result of shared interests in the user’s social network, and adapts the news feeds shown to the user. Field studies show that (1) repeatedly adapting to the customer’s observed behavior improves personalization performance; (2) personalizing automatically, using a personalization algorithm, results in better performance than allowing the customer to self-customize; and (3) using the customer’s social network for personalization results in further improvement. We conclude that mobile automated adaptive personalization systems that take advantage of social networks may be a promising approach to making personalization more effective.

124 citations


Journal ArticleDOI
TL;DR: In this article, the authors developed a model that integrates effectiveness-enhancing outcomes and organizational inputs of eco-friendly product development strategies, using questionnaire responses from firms from multiple industries, supplemented with lagged primary product development performance data.
Abstract: Integrating sustainability aspects into product development has long been recognized as a strategic priority for practitioners. Yet the literature reports mixed results on the product development effectiveness outcomes of sustainable product development strategies, while scant research has investigated how companies integrate environmental aspects into product development. This study develops a model that integrates effectiveness-enhancing outcomes and organizational inputs of eco-friendly product development strategies. Using questionnaire responses from firms from multiple industries, supplemented with lagged primary product development performance data, we find that top management commitment and corporate environmental support policies can facilitate eco-friendly product development strategies, while environmental performance incentives do not. In turn, the adoption of such strategies has a positive effect on firms’ product development effectiveness. This effect weakens when business conditions are highly complex but tends to become stronger with increasing levels of munificence in the business environment. These findings have important implications for practitioners and researchers that are discussed.

112 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examined how the collaboration with FLEs along the new service development (NSD) process, namely FLE co-creation, impacts on service innovation performance following two routes of different effects.
Abstract: From a Service-Dominant Logic (S-DL) perspective, employees constitute operant resources that firms can draw to enhance the outcomes of innovation efforts. While research acknowledges that frontline employees (FLEs) constitute, through service encounters, a key interface for the transfer of valuable external knowledge into the firm, the range of potential benefits derived from FLE-driven innovation deserves more investigation. Using a sample of knowledge intensive business services firms (KIBS), this study examines how the collaboration with FLEs along the new service development (NSD) process, namely FLE co-creation, impacts on service innovation performance following two routes of different effects. Partial least squares structural equation modeling (PLS-SEM) results indicate that FLE co-creation benefits the NS success among FLEs and firm’s customers, the constituents of the resources route. FLE co-creation also has a positive effect on the NSD speed, which in turn enhances the NS quality. NSD speed and NS quality integrate the operational route, which proves to be the most effective path to impact the NS market performance. Accordingly, KIBS managers must value their FLEs as essential partners to achieve successful innovation from an internal and external perspective, and develop the appropriate mechanisms to guarantee their effective involvement along the NSD process.

Journal ArticleDOI
TL;DR: In this article, the authors examined how firm antecedents and industry contexts affect the shift in a firm's strategic marketing ambidexterity over time (movement in the blend of exploitation and exploration), and examined SMA's influence on firm financial outcomes, i.e., risk and return.
Abstract: Strategic marketing ambidexterity (SMA), the blend of a firm’s exploitation of existing competencies and exploration of future capabilities in strategic marketing activities, represents a dynamic capability that is vital in achieving superior performance. Given its criticality, the authors examine how firm antecedents and industry contexts affect the shift in a firm’s SMA over time (movement in the blend of exploitation and exploration). In addition, the authors examine SMA’s influence on firm financial outcomes, i.e., risk and return. Using data from 1999 to 2011 on publically traded firms, the authors show that firm maturity and slack (financial and strategic) are key determinants of SMA. Specifically, increased firm maturity and strategic slack result in a shift toward exploitation, whereas increased financial slack results in a shift toward exploration. Industry competitiveness moderates these effects. In terms of the financial performance implications of SMA, the authors find that shifts in SMA toward exploitation increase return, but they also increase firm-idiosyncratic risk. The authors conclude with implications for theory and managerial practice.

Journal ArticleDOI
TL;DR: In this paper, the authors identify two major types of OI practices: development-centric OI (which occurs in the development stage) and commercialization-centric open innovation (which occurred in the commercialization stage).
Abstract: Despite a growing interest in the phenomenon of open innovation (OI), empirical evidence documenting the link between new product development capabilities, OI practices, and new product innovativeness is scarce. Eminent scholars have called for large-scale studies that systematically investigate the OI paradigm. Drawing on the knowledge-based view of the firm, new product development, and NPD capabilities literature streams, we conceptualize a framework in which OI practices are disentangled according to the stage of the new product development process in which they occur (development stage or commercialization stage). We identify two major types of OI practices: development-centric OI (which occurs in the development stage) and commercialization-centric OI (which occurs in the commercialization stage). Specific types of NPD capabilities—R&D, market information management, and launch—are expected to both influence the extent to which each OI practice is implemented and moderate the effect of each OI practice on product portfolio innovativeness and firm performance. The empirical analysis combines primary data from a survey of 239 firms with secondary data on innovation and financial outcomes. Our results support our hypotheses and indicate a need to differentiate among the different kinds of OI practices while elaborating on the complex role played by NPD capabilities in influencing OI practices.

Journal ArticleDOI
TL;DR: In this paper, the impact of a company's brand architecture strategy on stock risk in addition to returns has been explored, and the authors show that risk/return tradeoffs for sub-branding, endorsed and house-of-brands strategies differ significantly from what common wisdom suggests.
Abstract: Despite evidence suggesting a growing incidence of brand architecture strategies beyond the branded house (e.g., Boeing and IBM) and house-of-brands (e.g., P&G with Tide and Cheer), and recognition that in practice these strategies are very different, there is still a need for research on how financial markets value the full range of brand architecture strategies pursued by firms. We replicate and extend Rao et al.’s (Journal of Marketing, 68(4), 126-141, 2004) investigation of brand portfolio strategy and firm performance by (1) adding sub-branding and endorsed branding architectures, (2) clarifying the “mixed” architecture to constitute a BH-HOB hybrid and remove sub- and endorsed branding variants, and (3) quantifying the impact of a company’s brand architecture strategy on stock risk in addition to returns. To explore the risk profiles of these five different strategies, we offer a brand-relevant conceptualization of the sources of idiosyncratic risk that may be exacerbated or controlled through brand architecture strategy: brand reputation risk, brand dilution risk, brand cannibalization risk, and brand stretch risk. We demonstrate superior results in terms of model performance using the expanded five-part architecture categorization and conclude with implications for practice. Our results show that risk/return tradeoffs for sub-branding, endorsed branding, and the BH-HOB hybrid differ significantly from what common wisdom suggests.

Journal ArticleDOI
TL;DR: In this article, the authors use a grounded theory approach to investigate how companies deal with contractual breaches by their customers when legal enforcement is not a viable option, and identify: (a) types of out-of-contract alternatives for resolving breaches, (b) factors that lead to use of enforcement options outside the terms specified in the contract, contextual influences, and individual and firm-level consequences of outside-ofcontract enforcement.
Abstract: In business-to-business relationships, sellers are often faced with instances of contractual breaches by buyers. In many cases, relationship factors preclude legal enforcement of contract terms, requiring sellers to explore alternate resolution options. Literature on contractual breaches has primarily focused on enforcement options based on terms specified in the contract. However, little is known about how companies deal with contractual breaches by their customers when legal enforcement is not a viable option. The authors use a grounded theory approach to investigate this important issue. Based on in-depth interviews with 40 supplier managers and executives in multiple industries, the authors identify: (a) types of out-of-contract alternatives for resolving breaches, (b) factors that lead to use of enforcement options outside the terms specified in the contract, (c) contextual influences, and (d) individual and firm-level consequences of outside-of-contract enforcement.

Journal ArticleDOI
TL;DR: In this paper, the authors used a framework based on attribution theory principles to show that the company donation amount positively affects consumers' perceived price fairness and purchase intentions and highlighted a positive moderating impact of the company's corporate social responsibility reputation and a negative moderating effect of company's cause fit on the donation amount.
Abstract: When implementing cause-related marketing campaigns, companies sometimes increase prices to partially cover some of the costs of the campaign. However, our knowledge regarding the conditions under which consumers perceive these increases as fair and are willing to bear some of the costs is lacking. Using a framework based on attribution theory principles, we show in four studies that the company donation amount positively affects consumers’ perceived price fairness and purchase intentions. More importantly, our study highlights a positive moderating impact of the company’s corporate social responsibility (CSR) reputation and a negative moderating effect of company–cause fit on the donation amount–perceived price fairness relationship. The timing of the price increase also plays a key moderating role on this link. All four studies also provide insights into the underlying process of these moderating effects in terms of attributed company motives.

Journal ArticleDOI
TL;DR: In this paper, a survey-based field study was used to show that employees with a high (compared to low) power distance orientation feel more burnout due to supervisors when they are closely monitored by their supervisors.
Abstract: Studies show that service employees are among the most disengaged in the workforce. To better understand service employees’ job engagement, this study broadens the scope of the job demands-resources (JD-R) model to include power distance orientation (PDO). The inclusion of PDO enriches the JD-R model by providing a key piece of information that has been missing in prior JD-R models: employees’ perceptions of the source of job demands (i.e., supervisors) or employees’ views of power and hierarchy within the organization. Study 1 uses a survey-based field study to show that employees with a high (compared to low) PDO feel more burnout due to supervisors when they are closely monitored by their supervisors. Study 1 further supports the finding that employees with high (compared to low) PDO feel less disengagement despite burnout due to supervisors. Study 2, using a lab experiment, and Study 3, relying on a survey-based field study, unveil why these effects were observed. Stress and job satisfaction emerge as mediators that explain the findings from Study 1. Implications of the role of PDO are discussed to improve the current understanding of how job engagement can improve customer service performance.


Journal ArticleDOI
TL;DR: This article found that the classic inverted U-shape (repeatedly found in previous repetition research) is observed only for ads with low divergence and relevance, while creative ads wear in immediately and show little sign of wearing out even over repeated exposures.
Abstract: Both ad creativity and ad repetition play a pivotal role in advertising strategy. It is therefore of practical and theoretical importance to understand how they interact with one another on advertising effectiveness. After reviewing existing theories, we predict three-way interactions among: divergence, relevance, and repetition over six important dependent variables. Using a 2×2×3 between-subjects experimental design, we find that the classic inverted U-Shape (repeatedly found in previous repetition research) is observed only for ads with low divergence and relevance. In contrast, creative ads (high divergence and relevance) wear in immediately and show little sign of wearing-out even over repeated exposures. Mixed levels of divergence and relevance produce immediate wear-in but do show wearing-out over repeated exposures. Implications for advertising management and media programming are discussed.


Journal ArticleDOI
TL;DR: In this paper, the authors identify the link between regulatory focus and salesperson hunting and farming orientations and demonstrate that a promotion (prevention) focus is more strongly related to a salesperson's hunting orientation than a prevention (promotion) focus, and ambidextrous salespeople generate higher profits when they are customer oriented.
Abstract: In business-to-business markets, hunting for new customers and farming existing customers are critical to achieve sales goals Although practitioners suggest that salespeople have a preference for either hunting or farming, academic research has yet to examine when and why salespeople become oriented toward hunting or farming, and whether a simultaneous engagement in both (ie, being ambidextrous) is efficient or damaging In Study 1, the authors identify the link between regulatory focus and salesperson hunting and farming orientations In Study 2, they demonstrate that (1) a promotion (prevention) focus is more strongly related to salesperson hunting (farming) orientation than is a prevention (promotion) focus, and (2) ambidextrous salespeople generate higher profits when they are customer oriented In Study 3, the authors show that salesperson expectations about hunting success and the extent to which compensation plans are based on customer acquisition activities can change the direction of the relationship between regulatory focus and salesperson hunting and farming orientations The authors discuss the implications of these findings for research and management of customer acquisition and retention at the salesperson level

Journal ArticleDOI
TL;DR: In this article, the authors investigate how defected customers evaluate their propensity to return to the company prior to any win-back offer and show that it is strongly and positively related to the actual return decision and the duration of the restarted relationship.
Abstract: Interest in customer reacquisition has increased as firms embrace the concept of customer relationship management. Using survey and transactional data from defected subscribers of a publishing company, we investigate how defected customers evaluate their propensity to return to the company prior to any win-back offer. We introduce a new variable for relationship marketing, general willingness to return (GWR), and show that it is strongly and positively related to the actual return decision and the duration of the restarted relationship. Combining attribution theory elements with existing win-back explanations, which focus on economic, social, and emotional value perceptions, provides a more comprehensive understanding of the factors that influence the GWR to a former relationship. Importantly, we learn that regardless of whose fault it is, if the reasons for the relationship termination can change or are preventable and the firm can control those changes, then the defected customer has a higher general willingness to return to the former relationship. Also, we show that the duration of time absence before relationship revival moderates the impact of GWR on second relationship duration. Furthermore, we demonstrate that satisfaction prior to defection and the length of time absence provide a reasonable basis for distinguishing defected customers who differ in their GWR. By applying our findings, we derive recommendations for firms on how to position marketing communications to recapture defected customers according to their general willingness to return.

Journal ArticleDOI
TL;DR: This article analyzed the link between cause assessment, corporate philanthropy, and dimensions of corporate reputation from different stakeholders' perspectives, using balance theory as a conceptual framework and the telecommunications industry in Austria and Egypt as the empirical setting.
Abstract: This study analyzes the link between cause assessment, corporate philanthropy, and dimensions of corporate reputation from different stakeholders’ perspectives, using balance theory as a conceptual framework and the telecommunications industry in Austria and Egypt as the empirical setting. Findings show that corporate philanthropy can improve perceptions of the corporate reputation dimensions, but the results vary between customers and non-customers and depend on the country setting.

Journal ArticleDOI
TL;DR: In this paper, a new perspective on customer-company identification is proposed by focusing on CCI's underlying self-motives: self-uncertainty and self-enhancement.
Abstract: This article offers a new perspective on customer–company identification (CCI) by focusing on CCI’s underlying self-motives: self-uncertainty and self-enhancement. More precisely, an operationalization is proposed in which cognitive (CCICog) and affective (CCIAff) dimensions of CCI are driven by different self-motives: CCICog by self-uncertainty and CCIAff by self-enhancement. Focusing on these self-motives reveals that CCICog and CCIAff affect some customer attitudes and behaviors in opposite ways but affect other attitudes and behaviors similarly. A cross-sectional survey that examines outcomes of CCICog and CCIAff supports the proposed conceptualization of CCI and suggests the dimensions differ in how each impacts customer–company relationships. Furthermore, the study suggests that combining the dimensions together in higher order constructs or examining only one dimension can lead to misleading conclusions.


Journal ArticleDOI
TL;DR: In this paper, the authors used a unique dataset of responses from more than 450 managers collected through telephone assisted online questionnaires, and found that customers' willingness to pay for customized service packages is almost 5% lower than it would be with separate assessments of the same service elements, which represents substantially lower value capture potential.
Abstract: Capturing the value of industrial services is an issue of growing concern as services increasingly define manufacturing companies’ competitive market positions. In business markets, suppliers often create customized service packages (CSPs) to avoid difficult pricing decisions or tedious negotiations. However, using a unique dataset of responses from more than 450 managers collected through telephone-assisted online questionnaires, this study shows that the managerial practice is suboptimal. Customers’ willingness to pay for CSPs is almost 5% lower than it would be with separate assessments of the same service elements, which represents substantially lower value capture potential. Buying firms with strong purchasing power demand greater price discounts for CSPs, though the presentation format has less influence among large and experienced buyers, as long as services support customer processes. Switching from CSPs to separate service offerings can enhance supplier profitability, but it requires advanced marketing capabilities to understand, document, and communicate customer value in business markets.

Journal ArticleDOI
TL;DR: In this article, the effects of corporate reputation across nations, particularly the moderating role of important institutional country differences, are analyzed, and the results indicate a strong link between corporate reputation and consumers' loyalty, but this relationship is reinforced or diminished by cultural, economic, or knowledge differences between countries.
Abstract: Although multinational corporations increasingly use their reputation as an important differentiation criterion, little is known about the varying effects of corporate reputation in an international context. In this study, the effects of corporate reputation across nations, particularly the moderating role of important institutional country differences, are analyzed. To provide insight into these issues, the authors refer to hierarchical data on 13,665 consumer evaluations of a multinational corporation in 40 countries. The results indicate a strong link between corporate reputation and consumers’ loyalty, but this relationship is reinforced or diminished by cultural, economic, or knowledge differences between countries. These moderators represent important factors when managing corporate reputations across nations.

Journal ArticleDOI
TL;DR: In this article, the authors investigate how cross-border acquisition affects the relationship between quality and loyalty, as well as between price and loyalty in fast-moving consumer goods brands in China and conclude that from a customer's perspective acquiring a local brand is not an advisable strategy for foreign brand conglomerates, because such an international takeover may decrease consumer loyalty.
Abstract: The literature that focuses on acquisitions from the consumer perspective has generally neglected the brand strategy of cross-border acquisitions in an emerging market by a developed country brand. However, research in this field appears necessary, considering the high failure rate of M&As, the common practice of Western/global companies of augmenting their brand portfolio through local acquisitions, and the sensitivity of emerging market consumers to foreign brands. The present study is an initial attempt to understand the loyalty of consumers toward the acquired brands. Moreover, we investigate how such an acquisition affects the relationship between quality and loyalty, as well as between price and loyalty. For fast-moving consumer goods brands in China, the findings indicate that from a customer’s perspective acquiring a local brand is not an advisable strategy for foreign brand conglomerates, because such an international takeover may decrease consumer loyalty. Additionally, consumers tend to expect higher quality after the takeover but may not want to pay more for the quality increase.

Journal ArticleDOI
TL;DR: In this article, the authors explore whether the propensity to use the Internet to avoid work tasks (online procrastination) leads to purchase behavior, and if so, what the mechanism underlying such an effect might be.
Abstract: This paper seeks to understand how marketers might capitalize on consumers’ increasing time spent online and convert online procrastination tendencies into purchase behavior. More specifically, the authors explore whether the propensity to use the Internet to avoid work tasks (online procrastination) leads to purchase behavior, and if so, what the mechanism underlying such an effect might be. Through two studies, the authors find that online procrastination positively impacts purchase, which in turn is indirectly affected by the consumers’ propensity to delay their decisions. The authors further find different likelihoods of purchase based on degrees of tendency to delay decisions, online users’ age, and type of online activities. Implications of these findings for informing managers about the ways to increase purchases for decisive and indecisive consumers who waste time online and raising online procrastinators’ awareness about their vulnerability to marketers are discussed.

Journal ArticleDOI
TL;DR: In this article, the authors develop a contingency model, which proposes that salesperson EI moderates the harmful effects of role stress on three work outcomes, i.e., emotional exhaustion, customer-oriented selling, and sales performance.
Abstract: Despite significant attention from practitioners and broad claims of the importance of Emotional Intelligence (EI), empirical support for its incremental direct effects on outcomes relevant to professional selling has been disappointing. However, little research has included relevant contextual variables or the potential interactions of EI with contextual variables when considering its effects. This contingency view of EI maintains that EI is important in work settings, but only under certain conditions. Drawing on the appraisal theory of emotions, the authors develop a contingency model, which proposes that salesperson EI moderates the harmful effects of role stress on three work outcomes—emotional exhaustion, customer-oriented selling, and sales performance. Using three matched data sources from multiple professional selling workgroups in a business-to-business sales setting, the authors find that EI moderates the relationship between role ambiguity and all three outcome variables.