Integrating service and design: the influences of organizational and communication factors on relative product and service characteristics

The aim of this study is to identify the organizational and communication antecedents, and evaluate the consequences on relative product and service characteristics, of the use of service-sourced information by product designers during new product development. An empirical study of 121 product design managers demonstrates that a firm’s market orientation is improved by a healthy working relationship between product designers and service employees. Such a relationship motivates designers to use service-sourced information disseminated to them, enhancing both product and service characteristics of the new offering. The authors discuss how communication channels and information content affect the information use of product designers. Product designers value written information most. Information use does not relate to the frequency of receiving verbal or electronic information. Information about product ergonomics positively influences product designers’ perceptions of the information, whereas information on product aesthetics negatively influences their perceptions.

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Technology use on the front line: how information technology enhances individual performance

This study explores and tests a new model that links different types of technology usage to individual-level outcomes. The primary objective of this study is to examine the effects of efficient use (routinization) and effective use (infusion) along with the traditional measure of usage—namely, frequency of use—on two dimensions of individual-level outcomes: information technology-enabled administrative performance and information technology-enabled salesperson performance. To maintain consistency with the existing literature, the authors examine the effects of predeployment attitude toward or acceptance of technology and pre-deployment intended use of technology. The authors discuss managerial implications and provide directions for future research.

The market value impact of indirect ties within technology alliances

Researchers have typically studied the relationship between technology alliances and market value from a direct tie or dyadic perspective. Yet any given technology alliance is typically embedded in a network of indirect ties created by the alliance partners’ relationships with other firms. We argue that whether an indirect tie enhances or detracts from the market value a firm creates in a technology alliance depends upon factors related to inter-firm competencies at both an alliance- and partner-level of analysis. Empirical analysis of abnormal stock returns reveals support for the hypothesized contingent relationship between indirect ties and value creation within technology alliances. Theoretically, the paper clarifies opposing perspectives in the literature regarding the performance implications of indirect ties and identifies market value as a hitherto unrecognized effect associated with this type of tie. Managerially, the findings improve marketers’ ability to leverage the complex interactions that occur between technology alliances in a value-creating manner.

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Low price signal default: an empirical investigation of its consequences

Low-price guarantees (LPG) signal the market position of a seller’s offer price and promise to compensate consumers in case that information is erroneous. In this research, we demonstrate that when retailers default on the information provided by an LPG, consumer perceptions of the retailer suffer, but the extent of the damage depends on the conditions associated with the default. On the basis of attribution theory, we posit that consumers may attribute default to the retailer’s opportunism but emphasize this attribution differently in various default conditions. Furthermore, we show that the restoration of consumer perceptions after a refund depends on consumers’ focus in terms of the signal itself. If they consider the protective, compensatory function of a low price signal, their post-refund outcomes are more favorable; when they focus on the informational function, these outcomes are less favorable. We discuss the theoretical and practical implications of these findings.

Marketing with integrity: ethics and the service-dominant logic for marketing

This paper examines a tendency within existing marketing scholarship to compartmentalize ethical issues. It also shows how this tendency can cause ethical tensions and conflicts in marketing practice. The emerging service-dominant (S-D) logic for marketing, as proposed by Vargo and Lusch, is explored as an example of an approach to marketing that overcomes this tendency. The S-D logic is found to be a positive development for marketing ethics because it facilitates the seamless integration of ethical accountability into marketing decision-making. Specific recommendations are made for improving the ethical climate in marketing using marketing performance measurement theory and practice.

The moderating role of institutional networking in the customer orientation–trust/commitment–performance causal chain in China

This study uncovers the ignored role of institutional environment for marketing strategy and customer relationship management. Hypothesis tests in a sample of Chinese firms find support that channel networking strengthens the customer orientation–customer trust/commitment–firm performance (CTP) causal chain. In addition, the results show that government networking moderates this chain in a non-linear fashion. The CTP linkages are most salient when the firm develops a moderate level, rather than a high or low level of networking ties with government agencies.

The quest for a fiscal rule: Italy, 1861–1998

The Italian fiscal history is characterised by a number of fiscal consolidations. In this study, we characterise fiscal policy in terms of non-linear deterministic processes. We find that government spending and taxes can be described as being non-linear trend stationary processes instead of unit roots. A long run equilibrium relationship—a non-linear co-trend—does exist between the two series, fulfilling the intertemporal government budget constraint. We interpret this result as evidence of a long run fiscal rule that different policy makers have adopted, putting public finance in balance.

Product intelligence: its conceptualization,measurement and impact on consumer satisfaction

In the last decade, companies have developed a large number of intelligent products. Due to the use of information technology, these products operate somewhat autonomously, cooperate with other products, or adapt to changing circumstances. Based on a literature review and interviews with practitioners, the present article conceptualizes product intelligence and describes a procedure to measure the construct. The article also explores the link of product intelligence to consumer satisfaction through the innovation attributes of relative advantage, compatibility, and complexity. The article considers practical and theoretical implications and identifies future research directions.

Wealth accumulation motives: evidence from the probate records of Ontario, 1892 and 1902

The wealth of male decedents using census-linked probate records from 1892 and 1902 is examined for evidence on saving motives. This data presents an opportunity to examine wealth holding and saving motives in an environment devoid of many of the features that can affect modern retirement, consumption and saving decisions. Evidence is found supporting the existence of a strategic bequest motive. This result occurs after controlling for the possibility of the demand for children rising with the level of wealth as well as the potential contribution to wealth accumulation that children made in agricultural economies. These results also suggest that while the presence of a bequest motive was real and significant, its ultimate contribution to wealth accumulation was relatively modest when compared to the impact of variables such as occupational status and literacy. Moreover, there appears to be some evidence supporting a transition in saving motives away from bequest saving and towards greater life cycle saving.

Weathering product-harm crises

To counter the negative effects of a product-harm crisis, brands hope to capitalize on their equity, and often use advertising as a communication device to regain customers’ lost trust. We study how consumer characteristics and advertising influence consumers’ first-purchase decisions for two affected brands of peanut butter following a severe Australian product-harm crisis. Both pre-crisis loyalty and familiarity are found to form an important buffer against the product-harm crisis, although this resilience decreases over time. Also heavy users tend to purchase the affected brands sooner, unless their usage rate decreased significantly during the crisis. Brand advertising was found to be effective for the stronger brand, but not for the weaker brand.

Commitment to a friend,a service provider,or a service company—are they distinctions worth making?

In two studies, the authors examine three targets of commitment in service provider–consumer relationships and their effects on customer loyalty. The results indicate that service consumers distinguish between commitment to a service company, commitment to an individual in the role of service employee, and commitment to an individual outside of the role of service employee (e.g., a personal commitment such as a friendship). In addition, these three targets of commitment are hierarchically related and have differential effects on various customer responses. The results have implications for both customer relationship managers and researchers studying such relationships.

Financial market reactions to the overthrow and annexation of the Hawaiian Kingdom: evidence from London, Honolulu and New York

This paper investigates how financial market participants reacted to the US annexation of Hawaii in 1898 as well as prior events like the overthrow of the monarchy in 1893 and US tariff moves affecting Hawaii's sugar industry. The empirical work covers the trading of the Kingdom of Hawaii's major 1886 loan in both London and Honolulu as well as sugar company stock price reactions to annexation. The economic implications of US tariff policy moves, and the unfettered US market access promised by annexation, may well explain the continued uptrend in debt prices after the overthrow.

Managerial,organizational, and external drivers of sales effectiveness in export market ventures

The authors extend sales management theory by considering the role of export sales management in small- and medium-sized firms, and they develop an integrated model of export sales organization effectiveness. Specifically, the authors test 16 hypotheses that examine the relationships among export sales management control, export territory, psychic distance, export sales performance, and export sales organization effectiveness. Using a mail-survey approach, data were collected from U.K.-based export sales managers in 146 direct exporters of industrial products. Though certain anomalies are observed, the research findings support many of the hypothesized associations, confirming the robustness of existing sales management concepts and theories in an export-marketing context.

A meta-analytic review of opportunism in exchange relationships

The potential to engage in opportunism is a central theme in institutional economics, yet prior research has not quantitatively reviewed the role of opportunism in marketing research. This study uses meta-analytic techniques to synthesize research on opportunism conducted over the last quarter century. The analysis of 183 effect sizes extracted from 54 publications from the period 1982 to 2005 offers some support to extant channel theory. The research also indicates that the informant’s frame of reference and the research design significantly influence the observed effects. Implications of the findings and future research directions are discussed.

Linking cause-related marketing to sales force responses and performance in a direct selling context

The influence of a firm’s cause-related marketing efforts on sales representative attitudes and behavioral performance is investigated. Results from a field study indicate that the influence of a representative’s construed customer attitude toward the cause campaign on selling behavioral performance is mediated through cognitive identification and selling confidence. Further, the influence of construed customer attitude toward the campaign on selling confidence is moderated by cognitive identification such that the effects are stronger for salespeople with lower levels of identification with the company. The authors discuss the implications of the research and offer directions for further research.

Utilization of new technologies: organizational adaptation to business environments

The practice of introducing new technologies into the corporate environment has become a well-accepted principle for sustaining or advancing competitive advantages. The current study focuses on the environmental and managerial factors associated with the successful utilization of new technologies. To this end, the suggested framework examines the efforts put forth by the two parties involved (the firm buying and the firm supplying the new technology). We use 112 matched data collected from the suppliers and buyers of the customer relationship management (CRM) system in business-to-business markets. We find that the perceived turbulence of business environments stimulates adaptive efforts from both the supplying and buying firms, which may lead to a high level of utilization of new technologies for the buying firm.

Managing innovation through customer coproduced knowledge in electronic services: An exploratory study

Marketing theory and practice both recognize the increasing importance of customer collaboration for service provision and innovation. As part of such customer collaboration, customers of electronic services coproduce knowledge in varying degrees. An evolving phenomenon, knowledge coproduction has yet to receive much research attention; we therefore conduct a qualitative study of the roles customers play in knowledge coproduction and their resultant influence on different innovation tasks from a service provider view. Data from three electronic service interaction channels, involving managers, engineers, and customers; case study findings; and an extensive literature review indicate the importance of knowledge coproduction by customers and its ability to improve different tasks substantially during innovation activities. The results show three different roles of customers in knowledge coproduction and explain comprehensively how each role impacts various innovation tasks.

Harmonizing conflict in husband–wife purchase decision making: perceived fairness and spousal influence dynamics

To market important products to families successfully, salespeople must understand how couples behave in concert to resolve conflict across major decisions. The authors develop a model of spousal fairness and test it with a study of multi-period family purchase decision making. The results show that a spousal sense of fairness serves as a mechanism for contemporary couples to harmonize conflict over time in family decisions. Specifically, spouses’ perceived fairness mediates the relationship between spousal prior influence and spousal decision behavior in subsequent decisions. Spouses also consider their partner’s perceptions of fairness when taking action to restore fairness. Moreover, the effects of perceived fairness are moderated by spousal traits of empathy, egalitarianism, and empowerment in a gendered pattern.

See no evil,hear no evil,speak no evil: a study of defensive organizational behavior towards customer complaints

Despite substantial benefits of an effective complaint management for companies, there is ample evidence that many firms do not handle customer complaints appropriately. This paper aims at providing a theoretical explanation for this surprising phenomenon. Drawing on psychological and organizational theory, the authors introduce the concept of defensive organizational behavior towards customer complaints as well as provide a rich conceptualization and operationalization of this phenomenon. Moreover, in an empirical study, they systematically analyze how defensive organizational behavior towards customer complaints is driven by organizational antecedents and, based on a dyadic data set, how it affects customer post-complaint reactions.

How to get lost customers back?

Most research in the field of customer relationship management has focused on keeping existing customers. However, some companies also systematically address lost customers and try to revive these relationships. This facet of customer relationship management has been largely neglected by academic research. Our study provides a theoretical discussion and an empirical analysis of factors driving the success of relationship revival activities. Drawing on equity theory, we find that the customer’s perceived interactional, procedural, and distributive justice with respect to revival activities positively affect his or her revival-specific satisfaction which in turn, has a strong impact on revival performance. Furthermore, revival performance depends on customer characteristics (variety seeking, involvement, age), and the overall customer satisfaction with the relationship.