Marketing Cues and Perceptions of Service Quality in the Selection of Accounting Firms

Abstract

This study tests the survey responses of clients of accounting firms to determine what marketing cues influence their selection of firms and what relationship these cues have on the perceived service quality of the firms' products. The study argues that three marketing cue factors are influential in the clients' selection of accounting firms. Using Principle Components Analysis, three factors were identified: Factor 1, termed Internal Factors-Tangibles includes the following cues: fees, physical facilities, appearance/dress of employees, convenience of location, and available parking. Factor 2, termed Internal Factors-Intangibles includes reputation of the firm, professional quality of employees, and “my own personal experience with other accounting firms.” Factor 3, termed External Factors comprises the opinion of friends/relatives, manner of employees, and word-of-mouth reputation. The relationship betwecn the resultant cues and perceived service quality measures suggests that the intangible and external factors have more influence than tangible factors on the perceived service quality of accounting firms.     

Customer Service Employees

ABSTRACT

In Singapore, the Company Act requires every company to have an audit every year regardless of the cost and whether the directors and shareholders want one. As there are many professional accounting firms competing for the audit business of these companies, it has become essential that these accounting firms must strive to ensure that their clients are satisfied with the services provided. This paper reports a survey of 1.96 companies with headquarters in Singapore, Japan, Europe and the United States. The survey revealed the reasons for choosing a particular audit firms and the reasons for staying with them. A modified version of the SERVQUAL scale developed by Parasuraman was used to measure both the expectation and performance of service quality. A gap analysis was also carried out to determine the differences.     

Service Quality Perceptions of Foreign Direct Investors

ABSTRACT

In this article, the potential disparity between foreign direct investment (FDI) clients' service quality expectations and the actual service experienced (Gap 5) and how these impacts FDI inflows are investigated. Methodological triangulation encompassing quan-titative and qualitative methods is used. Contrary to the quantitative findings, the qualitative findings indicate that Gap 5 exists among the FDI clients. This is the first time the service quality model (performance-based construct) has been used to study FDI issues. Rather than applying the predominant “inside-out” mindset, the model adopts an “outside-in” mindset that uses perceived (actual) service as a reference point for clients' evaluation of service quality.     

How to Create Effective Ad Copy for the Small Service Organization

ABSTRACT

This paper reports the results of a study that examined two factors that influenced the individual's selection of an accountant: The qualifications that the accountant may hold and the accountants membership of a professional accounting body.

In Australia, any person can hang a shingle outside their door calling themselves an ?accountant.” In contrast, the law dictates that a doctor of medicine can only use the title “doctor” when he/she has tertiary qualifications and registers with the relevant Health Departments throughout Australia.

Let's be clear on the term accountant–there are accountants in public practice who offer themselves to the public to perform a wide range of duties from income tax preparation, auditing and financial advice. Then there is the accountant who is employed internally in a business to keep the financial reins. It is the accountant who offers public accounting services that this study concerns itself.

Prior research studies conducted in this area are examined for relevance to the study and to determine if the results concur with the outcomes of this study.

The managerial implications of the results are discussed considering the confusion and perceptions that arose with the meaning of “qualification” and “professional body membership.”     

The Rainmaker in Today's Professional Service Organizations

ABSTRACT

Professional service firms have relied heavily in the past on a small number of rainmakers-people who have influence and bring business into their firms. In today's competitive marketplace, everyone in the organization must be involved in the practice development process. This paper, based on a series of interviews with accounting professionals, identifies the roles and responsibilities for practice development inherent at every stage of the professional accountant's career path. Additionally, the roles and responsibilities of marketing professionals in professional service firms are also considered.     

Reducing Turnover in Public Accounting Firms: An Internal Marketing Strategy

ABSTRACT

If one considers that public accounting firms are involved in a labor-intensive service, dependent on staff members for their input, the seriousness of high employee turnover levels becomes evident. Thus, it is imperative that public accounting firms find a means to retain experienced accountants if they are to successfully service clients. This requires a change in philosophy for accounting firms. Previous research has focused primarily on determining the reasons employees give for leaving/remaining with a firm. This is generally where the process ends. Few accounting firms lake the next step which involves the development of an internal marketing plan to reduce turnover.     

The Impact of Voice Mail Technology on Internal Service Quality

Abstract

The proliferation of sophisticated computer-assisted communication technologies (e.g., voice mail systems, computer conferencing, video conferencing, electronic mail, image transmission) is causing organizations to examine the potential influence such technologies could have on the quality of service delivered to customers (both, internal and external). This paper investigates the impact of an advanced communication technology on the quality of service delivered by employees within an organization to their peers (internal customers). An empirical study was conducted to assess the expectations and performance levels of “internal service” after the incorporation of an advanced communication technology (voice mail) within one service organization (financial institution). Results indicate that the level of expectations of internal service in the context of voice mail were much higher than actual service performance. Analysis also revealed that perceptions of internal service quality significantly differed on the basis of gender and educational level of respondents. Directions for future research and managerial implications for enhancing internal service quality through the incorporation of new information technologies are also discussed.     

The Compatibility of the Marketing Concept Within the “Classified” Customer Service Culture of Department of Defense National Testing Laboratories

ABSTRACT

The role of national defense research laboratories has dramatically changed since the collapse of the Soviet Union and the relaxation of “Cold War” imperatives. As these organizations are seeking new “market oriented” opportunities, the fundamental philosophy and culture of these organizations must be examined in order to determine if such firms, historically dependent on government awards and contracts, can effectively compete in the highly competitive global economy. The purpose of this study is to examine the relative compatibility of the marketing concept with the attitudes and customer service practices of one such highly confidential organization. By initiating such inquiry, it is hoped that other research and inquiry will be undertaken with the goal being to help transition the power of these basic and applied research facilities into the private sector more efficiently.     

Gender Differences in Service Quality Expectations in the Fast Food Industry

Abstract

Services marketers can influence the evaluation of service quality by “managing” customer expectations. Expectations can also provide insights into market segmentation strategies. Gender is often used as a segmentation variable since it is easily identifiable, accessible, and profitable. The purpose of this study was to examine if there are any gender-based differences in the expectations of service quality in the fast food industry. Hypotheses on gender differences in expectations were tested by an ANOVA, where the composite scores of each of the five dimensions of fast food service were used as dependent variables. The expectations of women were significantly higher than men in four of the five dimensions of fast food service quality.     

Emphasis or Balance?

Abstract

A sample of 162 Indian manufacturing and service companies were used to examine different forms of market orientation and the impact of these forms on organizational performance. A cluster-analysis identified four distinct clusters: “undeveloped,” “customer-focused,” “competitor-focused,” and “comprehensive.” The performance of these clusters differed significantly across growth in overall revenue, ability to retain customers, success of new products/services, controlling operational expenses, and return on capital. Implications of these findings for firms competing in India's post-economic liberalization milieu are discussed.     

Tradition Versus Change: Evaluating the Currency of Some Traditional Chinese Values in Today's Business Environment

Abstract

In the last decade, the discussion about how marketing is changing has focused largely on practices in more affluent industrialized economies. Far less attention has been given to understanding the marketing strategies and practices of firms in emerging and transition economies. In this paper, we compare marketing of multinational firms versus local firms in Argentina. We identify the environmental characteristics of Argentina's emerging economy and, using survey data of 96 firms, we group firms into five clusters. We refer to two clusters as “traditional/local” as they use very basic marketing methods, with one serving business markets and the other consumer markets. The other three clusters we refer to as “progressive” as they represent state-of-the-art practices. The first two of these are foreign-owned and serve consumer and business markets, the third represents locally-owned service firms. The managerial implications are examined.     

Pricing Experience Goods in Information Good Markets: The Case of eBusiness Service Providers

We study the pricing strategies of firms providing a service in experience good markets with switching costs. Using data on vendors providing “hosting and related services” at an early stage of the market, we test for pricing distortions that follow from oligopolistic competition with quality uncertainty and switching costs. We find that firms with a brand name charge a premium for their product – leveraging the reputation accumulated in closely related markets. As the theoretical literature suggests, we also find that the type of pricing distortions along the product line depends on consumers’ expectations about quality. If consumers underestimate the quality of the product, firms behave as if they discount introductory contracts in order to build trust, and later on markup upgraded contract. In contrast, firms that offer a quality level that is lower than consumers’ expectations markup initial contracts while discounting upgraded ones.     

Factors Contributing to Internal Customer Satisfaction and Commitment in Quick Service Restaurants

Abstract

The fast-paced, highly competitive nature of quick service restaurants (QSRs) has motivated members of the industry to develop creative ways to optimize customer satisfaction. This search for competitive advantage has fueled an increased interest in employees as “internal customers” who are primarily responsible for external customer satisfaction. The hospitality industry is unique in that employees are part of the product; they directly provide the service component. This project surveyed over 900 hourly and salaried employees at 61 QSRs. The results indicate strategies and tactics to maintain satisfied and “actively” as well as “passively” committed employees. In turn these employees may be an employer's greatest marketing tool.     

Customer Service

Abstract

Maintaining a high level of customer service is one of the best methods of retaining current clients and attracting new ones. Two concepts currently in favor, Total Quality Management and Continuous Quality Improvement, dominate recent thought. This paper builds on these concepts and the basic principles of marketing, to simplify the implementation process. For want of better terms, the author has adopted “LCD” (Lowest Common Denominator) and “Fail-Safe” to describe this approach. LCD encourages simplification so that the newest and least trained employee will be able to work within the system. A Fail-Safe system is designed to be “Customer Friendly” even when an error takes place.     

Operationalizing the Service Quality Construct

ABSTRACT

Previous research works have suggested that, for it to have practical utility, the service quality construct should not only be industry specific, but also be operational (non-global) in nature. This paper builds on that premise and utilizes a methodology suitable to produce operational measures for the service quality construct in the lodging industry. Of the four dimensions (Responsiveness, Recovery, Tangibles, and “Reliability/Trust mixed with Accessibility/Flexibility”) identified by an exploratory factor analysis, the present study finds that the first three appear to be distinct in the minds of the customers. Further confirming the above, regression analyses suggest that the overall perceived service quality in the lodging industry is significantly and positively associated with three dimensions: (1) Responsiveness, (2) Recovery, and (3) Tangibles, in that decreasing order of importance.     

The Effect of Market Orientation on Service Quality

Abstract

The authors explore the effect of market orientation on service quality based on a survey on Taiwanese security brokerage firms. The results indicate that market orientation and service quality have a positive relationship, but fail to support the proposition of a curvilinear, diminishing function. An ad hoc investigation on the effects of individual components revealed that, among the four market orientation components, only customer orientation and profit expectation have a more consistent and significant effect on overall service quality and the five service quality components. Important managerial and future research implications are offered.     

Marketing by CPAs

Abstract

Until the late 1970s, the AICPA discouraged commercial advertising and some other marketing tactics by practicing accountants. This study contacted 600 CPAs in the U.S. in an attempt to discover what kinds of marketing they employ, how useful they think it is, and how appropriate do they feel the AICPA's rules and regulations are in regard to marketing an individual CPA's services. Most thought the AICPA was fair. Accountants doing the most marketing tend to be younger males. “Conflict of Interest” was the area of most current concern in light of the ongoing problems of public accounting firms doing both auditing and consulting for the same client. “Newspaper” was the preferred advertising medium. Most of those surveyed were pleased the AICPA relaxed its restrictions on marketing and advertising, even though many CPAs still do not market their services to any great extent. This may change as younger accountants fill leadership positions in U.S. accounting firms.     

Individual Differences Among Service Employees

SUMMARY

To do an excellent job of managing external relationships, service firms must be prepared to do an excellent job of managing internal relationships. This effort begins with recruiting, selecting, and retaining employees who are likely to serve customers well. While service firms strive to match the knowledge, ability, and skills of potential employees to the requirements of the job, most do not have the time or the resources to implement elaborate recruitment and selection systems. This is especially true among services where relatively high turnover levels mandate that recruitment and selection processes be fast and inexpensive. To meet this challenge, managers often focus on a set of easily identifiable individual characteristics, such as experience, job tenure, age, or education that can be assessed during the time of an interview or scan of a job application. This study examines the effect of these characteristics on the attitudes and responses of service employees that are critical for the effective delivery of quality service (job satisfaction, self-efficacy, role stress, organizational commitment). The results indicate that satisfied and committed service employees tend to be older, better educated, and possess a great deal of service experience. These employees also appear to be better able to handle the stress associated with service positions. These characteristics are atypical of the service industry, where employees tend to be younger, possess relatively little experience in any one industry, and are less educated. Implications for managing the recruitment, selection, and retention of service employees are offered, as are directions for future research.     

Professional Tax Service Marketing from a Consumer Buyer Behavior Perspective

Professional services marketing such as accounting and legal services are often received as less smhisticated than product marketing. The prime message promulgated from existing research has often focused on the need for professional service firms to establish formal marketing technique; This paper investigates professional services marketing of tax services from a consumer behavior perspective and the implications of developing a marketing plan. Clearly, professional service providers are operating in a different consumer environment and the marketing implications are significantly different from product marketing.     

Identifying Client Fairness Criteria in Income Tax Services

Abstract

Organizational justice (i.e., fairness) has been an important construct in the management literature. Employee perceptions of the fairness of outcomes and procedures have been found to have important attitudinal and behavioral consequences. Fairness has more recently been studied in service industries. However, client perceptions of fairness in accounting services have yet to be explored. It is likely that fairness perceptions are particularly salient in income tax return services. In an exploratory study, we sought to identify the types of experiences that trigger these clients' perceptions of fairness. The results suggest some common criteria that can help CPAs and their firms mitigate the potential negative consequences of client perceptions of unfairness. Regression analyses were also used to determine the most significant predictors of client satisfaction with the overall service and global perceptions of fairness.