Service Orientation: Its Impact on Business Performance in the Medical Service Industry

From the viewpoint of internal marketing, employees who are content in their job may be motivated to satisfy their customers better than ones who are not content. Another relevant premise is that the content employees, because of their work motivation, would eventually help improve the performance of their firm. To verify these relationships, some previous studies looked into the effects of organisational service orientation on employee's satisfaction. But only few of them investigated the mediating effects of variables such as service value and customer orientation for their role in linking service orientation to business performance. This study examines how an organisation's service orientation had an effect on its performance at hospitals. For this purpose, verification of the mediating role of service value perceived by employees as well as the role of customer orientation on the firm's performance was attempted. For this study, a total of 292 usable questionnaires were collected from hospital staffs located in metropolitan cities of Korea. The hypotheses concerning relationships among service orientation, service value, employee satisfaction and customer orientation were verified by covariance structural modelling, using SPSS 10.0 and AMOS 4.0 programs. The result is as follows. First, organisational service orientation had a positive effect on both employee satisfaction and service value perceived by hospital staff. Second, employee satisfaction had a positive impact on service value and customer orientation. Finally, service value as well as employee's customer orientation were found to exert positive influence on the medical firm's performance.     

Emotional labour and surplus value: the case of holiday ‘reps’

Service organizations are encouraged by the literature [Grönroos, 1996, 1997; 2000; Zeithaml and Bitner, 2000] to consider the manner in which employees perform at the customer/front-line employee interface, as a means to gain competitive advantage. The employee's behaviour requires ‘emotional labour’ [Hochschild, 1983] where the front-line employee has to either conceal or manage actual feelings for the benefit of a successful service delivery. The implication is not necessarily of equality or mutual benefit but of satisfaction for the customer and profit for the management. The article discusses whether the service employee is being exploited in this three-way relationship, and how surplus value accrues and its benefit distributed. Expecting emotional labour from employees can be exploitative, thus increasing the risk of potential deceit, in particular where poor recruitment, training and support recovery accompany the expectations of the emotional labourer. To illustrate this argument, data gathered from in-depth interviews with three holiday ‘reps’ are used.     

Investigating the Effect of Employee Empathy on Service Loyalty: The Mediating Role of Trust in and Satisfaction with a Service Employee

Abstract

This study examines the indirect effect of employee empathy on service loyalty through the intervening effect of trust in and satisfaction with service employees during service interactions. Data were obtained through a self-administered questionnaire from university students. A total of 410 useable responses were used to perform data analysis. Confirmatory factor analysis, structural equation modeling, and bootstrapping for indirect effects were conducted to test the hypotheses. The results show a significant effect of employee empathy on trust in service employee and satisfaction with service employee during customer–employee interactions. Also, satisfaction with a service employee showed a significant effect on service loyalty during service interactions. The study enhances the understanding of empathy within banking services during interactions between service employees and customers. It also provides insights for service managers and frontline service employees on how empathy develops customer’s trust and satisfaction with service employee.     

Implementation and Outcomes of Customer Value: A Dyadic Perspective

This study examines the concept of customer value based on the views shared by service firms and their consumers. Using qualitative and quantitative approaches, the study reveals customer satisfaction and retention as outcomes of front-line service employees' value delivery practices. Our results suggest that service employees' efforts to deliver customer value, even when based on a dyadic view, do not necessarily lead to customer retention. Rather, customers become more loyal when the value provided by service employees is matched by consumers' satisfaction. In other words, satisfaction is an important and necessary mediating variable between employees' efforts and customer retention.     

Bridging the gap between employees and customers

Abstract

Employing modern definitions of the marketing concept, we develop a unified model to measure the market orientation construct. We then employ a chain-link model linking employee satisfaction and motivation to customer behaviour and firm profitability, demonstrating that market orientation mediates the employee–customer relationship. Hence, while past research has studied market orientation, per se, we demonstrate why it is important – it serves as the bridge to link employees and customers.     

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.     

The impact of staff empowerment and communication style on customer evaluations: The special case of service failure

Empowering front-line staff to deal with service failures has been proposed as a method of recovering from service breakdown and ensuring greater customer satisfaction. However, no empirical study has investigated consumer responses to empowerment strategies. This research investigates the effect on customer satisfaction and service quality of two employee characteristics: the degree to which the employee is empowered (full, limited, and none), and the employee's communication style (accommodative–informal and personal, and underaccommodative–formal and impersonal). These employee characteristics are studied within the context of service failures. Subjects were shown videotaped service scenarios, and asked to complete satisfaction and service quality ratings. Results revealed that the fully empowered employee produced more customer satisfaction than the other conditions, but only when the service provider used an accommodating style of communication. Fully empowered and nonempowered employees were not judged differently when an underaccommodating style of communication was adopted. © 1997 John Wiley & Sons, Inc.     

The Effect of Requests for Positive Evaluations on Customer Satisfaction Ratings

In order to focus service employees’ attention on delivering high levels of customer satisfaction, many companies directly reward (or punish) employees who deliver high (low) levels of satisfaction as reported in companies’ formalized satisfaction measurement processes. As a result, many frontline service employees attempt to influence their customers’ satisfaction evaluation by specifically asking them for positive ratings on surveys completed after the service encounter. Using psychological reactance theory, this research considers the impact of requests for positive evaluations on customers’ satisfaction and future intentions. The results indicate that customers who were asked to provide a positive evaluation actually report lower levels of satisfaction compared to customers who were not asked. The results also indicate that the request for positive evaluation has a negative influence on customers’ repurchase intentions and positive word‐of‐mouth intentions, but only for customers who had a more internal locus of control compared to those with a more external locus of control.     

There is no dark side of customer aggression − It’s all dark

ABSTRACT

Customer mistreatment is a daily experience of service employees, with a considerable accumulating adverse impact reflected in distress, reduced performance and withdrawal. This paper builds on research addressing the universality of customer aggression and the I3 model which is used to explain aggression, to describe how the combined impact of norms of perfectionism and intensified customer–employee power differentials engender prevalent customer aggression. It is suggested that constant violation of unrealistic expectations threatens customers’ inflated sense of worth. Additionally, because service employees are prevented from both the ‘fight’ and the ‘fight’ reactions to customer aggression, social exchange in the service context does not involve any sanctions for customers. It is recommended that, similar to sexual harassment and organisational bullying, customer aggression should be addressed through legislation requiring organisations to protect their employees.     

Hotel Service Recovery and Service Quality: Influences of Corporate Image and Generational Differences in the Relationship between Customer Satisfaction and Loyalty

ABSTRACT

As the number of tourists continues to grow globally, the hospitality industry players inevitably face more challenges. High competition among the competitors and the emergence of new technologies such as online booking platforms make the competition more intense among players in the hospitality sector. The quality of services provided is undoubtedly crucial to the success of the hotel. Hence, any service failure has to be addressed appropriately in order to maintain a high level of customer satisfaction and to keep the image of the hotel intact. It is therefore vital that service recovery programs are carefully planned to meet various types of service failures which may inevitably occur. In this study, questionnaires were distributed to customers who had experienced service failures. The aim was to investigate the influence of service quality and service recovery on satisfaction and, ultimately, the effect on customer loyalty. The research also tested the mediating effect of corporate image between the relationship of customer satisfaction and customer loyalty. The findings showed that both service recovery and service quality had a significant impact on customer satisfaction. Similarly, it was found that customer satisfaction induced customer loyalty towards the hotel operator. The result also showed that corporate image mediated partially between the relationship of customer satisfaction and customer loyalty.     

Receiving,Recording, and Responding to Customer Complaints: The Effects of Formalizing Customer Complaint Handling Policies in Retail Firms

ABSTRACT

Given the critical need for retail firms to provide high quality customer service and satisfaction, this article investigates the importance of formalizing customer complaint handling policies and procedures with regard to its relationship to the ways in which retail companies receive, record, and respond to customer complaints. A survey of 184 firms from the retail environment of a midsized community reveals that the existence of such formalized procedures is significantly associated with firm size, better channels of communication with customers, mechanisms of recording customer feedback, and better-trained employees, which have been shown to relate to higher firm performance.     

Transformative value co-creation with older customers in e-services: Exploring the influence of customer participation on appreciation of digital affordances and well-being

This study challenges the negative assumption that older customers struggle to adapt to e-service by exploring the positive influence of their participation on transformative value co-creation. A two-phase mixed-methods approach was adopted to develop and validate the research model. The results found that customer participation, including information sharing, responsible behaviors, and in-role feedback, promotes older customers' digital skills and basic needs satisfaction, leading to higher appreciation of digital affordances and well-being. Additionally, online employees’ customer orientation positively moderates the above relationships. This study provides insight for service providers to include older customers in e-services.     

Examining Employee—Service Personality Congruence

Abstract

Recent research indicates that service personality, conceptualized as the set of human characteristics associated with the service firm, plays an important role in services marketing. Research further indicates that the congruence between customer personality and service personality influences important outcome variables. Specifically, customer-service personality congruence has been shown to influence service quality perceptions, subjective disconfirmation, and word of mouth intentions. The current study extends this line of research by considering how employee-service personality congruence (ESPC) influences job outcome variables including service delivery, job satisfaction, intentions to leave, and organizational commitment. Empirical data, gathered from a sample of financial services employees, support hypothesized relationships between ESPC and these outcome variables. Furthermore, personality traits from the Five-Factor Model of personality (Costa & McCrae, 1992) are shown to play an important role in ESPC perceptions. Managerial implications and directions for future research are discussed.     

The Effect of Cultural Distance on International Marketing Strategy: A Comparison of Cultural Distance and Managerial Perception Measures

ABSTRACT

The purpose of this article is to examine whether service convenience increases customer satisfaction that fosters customer loyalty in Indian commercial banks. A cross-sectional study of 352 retail banking customers through questionnaires was conducted. The population of the study is retail urban customers of banks in Rajasthan. Responses are analyzed using structural equation modeling. Dimensions of service convenience are decision convenience, access convenience, transaction convenience, benefit convenience, and postbenefit convenience. Decision convenience was found to influence customer satisfaction more than the other dimensions of service convenience. Customer satisfaction furthers customer loyalty. The article emphasizes the significance of SERVCON on customer satisfaction for the Indian banking sector. The direct impact of SERVCON on customer loyalty is also studied.     

What Sells in Romania: Performance or Relationships?

ABSTRACT

The norm for sales organizations is the pursuit of long-term profitability through positive relationships with key accounts. Sales professionals begin and end their activities with the customer in mind, aiming to maximize their relationships over a long period of time. This article examines the association between buyer and seller relationships and customer satisfaction as well as the association between customer service orientation and customer relationships. Findings suggest that the ability to meet customer sales service expectations as well as the existence of positive relationships between buyers and sellers is associated with customer satisfaction. Implications for managers are explored.     

It takes two to interact – Service orientation,negative emotions and customer phubbing in retail service work

The purpose of this paper is to empirically explore the relationship between frontline employees' service orientation, negative emotions and handling strategies during situations of customer incivility involving phubbing. In such situations, the logic and the practical implications of service orientation are challenged. Drawing on a survey of 2,940 employees in the Swedish retail sector, the paper shows that service orientation impacts upon how situations involving difficult customers are handled, and that this impact is mediated by employees’ negative emotional reactions. The paper contributes to retail management by pointing to the limitations of solely relying on service orientation and similar ideals in situations of customer incivility.     

顾客参与对员工工作满意的影响研究——基于角色理论视角

顾客参与会导致顾客满意,这是被许多学者证实的事实。然而,顾客参与是否也有利于员工工作满意呢?梳理相关文献发现,有关顾客参与与员工工作满意关系的研究并不多,而且结论也不一致。因此,文章基于角色理论视角,引入角色压力、角色导向和角色替代三个变量,系统研究了顾客参与对员工工作满意的影响。文章最后讨论了研究的理论贡献和管理贡献,并指出了未来研究的方向。     

A value-based perspective of market orientation and customer service

This study aimed to build a model of business performance based on customer value-defined market orientation. In the context of a service retail industry, both firms’ and customers’ perspectives were involved in the development of the construct, using such dimensions as management support, employee efforts and customer satisfaction. The authors undertook a large-scale fieldwork to collect matched response data from firms and consumers and to test the proposed model. The results provide empirical evidence of the effects of a customer value-based market orientation on business performance, measured in terms of customer retention. In addition, this study identified three drivers of employees’ effort to implement market orientation from a value perspective.