Employee behaviour and relationship quality: impact on customers

This paper examines relationship quality as a multidimensional metaconstruct comprising three dimensions; satisfaction, trust and commitment. The role of relationship quality in its nomological network with service orientation as an antecedent construct and consumers' positive behavioural intentions, perceived switching costs and activism as the consequences is explored. Survey data from 728 travellers are used, employing structural equations modelling to test this conceptualisation. It is found that service orientation affects relationship satisfaction and trust, and that the latter influences satisfaction and commitment. In turn, satisfaction, trust and commitment have a positive impact on positive behavioural intentions, trust has a negative impact on activism, and commitment a positive one on perceived switching costs. The implications of this conceptual and empirical understanding of relationship quality are discussed and directions for future research presented.     

Action control,proxy control,and consumers' evaluations of the service exchange

This article adopts a consumer's point of view, and extends current literature that models the relationships between consumers' control perceptions, service providers' fair behaviors, and consumers' satisfaction with the exchange. Perceived control is disassembled into action and proxy control and their differential actions in the service exchange discussed. This article models, for the first time, the joint effects of perceived control and service provider behaviors on consumer satisfaction by explicitly connecting service‐provider fair behaviors to consumers' perceptions of control. The results from two repeated‐measures experiments provide support for the hypotheses. Specifically, a multivariate analysis of the data demonstrated main effects for the experimental manipulations on perceived control, perceived fairness, satisfaction, and behavioral intentions. An interaction effect between perceived control and perceived fairness was also evident in one experiment. Future research and managerial implications are discussed. © 2004 Wiley Periodicals, Inc.     

The Effects of Airline Mergers on Consumers' Perceptions of Services and Behavioral Responses

Prior literature focuses on customer satisfaction in the airline industry, while research on consumers' perceptions and behavioral responses to airline mergers is limited and understudied. This paper conducts a field survey on the merger between United and Continental Airlines to examine the effects of an airline merger on passenger satisfaction, service value, and behavioral intentions through perceived service quality. Data were collected from airline passengers arriving at three US airports in two phases: before and after the merger across a period of four years. The results show a noticeable increase in customer satisfaction and positive behavioral responses with the postmerger United Airlines due to the perceived improvement in service quality. This study provides insights into the role of airline mergers in improving customer satisfaction, implications for airline managers, and directions for future research.     

The impact of buy-online-and-return-in-store channel integration on online and offline behavioral intentions: The role of offline store

Retailers have treated the buy-online-and-return-in-store (BORS) policy as an important initiative to reduce return losses and provide a better customer experience. Studies on BORS policy have primarily focused on the retailer's strategic value, but not on how such a seamlessly integrated omnichannel operation affects customer behavior. Using Chinese customer data and the structural equation model (SEM), we investigate how BORS channel integration impacts customer behavioral intentions, with the consideration of the mediating effect of customer satisfaction and the moderating effect of offline store characteristics. Based on the stimulus-organism-response framework, our research found that two dimensions of BORS channel integration (integrated return fulfillment and integrated customer service) positively impact customer satisfaction and subsequently impact behavioral intentions in different channels. Furthermore, offline store convenience moderates the relationship between integrated customer service and customer satisfaction. Product variety in the offline store moderates the relationship between customer satisfaction and offline behavioral intentions, while it is not statistically significant in the relationship between customer satisfaction and online behavioral intentions. Compared to the younger group, the older group who is satisfied with BORS service is more likely to purchase offline. These findings generate important theoretical and practical implications for omnichannel return operations.     

From disconfirmation to switching: an empirical investigation of switching intentions after service failure and recovery

This research proposes and empirically tests a customer switching intentions model from a disconfirmation perspective in a service failure and recovery context. Specifically, the research examines how initial (discrepancy between service failure expectation and service performance) and recovery (discrepancy between recovery expectation and recovery performance) disconfirmations influence satisfaction when a service failure occurs and a recovery offer is given, and subsequently impact switching intentions. The results support the hypotheses that both initial and recovery disconfirmations influence switching intentions via satisfaction. In addition, switching costs directly influence switching intentions and also moderate the effect of satisfaction on switching intentions.     

An Examination of Consumers' Motives to Switch Energy Suppliers

In most European countries, the energy industry continues to undergo dramatic changes. Customer relationship management concepts and their central focus - customer retention - are playing an increasingly significant role in the marketing considerations of energy supply companies. However, little is known about the reasons why customers remain loyal to a particular energy supplier or why they switch suppliers. The purpose of this study was to identify customers' switching motives, to investigate the relationship between customer satisfaction and switching intentions as well as to identify switching segments. A total of 462 customers of a German energy supplier were surveyed regarding their perceptions and future intentions in relation to their energy provider. Results using regression analysis show that customer satisfaction had a significant effect on switching intentions. Cluster analysis identified three distinct switching clusters; dissatisfied customers, relative satisfied customers seeking change, and dissatisfied customers seeking change. Results of this study are discussed in light of its theoretical as well as practical implications.     

Weathering consumer pricing sensitivity: The importance of customer contact and personalized services in the financial services industry

In a low-cost switching environment, certain firm actions undertaken by service employees can improve consumer loyalty, satisfaction and reduce price sensitivity. Interestingly, consumers' satisfaction levels can actually increase when experiencing a price increase. Counterintuitively, when consumers experience a price decrease, their loyalty decreases, suggesting that it might be in the firm's best interest to not offer such pricing discounts as these customers may be hypersensitive to price. Overall, it appears much easier for service employees to positively influence customer satisfaction than customer loyalty; satisfied consumers do not necessarily become loyal consumers.     

Behavioural responses to service encounter involving failure and recovery: the influence of contextual factors

This study investigates two features of customer satisfaction within the context of service failure and recovery: (i) the effect of perceived justice on customer satisfaction and (ii) the effect of customer satisfaction on repurchase intentions, negative word-of-mouth, and intention to complain. The study takes into account the influence of important contextual factors, including severity of failure, recovery responsiveness, attitude toward complaining, switching cost, and the relationship level. Based on a survey of 556 customers with complaints in Brazil, the results supported the influence of perceived justice on satisfaction and of satisfaction on behavioural responses. Specifically, findings revealed that perceived failure severity, attitude toward complaining, and switching costs were the more relevant contextual factors, as these were significantly associated with satisfaction, intention to complain, and negative word-of-mouth.     

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.     

Customer satisfaction and Scuba-diving: Some insights from the deep

This paper explores the concept of customer satisfaction in relation to the scuba-diving consumption experience. It investigates the myriad of tangible and intangible elements of the experience, from which scuba-divers derive a sense of meaning and/or satisfaction. The results indicate that satisfaction is gained from a complex array of consumers' perceptions of the dive itself, but also from a range of associated peripheral experiences surrounding the dive such as the service provided by the operator, the ‘communitas’ from the social interaction with other divers and the functional aspects of the dive. The study takes an ethnographic approach using qualitative methods of inquiry, since the purpose of the study was to develop a deeper understanding of the inter-relationships between the levels of service provided; customer satisfaction of scuba-divers; and the dive consumption experience. The findings illuminate the diversity and complexity of dive consumption experiences themselves and the perceptual cues used by customers for determining customer satisfaction and longer term behavioural intentions.     

Analyzing Customers' Switching Intentions in the Telecom Sector

ABSTRACT

Mobile Number Portability (MNP) has not only affected customers' behavioral patterns, but also increased competition among telecom operators. Against this backdrop, the study examines the relationship between customers' switching intentions and attitude towards MNP, customer loyalty, and switching barriers. It also investigates the impact of these intentions on actual switching or staying behavior of customers. Data were collected from a sample of 260 telecom customers comprising university students. Findings reveal that customers' switching intentions would largely depend upon switching barriers perceived by them. Switching intentions predict both actual staying and switching behavior. Our understanding of switching barriers is limited to those involved in switching from a current service provider to a new service provider. Future research can examine the barriers associated with returning to the original provider and the effect on the decision to leave in the first place, especially in the case of contractual agreements such as BSNL. The present study will help practitioners and telecom service providers in understanding the factors affecting customers' switching intentions to prevent switching.     

Displayed emotions to patronage intention: consumer response to contact personnel performance

The impact of service on consumers' brand attitudes and patronage intentions serves to stress its importance to service marketers. This study further investigates previous research by proposing an integrative model that examines the hierarchical influence underlying emotions displayed by service personnel and the subsequent effect on consumer behavioural intention in the retail service context. Results indicate that service personnel-displayed emotion hierarchically influences consumers' emotions, satisfaction with service personnel, brand attitude, and patronage intention. Findings also reveal that brand attitude plays a critical mediating role. This work discusses implications for retail service firms and marketing executives, in addition to providing direction for future research.     

WHY do YOU care about me? The impact of retailers’ customer care activities on customer orientation perceptions and store patronage intentions

The present research conceptualizes customer care activities as the process through which retailers satisfy consumers' needs by means of a set of interconnected services and address the role of warmth and competence perceptions, as well as consumers' inferred motives, in determining the downstream effects of care management activities on consumers' perceptions and intentions. The results from two experiments show that the number and framing of customer care activities affect customer orientation perceptions (Study 1) and that their fit with the overall retailer's image and the level of professionalism required to carry them out affects store patronage intentions (Study 2).     

Mood management through metaverse enhancing life satisfaction

This study aims to explore a social metaverse's positive effects as mood management on consumers' life satisfaction and usage intentions. A total of 304 survey responses from active users of a popular social metaverse platform, Zepeto, were collected with help from an online survey firm. Structural equation modeling analysis was conducted using AMOS 25.0. The direct paths from social metaverse consumption as positive mood enhancement and negative mood alleviation to consumers' life satisfaction were significant, which led to greater usage intentions. Positive mood enhancement influenced usage intentions both directly and indirectly through increased life satisfaction; however, the effect of negative mood alleviation on usage intentions was fully mediated by life satisfaction. Interestingly, for the players who spend money in the social metaverse, only the path from negative mood alleviation to usage intentions mediated by life satisfaction was significant.     

Asymmetric effects of customer emotions on satisfaction and loyalty in a utilitarian service context

This paper investigates the relative effects of customer positive versus negative emotions on satisfaction and loyalty in a utilitarian service setting. In-depth interviews with 20 call-center customers identify emotions and appraisals related to the customer service experience. Regression analysis of subsequent quantitative survey results from 1440 customers of a call-center shows that positive emotions influence satisfaction more strongly than negative emotions. In contrast, negative emotions influence recommendation intentions more strongly than positive emotions in line with prospect theory. However, for ‘higher risk’ repatronage the prospect of losses from switching reduces the effect of negative emotions resulting in a symmetric effect of positive and negative emotions on repatronage intentions.     

How does past behaviour stimulate consumers' intentions to repeat unethical behaviour? The roles of perceived risk and ethical beliefs

Repeated unethical behaviour by consumers is a serious challenge for participants in business transactions, including consumers, retailers, and those responsible for market supervision. Due to the inherent risk of such behaviours, we examine perceived risk to uncover the psychological mechanism by which consumers consider past behaviour (PAB) when deciding to repeat unethical behaviour. We divide perceived risk into two categories, material risk (MAR) and nonmaterial risk (NMR), based on two kinds of ethical evaluation and explore their mediating effects in the process through which PAB influences consumers' intentions to repeat unethical behaviour (CIRUB). We check the moderating effect of consumers' ethical beliefs on the relationship between PAB and CIRUB. We use survey data from four typical ethical scenarios to test the proposed structural relationships. Direct positive effects of PAB on consumers' intentions are observed in all four scenarios. NMR has stable, positive mediating effects in all scenarios. MAR is found to have negative mediating effects in two scenarios (switching price tags and using an expired coupon) and a positive effect in one scenario (copying software). However, no effect is observed in the benefiting from a cashier's mistake scenario. Finally, ethical beliefs are proven to positively moderate the relationship between PAB and consumers' intentions in the first two scenarios, but not the last two. This study also discusses the implications of the findings and offers suggestions for future research.     

Relationships and impacts of service quality,perceived value,customer satisfaction,and image: an empirical study

In today's world of intense competition, satisfying customers is only the base line and may not be sufficient for survival. Management should focus on gaining customer loyalty by enhancing customer perceptions of service quality and increasing as perceived by the consumer value. Although previous studies have addressed the importance of service quality, satisfaction, perceived value, and image, the precise nature of the relationships that exist between these constructs and the understanding of their effect on customer behaviour still remains a key issue. This empirical study seeks to understand the relationships that exist between service quality and perceived value and how they impact customer satisfaction, corporate image, and behavioural intentions. The proposed model indicates that delivering high quality service and creating superior customer value can result in achieve high customer satisfaction, thus effecting the firm's corporate image, and ultimately leading to consumer retention.     

An integrative framework for customer switching behavior

Due to increased intensity of competition, retention of customers has become a major concern in many service industries. Although researchers have investigated customer switching intention and its influential factors, the complex structural mechanisms that reduce the likelihood of switching intention in the field of financial services, especially in the banking context, have remained understudied. This paper addresses the role of customer satisfaction, customer loyalty, customer trust, and customer perceived value within a new conceptual model for customer switching intention in the banking services. In particular, the paper contributes to examine the potential moderating effect of switching barriers on the relationship between customer loyalty and switching intention as well as the relationship between satisfaction and switching intention of customers in the banking services. Data are collected through a questionnaire survey, and partial least squares-structural equation modeling is used for data analysis. Empirical results confirm the proposed model and hypotheses and show that switching barriers strengthen the impact of both customer loyalty and satisfaction on switching intention. The findings of this research offer a unified view of the structural relationships that contribute to reduced switching intention and provide more in-depth insights into the role of switching barriers in the banking context.     

Investigating antecedents of consumers' recommend intentions and the moderating effect of switching barriers

The current study moves beyond customer-perceived value, service quality, and corporate image and demonstrates that switching barriers are important factors influencing a customer's decision to recommend a service provider to others. This work examines a contingency model between customer-perceived value, service quality, corporate image, and switching barriers. The results indicate that the impact of these parameters on consumers' recommend intentions increases under conditions of high switching barriers. The implications of these results are also discussed.     

Website usability,consumer satisfaction and the intention to use a website: The moderating effect of perceived risk

This paper analyzes the influence of website usability on both consumers' satisfaction and intention to use a website, as well as the impact of satisfaction on usage intentions. Additionally, we study the moderating effect that consumer risk perceptions may have on the influence of website usability. Results show that website usability affects satisfaction which in turn affects intention to use. Contrary to expected, usability does not directly affect intention to use but has an indirect effect through consumer satisfaction. Finally, the usability effect on consumer satisfaction is moderated by perceived risk.