Key service drivers for high-tech service brand equity: The mediating role of overall service quality and perceived value

Abstract

This study investigates how different aspects of service quality could have effects on overall perception of service quality, perceived value, and service brand equity. Based on a survey of active users of mobile telecommunications services in Taiwan, we obtained the following findings. First, we found that empathy, network quality, reliability, and assurance, but not tangibles and responsiveness, have a significant effect on service quality and value perception. Second, the effect of overall service quality on brand equity is partially mediated by perceived value. Third, overall service quality has differential mediation effects on the relationships between specific service quality dimensions and perceived value. Finally, empathy and network quality have direct effects on brand equity. For managers, our study suggests the importance of identifying key service drivers for building strong service brand for high-tech service firms. The identification of key service drivers could then enable these firms to make strategic decisions on services investments. It also demonstrates the importance of the humanisation of technology for services firms. This study is original in that it explores the path from specific services qualities to service brand equity.     

Growing the service brand

Service brands are increasingly dominating the economy. However, there is limited knowledge about how to grow service brands, and whether growing service brands will require strategies different from the strategies that are based on goods brand research. To address this knowledge gap, this paper conceptualizes a “ServBrand triad” based on the service literature, and empirically demonstrates how its three drivers are related to service brand growth. Service brand growth is defined as positive changes in brand outcomes, such as the brand being liked more, used more, or more profitable or valuable to a firm. The empirical work utilizes 11 years of longitudinal brand and firm data that are analyzed by dynamic multivariate generalized method of moments (GMM) panel models. The findings confirm the importance of the three drivers of service brand growth: quality, personalization, and relationships. Service marketers are advised to emphasize relationship-based service personalization (as opposed to quality-based personalization), maintain consistent service quality “at” customer expectation, neither above nor below, throughout the relationship, and improve service quality gradually (or subtly) to avoid quality-cost tradeoff and quality inconsistency perceptions. These findings contribute to an improved understanding of the factors that drive service brand growth, and how those factors differ from the factors that drive goods brand growth.     

Validating a consumer-based service brand equity (CBSBE) model in the airline industry

Over time, scholars have argued that consumer-based brand equity (CBBE) models are less suitable for service-dominant brands, mainly because the role of customer experience with services is often disregarded. Also, the absence of two essential components, brand consistency and perceived value, signals a lack of depth in creating service brand equity. To address these gaps, we examine service-branding theory by conceptualizing and validating a consumer-based service brand equity (CBSBE) model in Sarker et al. (2019) in the context of airlines. Airline service direct experience and brand consistency are highly important aspects for strengthening brand equity components of services. Subsequently, maximizing perceived value, followed by creating favorable brand meaning are the nucleus of branding services. Using the most advanced PLS-SEM techniques, our CBSBE model is highly robust in explaining the theoretical notion of creating service brand equity. Thus, achieving a pleasant and desirable experience and maintaining consistency across direct service touchpoints would be an effective strategy for service organizations.     

Understanding organization-customer links in a service setting in Russia

This study examines the effect of management commitment to service quality on customer satisfaction through the mediating links of service climate and core and relational service performance in a high-power distance culture. Data were collected using a survey distributed to the FLEs and customers of branches of a Russian retail bank. Study findings demonstrate that branch service climate mediates the management commitment to service quality – service performance relationship and that this indirect effect is stronger on core service performance relative to relational service performance. Contrary to expectations, our findings demonstrate the importance of relational service performance relative to core service performance as a mediator of the branch service climate – branch customer satisfaction relationship. Implications of these novel findings and future research directions are discussed.     

Revisiting the showrooming effect on online and offline retailers: The strategic role of in-store service

This study revisits the showrooming effect on online and offline retailers and is the first to examine the strategic role of in-store service in this regard. Considering the effect of in-store service in attracting consumers to offline channels and the showrooming effect of persuading offline consumers to purchase online, we propose a model consisting of two firms, a brick-and-mortar (BM) store and an e-tailer that can invest the staff or facilities necessary to deliver in-store services to consumers. Based on the service decisions, the two firms make their pricing decisions. We compare the optimal decisions of retailers in the cases without and with showrooming to explore the interaction between in-store service and showrooming. Our findings indicate that when a customer bears a high travel cost to visit the BM store, the store should lower the price, and improving the in-store service is ineffective in countering the consumer's showrooming behavior. Moreover, the service level in the case with showrooming can be either higher or lower than in the case without, and the outcome mainly depends on the efficiency of the service investment. Interestingly, in-store services can lead to a win–win situation for both online and offline retailers with showrooming. This study can also be extended to the case of powerful e-tailers or competing BM stores.     

Brand defection in a business-to-business financial service

This research examines the reasons for brand defection in a business-to-business financial service. Three cross-sectional studies examine customers who ceased using a brand in the previous month. The research shows that about 60% of brand defection occurs for reasons that brand managers cannot influence, such as business closure or head office decisions. Hence, retention strategies can have a maximum success rate of 40%. Furthermore, most defection within this 40% relates to dissatisfaction with fees and charges, or the attractiveness of competitors' offers. These reasons limit what brand managers can do to retain these customers other than just matching competitors' offers. On the other hand, most customers who defect because of price issues or reasons beyond management control still have a positive attitude towards their former brand and are likely to consider this brand for future purchases. Only 4% of lapsed customers defect because of service service-related issues. These customers are less positive about their former brand, compared to other lapsed customers. The research provides implications for investments in customer acquisition versus customer retention.     

Factors influencing employee perceptions of customer service climate

This study examines the relationships between certain organizational variables and employees' perceptions of the customer service climate in their organization. In addition, the role of organizational commitment in this process is examined. Results indicate that rewarding employees for service excellence, allowing their voice to be heard by upper management, providing employees with the information and technology needed to do their jobs, providing adequate training to customer contact employees, allowing employees enough time to get their tasks done, and providing a work environment conducive to getting work done are all positively associated with employee perceptions of customer service climate. Based on mediated regression and a LISREL analysis, these relationships are all found to be partially mediated by organizational commitment. These results are consistent with previous customer service research, which has found organizational support and rewards to be positively related to customer service. We extend this literature by showing that organizational commitment may be a key variable linking organizational support and rewards to customer service. Implications of these findings are discussed and suggestions for further research are offered.Lincoln National Corporation     

Investigating the service brand: A customer value perspective

Despite considerable interest in the nature and role of marketing using a service perspective [Vargo S., Lusch R. Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1-17] there is limited research about branding. Research to date tends to be qualitative [e.g., Berry L. Cultivating service brand equity. J Acad Mark Sci 2000; 28: 128-137; de Chernatony L., Segal-Horn S. The criteria for successful services brands. Eur J Mark 2003; 37 (7/8): 1095-1118] rather than quantitative. This research closes this gap by developing and testing a theory of the influence of the service brand on the customer value-loyalty process. The model includes the traditional influence of brand image plus three additional influences that more fully reflect the broader service perspective (company image, employee trust, and company trust). Using survey data of a sample of 552 airline customers, the analysis shows there is a direct influence of all the aspects of the brand on customers' perceptions of value. In addition brand image, company image and employee trust have a mediated influence on customer value through customers' perceptions of service quality. Finally the analysis shows that a service brand does not have a direct influence on customer loyalty but rather its influence is mediated through customer value. This paper concludes with a discussion of the managerial and research implications.     

混合服务质量对双线服务忠诚的影响——线上线下融合视角

传统服务质量和电子服务质量已广受关注,但同时基于人-人交互和人-技术交互的混合服务质量还缺乏深入探索。文章基于我国线上线下融合情境构建并实证分析了混合服务质量对双线服务忠诚的影响模型。实证分析表明,实体服务质量、电子服务质量、整合服务质量对感知价值和线上忠诚有积极影响,实体服务质量、整合服务质量对关系质量和线下忠诚有积极影响;感知价值和关系质量对线上线下忠诚均有积极影响;并且,感知价值和关系质量在混合服务质量三维度与线上线下忠诚之间起到一定程度的中介作用。此外,跨渠道质量不一致负向调节了电子服务质量、整合服务质量对感知价值的影响,负向调节了实体服务质量、整合服务质量对关系质量的影响;渠道使用模式负向调节了电子服务质量、整合服务质量对感知价值和关系质量的影响。研究从线上线下融合视角深入挖掘了混合服务质量影响服务忠诚的顾客心理机制和多渠道异质性特征,对混合服务提供商的服务质量和顾客忠诚管理有一定启示作用。     

基于线上线下融合的混合服务质量--内涵、维度及其测量

信息技术的进步促进了线上线下渠道的融合发展,传统服务业正在积极利用线上线下渠道改变服务的生产、传递和消费方式,线上线下融合的混合服务质量管理变得日益重要。文章基于多渠道交易过程视角,考虑顾客通过混合服务传递系统与服务企业的接触体验,全面定义和测量了线上线下融合的混合服务质量。运用访谈法、内容分析法、预调研和大样本调查分析,在中国情景下开发了线上线下融合的混合服务质量测量量表(OMO-HSQ)。通过因子分析、信度检验、效度检验和竞争模型比较分析,证明该量表有良好的心理测量学品质。研究表明,线上线下融合的混合服务质量包括了实体服务质量、电子服务质量和整合服务质量三个主维度及其十五个次级维度和对应的六十一个测量题项,混合服务质量构成维度对总体混合服务质量的相对贡献由大到小依次为整合服务质量、实体服务质量和电子服务质量,实体服务质量评价得分要依次高于电子服务质量和整合服务质量,企业类型、消费者类型和服务行业类型对混合服务质量有差异化影响。研究为测量混合服务质量提供了科学依据和工具,对混合服务企业服务质量管理有重要实践启示。     

Online customer service and retail type-product congruence

This study investigates how various elements of customer service affect the behavioral intention to shop at the online or the offline store for different product categories. We focus on the perceived value, trust, interface, empathy, and offline presence as the dimensions of the customer service for the retail store (online or offline). Using 317 respondents from the online stores’ users, this study finds that perceived value is the strongest predictor for future intention to shop at online stores, whereas offline presence of an online store did not enhance the future intention to shop at online stores. Other dimensions such as enhanced trust and ease of interface strengthen the intention to purchase at the offline stores. Finally, perceived value and empathy associated with online stores harm the offline stores. In synch with the Theory of Congruence, this study supports the notion that the perceived congruence between product type and retail store type affect their intention to purchase certain product categories at the online stores and to purchase other groups of product categories at offline stores. Further ramifications of these findings are discussed in the paper.     

Brand community: Drivers and outcomes

Groups of users and admirers of a brand who engage jointly in group actions to accomplish collective goals and/or to express mutual sentiments and commitments are known as brand communities. Lately, brand communities have been a heavily researched topic in marketing science. While the positive consequences of brand communities are well documented in the literature, little is known about how brand communities can be facilitated and how consumer–brand relationships can be fostered. This research empirically assesses the relevance of offline (i.e., events) and online marketing management tools (i.e., Web sites with online bulletin boards and online expert chats) to strengthen brand communities by facilitating shared customer experiences and multi‐way interactions. Additionally, the importance of consumer–brand identification as a consequence of such relationship‐building activities is investigated, and the outcomes of a consumer's identification with a brand are analyzed. Important management implications can be derived. © 2010 Wiley Periodicals, Inc.     

New financial service development for banks in Taiwan based on customer needs and expectations

The purpose of this study aims to employ an analytic approach to analyze efficient managerial strategies for advancing new service development (NSD) by involving viewpoints of customer needs and expectations within a financial service context. This paper uses a sample of potential banks' credit card applications, customers' preferences and satisfaction ratings, and new credit card service data with the applications of both analytic hierarchy process and VlseKriterijumska Optimizacija I Kompromisno Resenje to analyze customer satisfactions and preferences simultaneously. Then, it applies the importance–performance analysis technique to diagnose managerial strategies for reducing the customer gaps between customer perceptions and expectations. The study emphasizes the importance of analyzing customer preferences and reducing gaps between customer satisfactions of perceptions and expectations to ensure NSD success.     

Brand hate and non-repurchase intention: A service context perspective in a cross-channel setting

The purpose of this study is to investigate the brand hate phenomenon for service products in a cross-channel setting (offline/online environment). To reach this objective, structural equation modeling was employed on a sample of 265 consumers. Findings reveal that brand hate positively influences offline negative word-of-mouth (NWOM), online complaining, and non-repurchase intention. Furthermore, while offline NWOM has a positive effect on non-repurchase intention, online complaining has a negative one. Finally, a mediated path was identified, which starts from brand hate and ends with non-repurchase intention through online complaining and offline NWOM. The study provides implications for firms’ marketers and practitioners.     

A new service development integrated model

Several scholars have proposed a new service development (NSD) process but the failure rate of NSD is high, due to the lack of an efficient development process and customer orientation and input. Quality function deployment (QFD) is one of the structured methodologies that is used to translate customer needs into specific quality development, but the effect should be improved, especially when used in service industries applications. This research integrated Kano's model with QFD to categorize the attitude, and proposed a revised improved ratio to strengthen the rise in customer satisfaction, then through the revised gap model the gaps are evaluated to provide an indicator to the manager about the importance, priority and direction of the service development. Two illustrative cases are applied to this research, which proves the obvious contribution of this integrated model.     

The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image

This study examines the mediating role of customer relationship management (CRM) quality to better explain the effects of service evaluation variables (service quality, customer satisfaction and customer value) on customer loyalty. The study also investigates the moderating effect of brand image on these mediated relationships. The mediating role of CRM quality on the relationship between the service evaluation variables and customer loyalty is supported. Further, it is found that the indirect effect of customer satisfaction on customer loyalty via CRM quality is stronger when perceived brand image is high than when it is low. The results have implications for relationship managers, brand managers and scholars who use service evaluation and relational metrics to predict customer loyalty.     

新零售企业多渠道整合服务质量对重购意愿的影响--顾客涉入度的调节作用

采取线上线下多渠道整合的零售模式已成为新零售企业主流模式,顾客重购意愿是新零售企业重要竞争力之一,也是衡量多渠道整合服务实施效果的重要标准。通过构建以顾客体验为中介的多渠道整合服务质量对重购意愿影响概念模型,引入顾客涉入度作为调节变量,经过调查分析384名在同一新零售企业线上线下渠道有购物经历的消费者,研究结论如下:多渠道整合服务质量对重购意愿有显著积极影响;多渠道整合服务质量对顾客体验有显著积极影响;顾客体验对顾客重购意愿有显著积极影响;顾客体验在多渠道整合服务质量与重购意愿之间起部分中介作用;顾客涉入度在多渠道整合服务质量与顾客体验关系中起正向调节作用。研究结论拓展了多渠道整合服务质量对重购意愿影响的内在机理,明确了顾客体验在其中的重要中介作用,探明了顾客涉入度在多渠道整合服务质量影响顾客体验过程中的重要调节作用。新零售企业既可以通过多渠道整合服务质量提升顾客重购意愿,也可以通过极致的顾客体验提升重购意愿,而且通过加强顾客涉入度管理可有效提升顾客体验与重购意愿。     

Linking service climate to customer loyalty

The present study evaluates the effect of service climate on customer loyalty by incorporating resident perceptions of service quality regarding their interaction with staff members in a nursing home. The study also explores the mediating role of service quality between service climate and customer loyalty. A conceptual two-level model linking service climate to customer loyalty was developed and analyzed using data collected from 197 nursing staff members and 477 residents in 44 nursing homes in Taiwan. The results show that service climate improves service quality and customer loyalty and provide empirical support for the mediating role of service quality between service climate and customer loyalty. Both theoretical and practical implications are discussed as well as future research directions.     

What induces online loyalty? Online versus offline brand images

This study investigates the effect of the interplay between a multi-channel retailer's offline and online brand images on consumers' online perceived risk and online loyalty within the framework of a theory of cognitive dissonance. A sample of 671 female college students participated in an experiment using a 2 (prior offline brand image) × 2 (online performance) between-subjects design. Results reveal that offline brand image exerts significant effects on online brand image - which, in turn, significantly explains online perceived risk - and online customer loyalty. However, online perceived risk has no significant effect on online customer loyalty after controlling for the effects of online and offline brand images. These results provide implications for the direct and indirect halo effects of offline brand image and the direct effect of online performance that may influence consumers' perceptions, expectations, and loyalty regarding multi-channel retailers.