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.     

Life after death? Analyzing post-defection consumer brand equity

The industry literature is full of the idea of winning back lapsed customers. Yet marketing practitioners and academics know very little about what happens to customers after they stop buying the brand. This research investigates the brand equity of lapsed customers of five major financial institutions. The analysis compares the propensity for positive and/or negative brand associations, overall brand evaluation, and the propensity to consider the brand in the future across the main segments of lapsed customers. The results show that the group of lapsed customers is not homogenous, but consists of distinct segments. Customers who defected for different reasons also differ in their post-defection brand equity. The paper concludes with implications for winback strategies for lapsed customers and brand equity measurement and management.     

Perceived power imbalance and customer dissatisfaction

This study explores the causes of customer dissatisfaction in service interactions in which customers perceive a status of lower power than the service providers. Characterizing such service encounters as encounters between powerful service providers and subordinate customers, the study attempts to identify the service providers' specific actions that caused customers to experience memorable dissatisfaction. For contexts of the study, professional, judgemental, and governmental services are used. The customers' dissatisfying experiences with these services were studied by using the critical incident technique to uncover and classify the causes of dissatisfaction as well as their post-encounter behaviours. During the data analysis, 10 causes of dissatisfaction emerged. In addition, customers' reactions to their dissatisfaction were noted and classified. Implications for practitioners and academicians are provided.     

Impact of patient portal behavioral engagement on subsistence consumers' wellbeing

Subsistence consumers, representing almost half the global population, live on low incomes, possess low levels of literacy, and generally experience poor health. Technology is a tool used to facilitate stronger connections between consumers and support services, including for subsistence consumers. Given the unique characterization of subsistence marketplaces, research needs to examine potential associations between subsistence consumers' individual resource integration and wellbeing via their behavioral engagement with technologies. Research is also warranted that investigates the factors that can moderate this association. A 45-day customized patient portal app was delivered via 26 healthcare service providers, resulting in the surveying of 336 subsistence consumers who used the portal. The results indicate positive associations between subsistence consumers' individual resource integration, patient portal behavioral engagement, and wellbeing. They also indicate that these associations are strengthened by service provider's resource support and subjective norms, and weakened by medical mistrust. Theoretical and managerial implications from this study's findings are discussed.     

Consumer Acceptance of mHealth Services: A Comparison of Behavioral Intention Models

Recent appropriation of mobile devices to deliver health services is transforming the health care landscape, offering reduced costs and increased access for service providers and consumers. This article examines factors influencing consumers' decisions to adopt mobile health (mHealth) services through a comparison of three behavioral intention models. A national web-based survey of 482 French adults indicates that the model of goal-directed behavior (MGB) more fully, though less parsimoniously, explains consumers' acceptance of mHealth services. This research provides insight into the usefulness of the MGB in improving understanding of the determinants of behavior situated at the intersection of health, service, and technology.     

Using customer motivations to reduce peak demand: does it work?

This study considers whether consumers' motives to avoid waiting can be used to benefit both themselves and the services they attend. Specifically, two related aspects are explored: informing customers about alternative service delivery options that will allow them to avoid physically standing in line, and telling them at which times and days the service is usually busier (hoping they will avoid the more congested periods). The main issue is whether customers will alter their behaviour to avoid waiting –even in the absence of other incentives. Examples from four attempts to modify customer behaviour at two bank branches are analysed. Some of these attempts were quite successful in accomplishing their intended purpose and others were not. Results suggest that peak demand can be reduced and overall demand can be levelled using customer motivations, although the effectiveness of implementation depends on a number of factors. These factors include, among others, the type of clientele and the flexibility of the capacity.     

The Underlying Dimensions of Relationship Marketing in the Malaysian Mobile Service Sector

After so many years, the Malaysian mobile service market is getting saturated, whereby service operators are having difficulties differentiating themselves because they offer similar services. As the service options are wide, customers become less committed to a particular provider and might easily shift from one operator to another. This situation forces the service providers to create a strategy that focuses more on gaining and retaining long-term relationships with their customers. Therefore, the objective of this study is to determine the underlying dimensions of relationship marketing in the Malaysian mobile service sector. A sample of 300 customers in Klang Valley was drawn using scientific procedures of mall intercept, and structural equation modeling was utilized in testing the proposed model. The results show that the relationships between the exogenous latent factors and the overall endogenous factor are significant, ranging from.77 to.94. This illustrates that a relatively high proportion of the variance in relationship marketing is well explained by each of the factors.     

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.     

A two-dimensional model of trust–value–loyalty in service relationships

The study examines the relationships between consumer trust (cognitive and affective), perceived value (utilitarian and hedonic), and loyalty behavioral intentions (repurchase and advocacy) in a two-dimensional (affect- and rational-based) consumer–service provider model. It provides an alternative theoretical representation of consumer behavior in service relationships and implications for service providers about consumers' loyalty intentions. A mail survey analyzed by SEM supports the model of loyalty as a function of consumers' expressive and instrumental responses resulting from intrinsic and extrinsic perceptions of trust and heuristic and rational-based perceived value. Implications for designing loyalty programs are explored and future research opportunities recommended.     

Does consumers' personal reciprocity affect future purchase intentions?

In this study, we examine the mediating role of a consumer's personal reciprocity in the relationships between brand trust, brand loyalty and product familiarity, and future purchase intentions. Data from 308 printer users in Hong Kong reveals that a consumer's personal reciprocity partially mediates the relationships between brand trust and brand loyalty, and future purchase intentions. The theoretical implication is that personal reciprocity not only enhances consumers' future purchase intentions but also provides an alternative path linking brand trust and brand loyalty to consumers' future purchase intentions. The managerial implication is that by capitalising on a consumer's personal reciprocity in the context of consumer-firm relationships, firms can improve their performance in retaining existing customers.     

Consumers' inferences about quality across diverse service providers

When consumers encounter different services as part of the same service experience they may use information about one group of service providers to draw inferences about the quality they expect to receive from another group of service providers. This research identifies the conditions under which information about the quality of one type of service (e.g., a hotel's front desk) influences quality perceptions of another type of service (e.g., a hotel's tour services). Results show that consumers' beliefs about managerial control influence generalizations across service providers. Also, consumers infer managerial control from the spatial proximity between the premises of the service providers. © 2009 Wiley Periodicals, Inc.     

Exploring Managers' Views About Brand Saboteurs

This paper explores the relationship between employee behaviour and service brand performance. Current literature emphasizes the importance of employee behaviour in delivering a strong service brand, and suggests that employees can be clustered according to their degree of support for the brand. Twenty in-depth interviews were undertaken with HR and Marketing managers in financial services and grocery firms. In the context of employees as brand builders, we explore whether managers have recognized variations in the level of employee support for the brand. Specifically, we surface managers' views about negative performers, or 'Brand Saboteurs'     

A cross-cultural exploration of situated learning and coping

Extant consumer behavior research has alluded to learning in coping with stressful experiences; however, little research exists regarding situated learning or in situ learning that is dynamic and changing in nature. This exploratory study addresses the important but under-studied area: consumers' situated learning with stressful service experiences. It provides in-depth understanding of key factors influencing situated learning and its relevance to effective coping. Specifically, we examine the influencing factors of situated learning and how it relates to effective coping. Besides, we explore the differences in situated learning across two cultural contexts by understanding consumers in USA and China. Through Semi-structured and in-depth interview with 20 U.S. consumers and 16 Chinese consumers, we found that situated learning is an important mechanism that enhances coping. Need for closure, psychological closeness to the problem, and consumer expertise helped enhance consumers' learning and coping. Unlike their U.S. counterparts, Chinese consumers initiated the process of learning long before experiencing the actual service, possessed greater zone of tolerance towards stressful service episodes with attempts to even “save the face” of providers, and trusted their own ability to cope rather than depend on the service provider. Interestingly, U.S. participants discussed the importance of optimism as a way to learn and cope.     

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.     

Boundary Spanners' Satisfaction with Organizational Support Services

SUMMARY

Internal services (i.e., support services) are an important form of organizational support for external boundary spanners (e.g., salespeople, customer service representatives). Internal services such as information systems, market research, training, accounting, and facilities support are intended to allow boundary spanners to better serve the firm's customer. Little research, however, has addressed factors that influence a boundary spanner's satisfaction with such services. The research presented here offers insight into how internal communication by both managers and service providers impacts a boundary spanner's satisfaction with support services. Results indicate that service provider and manager communications are largely complementary and that satisfaction with service outcomes, rather than service quality, appears to have an enduring impact upon a boundary spanner's overall job satisfaction. Implications for future research are addressed.     

Investigating pharmaceutical logistics service quality with refined Kano's model

This study applies the refined Kano model and importance-satisfaction model to investigate medical institutions' satisfaction with and perceptions of importance of domestic pharmaceutical logistics services. Survey data involving 104 respondents from medical institutions are analyzed with importance-satisfaction and the refined Kano model. The results demonstrate that the refined Kano model will generate different classification of quality attributes for the pharmaceutical logistics industry, and medical institutions with different characteristics really have varying responses to quality attributes of pharmaceutical logistics services. The present research contributes to the literature by demonstrating that provision of high-value-added and crucial quality attributes by service providers can give them an edge in the market. In addition, when service providers understand their customers’ attitudes toward innovative service, it can enable them to strengthen their tactics in a competitive market.     

Service relationship,market area and the intrametropolitan location of business services

Drawing on the results of a survey conducted in the Lyon metropolitan area (France), this article shows that the localisation strategies of business services within a metropolitan area depend on the nature of the relationship between the service provider and the customer and the size of the market area. When face-to-face meetings with customers are required, those activities which sell their services within the metropolitan area attempt to locate near their market and those whose customers are essentially outside the metropolitan area choose the centre because of its easy access to motorways, the TGV station and the airport. Otherwise, an accessible peripheral site can be perfectly suitable, whatever the firm's market area.     

Should a lower-price service offer a full-satisfaction guarantee?

Although service guarantees have enjoyed wide popularity as marketing tools and brought impressive results for firms, it is still not clear whether different types of service guarantees have similar effects on consumers' pre-purchase evaluations of differently priced services. To answer this question, several hypotheses were formulated and then tested with a 2 × 3 between-subjects factorial design consisting of two price levels (low and high) and three types of service guarantees (none, attribute-specific, and full-satisfaction) in the context of hotel industry in Taiwan. The results indicated that it is beneficial for a higher-price service to employ a full-satisfaction guarantee, due to consumers' higher expected service quality and willingness to buy, and the lower perceived performance risk. In contrast, for lower-price services, an attribute-specific guarantee is recommended because of consumers' higher expected service quality and willingness to buy, and the lower perceived financial risk. The implications of these findings and directions for future research are discussed.     

Examining the relationship between language divergence and word-of-mouth intentions

More than half of the countries in the world are multilingual, and more than half the world's consumers speak more than one language. Thus, bilingual consumers often receive services provided in a second or nonnative language. This article examines these consumers' word-of-mouth intentions after a service provision in a second language. Two studies show that consumers served in a second language are less likely to spread positive word of mouth. The results also reveal a negative halo effect, such that consumers served in a second language perceive the service provider as less responsive in general. Furthermore, the service provider's perceived responsiveness appears far more important for determining positive word-of-mouth intentions than other factors, such as service reliability. This study therefore contributes to the fields of service and sociolinguistics, with important implications for managers as well.