The Impact of Moral Emotions on Cause-Related Marketing Campaigns: A Cross-Cultural Examination

This research was focused on investigating why some consumers might support cause-related marketing campaigns for reasons other than personal benefit by examining the influence of moral emotions and cultural orientation. The authors investigated the extent to which moral emotions operate differently across a cultural variable (US versus Korea) and an individual difference variable (self-construal). A survey method was utilised. Data were collected from a convenience sample of US (n = 180) and Korean (n = 191) undergraduates. Moral emotions significantly influenced purchase intention for a social-cause product. The influence of an ego-focused moral emotion (i.e., pride) on purchase intention was greater for US than Korean participants. The influence of another-focused moral emotion (i.e., guilt) on purchase intention was greater for high-interdependent participants than for low-interdependent participants. The findings of this research provide important and relevant implications to marketers and policy makers in developing persuasive messages and customer relationship programmes.     

How Do Price Perceptions of Different Brand Types Affect Shopping Value and Store Loyalty?

This research investigates the relationships among price perceptions for different brand types (national brands, standard store brands, regional store brands, organic store brands), shopping value dimensions (quality, price, social, and emotion value), and store loyalty (retention and word of mouth (WOM)). A comprehensive model depicts determinants of customer store loyalty. Using structural equation modeling, the model test includes 671 consumers intercepted during shopping trips. The data analysis yields several surprising results. In particular, low product price perceptions do not necessarily signal negative store quality evaluations. Shopping value dimensions influence store retention loyalty and WOM behavior differently. Furthermore, different brand types exert distinct effects on the value creation process. Favorable prices for national and standard store brands have comparable positive effects on store price value and emotional value creation; appealing prices of regional store brands instead reduce the emotional value of the store, and low prices for organic store brand products significantly increase social value creation.     

Consumer responses to price discrimination: Discriminating bases, inequality status, and information disclosure timing influences

This study broadly explores consumers' perceived unfairness, negative emotions, internal reference price, and store choice under five common methods of price discrimination using two experimental studies. Study 1 investigates the interaction between discriminating bases and inequality status. Results reveal that discriminating bases only influence perceived unfairness for advantaged consumers, but affect all four responses for disadvantaged consumers. For disadvantaged consumers, direct discrimination that complies with social norms evokes the weakest unfavorable responses, whereas direct discrimination against social norms triggers the highest perception of unfairness and negative emotions but has similar effects on internal reference price and store choice to indirect discrimination. Study 2 examines the effect of information disclosure timing by comparing pre- and post-purchase disclosure policies. Results show that post-purchase disclosure of discrimination information elicits higher negative emotions for indirect discrimination involving coupon and purchase quantity, but is rather inconsequential for direct discrimination or indirect discrimination through membership.     

Customer Rage Episodes: Emotions, Expressions and Behaviors

In this research, we examine customer rage-associated emotions, expressions, and behaviors following service failure. Three independent studies involving 656 respondents and multiple methods are employed to investigate customer rage. Scales for each form of rage emotion, expression, and behavior were developed and used to assess their interrelationships. Results suggest that different forms of customer rage emotions tend to be linked to different types of expressions and behaviors. For example, both Rancorous Rage and Retaliatory Rage emotions tend to increase Verbal expressions (such as raising one's voice, yelling, and making insulting remarks). In contrast, Retaliatory Rage emotion increases Physical expressions (tried to physically harm a service employee, tried to cause damage to property, and threatened to damage property) and Displaced expressions (took anger out on other people nearby, yelled at other people, and took their anger out on other people later on) whereas Rancorous Rage emotion decreases Physical and Displaced expressions. Interestingly, Verbal expressions are linked to passive-aggressive behaviors, such as switching service providers and spreading negative word of mouth while Physical expressions are linked to relatively aggressive behavior, such as a desire for revenge. Implications for scholarly research and retailers are discussed.     

Learning from error: The influence of error incident characteristics

This study investigates the influence of error incident characteristics on organizational learning among operators in the chemical process industry. The study asks operators to describe recently occurred error incidents at time 0 (n = 87), followed up by measurements for learning 6 weeks later (n = 48). Organizations learn more from error incidents with more severe consequences. Severity of consequences relates positively to learning. When consequences are more severe, communication about an error is higher. Communication is subsequently related to learning. Error incidents without imminent negative consequences, however, can also be a platform for learning. This research recommends attention towards the promotion of learning from conditions that do not necessarily encourage employees to learn.     

“Never eat in that restaurant,I did!”: Exploring why people engage in negative word‐of‐mouth communication

What do consumers want to achieve when they engage in negative word‐of‐mouth communication (N‐WOM)? Two studies explore this question and reveal that consumers pursue specific goals when engaging in N‐WOM and that these goals systematically differ between the specific negative emotions that are experienced. For example, the results reveal that consumers who experience anger engage in N‐WOM to vent feelings or to take revenge. However, disappointed consumers engage in N‐WOM to warn others, and consumers who experience regret communicate with others to strengthen social bonds or to warn them. This reveals the functionality of specific emotions to N‐WOM, and how goals for N‐WOM are associated with these emotions. This demonstrates that rather than being uniform, the content and implications of N‐WOM are contingent on the specific emotions that consumers experience. © 2007 Wiley Periodicals, Inc.     

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.     

Mixed emotional appeal enhances positive word-of-mouth: The moderating role of narrative person

Underpinned by feelings-as-information theory and construal level theory, this present research examines the effect of mixed emotions in advertising on word of mouth (WOM) and the moderating role of a narrative person. Two experiments were conducted featuring two different products (cake mix in Study 1; watch in Study 2) and different narratives to elicit mixed emotions. The objective of Study 1 was to confirm the moderating effect of the narrative person on the relationship between mixed emotion and positive WOM. Study 2 aimed to provide stronger empirical evidence for the findings of Study 1 and test the mediating effects of inspiration (when it uses a third-person narration) and discomfort (when it uses the first-person narration). In general, the results show that a mixed emotional appeal is more effective than pure happiness in increasing positive WOM when the third-person narration is used. The relationship between mixed emotions and WOM is mediated by inspiration (when using a third-person narration) and discomfort (when using the first-person narration). This extends previous research which provides inconclusive evidence on the consequences of mixed emotional appeal. The current study also broadens the application of linguistics in emotion and consumer behavior literature while providing important implications for marketers in their advertising strategy.     

Public sector corporate branding and customer orientation

The objectives of branding and marketing in the public sector can differ in nature from those in the private sector, to include an improved responsiveness to public needs, rather than an increase in customer numbers. In addition, the customer orientation (a disposition that will influence brand perception) of public services is often questioned. Drawing from prior work in the private sector on the relationships expected between employee and organization customer orientation (hereafter referred to as CO), corporate brand personality, and both employee and customer satisfaction, the authors propose a number of models. These models are tested using structural equation modeling on data from a study of the employees (n = 302) and customers (n = 200) of a public hospital. Corporate brand personality mediates the positive links between employee customer orientation (hereafter referred to as ECO) and satisfaction; ECO influences brand personality, which in turn influences satisfaction. However, while both the needs and enjoyment dimensions of ECO improve customer satisfaction, the former has an unexpected, negative effect on employees. Organization customer orientation (hereafter referred to as OCO) influences customer, but not employee, satisfaction. The paper discusses the implications for managing and researching corporate branding in the public sector.     

What makes the corporate social responsibility impact on Customer–Company identification stronger? A meta-analysis

Customer–company identification (CCI) has been highlighted as an important mechanism that explains the relationship between corporate social responsibility (CSR) and customer outcomes such as customer loyalty and word-of-mouth (WOM). However, findings on when and how this mechanism works are mixed. To uncover the viability and strength of CSR’s indirect effect on customer outcomes through CCI, we conduct a meta-analysis testing a moderated mediated framework. This analysis incorporates 237 independent effect sizes from 58,766 individuals and 86 papers to examine the indirect effect of CSR on customer loyalty and WOM through CCI, while simultaneously testing a range of substantive and control moderators. The results reveal that 1) CSR has a main effect on CCI, 2) CCI mediates the effect of CSR on customer loyalty and WOM, and 3) there are significant theoretical moderators that amplify and reduce CSR’s relationship with CCI. The paper’s year of publication and industry controversy (versus non-controversy) mitigate the relationship between CSR and CCI, while collectivism and a holistic focus augment it.     

The impact of affective and cognitive antecedents on negative word-of-mouth intentions

Negative word-of-mouth (WOM), defined as derogatory information disseminated from person to person and aimed at defaming a product, highlighting a product complaint, and/or highlighting unsatisfactory service experiences, influences consumer behavior and can harm a company’s image. The present study was conducted to ascertain the impact of affective antecedents (negative emotions) and cognitive antecedents (distrust) in the intent of negative WOM. A proposed theoretical model was employed to analyze the effect that perceived injustice had on negative WOM and how this effect was mediated by emotional and cognitive aspects. The research was a pre-experimental design – one treatment leading to one observation – with 252 students. Through an OLS regression and mediation analyses, we found an indirect link between perceived injustice and negative WOM intent, which was mediated by negative emotions and distrust. Contributing to the field of marketing studies, this paper fills an investigative gap regarding affective and cognitive antecedents as mediators of negative WOM. The results suggest that marketing managers should create mechanisms to allow consumers to express their negative emotions and rebuild their trust in order to avoid the spread of negative WOM.     

The emotional side of price

This exploratory study considers the role emotion plays in relationships among several constructs surrounding price. The findings suggest that some aspects of emotion—here surprise and enjoyment—play a role in consumers' responses to and use of price information. Surprise and enjoyment were found to act in concert with involvement, price consciousness, and price–quality associations in respondents' complex reactions to price. Everyone's personal experience suggests that emotions can influence people's reactions to the price of products; this research lends preliminary empirical support to such everyday experiences. The results of this exploratory study clearly point to the need for more definitive studies in the future. © 2001 John Wiley & Sons, Inc.     

Employee versus supervisor ratings of performance in the retail customer service sector: Differences in predictive validity for customer outcomes

Based on data from Maxham and Netemeyer [Maxham, J. G. and R. G. Netemeyer (2003). “Firms Reap What They Sow: The Effects of Employee Shared Values and Perceived Organizational Justice on Customer Evaluations of Complaint Handling,” Journal of Marketing, 67, 46-62], the authors present two field samples to examine predictive validity differences of service employee ratings of their performance versus supervisor ratings of employee performance with respect to customer satisfaction and customer likelihood of spreading positive word-of-mouth (WOM) after a service recovery attempt. The results generally show that supervisor ratings are more strongly positively related to customer satisfaction and WOM than are employee ratings of their own performances. The results also show that both supervisor ratings and employee ratings are related to customer satisfaction and WOM in a curvilinear fashion (as well as linear fashion). Employee extra-role performances (toward customers and the firm) show increasing returns at the higher levels of performance, and employee in-role customer performance generally shows a decreasing return at the higher level of customer in-role performance.These results suggest two managerial implications. First, supervisor ratings of customer service employee performances may be the preferred form of measurement for predicting customer outcomes. Second, maximizing in-role performance inputs may have decreasing returns for customer evaluations in the service recovery context; but maximizing extra-role performance inputs may actually “delight” customers, i.e., increasing returns for customer evaluations.     

Emotional prototypes,emotional memory usages,and customer satisfaction

In this study, we investigated the positive and negative emotion concepts in the prototype perspective and then tested them on customer satisfaction. By studying 612 customers in luxury restaurants, we found that two levels of customer emotions (i.e. positive and negative emotions) as a super-ordinate level, 4 positive emotions (i.e. contentment, happiness, love, and pride) and 5 negative emotions (i.e. anger, fear, sadness, shame, and disgust) as a basic level, and 49 specific emotions as a subordinate level are significantly related to customer satisfaction. We also examined the moderating role of emotional memory (EM) usage in the relationship between consumers’ emotions and their satisfaction. We found that product (food and beverage)-related EM strengthens and service-related EM usage weakens the relationship between customers’ negative emotions and their satisfaction. Interestingly, we found that positive and negative emotions are significantly related to customer satisfaction regardless of experience and store-related EM usage.     

Talk up or criticize? Customer responses to WOM about competitors during social interactions

Popular metrics such as the Net Promoter Score (NPS) highlights many benefits of word of mouth (WOM) to firms. Is WOM all it is claimed to be? Building on social identity theory, this research develops a conceptual model of WOM exchange in social settings and tests the model with customer surveys of three service sectors. The findings show that the effects of (1) positive and negative WOM (P/NWOM) received about competitors and (2) perceived presence of critical incidents (PPCIs) on P/NWOM given about own service provider are far from intuitive. Responses to PWOM received counter the suggestions in the NPS literature. The findings also indicate that the best firms can hope for when receiving NWOM about competitors is that their customers remain silent. It is recommended that firms communicate a message that is consistent with the nuanced views expressed by friends in social circles, rather than a uniformly superior positioning.     

Competitive price-matching guarantees under imperfect store availability

This paper analyzes the role of verification of product availability in the context of competitive price-matching guarantees (PMGs). PMGs involve a retailer matching any lower price offered by competition for an identical item. Until now, researchers focused on the scenario where customers can receive the lower price with a simple proof (e.g., weekly flyers). However, in reality, retailers reserve the right to verify the availability at the competitor location; if the product is not available there, then the price-match request might be declined. We develop a price competition model to investigate the effects of verification of availability on price decisions and profit levels of competing retailers. In our model, demand is driven by the availability levels of retailers as well as the price-search cost and store-switching cost incurred by customers. Price-search cost leads to two customer segments: uninformed ones who have no knowledge about prices, and informed ones who are knowledgeable about prices. On the other hand, store-switching cost determines how many customers search for the product at an alternative location because of high price or unavailability at their preferred retailers. Our analysis reveals, among others, that the outcome of availability verification is linked to three factors: price-search cost, store-switching cost, and the reservation prices of customer segments. Verification of availability allows retailers to price discriminate customers who could not be discriminated otherwise, specifically those belonging to the informed customer segment. Furthermore, it is a significant profit-enhancing mechanism only if there are switching customers in the market. Interestingly, even though customers view the verification of availability as a hassle, it can actually result in them paying lower retail prices by increasing the level of retail price competition.     

Merely asking the customer to recommend has an impact on word-of-mouth activity

This paper examines if a mere request to a customer – within the frame of a service encounter – to engage in word-of-mouth (WOM) would have an impact on the customer's subsequent WOM activity. Although previous studies have not examined this issue, theoretical arguments do exist. And they point in different directions; some suggest a positive impact, while others suggest a negative impact. To explore the issue empirically, we carried out two studies (one survey-based study and one experiment). Both generated the same result: they indicate that merely asking customers to engage in WOM has a positive impact on customers' WOM activity. In addition, we found that receiving the request was not negatively associated with the customers' overall evaluations, such as customer satisfaction, which indicates that the potential for negative consequences of making the request seems to be low.     

Drivers and barriers for city shopping: Perspectives from retailers and consumers in regional Australia

The decline of retailing in cities is well documented in the international literature, but to date there has been little research in Australia. The objective of this study, conducted in regional Australia, is to examine drivers and barriers for city shopping, and motivations for out-of-town shopping. Surveys were administered to retailers and city shoppers. Qualitative data were analysed using Leximancer to draw out relevant themes and concepts. Responses (n = 367) show store variety, customer service, car parking and the overall offering and experience are important drivers of city shopping, whilst expensive parking, empty shops, lack of amenities and store variety are commonly cited barriers.     

Look but Don’t Touch! The Impact of Active Interpersonal Haptic Blocking on Compensatory Touch and Purchase Behavior

This research investigates situations in which frontline employees deliberately restrict customers’ access to touch products on display (active interpersonal haptic blocking), and how this understudied form of sensory blocking may increase customers’ downstream purchasing. While previous research examines the benefits of increased product touch, we temporarily block touch for specific products in display areas and then investigate the subsequent impact on customer behavior. Through four studies, including a retail field experiment, we find that when an employee asks a customer not to touch a product on display, this initiates a serial mediation process which: (1) engenders feelings of psychological reactance that result in (2) increased compensatory touching of subsequently encountered products to counterbalance a loss of sensory freedom, and (3) increased spending and purchasing once the customer leaves the reactance-inducing encounter. Effects are moderated by socioeconomic status (SES) and need for touch (NFT) whereby psychological reactance was significantly stronger for high SES customers with a moderate or high NFT when actively blocked. Results also demonstrate that active interpersonal haptic blocking does not result in more negative attitudes toward retailers, thus retailers might consider implementing this counterintuitive practice to encourage downstream sales.     

Managing Service Expectations in Online Markets: A Signaling Theory of E-tailer Pricing and Empirical Tests

Expectations play a significant role in determining customer perceptions and satisfaction. Accordingly, retailers seek to manage customers’ service expectations. However, the tangible signals of service quality that are available to brick-and-mortar retailers (such as location, store appearance, and salespersons’ behavior) may not be available in online markets. Using a signaling model, we obtain conditions when Internet retailers (e-tailers) use price to manage their customers’ service expectations. In contrast to extant theory, we find that it is possible for both low and high service e-tailers to use price in signaling their service levels. Further, we develop an appropriate deductive test of our theory based on price-ending patterns as an artifact of the signaling process. Based on this test, we find evidence that e-tailers indeed manage service expectations using price. Interestingly, we also find preliminary evidence that suggests customers implicitly associate price-ending patterns with a retailer's expected service level. We discuss several other implications of our findings for researchers and managers.