Dual organizational identification impacting client satisfaction and word of mouth loyalty

This research applies social identity theory to the project manager-client relationship in the service sector to examine the impact of dual identification and client co-location on the satisfaction and word of mouth (loyalty) of the client. The research is conducted in the information technology industry with a sample of project manager-client dyadic relationships. The results show that project managers that have identification to their own organization and the client organization have significantly more loyal clients compared to project managers that do not have identification to their organization or the client organization. Project managers that only have client organization identification and not service organization identification have significantly more client loyalty compared to project managers that only have service organization identification. Further, the results show that being co-located with a client results in greater client satisfaction, but does not increase a project manager's identification to the client organization.     

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.     

Longitudinal measurement in organisational transformation: a case of a Dutch Flex Company

This paper will present the analysis of data over 3 years (1998, 1999, and 2000) on the satisfaction of flex workers in the context of a flex company’s service excellence programme, as an example of the use of measurements in relation to the change process. The important issues related to the specific data of the flex workers’ satisfaction surveys are: (a) the relationships between perceived satisfaction of flex workers and possible behavioural consequences, like making complaints and making use of other flex companies; (b) the stability of factor constructs over time that identify the major dimensions of satisfaction of flex workers; and (c) the satisfaction dynamics over time.     

Consumers’ relationships with brands and brand communities – The multifaceted roles of identification and satisfaction

This study integrates consumer-brand identification and customer satisfaction as core relationship drivers to study their interrelationships as well as the effects on customer loyalty and word-of-mouth communication. Considering multiple interacting targets of identification in brand communities, the empirical study unfolds the multifaceted, context-specific relevance of identification and satisfaction: While the effect of identification on brand loyalty is mediated by customer satisfaction, satisfaction has no significant effect on community loyalty. Moreover, brand communities are particularly useful for gaining new customers, whereas no increase in brand loyalty could be found. Managers are generally advised to specify constructs of interest related to different relevant targets of identification.     

Congruence in the assessment of service quality between employees and customers: A study of a public health care delivery system

Using social information processing theory, we examined the congruence between employee and customer assessments of organizations' service quality. The setting was a public health care delivery system. Contrary to expectations, employee assessments of service quality were lower than those of their customers. Also unexpectedly, employees with professional training had less congruent assessments than other employees. As expected, employees with longer tenure and those in departments with stronger customer service work climates had more congruent assessments relative to their customers. The results have implications for both management theory and for managers interested in developing customer-centered organizations.     

Effect of social support on customer satisfaction and citizenship behavior in online brand communities: The moderating role of support source

Customers often join online brand communities to seek support from others when they encounter product problems. Some customers who receive good social support exhibit customer citizenship behavior. This study develops a theoretical model to investigate how social support influences customer citizenship behavior through customer satisfaction with firms in online brand communities. Moreover, the moderating role of support source (i.e., firms vs. other customers) is measured. The research model is tested by using the Partial Least Squares technique. The results show that informational and emotional support significantly affects the customer citizenship behavior of providing feedback to the firm, recommendations, and helping other customers through customer satisfaction in online brand communities. Moreover, informational and emotional support from firms and other customers exert different effects on customer satisfaction.     

How Does Corporate Social Responsibility Affect Consumer Response to Service Failure in Buyer–Seller Relationships?

The researchers investigate how corporate social responsibility (CSR) affects customer response following service failure within the context of buyer–seller relationships. A series of three experiments demonstrate that CSR is more effective under communal (vs. exchange) relationship norms, consistent with the alignment of CSR with the communal norm of concern for the needs of others. The effectiveness of CSR is also shown to vary as a function of company motives and CSR framing, serving as theoretically and managerially relevant boundary conditions. Together, these findings increase our understanding of how and when CSR will have a positive impact on consumers and, in turn, companies via customer satisfaction and loyalty.     

In-Store Information Programs:

Prior empirical investigations have found in-store information programs have little effect on sales volume. The current study examined the relationship between point-of-purchase information and consumer purchasing and satisfaction. Consumers who responded positively to the information program were found to purchase more from the relevant product category. Additionally, they were more satisfied with their purchases and with the store environment. Food marketers can reap long term direct and indirect benefits by providing information that is salient, easily assimilated and available at the point-of-decision.     

The influence of satisfaction on customer retention in mobile phone market

This study examines the determinants of customer satisfaction and customer loyalty in the Peruvian mobile phone market. Based in a survey to 1259 customers, Multinomial Logit and GSEM estimations show how determinants of customer satisfaction can be assessed when satisfaction is measured through ordered categorical data. The results confirm that in mobile phone market Customer Satisfaction influences strongly on Customer Loyalty, and in turn Loyalty is an important determinant of Customer Retention. In contrast with previous literature, this study identified the differentiated influence of diverse factors on positive and negative customer satisfaction categories. Indeed while results show that quality of service assessments made by customers had a significant impact on both negative and positive customer satisfaction categories; assessments of other service attributes like customer care, information on tariffs and plans and billing clarity, only showed a significant statistical influence on positive categories of customer satisfaction. Similar asymmetrical results were found with regard to other economic, socioeconomic and geographical determinants of customer decisions. As well, an analog effect is also observed in the relationship between customer satisfaction and loyalty, where only positive satisfaction assessments helps to explain the loyalty of users. Finally, results show that while satisfaction can be identified as a powerful cause of CR, switching barriers did not deter more demanding customers to switch to alternative carriers, suggesting that recent pro-competition regulatory reforms implemented in Peru contributed to reduce these barriers to competition in mobile markets.     

Does educating customers create positive word of mouth?

This research theorizes and empirically examines whether and how educating customers—a brand's efforts to enhance customers' product-related knowledge—affects customer word of mouth (WOM). In two lab experiments across service and retailing contexts, we find that educating customers enhances customers' positive WOM for a brand. Customer satisfaction and perceived expertise mediate this effect. Critically, the positive impact on WOM is stronger for customers who have less prior knowledge regarding the educational topic and are more amenable to knowledge sharing. The current findings add to the literature on customer education and WOM and offer managerial insights for improving brands' WOM campaigns.     

Managing your most loyal customer relationships

Conventional wisdom regarding customer relationships suggests that a company should strive to deepen the loyalty of its customer base. While multiple approaches have been suggested, each approach advocates moving a subset of the customer base from one level of affinity (e.g., neither satisfied nor dissatisfied) to a higher one (e.g., satisfied). While seemingly appropriate, this approach assumes that moving customers up to higher categories is important and should be the focus of a firm’s efforts. Instead, we recommend an approach that involves focusing a firm’s resources disproportionately on its most satisfied customers. This approach provides two major benefits relative to conventional approaches. First, it focuses a firm’s resources on a narrow segment of customers. Hence, it requires significantly less financial outlay and associated financial risk than any approach that is aimed at all or even a majority of customers. Second, as we demonstrate, the financial benefit from leveraging high satisfaction levels among a subset of the current customer base significantly exceeds the financial benefit of other strategies (e.g., moving customers up from neutral to satisfied). We present the results from two case studies that illustrate our main points and provide useful examples of how to leverage a firm’s highly satisfied customers.     

New Insights in the Moderating Effect of Switching Costs on the Satisfaction–Repurchase Behavior Link

Existing studies on the role of switching costs (SC) as moderator of the relationship between satisfaction and repurchase behavior are inconclusive. We attempt to explain these inconclusive findings by synthesizing an amplifying and a lock-in effect, and hypothesize a nonlinear moderating effect. In Study 1 (a main study and three replications), we find strong evidence for an inverted u-shaped moderating effect of overall SC. Our results suggest that satisfaction is a particularly important predictor of repurchase behavior in situations characterized by medium-levels of SC. Based on Prospect Theory, Study 2 (a main study and one replication) reveals that this inverted u-shaped moderating effect of SC is stronger for positive (relational and financial) SC than for negative (procedural) SC. We conclude with recommendations for satisfaction management of different customer segments, and describe possibilities to influence customer switching costs in various industries.     

Non-normal simultaneous regression models for customer linkage analysis

Simultaneous systems of equations with non-normal errors are developed to study the relationship between customer and employee satisfaction. Customers interact with many employees, and employees serve many customers, such that a one-to-one mapping between customers and employees is not possible. Analysis proceeds by relating, or linking, distribution percentiles among variables. Such analysis is commonly encountered in marketing when data are from independently collected samples. We demonstrate our model in the context of retail banking, where drivers of customer and employee satisfaction are shown to be percentile-dependent.      

Transformational leadership and job performance: A social identity perspective

Drawing on social identity theory, this study provides a model explaining the underlying process through which transformational leadership influences creative behavior and organizational citizenship behaviors. Individual differentiation and group identification are proposed as social identity mechanisms reflecting the characteristics of personal and collective identity orientations that underpin the differential effects of transformational leadership behaviors on performance outcomes. The model is tested with data from a sample of 250 front-line employees and their immediate managers working in five banks in the People's Republic of China. Results of hierarchical linear modeling provide support for the model whereby group-focused and individual-focused transformational leadership behaviors exert differential impacts on individual differentiation and group identification. Furthermore, individual differentiation mediates the relationship between individual-focused transformational leadership and creative behavior, whereas group identification mediates the relationships between group-focused transformational leadership and OCBs toward individuals and groups. Implications for theory and practice are discussed and future research directions are outlined.