The impact of fairness on trustworthiness and trust in banking

Abstract

Theorists and empirical researchers in marketing and other fields suggest that fairness is important in underpinning trust, which, in turn, is integral to developing and maintaining buyer–seller relationships. However, empirical investigation of fairness in the domain of marketing has, to date, been limited. Consequently, the relationship between fairness and trust is not well understood. Thus, the purpose of this study is to provide a fully developed social exchange model examining the differential effects of various dimensions of fairness on trustworthiness and customers’ trust. Data were collected from customers of banks and were analysed using confirmatory factor analysis and structural equation modelling. Findings of the study show that perceptions of fair treatment on the part of customers are important in driving trustworthiness and engendering trust.     

The influence of multi-channel pricing strategy on price fairness and customer confusion

ABSTRACT

Multi-channel retailers face the challenge of coordinating marketing variables across their channels. In this respect, one of the main issues arising is whether to differentiate or integrate prices. Our study examines the impact of three multi-channel price differentiation instruments on perceived price fairness, customer confusion, and their consequences. In a scenario-based online experiment, we use a 2 x 2 × 2 between-subjects design and manipulate product price differentiation, online promotion and online shipping fees. The results indicate that price differentiation has an impact on fairness evaluations and customer confusion. Product price differentiation and online promotion are perceived as more unfair and lead to more confusion than price parity. Price fairness perceptions of shipping fees depend on product price differentiation. Customers perceive shipping fees as fairer than no shipping fees when prices are cheaper online but perceive shipping fees as less fair when prices are integrated. These results suggest that customers expect a consistent consideration of channel cost advantages and disadvantages and that shipping fees might serve as a cue for customers to consider the retailer’s channel costs. We further show that price fairness and customer confusion mediate effects of pricing instruments (in particular online promotion) on attitudinal and behavioral consequences.     

Examining Employee—Service Personality Congruence

Abstract

Recent research indicates that service personality, conceptualized as the set of human characteristics associated with the service firm, plays an important role in services marketing. Research further indicates that the congruence between customer personality and service personality influences important outcome variables. Specifically, customer-service personality congruence has been shown to influence service quality perceptions, subjective disconfirmation, and word of mouth intentions. The current study extends this line of research by considering how employee-service personality congruence (ESPC) influences job outcome variables including service delivery, job satisfaction, intentions to leave, and organizational commitment. Empirical data, gathered from a sample of financial services employees, support hypothesized relationships between ESPC and these outcome variables. Furthermore, personality traits from the Five-Factor Model of personality (Costa & McCrae, 1992) are shown to play an important role in ESPC perceptions. Managerial implications and directions for future research are discussed.     

Determinants of Client Expectations for Accounting Services

Abstract

As the market for accounting services becomes more competitive, accounting service providers must strive to continually improve service quality to attract new clients and retain existing clients. Client expectations provide a benchmark that must be met or exceeded for the client to perceive that high quality services have been delivered (Ades 1988; Aquila and Koltin 1992). Based on a review of accounting and service marketing literature, this paper developed a conceptual model that identified potential determinants of client expectations for accounting services. Hypotheses derived from this model were empirically tested using LISREL on survey data from 196 households.

The results of our analysis indicated that client satisfaction with prior services, prior service quality, word-of-mouth communication, and price were significantly related to accounting firm image. Firm image, in turn, was significantly related to client expectations for future accounting services. Importantly, several variables from the service marketing literature were not supported with our sample of accounting service clients. Hence, these results identify the critical determinants of client expectations for accounting services, provide insight into the expectation formulation process for accounting service clients, and offer guidance to accounting service providers who may wish to influence clients' expectations.     

Interfacing with Amazon Web Services Using Java and .NET: A Comparative Study

ABSTRACT

Web service has been touted by many as the next big thing in IT in recent years. It is a promising technology that opens up new avenues for software developers and permits businesses to explore new markets and forge new business partnerships. Amazon.com is one such business that is using Web services to improve sales of its products. This research activity involves developing a client application that consumes the Amazon Web services. The client application has been developed using the two competing environments, .NET and Java, and the experience of this activity has been thoroughly documented. The relative strengths and weaknesses of the two architectures are compared and contrasted and recommendations are provided for beginning and experienced developers wishing to get started with Web services.     

Consumers’ perceptions of the fairness of price-matching refund policies

This paper examines the antecedents and consequences of perceived price-matching policy fairness. Among the antecedents, we study the effects of the refund depth if a lower competitive price is identified, the degree that the retail product assortment is available at competing retailers, and the consumers’ inference as to the retailer's motive for the price-matching policy. Product assortment uniqueness is identified as a key driver of fairness perceptions, both directly and indirectly through inferred motive. The three experiments show that consumers’ perceptions of the fairness of a store's pricing policy influence their price fairness perceptions, consequently influencing their retail shopping intentions.     

Fairness quality: a conceptual model and multiple-item scale for assessing firms’ fairness – an exploratory study

Abstract

Scholars suggest that fairness is a precursor to ethical firm behaviour. Existing research suggests that (1) commonly used single-item fairness measures lack reliability and validity, and (2) single-item scales do not contribute to understanding fairness as a multidimensional concept. Using the means-end framework, we develop a measure of fairness quality (FQ) of service experience. We conceptualise, construct, refine and test the FQ scale over multiple stages of data collection. Using the soft-laddering interviewing technique, we initially explore FQ attributes. Subsequently, we design and conduct two surveys to test the FQ measure. The final scale contains 18 items in four dimensions: transparency, associations, moderations and process. The FQ scale demonstrates good psychometric properties, passing all reliability and validity tests. The scale extends existing research on fairness and provides a new conceptualisation of FQ. Marketers are encouraged to manage their FQ systematically to stimulate social and ethical behaviour. We present theoretical and managerial implications, with future research directions.     

Professional Service Quality

Abstract

Many of the services that are directed to business clients involve work by professionals who are employed by and/or own a supporting practice. To date, little attention has been directed to the possibility that the large variations in the size and nature of these firms may be reflected in the quality of services they produce. Further, no attempt has be made to delineate those quality factors that clients associate with the firm and those that are associated with the individual professional. This article reports the results of an empirical study designed to investigate the perceived relative influence of the individual, the practice, and several client variables as they affect the delivery of service quality.     

Interactive perceptions of suppliers and corporate clients in the marketing of professional services: A comparison of accounting and legal services in the UK,Canada and Sweden

Any service offering depends, for its long‐term success, on the dyadic relationship which exists between a supplier and a client. For corporate clients, a positive and proactive approach by a supplier can enhance a relationship both in the initial stages and later, as the relationship develops. Professional services are no exception, perhaps because, in the longer term, both parties can contribute to a situation where “peace of mind” is the dominant emotion. However, such a generalisation may not be true for all professional services nor over a range of countries where currently, many changing environmental factors such as regulations, image and technology, are creating a climate which may result in different perceptions within a relationship. This article attempts to measure and compare these differences using suppliers and corporate clients of two specific categories of professional services, namely, legal and accounting services, in each of three countries, Canada, Sweden and the United Kingdom. It attempts to examine the supplier‐client relationships using elements of the Interaction Approach as developed by the Industrial Marketing and Purchasing (IMP) Group of researchers (Hakansson 1982). From the supplier firm's point of view, in targetting prospective clients and maintaining existing ones in a search for an “optimum” portfolio, the constant monitoring of clients’ perceptions and requirements as an element in generating and sustaining a positive atmosphere should be undertaken. Successful supplier firms may be those which work with a group of selected clients rather than for anyone.     

Developing Efficient Supply Chain Links Using Web Services

ABSTRACT

The concept of Web services has attracted a lot of attention during the last few years. Web services allow a distributed system that is made up of many different computers to communicate over the familiar network, the Internet, to form one system. The communication standards and protocols used in Web services are universally accepted open standards. Web services are designed for machine-consumption that expose a Web-accessible program interface. This kind of service can be requested by any type of client application–Web-based, desktop or mobile. The authors of this paper provide an overview of Web services and discuss the potential of improving supply chain processes through the use of Web services.     

Service Quality Perceptions of Customers About Mobile Telecommunication Services: A Case of India

ABSTRACT

 Because of the intangible nature of services, there is always a challenge in front of service providers to find out which dimensions of service quality are more important for customers. The author presents the results of a study in India that assesses the service quality perceptions of customers about mobile telecommunication services. EFA explained 69.694% of variance and extracted eight service quality dimensions. The results of a multiple regression analysis show that customers attributed the highest importance to employee performance followed by transmission quality, competitiveness, support attributes, reliability, credibility, operational efficiency, and convenience. The sample consisted of 411 respondents.     

Agency / Client Relationshipsas Seen by Influential on Both Sides

Abstract

This article concerns a subject of interest and concern to both advertising agency executives and their clients; i.e., how the two of them feel about each other and themselves in terms of the agency/client relation-ship. These perceptions and feelings were gleaned from a survey of agency leaders and major users of agency services. Based on the findings, some suggestions and directions are offered for making the agency/client dyad more harmonious.     

Differences in Customers’ Online Service Satisfaction Across Cultures: The Role of Thinking Style

ABSTRACT

Online retailers constantly strive to improve customer satisfaction. However, satisfaction levels can vary significantly across cultures when customers experience mixed quality services, that is, services with a mixture of high and low quality service attributes. Based on two studies, we find that Westerners (e.g., European Americans) react more negatively than East Asians (e.g., Chinese) toward mixed quality online services. Our findings show that due to differences in thinking style, Westerners (analytic thinkers) are more likely to focus on negative service attributes than East Asians (holistic thinkers), who tend to consider the amalgam of high and low quality service attributes as an integrated whole when forming their overall perceptions and levels of satisfaction. Moreover, the results suggest that for online retailers marketing across cultures, providing superior quality on each individual service attribute may be more important to achieving satisfaction for customers from Western rather than Eastern cultures.     

On the Role of Experience in Developing Service Satisfaction in Consumer Financial Planning Services

ABSTRACT

This study of consumer professional services examines the role of experience in the development of service satisfaction with the personal financial planning services firm. Product experience possessed by the client moderates the interlinkages between service satisfaction and its two antecedents-performance and relational behaviour. The results of sub group analysis indicate that effects of the performance and relational behaviour vary considerably under different product experience conditions. The findings therefore add new insight to the understanding of satisfaction formation under different experience conditions, especially in the context of consumer personal financial planning services.     

Banks’ unfairness and the vulnerability of low-income unbanked consumers

This paper’s objective was to explore low-income unbanked consumers’ perceptions of bank fairness and the way these perceptions were linked to consumer experiences of vulnerability. Qualitative data were used to analyse low-income consumers’ perceptions about banks’ services and communications. The study finds that although consumers’ financial inclusion is partially hindered by their personal circumstances, the perceived unfair treatment by banks has an even more negative impact on their financial inclusion. Low-income unbanked individuals report banks avoiding them, discriminating against them and impeding their financial inclusion. Banks’ perceived unfairness towards low-income consumers leads those consumers to experience vulnerability in numerous ways. Finally, we provide public policy implications for low-income consumers’ well-being and financial inclusion and to assist them in mitigating their vulnerability.     

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.     

Exploring the relationship between individual values and the customer orientation of front-line employees

Abstract

Because of the nature of services, namely the inseparability of production and consumption, employee behaviours influence customer perceptions of service quality and satisfaction with the service provider. In particular, customer-oriented employees seek to help customers by addressing their needs, and this contributes to the building of customer satisfaction and the development of a relationship. Not surprisingly, research has been investigating the drivers of employees’ customer orientation. This paper examines how individual values influence the customer orientation of front-line service employees, a topic that has been unexplored in extant literature, and this is useful for the selection of employees who match the firm’s service strategy. To accomplish this, the study relies on the Schwartz value theory, which is applied to front-line employees in banking. The findings indicate that both resultant conservation and resultant self-enhancement affect the customer orientation of employees, and that these effects are moderated by job satisfaction and autonomy.     

Client-Agency Relationships

Abstract

The increasing occurrence of client turnover and agency switching among client/agency relationships is of concern to advertising agencies throughout the world. It is proposed that small firms could provide a substantial alternative client base for agencies in order to dampen the impact of uncertainty. This study investigates the perceptions held by owner/managers of small firms toward agencies within New Zealand. We identified two groups of respondents–those who perceived agency contribution to store performance as high and those who perceived it to be low.Significant differences were found between the two group' response ratings on advertising agency services, agency attributes and selection criteria. We conclude by discussing the managerial implications of this study and provide directions for future research in this area     

Salespeople,Fairness, and Buyer Satisfaction: What about Emotions?

Purpose: Although most studies focus on rational decision-making in organizational buying, this research examines the satisfaction through the integration of fairness and emotion theories. It thus broadens knowledge about the formation of satisfaction in buyer–seller relationships, through an integration of justice and emotion theories.

Design/methodology/approach: A survey of 130 buyers was conducted. The test of the proposed model relied on structural equation modeling. To examine the mediating role of positive emotions, we followed the procedure proposed by Baron and Kenny (1986). That is, we compared the proposed framework against two competing models: a non-mediated model and a saturated model that featured all possible causal paths.

Findings: Results show that both distributive and procedural fairness have a positive impact on buyer’s satisfaction, following two different paths: a rational path with fairness acting directly on satisfaction; and an emotional path where emotions play a mediator role.

Research limitations/implications: Buyers evaluate satisfaction through an emotional lens. Business relationships are not completely rational, a consideration with importance for buying and customer relationship theory.

Practical implications: Sellers must pay attention to their customer policies from the perspective of their customers. In addition to guaranteeing a “fair” outcome, sellers must ensure that buyers are subject only to procedures that customers perceive to be fair. Indeed, since buyers in business relationships are not completely rational, business-to-business (B-to-B) experts should acknowledge the influence of emotions in their sales strategies.

Originality/value: The mediating impact of emotion in the fairness–satisfaction relationship has not been explored in buyer–seller settings previously. Deconstructing satisfaction with the decision process into its cognitive and affective elements, we examine the emotional dimension of B-to-B buying process.     

Nigerian Banks-Quality of Services

Abstract

The qualitative characteristics of the service are becoming increasingly important. Quality improvements can lead to increased revenues and decreased costs as a result of increased customer loyalty and the cross-selling of bank products, as loyal customers spend more with chosen banks, attract lower administration costs and are more profitable. The objective of this research is to identify customers' expectations and perceptions of bank service quality to determine the service quality level. It also aims to determine key factors in selecting a particular bank. The findings of the research suggest that the key factors in selecting a particular bank are credibility, location and range of services. The majority of respondents are dissatisfied with the quality of services provided by banks in Nigeria. The research has indicated that complicated procedures and forms, queuing time, lack of individual approach and absence of new technology are some of the factors which create dissatisfaction and lack of co-operation between firms and banks. Interestingly these results are similar to customers in developed countries as indicated by similar studies in developed countries.