Explaining consumer complaining behaviour in double deviation scenarios: the banking services

Research has shown that more than half of attempted recovery efforts only reinforce dissatisfaction, producing a ‘double deviation’ effect. Surprisingly, these double deviation effects have received little attention in marketing literature. The crucial question is what happens after these critical encounters, which behaviour or set of behaviours the customers are prone to follow and how customers' perceptions of the firm's recovery efforts influence these behaviours. For the analysis of choice of the type of response (no action, complaining, exit, and complaining and exit), we estimate ordered probit models. The results of our study show that the magnitude of service failure, recovery strategies, distributive and procedural justice, recovery-related emotions and satisfaction with service recovery have a significant effect on customers' choice of the type of response, the latter showing the highest impact. Implications from the findings are offered.     

How does the learning climate affect customer satisfaction?

This study investigates the role of the learning climate in the effective management of salespersons' behaviour in service encounters. This paper reports the development and testing of a two-level model in which salespersons' perceptions of the learning climate are related to their adaptive selling behaviour and their adaptive selling behaviour is, in turn, related to customers' evaluation of the salespersons' knowledge of customers and customer satisfaction. A total of 417 service encounters involving 88 bank consultants were analysed using hierarchical linear modelling, with results that support most of the proposed model. More specifically, learning climate was positively related to adaptive selling behaviour, and adaptive selling behaviour was directly related to customer satisfaction. In addition, adaptive selling behaviour was associated with customer satisfaction through customers' perception of the salesperson's knowledge. Both theoretical and practical implications are discussed.     

Consumers’ Behavioral Intentions Toward Self-Service Technology in the Emerging Markets

ABSTRACT

Self-service technologies (SSTs) allow customers to offer their own service encounters via the interaction of electronic service interfaces or machines rather than by interacting with a firm's service personnel. This lack of personal interaction generates doubts and queries in the minds of the people, especially those unaware or less aware of these technology-based services. Such a situation is quite prevalent in the developing nations (like India), where still a large number of people are apprehensive about using the latest technologies. In this regard, the present study aims to develop an integrated model designed to predict and explain the various factors that influence customers’ behavioral intentions to use or not to use one particular SST (i.e., ATM services). The study finds that bank customers are less innovative and less optimistic to try out new technologies. Usefulness of the technology helps in developing positive attitude toward the technology, which in turn affects customers' intentions to use that technology.     

The role of memorable experience and emotional intelligence in senior customer loyalty to geriatric hotels

Drawing on service encounters and experiential marketing theories, this study examined the relationship between geriatric service, memorable experience, emotional intelligence, and senior customers' attitudinal and behavioural responses. The research was conducted at geriatric hotels in Portugal. The results showed that, compared to impersonal encounters, employee service has a significantly greater effect on customer satisfaction, memorable experience, and customer loyalty. In addition, customers' memorable experiences mediated the relationship between different service encounters and organisational outcomes. However, customers’ emotional intelligence had minimal effects on these relationships. The discussion and implications of these findings are offered to researchers and practitioners.     

Competitive Positioning in International Logistics: Identifying a System of Attributes Through Neural Networks and Decision Trees

Abstract

Firms involved in international logistics must develop a system of service attributes that give them a way to be profitable and to satisfy customers' needs at the same time. How customers trade-off these various attributes in forming satisfaction with competing international logistics providers has not been explored well in the literature. This study explores the ocean freight shipping sector to identify the system of attributes that maximizes customers' satisfaction. Data were collected from shipping managers in Singapore using personal interviews to identify the chief concerns in choosing and evaluating ocean freight services. The data were then examined using neural networks and decision trees, among other approaches to identify the system of attributes that is connected with customer satisfaction. The results illustrate the power of these methods in understanding how industrial customers with global operations process attributes to derive satisfaction. Implications are discussed.     

Explaining Market Heterogeneity in Terms of Value Perceptions

In the past decade, companies and academics have become aware of the great benefits of creating value for customers. However, little empirical research has yet been conducted in the area of services with respect to how customers may differ in their perceptions of value and what variables can explain such differences. This article provides an insight into how three relationship-based contingencies are likely to explain market heterogeneity in customers' perceptions of value. In particular, we explore how special treatment of the customer by the service provider, the level of customer involvement with the service, and the customer's accumulated experience with a particular company may act as predictors of market heterogeneity in the customer's perceptions of value within a service setting. Results offer evidence for the important role of relationships and experience in a service context mainly characterised by standard encounters, and provide interesting managerial insights to tailor strategies that effectively respond to market heterogeneity.     

Is there any value in the online reviews of remedial satisfied customers? An empirical study in the hospitality industry

Hospitality service providers lack attention to the positive reviews written by remedial satisfied customers, although they have devoted a lot of energy to service recovery. Drawing on the accessibility-diagnosticity framework, this study investigates the relationship between the online review types of remedial satisfied customers and potential customers' booking intentions. The results indicate that outcome satisfactory review not only improves review impression and positively affects customers' booking intentions, but also reduces perceived risk and enhances customers’ booking intentions. The review valence consistency plays a moderating role in the dual-path effect of online review types on booking intentions.     

To err is human: Tolerate humans instead of machines in service failure

Full automation and self-service technologies have become popular in service marketing. However, customers often face multiple issues when dealing with self-service technologies. This paper examines the effect of service-failure type (employee failure vs. self-service technology failure) on customers' negative responses (dissatisfaction, forgiveness, willingness to switch between employee and self-service technology, and negative word of mouth). Through four experiments with Amazon Mechanical Turk workers and undergraduate students, this research finds that customers have more negative responses for a self-service technology failure than for an employee failure. This is because they get angrier with machines' mistakes than with those of humans. Moreover, empathy alleviates anger and customers’ negative responses in employee failure, but not in self-service technology failure. This research offers service providers new insights by scrutinizing the flip side of complete automation in service marketing.     

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.     

The effects of social justice and stigma-consciousness on gay customers' service recovery evaluation

This study examines how social justice and the stigma-consciousness level of gay customers influence their service recovery perceptions. The results, based on an experiment involving 379 gay respondents, indicate that distributive justice, procedural justice, and interactional justice significantly affect gay customers' service recovery evaluations (satisfaction) and post-complaint behavioral intentions (negative word-of-mouth and repatronage). Also, higher stigma-consciousness gay customers show more negative service recovery evaluations and behavioral intentions than those with lower stigma-consciousness. Service providers who are interested in attracting and maintaining gay customers should create awareness among their employees about stigma-consciousness.     

A novel framework for customer complaint management

Complaining is one option available to customers to express their dissatisfaction with inadequate services. Their complaints contain valuable information for service providers to improve customer relationships and operational quality, which can ultimately enhance business profitability. Customer complaints are frequently handled at the individual level, however, which addresses the symptoms rather than the causes of customer dissatisfaction. This paper presents a framework integrating a decision tree approach, a common data mining tool, into Six Sigma methodology to analyze customer complaints in aggregate and improve service quality by identifying and addressing the underlying causes of failed service. A case study of a restaurant chain was used to demonstrate the effectiveness of the proposed framework. The results indicated a significant (60%) decrease in the number of customer complaints received. Subsequent long-term benefits can be expected.     

Internet service providers' service quality and its effect on customer loyalty of different usage patterns

This study attempts to investigate the dimensions of an ISP's service quality, and their effects on customer loyalty in high-tech services. Data was obtained from 1231 internet users. The analyses include segmenting ISPs' customers on the basis of their usage pattern and evaluating their perceptions of Internet service quality dimensions. Through the use of structural equation modelling and bias correct bootstrapping techniques, the study confirms that service quality dimensions can influence both attitudinal and behavioural loyalty. These effects, however, are different across different groups of ISP customers. The contribution of the present paper stems from the modelling of mediation effects and the incorporation of Internet usage that can help better explain the impact of service quality dimensions on customers' loyalty in high-tech service settings.     

From selling to supporting – Leveraging mobile services in the context of food retailing

To safeguard their existence in the face of harsh competition, food retailers have shifting their attention from goods to service. In this development, mobile services have emerged as suitable venues for intensifying companies' service orientation. To address this phenomenon, the purpose of this study is to explore and analyze how mobile services are leveraged to serve customers better in the context of food retailing. With the help of 10 case examples the perspective is extended from food retailers' in-store activities to supporting customers' processes at the pre- and post-purchase stages. As a result, a tentative framework is suggested that captures the ways in which companies can use mobile services in their strategic quest to move from selling to supporting.     

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.     

Employees' overestimation of functional and relational service quality: A gap analysis

This study extends previous research on gap analysis of service quality by including not only functional service quality but also relational benefits. To this end, a field study was carried out in 36 hotels and 35 restaurants. The samples consisted of 213 employees and 657 customers. A questionnaire format was used to measure both functional and relational service quality, as well as customers' loyalty. When comparing employee and customer perceptions, gaps potentially range from ‘overestimation’ (employees' perceptions are greater than customers' perceptions) to ‘underestimation’ (customers' perceptions are greater than employees' perceptions). In general, the results indicated that the employees surveyed overestimated the service quality they offer to customers, although gaps were greater for certain service attributes than for others. In addition, some gaps were more related to customer loyalty than others. The findings also showed that employees' overestimation of relational benefits plays a moderating role, increasing the negative relationship between employees' overestimation of functional service quality and customers' loyalty. The theoretical and managerial implications of the results are discussed further in this paper.     

Language divergence in service encounters: Revisiting its influence on word-of-mouth

Research on language accommodation highlights the significance of accommodating customers' language requirements during service encounters. This replication study reinvestigates whether language divergence influences word-of-mouth intentions in a continuously-provided service of retail banking. Specifically, this study examines the relationships among language divergence, interaction quality, relationship quality, and positive word-of-mouth intentions. Consistent with previous research, study findings show that customers served in their second language perceive interactions with a service provider to be less responsive, adversely affecting positive word-of-mouth intentions. Additionally, language divergence has a negative influence on customer perception of information quality and empathy with a service provider, which affects the quality of the relationship customers have with the service provider. These results extend the understanding of the process by which language divergence affects positive word-of-mouth intentions.     

Solutions for customer complaints about offshoring and outsourcing services

In order to provide the highest quality services at lower costs, global firms have shifted their customer service functions offshore. Despite the apparent advantages of offshoring services, customers tend to object to the practice based on concerns about private/personal information being sent overseas. Additionally, executing service exchanges with overseas providers can be challenging because of perceived communication difficulties and cultural differences. The purpose of this article is to offer managers of firms that offshore services a clearer understanding of consumer concerns and provide guidance for alleviating these concerns. Specifically, suggestions are proffered regarding how to (1) minimize communication and cultural misunderstandings between customers and service providers, (2) assure customers that personal/private information is secure, and (3) restructure service activities to alleviate customer dissatisfaction. Unless such customer concerns are successfully identified and addressed, companies may not benefit from pursuing a services offshoring strategy.     

Big social data and customer decision making in vegetarian restaurants: A combined machine learning method

Customers increasingly use various social media to share their opinion about restaurants service quality. Big data collected from social media provides a data platform to improve the service quality of restaurants through customers' online reviews, where online reviews are a trustworthy and reliable source that helps consumers to evaluate food quality. Developing methods for effective evaluation of customer-generated reviews of restaurant services is important. This study develops a new method through effective learning techniques for customer segmentation and their preferences prediction in vegetarian friendly restaurants. The method is developed through text mining (Latent Dirichlet Allocation), cluster analysis (Self Organizing Map) and predictive learning technique (Classification and Regression Trees) to reveal the customer’ satisfaction levels from the service quality in vegetarian friendly restaurants. Based on the obtained results of our experiments on the data vegetarian friendly restaurants in Bangkok, the models constructed by Classification and Regression Trees were able to give an accurate prediction of customers' preferences on the basis of restaurants' quality factors. The results showed that customers’ online reviews analysis can be an effective way for customers segmentation to predict their preferences and help the restaurant managers to set priority instructions for service quality improvements.     

Evaluation of collaborative consumption of food delivery services through web mining techniques

Online food delivery services rely on urban transportation to alleviate customers' burden of traveling in highly dense cities. As new business models, these services exploit user-generated contents to promote collaborative consumption among its members. This study aims to evaluate the impact of traffic conditions (through the use of Google Maps API) on key performance indicators of online food delivery services (through the use of web scraping techniques to retrieve customer's ratings and the physical location of restaurants as provided by Facebook). From a collection of 19,934 possible routes between the physical location of 787 online providers and 4296 customers in Bogotá city, we found that traffic conditions exerted no practical effects on transactions volume and delivery time fulfillment, even though early deliveries showed a mild association with the number of comments provided by customers after receiving their orders at home.     

The link between customer satisfaction and price sensitivity: An investigation of retailing industry in Taiwan

Are customers less likely to seek bargains once they are satisfied with a product and service? This study examines the relationship between customer satisfaction and price sensitivity. Specifically, satisfaction is divided into economic satisfaction derived from tangible products and social satisfaction provided by service encounters. This survey of 248 retailer–consumer dyads shows that economic satisfaction is negatively associated with price sensitivity. However, social satisfaction is positively related with price sensitivity, especially for female customers and customers with high patronage frequency. Interpersonal relationships emphasized in the Chinese collectivist societies tend to influence customers' price sensitivity. These findings have many implications for researchers and practitioners in the retail sector.