Service with a smile: Does the type of smile matter?

Service providers have often used the mantra of “service with a smile” as a strategy to engender customer satisfaction. The findings of the current research indicate that a smile alone may not be sufficient in achieving service excellence. Specifically, this work extends prior research suggesting that customers have more positive reactions to Duchenne, or authentic, smiles compared to non-Duchenne, or non-genuine, smiles. Two experimental vignette studies examined the influence of the type of smile a service provider displays (Duchenne vs. non-Duchenne) and gender of the service provider on perceptions of service quality, as well as the Stereotype Content Model dimensions of competence and warmth. The results suggest that the type of smile (Duchenne vs. non-Duchenne) impacts evaluations of service providers in terms of their perceived level of competence, as well as their perceived service quality ratings. Implications for the hiring and training of service providers are also discussed.     

Preventing competition using side payments: when non-neutrality creates barriers to entry

Network neutrality is often advocated by content providers, stressing that side payments to Internet Service Providers would hinder innovation. However, we also observe some content providers actually paying those fees. This paper intends to explain such behaviors through economic modeling, illustrating how side payments can be a way for an incumbent content provider to prevent new competitors from entering the market. We investigate the conditions under which the incumbent can benefit from such a barrier-to-entry, and the consequences of that strategic behavior on the other actors: content providers, users, and the Internet Service Provider. We also describe how the Nash bargaining solution concept can be used to determine the side payment.     

Metaphorical communication,self-presentation,and consumer inference in service encounters

In service encounters, the meaning inferred by a customer is a result of verbal and visual communication. This research focuses on how visual metaphorical communication in a service encounter can evoke the concept of power. We show that when representation of the service provider is at the bottom (versus top) of an image, the consumer's perception of their own power is increased (Study 1). Study 2 demonstrates that power perceptions interact with self-presentational motives to influence intentions to use the service. Further, perceptions of power mediate the effect of visual representation on usage intentions. This occurs only when consumption is public and self-presentational concerns are high. In Study 3, we demonstrate that when the concept of power has little applicability, visual representation of perceived power does not affect intentions to use the service provider. Further, only individuals with a high need for status access the conceptual link between power and visual representation (Study 4). Together, the results further our understanding of the use of visual metaphorical communication in a service encounter.     

Internet service provision and content services: paid peering and competition between internet providers

We consider the relationship of Internet service providers (ISP) and content service providers (CP) in the Internet ecosystem. Currently, the position of ISPs is challenged by the emergence of powerful content service providers, especially with the spreading of bandwidth-demanding video services. The further investment in the network capacity may be hindered by prevailing business models that largely exclude the ISPs from sharing in the major cash flows resulting from content provision. We develop modeling tools for evaluation of business models of ISPs and present results of an analysis of two models with the potential for the generation of additional cash flows for ISP: paid content peering and service differentiation. Firstly, we show that under certain conditions on the cost structure and the level of demand elasticity and uncertainty, it can be profitable for a powerful content provider to resort to paid content peering, thus transferring to the ISP a part of his content provision revenue. The resulting business model may provide substantial benefits to all major participants in this ecosystem: network providers, content and service providers and end users. After this we consider competition in the Internet provision sector and show that - also in this case - the paid content peering can help ISPs to expand the network capacity and at the same time increase profits of content providers. The end users benefit from the lower prices for content services. Finally, we consider the situation when an ISP differentiates the service offer by engaging in content provision, thus entering in direct competition with content providers.     

Determinants of ex-customer winback in financial services

Financial services play important roles in consumers' lives, and switching providers is a relatively onerous task, but customers often terminate their relationships with a provider. How can a provider best regain lost customers, and what are the determinants of ex-customer winback? Using data from a financial services provider, this research examines 11 factors occurring before, during and after a termination, to study their influence on consumers' propensity to revive a relationship with a previously abandoned service provider. The results indicate that income and variety-seeking preferences are negatively correlated with a customer's likelihood of considering the former brand in the future. Positive associations and evaluations of the former brand are positively correlated with the winback potential. The results can guide managers of financial service providers as to the most significant factors to be analysed in estimating the chances of winning back a lost customer.     

Exploring different airport users’ service quality satisfaction between service providers and air travelers

This study investigates appropriate attributes— physical environment, outcome, and interactional quality—to measure users' satisfaction that influences airport users' satisfaction level. With these three attributes and users’ perspectives for air travelers and service providers, we generate a conceptual model of airport service quality and satisfaction. The findings indicate that different perceptions exist between airport service providers and air travelers. Air travelers are more concerned with interaction and outcome (convenience) quality attributes, while services providers reflect on interaction and physical environment (servicescape) quality attributes. The airport service quality is found to be significantly related to airport reuse, and destination revisits. An appropriate service-training program is needed to reduce the gap in the level of satisfaction.     

When service robots look at themselves in the mirror: An examination of the effects of perceptions of robotic self-recognition

Service robots sharing the same environments with humans are typically designed to have various humanlike features, because perceptions of robots as humanlike make them more acceptable to human users. This study examines one human characteristic that has hitherto been unexplored in studies of humans' perceptions of robots: a self-recognition ability. For (adult) humans, self-recognition is typically uncomplicated and effortless, yet it is of fundamental importance for social interaction, and therefore it was assumed that perceptions of robotic self-recognition abilities would be used for inferences about other robot attributes. A between-subjects experiment, in which a domestic service robot's ability to recognize itself was manipulated (low vs. high), showed that high self-recognition boosted perceptions of the quality of the service delivered by the robot, and that this effect was mediated by perceptions of the robot as having a capacity for learning and having theory of mind.     

Service providers’ sustainable service innovation: service-dominant logic

This study examined the service innovation in different service providers with multiple case-study approach. From the perspective of service-dominant logic, four service innovation development models can be distinguished in Technology Development Program companies in Taiwan, including service system integrator and niche market, innovative service solution provider and niche market, innovative service solution provider and mass market, and service system integrator and mass market. Service providers develop ICT platforms, customer relationship management systems, community commerce services, and multi-channel services that are appropriate for a specific industry. On the one hand, active improvement of ICT service system integration extends company capabilities toward external cooperative partners through the provision of integrated product services and comprehensive solutions. On the other hand, innovative service solutions optimize consumer experience and customer relationship management and improve business effectiveness and reduce operations costs due to an important role assigned to services and experience in product sales.     

Speak my language or look like me? – Language and ethnicity in bilingual customer service recovery

This research examines the influence of verbal (language) and non-verbal communication (ethnicity) of service providers on customers' perceptions of service recovery. Drawing insights from speech accommodation theory and inferiority complex, this study uses between subject experimental design to explore conditions under which language convergence and divergence are effective ways to build rapport. Results show that the influence of ethnicity and language cannot be interpreted without considering the ethnic composition of customers and service providers. Results also show that language can trigger stigma with positive country image that interact together to create a more favorable rapport.     

Big content providers weighing on non-neutrality?

There is a trend for big content providers such as Netflix and YouTube to give grades to Internet Service Providers (ISPs), to incentivize those ISPs to improve at least the quality offered to their service. We design in this paper a model analyzing ISPs’ optimal allocation strategies in a competitive context and in front of quality-sensitive users. We show that the optimal strategy is non-neutral, that is, it does not allocate bandwidth proportionally to the traffic share of content providers. On the other hand, we show that non-neutrality does not benefit ISPs but is surprisingly favorable to the perceived quality for users.

     

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.     

Physicians' perceptions of consumers' attitudes: satisfaction,quality and selection criteria

A mail survey of physicians from Sacramento, California, elicited information on perceptions of consumer satisfaction, service quality for 10 types of service providers including physicians and the importance ratings of 12 choice criteria for the selection of a physician by consumers. The two most important selection criteria for physicians as perceived for consumers by physicians were ‘consumer's previous experience with provider’ and ‘reputation/recommendation’. The results are compared with an earlier consumer survey.     

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.     

Unchained from the chain: Supply management from a logistics service provider perspective

The last few years have seen increasing recognition of the work of logistics service providers, as well as the significance of functioning supply relationships. This paper proposes an alternative view of supply management that builds on the observation that traditional supply chain management focuses on logistics clients rather than the service providers themselves. The paper utilizes the 4 Resource Interaction tool to illustrate how a logistics service provider faces different idea structures and activated structures than its clients in three different markets. The resulting resource perceptions and preferred resource combinations create tensions and tradeoffs between the logistics service provider and its clients. Unchaining logistics from the conventional chain structures achieves a more comprehensive understanding of interactions between shippers and logistics service providers.     

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.     

Antecedents of mobile payment loyalty: An extended perspective of perceived value and information system success model

Drawing on the information system success model and perceived value theory, we develop a research model to examine factors that may affect user satisfaction and loyalty of mobile payment platforms. Empirical data was collected from users using Alipay and WeChat Pay in China, and a total of 410 valid responses were gathered for data analysis. The results show that the multi-dimensional formative perceived value including benefits and sacrifice is important determinant of mobile payment user satisfaction and loyalty. The three benefit dimensions of functional value, experiential value and social value are more important value components than the two sacrifice dimensions of risk and cost, and experiential value is the dominant component of mobile payment users' value perception. As for the antecedents of perceived value, system quality and service quality mainly affect perceived benefits, while information quality has a greater impact on risk. The research results provide the contribution of specific value dimensions to users' perceived value and the impact of quality characteristics on specific perceived value for mobile payment platform providers, thus helping them to adopt effective strategies to strengthen market competitiveness and retain existing users.     

Managing service shutdowns: Cash refunds or vouchers?

Service shutdowns—extended disruptions of operations—caused by exogenous events are on the rise. Such shutdowns pose major challenges for service providers, customers, and regulators. Providers prefer vouchers as a means of service recovery to limit bankruptcy risk, whereas customers demand cash refunds or vouchers that include a generous bonus. Regulators, on the other hand, insist that customers must be granted the right to be reimbursed in cash. This paper shows that a zero bonus is optimal under the voucher-only strategy, whereas the provider should always include a positive bonus with the voucher under the hybrid strategy that allows customers to choose between the cash refund and voucher options. Surprisingly, despite its higher flexibility in service recovery design, the hybrid strategy can be dominated by the voucher-only strategy in terms of profit and welfare. Moreover, we show that the ranking of strategies differs across the two important dimensions of expected profit and survival under shutdown. Finally, we study competition among providers and show that a high-quality provider is more likely to use cash-back as the service recovery strategy than its low-quality competitor.     

Connecting nature with luxury service

Many service and retail facilities, such as hotels, restaurants, hospitals, and airports, are incorporating nature elements into their building design. Individuals' affinity for nature is called biophilia. The literature on biophilic design heavily focuses on the restorative effects of biophilic design on the facility users, leaving many other effects under-investigated. In particular, biophilic design implementation requires significant financial investment, thus, whether biophilic design can bring financial returns from consumers would be of interest to practitioners. This study investigates whether biophilic design attributes are linked to consumers’ willingness to pay a price premium (WTPP). Two pretests show that when biophilic attributes are moderately implemented, they can elevate aesthetic and attractiveness perceptions, but this effect tapers off if the implementation is excessive. Through three between-subjects main experiments, this study confirms that WTPP is enhanced via increased aesthetic value and luxury perceptions when biophilic attributes are present (vs. absent—Studies 1 and 2), but this serial mediation is moderated by biophilic scarcity (low vs. high—Study 3). An adequate level of nature elements, when implemented in biophilic-scarce areas, can improve customers' perceptions of aesthetic value and luxury. This, in turn, improves customers' WTPP for the service.     

Determinants of holistic passenger experience in public transportation: Scale development and validation

Transportation literature is shifting its focus from passengers’ perception of transit quality to understanding passenger experience from a holistic perspective. Few studies have investigated passenger experience factors from a holistic perspective; however, they are explored independently. A holistic approach can help the transport service providers to understand the complete journey of the passenger. This study proposes the concept of holistic passenger experience (HPX) and identifies the determinants of HPX in the context of public transportation with specific reference to Indian Railways. The study develops a comprehensive scale that measures the influence of these determinants on HPX to address this gap. Following a systematic scale development process, this study identified and validated (content, construct, convergent, and discriminant validity) a seven factor structure scale that determines HPX. Of these seven factors, four factors (vehicle maintenance, comfort & security, off board service, and travel information) constitute the core services offered by the transport service provider. Interestingly these four factors can be effectively managed by the service provider. The other three factors (social environment, supporting services, and accessibility) cannot be entirely managed by the transport service provider effectively, as these factors fall beyond the scope of the service provider.Nomological validity results are explained by constructing a matrix (holistic passenger experience Matrix) which reveals that most of the constructs that are can be managed by the transport service provider can be mapped to the cognitive component of customer experience, whereas most of the factors which go beyond the scope of the transport service provider could be mapped to the emotional component of customer experience. The findings can assist the transport sector executives to identify the key determinants to deliver superior passenger experiences throughout the journey.     

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.