Does service intangibility affect entrepreneurial orientation?

Service firms face a unique set of challenges in their internationalization and foreign market growth. Their services' characteristics, particularly intangibility, constrain the options available to them for growth. When such firms are services International New Ventures (INVs), their challenges are combined with those related to rapid internationalization and growth. This research investigates how service intangibility and the typical challenges of INVs relate to the firms' Entrepreneurial Orientation and their foreign market growth. The findings show that indeed service intangibility has a relationship with firm proactiveness, risk-taking, and innovativeness; and that not all elements of Entrepreneurial Orientation have a positive impact on growth.     

Classifying Services by Tangibility/Intangibility of Attributes and Benefits

ABSTRACT

This study involved two primary objectives. First, since no multi-item measure of perceived tangibility/intangibility of service offerings has emerged in the services literature, one is proposed. Second, the measure is used to classify service offerings according to the level of perceived tangibility/intangibility of their salient attributes and desired benefits. The resulting services taxonomy is intended to help guide services marketers with their positioning and promotional decisions relating to the need for overcoming the problem of service intangibility.     

How do we measure the intangible? Overcoming the measurement challenge in services

Measuring service tangibility and intangibility aspects has been an interest to service researchers. While the Likert rating scale has been widely employed for measuring mental intangibility or its dimensions, it is not free from issues such as different anchoring, that is, the same words pointing to different attitudes and understanding for different individuals. The present study proposes the usefulness of a discrete choice experiment (DCE), where respondents are asked the same questions (i.e., items) and are presented with a scale while dichotomizing the possible responses for each scale item. We show that our proposed method is accurate and generalizable across contexts and samples through multiple studies. The DCE method gives managers a better way to measure intangibility or similar service constructs like service quality, which can help them manage their service offerings and make customers happier.     

Moderating effects of the fit between service tangibilization and organizational performance

As the significance of service industry grows, its relationship to overall economic growth and organizational performance (OP) has also become an issue of prominence. Tangibilization is widely known as one of the means of overcoming the weaknesses of service intangibility and improving OP. This research explores the relationship between service tangibilization and OP. Furthermore, the moderating effect of the fit between service tangibilization and OP will also be discussed in the business context. Specifically, the Korean natural gas industry is selected to test the developed hypotheses. The managers who have experience with managing a service business in either the wholesale or retail sector of this industry were surveyed. The results imply that there exists a significant relationship between service tangibilization and OP, with the mental fit positively strengthening some of the relationships between these two constructs. It can be inferred from this that it is important for companies in the natural gas industry to attain the right fit of mental tangibilization in order to effectively deploy service tangibilization and maximize their OP.     

Customer Orientation of Service Employees—Toward a Conceptual Framework of a Key Relationship Marketing Construct

Abstract

Although customer orientation is a core element of the marketing concept and is especially crucial to the concept of relationship marketing, no widely accepted conceptualization of the construct exists. In the context of service organizations, the fulfillment of customer needs and wishes by customer-contact employeescan be seen as crucial for gaining a high degree of customer orientation. This paper develops a conceptualization of service employee customer orientation which is presented as a three-dimensional construct, the interrelated dimensions being the employee's motivation to serve customers, his or her customer-oriented skills, and his or her self-perceived decision-making authority. Implications are drawn out for relationship marketing of services organizations and relationship marketing theory.     

Exploring cadaveric organ donation: a 'mortal embodiment' perspective

The concept of the service encounter represents the process of interaction between the consumer and the service provider, which, results in the actual delivery of the service. In this it is the point at which the consumer can evaluate the service offering (John 1996). It is thus as much concerned with marketing as it is with the actual delivery of the service. Central to such marketing activity are those technical staff responsible for the delivery of the service, the so-called part-time marketers (Grönroos 1994). Focusing on the health sector in the United Kingdom, this paper examines the attitudes and behaviours of those professional staff responsible for service delivery towards embracing such a marketing role. The data suggests that although the majority of such staff has considerable reservations about embracing marketing responsibilities, these reservations reflect concerns over professional autonomy and language rather than any deep-seated antipathy towards the core concepts of marketing.     

Relationship Marketing Approaches in Changing Russian Markets

In this paper the objective is to examine marketing approaches of companies and their changes in Russian markets. The special interest of the study is, if and how relationship marketing shows up at the new competitive situation and how it is changing. According to the results of the study, several basic conclusions can be drawn. Taken as a whole, marketing has become more important during the 1990s in Russian markets. Marketing is moving from the era of institutional relationship marketing to the era of normal(ized) relationship marketing. In practice relationship marketing does not mean lip service for relationship approach but the very comprehensive and profound understanding of the influence of relationships in the total area of the companies' marketing effort.     

Measuring service content: A scale development

This research presents the development of an instrument for measuring the service content (the degree of intangibility, perishability, simultaneity, and heterogeneity) characterizing a firm's output. Service characteristics are acknowledged to be important strategic variables, and the characteristic of intangibility has been studied extensively. The scale presented here is an improvement over previous methods. In contrast to previous methods that have relied on various categorizations, or that have examined only intangibility or service quality, the scale presented here can provide a numerical measure of all four of the most important service characteristics. This can be used in future research efforts to examine the influence of service characteristics on firm internationalization, firm strategies, and performance. © 2006 Wiley Periodicals, Inc.     

The Relationship Marketing View of the Customer and the Service Dominant Logic Perspective

Based on the concept of service-dominant logic as the emerging organizing logic of marketing that would replace the traditional goods-dominant view, Vargo and Lusch (2004) originally proposed that among several other approaches to research and marketing practice that had emerged, relationship marketing would be subsumed by this broader view. More recently, however, Vargo (2009) suggested that because relationship marketing focuses on increasing the series of on-going transactions with a customer, coupled with the goal of enhancing their long-term patronage, that relationship marketing extends the goods-dominant perspective, rather than transcending into the service-dominant logic. This article counters that the relationship marketing view of the customer has already transcended the goods-dominant view to the to service-dominant view based on the way that customers are brought into the relationship as active participants in the service creation, and act as “co-producers” of value. To address the apparent goods-dominant approach in two widely used relationship marketing practices and measures, customer relationship management and customer lifetime value, this article proposes that these tools can be used from a goods-dominant view, but they can also serve as essential steps towards the practice of relationship marketing from the service-dominant logic.     

The role of customer gratitude in relationship marketing: moderation and model validation

Relationship marketing (RM) theories often emphasize on the role of trust and commitment in affecting seller performance outcomes. We test a recently developed model in a field experiment that demonstrates that RM investments (RMI) generate feelings of gratitude depending on the different types of gratitude leveraging acts and affects purchase intentions. The results confirm the presence of previously untested relationship between trust and purchase intention. The existing model is extended by including the moderating effects of the nature of the medium of communication for the seller–customer interaction (i.e. face-to-face vs. telephonic communication), and the varying intangibility of the purchase context (i.e. product vs. service) on the above relationship. Third, evidence of the moderating influence of certain individual-level cultural value orientations (i.e. good vs. evil, changeable vs. unchangeable and doing vs. being) is found. It is also endeavoured to extend and validate the model to a new culture.     

Long‐Term Oriented Marketing Relationships and Ethical Conduct in Outsourcing Sector

The study evaluates the positive effect of long‐term oriented marketing relationship on ethical conduct from the perspective of the service provider (i.e., the agent‐firm), by integrating the relevant literature from relationship marketing, ethics, and long‐term orientation domains. The paper proposes that service providers that build relationship quality with their clients will display increased ethical conduct toward them. Specifically, the study examines the positive influence of the dimensions of relationship quality (that are relevant to the offshoring services context) that the service provider firm's employees undertake and their impact on ethical conduct. Overall, the results indicate that the commitment‐only full mediation model of relationship marketing variables on ethical conduct is a better representation than both direct‐effects model and other competing mediating models examined in this study. Fundamentally, it means that customer service officers should incorporate long‐term orientation and commitment in their principal–agent relationships that will provide the impetus for undertaking ethical behavior. The article concludes with a discussion and implications of the findings.     

Intangibility and Perceived Risk in Online Environments

Product intangibility increases consumers' perception of risk. Previous research has examined the effects of multiple dimensions of intangibility on the various types of risk and found out that of the three intangibility dimensions, physical intangibility was the least correlated to the consumers' perception of risk in most situations, while mental intangibility and generality had great impact on most of the perceived risk dimensions. Little research so far has been conducted as to the differences between online and offline environments in which risk is perceived. The results from this study with generic vs. branded products in offline vs. online situations show that significant variations in the perception of risk were identified across different purchasing environments. In the online environment concerns of consumers have a significantly stronger impact on the different kinds of risk perceived than generality and mental intangibility. Whereas intangibility has a major impact on risk during the traditional method of shopping, an elevated perception of risk in the online environment is merely triggered by consumer's concerns about their privacy, the security of their purchases and the security of the system through which their transactions are completed.     

The Influence of Alternative Marketing Styles on Internal Competences in Small Manufacturing Firms: the Results of a UK Investigation

Increasingly firms are being encouraged to move away from traditional, transactional marketing and instead adopt a relationship marketing orientation. Concurrently another emerging academic concept is entrepreneurial marketing. Interest in this latter area has, in part, been stimulated by research on marketing processes within the SME sector. It is proposed that the merger of relationship and entrepreneurial marketing might result in 4 alternative marketing styles. To determine whether these styles exist, a mail survey of 300 small UK manufacturing firms was undertaken in the summer of 1996. The survey tool used the Covin/Slevin entrepreneurial measurement scale and a new scale developed specifically to measure relationship marketing style. Competence was measured by seeking managing directors' assessment of the current capability of their firm in the areas of positioning, innovation, H.R.M., employee productivity, quality and information management. Applying ANOVA to the responses from 104 firms suggests that respondent firms can be classified into 4 different marketing styles and that an orientation towards an entrepreneurial-transactional marketing style will generate the highest overall sales growth rate. Discriminant function analysis indicates that relationship orientated firms exhibit higher competences in areas such as the management of quality and the utilisation of information to enhance decision-making. The implications of these findings in relation to the future provision of support services to smaller firms are discussed, as is the need for further research.     

Value co-creation among hotels and disabled customers: An exploratory study

This study examines how service supplier and buyer value co-creation influences buyers' attitudes toward service providers. Service-dominant logic is a prevalent concept in the services industry, providing an important marketing theory in which intangible resources, co-creation of value, and relationships are the keys to determining marketing exchanges. This research describes a model for analyzing value co-creation management in the hotel industry, focusing on the specific market segment of disabled customers. This framework helps foster value co-creation to increase the benefits for participants during each stage of their relationship. The paper also presents the managerial implications of the research findings.     

Case Study of Customer Relationship Management (CRM) in the On-Line Affluent Financial Services Market

ABSTRACT

In the current period of constrained economic conditions, this study initiates an analysis of customer relationship management (CRM) on the Web sites of financial service businesses. Customer relationship management is a critical differential that enables competitive edge for businesses focused on the affluent customer market. Though investment in marketing, sales and service innovation is limited under existing conditions, the analysis of the study on large financial businesses indicates that the businesses enable higher commerce, content and context, but lower and generally inadequate communication, community, connection and customization design on their Web sites. The analysis, conducted as an assignment by adult graduate students in an information systems course, contributes important insight into the competitive dynamics of customer relationship management for Web empowered financial service businesses striving to service the demanding affluent market. This study furnishes an expanded framework to research customer relationship management of financial service businesses competing in the paradigm of the Web.     

Close to the customer: But is it really a relationship?

Everyone is developing relationships. Customers are being invited to have relationships with telephone companies, banks, auto dealers, airlines, and other suppliers of products and services. Relationship marketing is being touted as an effective strategy to guide companies into the next millennium. Recently there has been widespread reference to relationship marketing in the popular literature, and the concept has been embraced by many companies and organizations. There is little consensus, however, on what the concept means and even less consistency in how it is practised. What is relationship marketing? Practising marketers and articles in the trade press use the term in one way, while authors in academic journals seem often to be referring to something quite different. This paper reviews how the concept has been viewed by marketing authors and draws from social psychology to shed light on the characteristics of relationships. Some insights are drawn from a preliminary analysis of the results of focus group interviews that suggest how consumers describe their relationships with businesses.     

The Accor Multinational Hotel Chain in an Emerging Market: Through the Lens of the Core Competency Concept’

Service multinationals rely more on their abilities to leverage corporate resources than on their large resource positions to be successful in competition in today ‘s market. To understand this phenomenon, a fresh approach is needed in research on competition in service industries. The concept of core competency is applied in an analysis of case studies of the Accor multinational hotel chain (France) and its competitors in the Thai marketplace. The analysis focuses on core competencies embedded in the three main functions of service firms -human resources, operations, and marketing. It traces Accor's success to four core competencies - nurturing empowerment, data management, and new service development     

关系营销导向:量表的重新设计与检验

基于关系营销理论和前人关于关系营销导向的论述与测量,针对关系营销导向测量中存在的问题,本文设计了一个新的关系营销导向量表,并以营销渠道中制造商与其经销商的关系为背景,检验和评估了新量表的信度与效度。结果发现:新量表在内部一致性、表面效度、内容效度、内敛效度、判别效度和工具效度等都达到了测量的要求。最重要的是,新量表修改了原有量表的用语,使其更符合关系营销导向的内涵,弥补了原有量表缺乏表面效度的缺陷。     

The Relationship Rhombus: A Quadratic Relationship

Affinity marketing is highly focused cause related marketing which bridges the divide between commercial companies and organizations, places, or groups which have supporters and /or members and followers, rather than shareholders and customers. Consumers purchase from an organization, which they currently have no relationship with through the strength of their affinity towards a group to which they are linked. In affinity marketing a ready-made relationship is taken by one party and adapted for 'own use' and this raises the issue of who takes and adapts and for what purpose? This paper introduces the concept of affinity marketing, using the example of the affinity credit card to explain the complications of affinity relationships. Having explained the triadic nature of the affinity credit card relationship it then takes this one step further to discuss the development of a further quadratic, rhomboidal relationship.     

Embedded Relationships: Implications for Networks,Innovation, and Ecosystems

In today’s dynamic market environment, no single actor has enough knowledge and sufficient human resources to innovate on a globally competitive level. This trend has accelerated the need for a deeper understanding of relationship management in alliances, virtual corporations, and networks to maximize capacity for innovation. We refer to these structures as service ecosystems and propose a framework for investigating how innovation occurs in service ecosystems. Specifically, we review the conceptualization of relationship as it has evolved from the relationship marketing, service and business-to-business marketing, and service-dominant logic literature. Then, we draw on centrality and embeddedness to explicate how actors in these service ecosystems draw on resources from their extended networks for innovation. We propose an embedded relationships framework for investigating innovation as a dynamic and continuous ecosystem of information seeking and information processing. Future research directions are discussed.