Transnational corporations and spatial divisions of ‘service’ expertise as a competitive strategy: the example of 3M and Boeing

Production processes are becoming increasingly more complicated as firms develop corporate strategies that are designed to increase profitability or capture market share. The focus of this article is on manufacturing companies (3M and Boeing) and on understanding the social organisation of production and the ways in which firms manipulate spatial divisions of expertise (service inputs) as well as labour (manufacturing inputs). This distinction recognises that there are important differences between production and non-production tasks. The 3M case examines the firm's global labour market by exploring the geographies of its transnational or foreign service employees. The Boeing case examines the design and manufacture of the 787 and the development by Boeing of a new complex spatial division of expertise.     

Distinguishing between the impact of social media public and private compliments on customers’ future service recovery expectations

We seek to explore whether customers’ levels of service recovery expectations differ across customers who, prior to the service failure, publicly complimented the firm on social media and customers who, in advance of the service failure, privately complimented the firm on social media. We explore these differences in terms of satisfaction with the service provider and willingness to go back to the service provider. We conduct an experiment to test the research hypotheses. Our study results show that customers who complimented the service provider publicly (relative to privately) on social media in advance of a service failure require a higher level of service recovery to be satisfied with the service provider and go back to the service provider. Further, these effects are partly moderated by customer loyalty and social media usage intensity.     

Impact of shared history on customers’ service evaluations

This paper investigates how shared history affects customers' cultural and personal values and impacts their perception of services’ responsiveness and satisfaction in a high-contact service setting (retail banking) from two countries with a shared history (France & Lebanon). Data were collected from 171 French and 141 Lebanese bank customers. Findings reveal that both cultural and personal values moderate the relationship between responsiveness and satisfaction, and that their impact is independent of each other. Further, findings show that in countries with a shared history, existing cultural models in literature may not be detailed enough to explain cross-cultural differences and similarities.     

Customers’ emotions in service failure and recovery: a meta-analysis

Marketing Letters - Customers’ emotions have emerged as a dominant dimension in the complaint-handling domain. This research provides a quantitative synthesis of the role of emotions...     

Frontline service employees’ customer-related social stressors, emotional exhaustion, and service recovery performance: customer orientation as a moderator

This study investigates the structural relationships among customer-related social stressors (disproportionate customer expectation, ambiguous customer expectation, disliked customers, and customers?? verbal aggression), emotional exhaustion, and service recovery performance, with customer orientation (CO) serving as a moderator between customer-related social stressors and emotional exhaustion as well as emotional exhaustion and service recovery performance. The study uses data collected from a survey of 1,014 frontline service employees in Korea??s tourism service sectors. The results indicate that customer-related social stressors positively influence emotional exhaustion; emotional exhaustion negatively influences service recovery performance; and CO acts as a moderator. CO moderates both the effects of customer-related social stressors on emotional exhaustion and those of emotional exhaustion on service recovery performance, by weakening the effects for higher CO employees. This study contributes to both theory and practice by combining the four constructs of customer-related social stressors, emotional exhaustion, service recovery performance, and CO in addition to examining their relationships while focusing on customer-related factors.     

Exploring the role of extrovert-introvert customers’ personality prototype as a driver of customer engagement: Does relationship duration matter?

Drawing on social exchange theory, the current study examines new drivers and their associated processes of customer engagement. In spirit, the study tests the direct and indirect impacts of the extraversion–introversion personality trait on customer engagement. The study takes into consideration the contingency role of time by testing the moderating role of relationship duration. Results demonstrate that the more extraverted customers are, the more they are likely to engage with service firms. Further, extraversion is positively related to customer–employee interaction, which in turn leads to more utilitarian and hedonic values perceived by customers. Both types of value, then, induce higher customer engagement behaviors in terms of customer referrals, knowledge sharing, and social-influence. Findings demonstrate that relationship duration moderates some of the examined relationships. The current study contributes to the literature by extending the knowledge on customer engagement's predisposition and social causes.     

Effect of service recovery on customers’ perceived justice,satisfaction, and word-of-mouth intentions on online shopping websites

As consumers become better informed and more demanding about their purchase of services, service provider's failure to satisfy all consumers during delivery of service is unavoidable. Consequently, to alleviate consumer dissatisfaction that results from service failure has become important. However, empirical consensus has been lacking on the effects of various service recovery activities. Thus, this study examines the impact of different types of service recovery on customers’ perceptions of justice, post-recovery satisfaction, and word-of-mouth (WOM) intentions. The results indicated that consumers’ perceptions of distributive and interactional justice differ by the types of service recovery and supported significant relationships among perceptions of justice, satisfaction, and WOM intentions. The results implied that consumers respond differently to different types of service recovery and that consumers particularly favor apology among types of service recovery.     

“Untact”: a new customer service strategy in the digital age

Service Business - The Industry 4.0 era has brought a shift in consumers’ purchasing behaviors from traditional retailing to online and/or mobile channels, triggered by advanced digital...     

Unravelling the impact of psychological empowerment on customer service behaviours as a consequence of ‘Leader-Member Exchange’

This study aims to investigate the cognitive process by which perceived organizational justice and leader–member exchange (LMX) are channelized into role-prescribed and extra-role customer service behaviours. It proposes the mediating role of three forms of psychological empowerment (goal internalization, perceived competence, and perceived control) in the predictor–outcome relationship, and examines this relationship from a comparative view of the role-prescribed and extra-role behaviours. Valid and reliable self-report and supervisory evaluation measures were administered to 282 nurses in Korea. The results indicate that LMX had a significantly greater effect on extra-role behaviours than on role-prescribed behaviours, and that perceived control mediated the relationship between LMX and extra-role behaviours. In terms of justice perceptions, there was no significant comparative effect on customer service behaviours. Furthermore, perceived competence mediated the relationship only between distributive justice and role-prescribed behaviours.     

The effect of the servicescape on customers’ behavioral intentions in an international airport service environment

This study was conducted to identify the constructs of an international airport servicescape and to assess the relationships among the servicescape of an international airport, emotional states, and behavioral intentions. The constructs of an international airport servicescape are identified as the ambient factor, functional factor, esthetic factor, safety factor, and social factor. The results of this study showed that functional factor, esthetic factor, safety factor, and social factor influence customers?? positive emotions, whereas the ambient factor and social factor affect customers?? negative emotions. Positive emotions, but not negative emotions, were shown to have a significant impact on behavioral intentions. Limitations and suggestions for future studies were addressed.     

The influence of the DinEX service quality dimensions on casual-dining restaurant customers’ satisfaction and behavioral intentions

The following empirical study examines the effects of specific service quality dimensions from the DinEX model on customers’ satisfaction and behavioral intentions. The originality of DinEX over other restaurant service quality instruments is primarily its focus on dimensions such as social connectedness and homophily, which represent social constructs that portray an internal sense of belonging and the tendency for people to affiliate with similar others. A self-administered questionnaire was distributed in an independent casual-dining restaurant located in the southeastern United States and a sample of 209 respondents was obtained. Results show that food healthfulness and food quality have an influence on customers’ satisfaction, which in turn affects their behavioral intentions. The implications for practitioners are discussed in detail.     

Emotional and the normative aspects of customers’ reviews

The goal of the current research is to investigate the link between the emotional aspects of hotel and travel organization customers' reviews and their normative (e.g., star rating) rankings. After filtering, the Yelp dataset generated 3,47,803 hotel and travel company reviews. Following the purification of user reviews, we used an unsupervised machine learning technique-based NRC Emotion Lexicon to study the relationships between various emotional aspects of reviews and their normative values (e.g., star rating) for the review. Customers express different sorts of feelings for different types of emotional aspects, forcing them to assign different stars, according to the study's findings. The study is the first to use a lexicon-based unsupervised learning approach to look into the emotional aspects of hotel and travel organization reviews and associated normative (e.g., star rating) rankings.     

Measuring innovation in a ‘low-tech’ service industry: the case of the Dutch hospitality industry

This article presents the findings of a survey among 613 firms in the Dutch hospitality industry adopting a demarcation perspective. The paper illustrates that innovation in this service industry is much higher and more varied than regularly reported. It further indicates that innovation activities in ‘low-tech industries’ can be in place with less formalized forms of (service) innovation management. Finally, it is shown that a higher innovation intensity is associated with better firm performance. Based on this, some implications for managing innovation in the hospitality industry are discussed. Finally, some fundamental issues in the measurement of service innovation are raised.     

Building loyalty with online financial services customers: Is there a gender difference?

This study proposes a research model of the determinants of customer loyalty in an online financial services context. The study examines the online service quality dimensions that influence e-trust and e-satisfaction, which in turn influence e-loyalty. The research assesses also the moderator role of gender in e-loyalty development. Using data collected from 376 users of a click-and-brick financial institution in Canada, the study finds that: (1) e-loyalty is positively related to e-satisfaction and e-trust; (2) e-satisfaction and e-trust are positively associated to perceived website efficiency and information quality; (3) gender does not moderate relationships between online service quality, e-satisfaction, e-trust, and e-loyalty; (4) women report higher levels of online service quality, e-satisfaction, e-trust, and e-loyalty than men. The study emphasises the role of website efficiency and information quality in developing loyalty for online financial services providers. Indeed, it suggests that online financial institutions do not need to segment their online market based on gender.     

A transformative service research agenda: a study of workers’ well-being

Interest in workers’ well-being is mounting – a key driver being the growing recognition that well-being is linked to performance. Utilizing a transformative service research (TSR) agenda, this study examines how people management practices impact the well-being of hospitality and retail workers. Comparing the experiences of permanent and precarious workers, we find it is not employment practices per se that promulgate feelings of insecurity and inferiority; rather, it is the attributions ascribed to them. This has practical implications. Most notably, some of the deleterious effects of precarious employment might be mitigated where careful attention is paid to the motives underlying an organization’s people management practices. Theoretically, TSR offers a more expansive lens for understanding the social exchange occurring in both employment relationships and service encounters, thus contributing significantly to knowledge on mutual gains theories. These findings and their implications are discussed in detail in the paper.     

The effect of interior color on customers’ aesthetic perception,emotion, and behavior in the luxury service

This study examined the role of color in a luxury service setting. To understand the effect of color, this study investigated how each dimension of color (hue, saturation, or value) contributed to customers' aesthetic perceptions of a luxury hotel room. We interpreted customers' emotional and behavioral responses to a luxury hotel room painted various colors by applying the S–O–R model. The results showed that muted and bright colors encouraged both classical and expressive aesthetic perceptions within the same hue. Moreover, the results indicated that customers' aesthetic perceptions influenced their approach response through feelings of pleasure and dominance in the luxury hotel context that was moderated by their luxury consumption motivation. This study extends the previous literature by elucidating the process by which color affects customers' aesthetic perceptions, emotional states, and behavioral responses and can inform the composition of a luxury hotel's servicescape, which reflects customers' consumption motivation.     

Determinants of customers’ intentions towards environmentally sustainable banking: Testing the structural model

The increasing urbanization and changing consumption patterns are putting great strain on environmental sustainability. The consumption patterns need to be reformed due to the great contribution to rising carbon emissions. The customers are also becoming aware of the various environmental issues. The current research developed and tested a conceptual framework to scrutinize the antecedents of customers' intentions to adopt environmentally sustainable banking services and activities. Following the theory of planned behaviour (TPB), this paper incorporated the constructs namely trust, environmental consciousness, and perceived behavioural outcomes in addition to its basic variables. The data were gathered from a cross-sectional sample of 440 Indian bank customers using a survey method. PLS-based structural equation modelling technique was employed to test the research model. The results indicated that TPB constructs exert significant influence on customers’ behavioural intention. The environmental consciousness was marked as a highly significant predictor of perceived behavioural outcomes which in turn was found to be a significant determinant of trust as well as behavioural intention. Moreover, the attitude was found to be a significant outcome of trust and environmental consciousness. This research puts forth the theoretical as well as managerial implications and provides directions for further research in the concerned thrust area.     

Relationship intention and relationship quality as predictors of clothing retail customers’ loyalty

Retailers endeavour to establish and maintain strong relationships with customers in order to build customer loyalty. Unfortunately, such endeavours are not always successful as not all retail customers reciprocate retailers’ relationship efforts. Customers’ intentions to engage in relationships with retailers (i.e. relationship intentions) should thus be the starting point in building customer loyalty. Moreover, customers’ perceptions of the strength of their relationship with a retailer (i.e. relationship quality) should also be considered when building customer loyalty. The purpose of this study is to determine whether clothing retail customers’ relationship intentions and relationship quality, individually and in combination, predict their loyalty to clothing retailers. Data were collected from 511 respondents in South Africa’s greater Tshwane metropolitan area. From a hierarchical multiple regression analysis, it was found that clothing retail customers’ relationship intentions and relationship quality are individually, and in combination, predictors of their loyalty to the retailer. Results furthermore indicate that relationship quality mediates the relationship between relationship intention and customer loyalty. The findings highlight the importance of first determining customers’ relationship intentions, and then reinforcing positive perceptions of relationship quality when building customer loyalty.     

Exploring the factors affecting customers’ intention to purchase a smart speaker

Although the sale of smart speakers is predicted to have a significant growth, the usage of smart speakers is not very popular in some countries and need further investigation. While the Bluetooth earphone and speakers are popular, the sales of smart speakers are challenging. Hence, the research purpose is to explore the determinants of the intention to purchase smart speakers and compare the differences between customers and potential customers. This study proposes ten hypotheses in a research framework according to the diffusion of innovation theory (DOI), task-technology fit (TTF), and perceived values. This study develops an online questionnaire to collect data from popular social networking sites. Finally, 249 valid responses collected from the website users are remained. The ten hypotheses are validated by using smartPLS software. According to the path analyses, five hypotheses were supported in potential customer group while only three hypotheses were supported in customer group. Users' perceived emotion-related value had significant direct influences on all customers' intention to buy smart speakers. Surprisingly, TTF was demonstrated to not significantly influence customers’ intention to purchase. The insights of the findings can be provided to smart speaker developers to design their products and sales strategies.     

Measuring word-of-mouth activity after a service encounter: are we measuring what customers communicate?

The current study differs from previous research that measured WOM activity, as an experimental between-subjects research design, was applied and the stimuli were videos of four service encounters to ensure external validity. The factors that were manipulated in the experiment were the level of service quality provided by the waitron and the waitron’s emotional display. The study found that WOM activity measurement by means of a typical recommendation item is not a true reflection of how a customer experienced a service encounter and more recommendations were done personally than by electronic means. Managerial implications, based on the findings, are made.