Unique but integrated: The role of individuation and assimilation processes in teen opinion leadership

Opinion leaders propel the diffusion of innovation and exert a significant influence on the marketplace. This influence is especially pronounced during adolescence, a period marked by increasing reliance on peers and the emergence of a tension between two countervailing needs: assimilation and individuation. A survey of 1142 adolescents reveals that these developmental needs affect adolescent opinion leadership in the critical clothing market. Adolescent opinion leadership relies on a balance between desires for assimilation (i.e., centrality within the peer network) and individuation (i.e., need for uniqueness); adolescents' susceptibility to peers' normative influence and gender moderate these relationships. Adolescents who occupy central positions within their peer network tend to be opinion leaders, though only if they are not susceptible to normative influence. Position within the peer network is a key for girls, whereas need for uniqueness is a key for boys. These differences implicate different approaches for managers targeting adolescent males and females.     

Reaching the customer: Strategies for marketing and customer service

The author suggests that logistics and marketing can combine to provide a sustainable means of competitive advantage. Many marketing executives never consider the very substantial contributions which effective logistics management could make to success in the marketplace. “Marketing Logistics” can lead to success by securing a cost advantage through increased efficiency and by maximising added value through customer service, providing high levels of service at lower cost.     

The link between customer satisfaction and loyalty: the moderating role of customer characteristics

This research examines whether trust and commitment mediate the extent to which satisfaction influences loyalty, and whether such mediation is conditional on certain demographic or situational customer characteristics. The findings suggest that assuming homogeneity supports the general notion that trust and commitment partially mediate the extent to which satisfaction influences loyalty. FIMIX-PLS and PLS-MGA analyses substantiate that this mediation differs between two distinct customer segments. The two segments reveal heterogeneity in how trust and commitment partially mediate the link between satisfaction and loyalty. That is, the effect of satisfaction on loyalty is fully mediated by trust and commitment in the segment of customers with high education, whereas satisfaction is partially mediated by trust, but not by commitment, in the other segment of customers with less education.     

Effects of customer loyalty on customer entitlement and voiced complaints

The value of customer loyalty has been well documented by academicians and practitioners. Nevertheless, prior literature has paid little attention to the negative consequences of customer loyalty, for example, entitlement behaviors (e.g. requests for deeper discounts) and complaint behaviors (voicing dissatisfaction to the company). This research empirically examines the effects of customer loyalty on entitlement and voiced complaint behaviors in the context of Frequent Flyer programs in airline industry. Base on partial least squares-structural equation modeling, the results show that (1) customer loyalty has a positive effect on customer entitlement, which is the extent to which customers expect special treatment from the company; (2) the effect of customer loyalty on voiced complaints is fully mediated by customer entitlement; (3) perceived status of loyalty programs amplifies the entitlement behaviors of loyal customers, while tangible rewards of loyalty programs mitigate the entitlement behaviors of loyal customers. Theoretical and managerial implications are elaborated in the discussion section.     

The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development

Customer satisfaction with a company's products or services is often seen as the key to a company's success and long-term competitiveness. In the context of relationship marketing, customer satisfaction is often viewed as a central determinant of customer retention. However, the few empirical investigations in this area indicate that a direct relationship between these constructs is weak or even nonexistent. The overall purpose of this article is to develop a conceptual foundation for investigating the customer retention process, with the use of the concepts of customer satisfaction and relationship quality. The article involves a critical examination of the satisfaction–retention relationship, and the development of a more comprehensive view of the customer's quality perception. © 1997 John Wiley & Sons, Inc.     

Dysfunctional customer behavior: conceptualization and empirical validation

Service Business - Dysfunctional customer behavior is endemic and prevalent across multiple service sectors. However, despite significant interest from practitioners and scholars, understanding of...     

The impact of customer-specific marketing expenses on customer retention and customer profitability

We study the effects of customer-specific marketing expenses on customer retention and customer profitability in a business-to-business setting. Using data from a company providing hygiene services, we look at the impact of a hitherto unstudied type of expense targeted at individual customer relationships: the offering of free equipment to customers. The data allow tracking the activities performed in more than 4,500 customer relationships over a period of 4 years. Retention rates are higher for customers targeted with free equipment, but this effect results from an interaction with customer size. First-order dynamic panel data analyses show that the impact of targeted marketing expenses on customer dollar profit is positive for large customers, but there is no effect for smaller customers. Thus, targeted marketing expenses seem to be a tool for relationship maintenance rather than customer development: they help in retaining large customers that generate more profit, but they do not seem to work in developing new customers into larger, more profitable ones.     

Introduction: Thought leadership in brand management

This special issue contains eight articles developed from presentations at the fourth annual Thought Leaders' International Conference on Brand Management, held in Birmingham, UK in April 2008. Following a blind reviewing process, 65 papers were accepted and presented at the conference and all authors had the opportunity to revise their papers for possible inclusion in this special issue. A further round of double blind reviewing resulted in the selection of these eight articles. This introduction presents an overview of this thought-leading research into brand management.     

Symmetric and asymmetric leadership cultures: A comparative study of leadership and organizational culture at Hyundai and Toyota

This study compares national cultures, leadership strategies, and work environments in two successful global automobile companies, Hyundai Motor Group and Toyota Motor Corporation. Despite competing head-on in the same market, it was found that these companies use very different leadership strategies as a basis for both global competition and local operations. Based on the results of a comparative case study, structured interviews, and related media and empirical data, it was found that Toyota competes both strategically and managerially by emphasizing planning and work systems to mitigate the impact of any turbulence in the external environment (stability is key), while Hyundai competes by accepting environmental uncertainty and risk as a part of normal daily operations (flexibility is key). We refer to these approaches as symmetric and asymmetric leadership and organizational cultures. As a result of these differences, Hyundai is able to change course more quickly than its larger competitor as new opportunities and technologies emerge. While national cultures played a role in differentiating between the two firms, leadership differences had a more pronounced effect on organizational behaviors and subsequent performance. Results are consistent with previous research and reinforce the conclusion that top management leaders’ behavior can have a significant influence on emergent organizational cultures and performance.     

The interrelationships among service quality,customer satisfaction,and customer loyalty: Examination of the fast-food industry

The purpose of this study was to use customers’ perspectives to develop a conceptual model for improving service quality and enhancing customer satisfaction and loyalty. The 197 samples were selected from customers of leading fast food franchise enterprises in Taiwan. The research results indicate that service quality positively influences customer satisfaction and customer loyalty. Service quality positively influences customer loyalty through customer satisfaction. The research findings indicate that managers need to ensure they have efficient service quality to enhance customer satisfaction and customer loyalty levels.     

Integrating internal customer orientation,internal service quality,and customer orientation in the banking sector: an empirical study

The purpose of this paper is to examine the interrelationships between internal customer orientation (ICO), internal service quality (ISQ), and customer orientation (CO) to develop and test a conceptual model of the antecedents of CO in the banking sector. The conceptual framework consists of the following constructs: ICO, interdepartmental conflict, interdepartmental connectedness, ISQ, job satisfaction, empowerment, and CO. Moreover, 10 hypotheses were developed and tested using a sample of 202 banks. Reliability analysis and confirmatory factor analysis have been used to test the validity of the constructs, while the structural equation modelling has been used in hypotheses testing. The strength of the relationship between the constructs indicates that features of the suggested CO model including interdepartmental connectedness, interdepartmental conflict, job satisfaction, and empowerment are crucial to achieving business performance and CO. The results which emerged from our hypothesised model were found to support that ICO leads to ISQ and in turn CO. In particular, all variables show strong support for our hypothesised model, however, interdepartmental conflict was found to be a negative indicator. Findings suggest that the CO model can be deployed as a means of enhancing organisational behaviour to improve business performance.     

Employee versus supervisor ratings of performance in the retail customer service sector: Differences in predictive validity for customer outcomes

Based on data from Maxham and Netemeyer [Maxham, J. G. and R. G. Netemeyer (2003). “Firms Reap What They Sow: The Effects of Employee Shared Values and Perceived Organizational Justice on Customer Evaluations of Complaint Handling,” Journal of Marketing, 67, 46-62], the authors present two field samples to examine predictive validity differences of service employee ratings of their performance versus supervisor ratings of employee performance with respect to customer satisfaction and customer likelihood of spreading positive word-of-mouth (WOM) after a service recovery attempt. The results generally show that supervisor ratings are more strongly positively related to customer satisfaction and WOM than are employee ratings of their own performances. The results also show that both supervisor ratings and employee ratings are related to customer satisfaction and WOM in a curvilinear fashion (as well as linear fashion). Employee extra-role performances (toward customers and the firm) show increasing returns at the higher levels of performance, and employee in-role customer performance generally shows a decreasing return at the higher level of customer in-role performance.These results suggest two managerial implications. First, supervisor ratings of customer service employee performances may be the preferred form of measurement for predicting customer outcomes. Second, maximizing in-role performance inputs may have decreasing returns for customer evaluations in the service recovery context; but maximizing extra-role performance inputs may actually “delight” customers, i.e., increasing returns for customer evaluations.     

Antecedents of customer loyalty: An empirical synthesis and reexamination

Despite the importance of customer loyalty, no comprehensive, empirical work has attempted to assess the general findings across academic studies. The study intends to fill that void by conducting a meta-analysis of empirical findings on the predictors of customer loyalty. Although findings of this study support all the hypothesized main effects, they indicate stronger effect size for trust than for other determinants of loyalty. The study also tests the robustness of previous findings across various research and measurement contexts. The analysis of moderating effects reveals several interesting findings. For instance, attitudinal loyalty measures seem to be a plausible surrogate for behavioral loyalty measures. The effects of customer satisfaction and trust on loyalty are less prominent when products are purchased on a regular and relatively short (as opposed to an irregular and relatively long) purchase cycle. Factors that largely relate to product performance (e.g., satisfaction, quality) have a weaker impact on loyalty in B2B than in B2C settings. Some relationships (e.g., the effect of quality on loyalty) become stronger over time. Furthermore, our results detect consistently weaker effects from studies using single-item (relative to multi-item) loyalty measures.     

Reprisal, retribution and requital: Investigating customer retaliation

Customers, regardless of context or culture, will go to any extreme to retaliate against an offending service provider. Retaliation is an action taken in return for an injury or offense [Huefner, J.C. and H.K. Hunt, “Consumer retaliation as a response to dissatisfaction,” J Consum Satisf Dissatisfaction Complaining Behav, (2000); 13, 61-82.]. To date, research has had only a limited discussion of customer's use of anti-consumption behaviors as an expression of retaliation. This study uses qualitative methods to demonstrate that the motivations for retaliation extend beyond simply “getting even,” customers retaliate to teach the service provider a lesson or to save others from the same fate. The research identifies specific roles taken by customers as they retaliate, the emotions of customers and store issues that are at the root of these behaviors. In addition, the authors categorize a range of retaliatory behaviors as follows: cost/loss; consumption prevention; voice, exit and betrayal; and boycotting.     

Supplier strategy and customer responsiveness: Managing the links

Responsiveness to the customer is a fine ideal. Making it a reality is increasingly critical to gaining competitive advantage. In practice, it often means more variety at shorter notice. Faced with these challenges, companies must look to their suppliers for support. Instant market intelligence and flexible manufacturing are worth little if they face bottlenecks in getting the right supplies. Becoming customer responsive therefore starts with supplier strategy. Success requires better ways of managing the commercial links.     

Knowledge management and organizational performance in the service industry: The role of transformational leadership beyond the effects of transactional leadership

This study examines a comprehensive model comprising of various relationships between transformational and transactional leadership, knowledge management (KM) process, and organizational performance. Data are collected from human resource managers and general managers working in 119 service firms. Exploratory factor analysis and hierarchical regression analysis are used to analyze the proposed hypotheses. The results indicate that transformational leadership has strong and positive effects on KM process and organizational performance after controlling for the effects of transactional leadership. Further, KM process partially mediates the relationship between transformational leadership and organizational performance after controlling for the effects of transactional leadership. Implications and directions for future research are also discussed.     

Co-production and customer loyalty in financial services

Recent developments in marketing thought and practice highlight the opportunities that co-production of services provide for creating customer value. The authors propose a model of co-production with which they investigate the links between co-production and customer loyalty and the factors likely to increase the level of co-production in a financial services context, with support from an investigation in the medical services context. Further, the authors consider the relationships of customer expertise, customer–advisor communication, customer affective commitment, and interactional justice with the level of co-production. On the basis of testing with a sample of 1,197 customers of a large multinational financial services organization and 100 patients of medical services, the model is partially supported. Therefore, the authors suggest that co-production may have an important role as a basis for competition in the financial services industry.     

Cross-category variation in customer satisfaction and retention

Perceived quality, expectations, customer satisfaction, and effect of customer satisfaction on repurchase likelihood are found to be higher for products than for services, but repurchase likelihood for products is lower. Retailers have the highest repurchase likelihood and score lowest on the other variables. A set of relevant category characteristics is used to further understand variation in both the levels of these variables and their relationships. Quality, expectations, satisfaction, and satisfaction's effect on repurchase are higher — and repurchase likelihood is lower — when competition, differentiation, involvement, or experience is high and when switching costs, difficulty of standardization, or ease of evaluating quality is low.The author gratefully acknowledges the data provided through the funding of the Swedish Post Office and the support of the National Quality Research Center at the University of Michigan Business School. This research has benefitted from the comments of Claes Fornell, Michael D. Johnson, Donald R. Lehmann, Mary Sullivan, and participants in the Customer Satisfaction Workshop at the University of Michigan Business School.     

The impact of high-performance work systems in the health-care industry: employee reactions,service quality,customer satisfaction,and customer loyalty

The purpose of this study is to empirically test the effects of high-performance work systems (HPWS) on employee attitude, service quality, customer satisfaction, and customer loyalty in health-care organisations. The proposed research model was tested using structural equation modelling for hypotheses, based on data collected from 196 pairs of employee–customer respondents in four selected hospitals with more than 500 beds. The results indicate that hospitals can improve customer satisfaction and loyalty through efficient operations, employee engagement, and service quality. One of the key findings of our study is that HPWS in health-care organisations influence employee reaction and service quality.