Does the length of a customer–provider relationship really matter?

This study examines both a moderator and a mediator of perceived service quality and payment equity as they relate to customer loyalty in the banking industry. Through the moderating factor, the length of the customer–bank relationship, this study builds a conceptual framework for distinguishing between transactional- and relationship-oriented customers and provides an empirical analysis by using structural equation modelling. The empirical findings of this study, the result of the examination of 610 banking customers, showed that different lengths of the customer–bank relationship form loyalty from different variables and from a different path. For transactional-oriented customers, loyalty was built through the achievement of overall customer satisfaction; whereas for relationship-oriented customers, loyalty was built through the establishment of trust. Suggestions and limitations based on the finding are also discussed.     

Using customer motivations to reduce peak demand: does it work?

This study considers whether consumers' motives to avoid waiting can be used to benefit both themselves and the services they attend. Specifically, two related aspects are explored: informing customers about alternative service delivery options that will allow them to avoid physically standing in line, and telling them at which times and days the service is usually busier (hoping they will avoid the more congested periods). The main issue is whether customers will alter their behaviour to avoid waiting –even in the absence of other incentives. Examples from four attempts to modify customer behaviour at two bank branches are analysed. Some of these attempts were quite successful in accomplishing their intended purpose and others were not. Results suggest that peak demand can be reduced and overall demand can be levelled using customer motivations, although the effectiveness of implementation depends on a number of factors. These factors include, among others, the type of clientele and the flexibility of the capacity.     

Flying Too Close to the Sun? Hubris Among CEOs and How to Prevent it

Hubris among CEOs is generally considered to be undesirable: researchers in finance and in management have documented its unwelcome effects and the media ascribe many corporate failings to CEO hubris. However, the literature fails to provide a precise definition of CEO hubris and is mostly silent on how to prevent it. We use work on hubris in the fields of mythology, psychology, and ethics to develop a framework defining CEO hubris. Our framework describes a set of beliefs and behaviors, both psycho-pathological and unethical in nature, which characterize the problematic relationship of the hubris-infected CEO towards his or her own self, others and the world at large. We then demonstrate how the development of authentic leadership may contribute to preventing or attenuating hubris by addressing its psycho-pathological nature through the true self and meaningful relationships with others. In addition to its psycho-pathological dimension, CEO hubris also contains an ethical dimension. We therefore propose that the development of the virtue of reverence might contribute to the prevention or attenuation of CEO hubris, because reverence makes the individual aware of his or her place in the world order and membership of the community of humans.     

International work experience: Is it really accelerating the way to the management board of MNCs?

International work experience is often claimed to be a prerequisite for managers in an MNC. This paper investigates how international work experience affects those managers who reach upper echelons. Drawing on both human capital theory and elite theory, we argue that stays abroad not only have beneficial, but also adverse effects on managers’ ascent to the top. By analysing the careers of 212 management board members from Germany, we find that once a certain threshold of international work experience is exceeded, being away from home impedes managers’ long-term career advancement. However, it is not only longer stays abroad that show a negative time effect; we are also able to reveal that being in countries with high geographic and cultural distance to the home country significantly decelerates managers’ speed of being appointed to the management board. Our findings demonstrate that conflicting interests exist between MNCs and high potentials who consider an international career. We stress that these conflicts call for being solved in managerial practice.     

Siding with the underdog: is your customer voting effort a sweet deal for your competitors?

In this research, we explore the negative consequences of engaging customer participation through voting mechanisms. Specifically, we draw attention to the double risk of customer voting, first by identifying the adverse effects of losing, and then by revealing the potential of turning an already engaged set of customers over to underdog competitors. We first establish that the losing effect is distinct from that of a voting (empowerment) effect (Pilot Study). We then replicate the losing effect and show that losing (as opposed to winning) voters tend to experience stronger levels of disempowerment and identify more with the underdog (Study 1). Finally, we demonstrate that losing voters are more likely to choose a competitor brand over the incumbent brand, particularly when the competitor is perceived to be an underdog (Study 2). Our findings caution brand managers to reconsider their customer engagement strategy when it involves customer voting.     

Is it better for salespeople to have the highest customer orientation or a strong fit with their group's customer orientation? Findings from automobile dealerships

The purpose of this study is to examine how retail salesperson-group fit on customer orientation impacts sales performance. Customer orientation fit will be compared against the amount of customer orientation to answer the question of whether it is better to have higher customer orientation or consistent customer orientation. This study shows that fit with the group's customer orientation is more important than having a high customer orientation; individuals who deviate from the group's customer orientation have lower performance than individuals who fit their group's customer orientation. Although previous research finds that group-level performance is stronger in groups that have consistently high customer orientation, we find that individual sales performance depends on fit with other group members, regardless of the orientation of the group.     

Do retail alliances enhance customer experience? Examining the relationship between alliance value and customer satisfaction with the alliance

Abstract

This article evaluates the role of customers in the alliance equation. Using a combination of survey and experimental data, we investigate the role of value offered by retail alliances on customer satisfaction with the alliance. We find that customer value plays a mediating role in the relationship between customer experience with the alliance and customer satisfaction with the alliance. Results also show that the nature of this relationship differs based on the type of value offered by the alliance. Cognitive processing plays a more significant role when the alliance is of a functional nature, while affect plays a more significant role when the retail alliance is of a hedonic nature.     

Whistleblowing in a changing legal climate: is it time to revisit our approach to trust and loyalty at the workplace?

This article suggests that the introduction of employment protection rights for whistleblowers has implications for the way in which trust and loyalty should be viewed at the workplace. In particular, it is argued that the very existence of legislative provisions in the United Kingdom reinforces the notion that whistleblowing should not be regarded as either deviant or disloyal behaviour. Thus, the internal reporting of concerns can be seen as an act of trust and loyalty in drawing the employer's attention to wrongdoing. Equally, external whistleblowing may result from a worker's belief that he or she also has a loyalty to the wider society. Given that the interests of employees do not necessarily coincide with those of their employer and that whistleblowers sometimes suffer reprisals, the author concludes that it is inappropriate to impose a contractual duty to report concerns. Instead, employers should endeavour to promote a culture of openness and create confidence in the mechanisms they provide for whistleblowing.     

AI-enabled recruiting: What is it and how should a manager use it?

AI-enabled recruiting systems have evolved from nice to talk about to necessary to utilize. In this article, we outline the reasons underlying this development. First, as competitive advantages have shifted from tangible to intangible assets, human capital has transitioned from supporting cast to a starring role. Second, as digitalization has redesigned both the business and social landscapes, digital recruiting of human capital has moved from the periphery to center stage. Third, recent and near-future advances in AI-enabled recruiting have improved recruiting efficiency to the point that managers ignore them or procrastinate their utilization at their own peril. In addition to explaining the forces that have pushed AI-enabled recruiting systems from nice to necessary, we outline the key strategic steps managers need to take in order to capture its main benefits.     

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.     

Understanding voter orientation in the context of political market orientation: is the political customer king?

Abstract

This article develops a conceptual framework and measurement model of political market orientation (PMO). The relationships between different behavioural aspects of PMO and the attitudinal influences of such behaviour are analysed, and the study includes structural equation modelling to test several hypotheses. While the results show that political parties focus on several different aspects of market-oriented behaviour, especially using an internal and societal orientation as cultural antecedents, a more surprising result is the inconclusive effect of a voter orientation on PMO. This lends support to the argument of ‘looking beyond the customer’ in political marketing research and practice. The article discusses the findings in the context of the existing literature on political marketing and commercial market orientation.     

Does customer sex influence the relationship between perceived quality and share of wallet?

This study examines the within and between sex differences on the relative importances of merchandise quality and interaction quality as drivers of behavioral loyalty (share of wallet). A sample of customers of a national retail chain serves as the study setting. The results indicate that for female customers, interaction quality and merchandise quality have equally strong total influence on share of wallet. For male customers, the total effect of merchandise quality on share of wallet is significantly stronger than the total effect of interaction quality. Across sex comparisons reveal that the total effect of interaction quality on share of wallet is stronger for female customers. However, merchandise quality exerts a stronger total influence on share of wallet for male customers. Implications of the results are discussed and avenues for future research are offered.     

Knowledge transfer in the context of buyer–supplier relationship: An analysis of a supplier's customer portfolio

In the context of buyer–supplier relationship, the present study will not only analyse the role of formal and informal mechanisms to transfer knowledge but also the direct and moderating effect of trustworthiness, as relational dimensions, to understand how customers acquire knowledge from suppliers. The results related to a sample of 105 customers belonging to a medium-sized Italian manufacturer's customer portfolio show that both formal and informal transfer mechanisms positively impact knowledge acquisition. Trustworthiness positively moderates the effect of informal transfer mechanisms and negatively moderates the effect of formal transfer mechanisms on knowledge transfer. Some considerations regarding the customer portfolio are suggested to enhance our understanding of the effectiveness of knowledge transfer mechanisms in relation to different trustworthiness contexts.     

Does online relationship marketing enhance customer retention and cross-buying?

One characteristic of online consumer behavior is the low cost of searching for alternatives. Therefore, customer loyalty is more difficult to achieve in the online context than in the offline one. Although studies have discussed the effectiveness of relationship marketing, nearly all studies examining such constructs have been in the context of ‘offline’ consumer behavior. With regard to the ‘online’ context, the integration of Internet technology with the customer loyalty concept is rarely discussed in the relationship marketing literature. Furthermore, empirical research that integrates the actual purchase behavior of customer retention and cross-buying is relatively sparse. In response to this, the current study develops and empirically tests a model that examines the relations among relationship-bonding tactics, perceived relationship investment, perceived relationship quality, customer loyalty, customer retention, and cross-buying. Using survey data from 766 online customers of a securities corporation, the results demonstrate the effectiveness of relationship marketing as it positively influences online customers' perception, then their loyalty, and ultimately, their actual purchase behavior.     

Is empowerment really a contributory factor to service quality?

This article investigates how empowerment of front-line staff affects service quality in mass and technological services. A questionnaire survey and in-depth interviews were conducted. Analysis of the questionnaire data revealed that although there was a moderate association between empowerment and service quality in mass services, the relationship was not statistically significant in technological services. The interview data explain these results and highlight important differences between mass and technological services, both in the type of staff and in the nature of tasks undertaken. Moreover, it was apparent that there were difficulties in implementing empowerment in mass services.