Investigating agency–client relationships in the Polish advertising industry

This paper explores selection and retention factors as perceived among agencies and clients operating in the Polish advertising industry. Initially, a broad review of advertising and marketing literature is presented in the context of those variables perceived to be important for (a) selecting/evaluating ad agencies, and (b) maintaining client loyalty and client retention. Two ad agencies and two advertisers in Poland were approached in order to explore and evaluate the variables in more depth, and as a result 15 key variables emerged that became the focus for the study. A questionnaire was designed and a postal survey was later administered to advertisers and agencies with the intentions of obtaining the views of both parties. Emerging findings of the study indicate that clients tend to focus on sales pitch and factors relating to past performance in recruiting an agency. Results also reveal that there was a close consensus among agencies and their clients concerning the relative importance of retention factors such as quality of service and customer care attributes.     

Clients of Commercial and Not-for-Profit Credit Counseling Agencies: Their Evaluations of Agency Services and Money Management Behavior

The number of family credit counseling agencies has expanded in recent years. The purpose of these agencies is to seek cooperation of lenders in setting up a plan whereby debtors can repay their debts. However, the agencies have sought not only to extricate clients from their current financial problems but also to educate them to avoid future financial problems. There is a debate in the credit counseling industry over whether the not-for-profit or the commercial agency can best serve debtor needs. This study is based on a survey of debtors who were clients of a not-for-profit agency or of a commercial agency. No significant differences were found in clients' evaluations of the services of the two agencies or in the credit and money management behavior of the two client groups.     

Client influence and advertising standardization: a survey of ad agencies

With increased globalization of markets, the standardization of products, services, and promotion activities has streamlined the work performed by advertising agencies. In this study, managing directors of Australian and US advertising agencies were questioned about the extent their clients influence agency functions and the degree of standardization used. It was found that copywriting was the main service offered and the clients usually have a major influence on their services. As for those that handle multi-country campaigns, older agencies tend to be more involved in international markets, and there was some degree of standardizing of campaigns and creative work.     

Client Perceptions of Reported Outcomes of Group Model Building in the New Zealand Public Sector

System dynamics modellers sometimes involve decision-makers in the modelling process, a method known as “group model building”. Group model building has been associated with a number of different outcomes, and it is not clear which of these outcomes are important to clients. The public sector is a significant audience for group model building interventions; this paper reports on what outcomes are most valued by potential clients in the New Zealand public sector. Senior management within four government agencies identified the employees who were most likely to commission and conduct group decision processes. These individuals participated in detailed semi-structured interviews, and completed a written questionnaire, exploring the contexts in which group model building may be useful and the outcomes sought in each situation. The results suggest that, even within the public sector, the importance of a particular outcome will depend upon context. However, public servants generally appear to value trust and agreement over policy quality when conducting group-decision processes. Knowledge of the outcomes sought by potential clients helps guide the outcomes measured by researchers, and helps practitioners to tailor communication messages to clients.     

How does a new institution spread? Travel agencies' adoption of the service quality assurance programme

Despite the recognition of service quality as a major advantage in service industries, the travel agency sector in Taiwan has lacked any service quality certification regime that could optimize service provision or reduce customers' transaction costs. Since the introduction of such a quality-assurance programme in Taiwan in mid-2003, local travel agencies have responded differently. With a sample of 167 uncertified Taiwanese travel service operators, this study argues that firm responsiveness to a new institution depends on two distinct motives, rational and normative, and that such relationships are contingent upon CEO's background and market conditions. The results detail the varied responses as a result of rational and normative considerations and highlight the context-dependent nature of the motivation–behaviour relationships. This study yields important implications for quality credentialing bodies regarding how a new institution may diffuse in a field.     

Partner or supplier: An examination of client/agency relationships in an IMC context

There is growing evidence from practitioners that the advertising industry is in a state of crisis. As campaigns become more integrated and multi-disciplinary, the relationship between advertising agencies and clients is being tested to its limits and is presently considered to be at an all-time low. Agencies feel less valued and are being excluded from C-suite discussion. Clients feel that agencies do not appreciate the changing landscape and how the customer experience is now key. Both sides recognise the need for more trust and collaboration. This study applies the agency theory and the social power theory to understand the pressures that the relationship is under. It looks for evidence that IMC is creating a movement away from a business alliance relationship by comparing qualitative data collected from both agencies and clients, using NVivo to identify themes. The findings identify four themes which illustrate this shift towards a supplier relationship: the client ownership of the customer journey, the lack of a strategic role of agencies, the challenges of agency collaboration and difficulties of agency specialisation.     

Determinants of Client Expectations for Accounting Services

Abstract

As the market for accounting services becomes more competitive, accounting service providers must strive to continually improve service quality to attract new clients and retain existing clients. Client expectations provide a benchmark that must be met or exceeded for the client to perceive that high quality services have been delivered (Ades 1988; Aquila and Koltin 1992). Based on a review of accounting and service marketing literature, this paper developed a conceptual model that identified potential determinants of client expectations for accounting services. Hypotheses derived from this model were empirically tested using LISREL on survey data from 196 households.

The results of our analysis indicated that client satisfaction with prior services, prior service quality, word-of-mouth communication, and price were significantly related to accounting firm image. Firm image, in turn, was significantly related to client expectations for future accounting services. Importantly, several variables from the service marketing literature were not supported with our sample of accounting service clients. Hence, these results identify the critical determinants of client expectations for accounting services, provide insight into the expectation formulation process for accounting service clients, and offer guidance to accounting service providers who may wish to influence clients' expectations.     

Strategic responses to market globalisation among advertising agencies

The advertising industry is undergoing major changes as markets and clients become more global. Using the integration-responsiveness framework and the transnational framework, it is apparent that advertising agencies have a high need to be simultaneously integrated and responsive. This paper reports on a series of depth interviews with international agency leaders intended to gain an assessment of both the extent to which their firms are responding to these important but conflicting needs and the appropriateness of the framework for understanding the strategic options available for ad agency management. The findings indicate that the agencies have tried to modify their strategies to accommodate both kinds of pressures. However, their success in this regard is questioned and other broader strategic concerns are considered.     

Investment in online advertising and return on sales: Does it pay to outsource the services to an advertising agency?

Abstract

The effect of investing in online advertising on a firm’s financial outcomes can depend on whether or not the development and implementation of advertising campaigns are managed by advertising agencies. Agencies may have experienced professionals or workload to perform these jobs, but the costs are greater. This paper aims to investigate the effects of investments in digital marketing on the financial outcome of a company’s services, comparing whether or not it is outsourced to advertising agencies. The secondary data relates to services advertised and marketed by a firm. We tested the possible moderating effect of outsourcing the service in the relationship between investment in online advertising (Google and Facebook) and return on sales (profit margin), by controlling the effect of covariates. Through four regression analyses, the results showed that outsourcing the service moderates the relationship. Specifically, the higher the amount of advertising investment, the more it pays to outsource the service to an advertising agency in order to generate greater profit margin. But with a low investment value, it does not pay to outsource. This study helps to identify situations in which it pays to outsource digital marketing services to an advertising agency.     

Identifying the Communication,Behaviors, and Interaction Patterns of Agency-Client Relationships in Development and Decline

Abstract

Leichty and Springston (1993) suggest that “if the relationship management metaphor is to be taken seriously, we need to develop a theory of how relationships between organizations and publics develop, change, and are maintained” (p. 334). The current investigation is a response to that challenge by suggesting a theoretical grounding, drawn from Knapp and Vangelisti's (1996) interaction stages research, for describing how agency-client relationships are initiated, developed, maintained, and deteriorate. The research was conducted with 25 account executives of a medium-sized mid-western public relations agency. The participants provided examples of communication, behaviors, and interaction patterns that are experienced when agencies and clients initiate, develop, maintain, deteriorate, and terminate relationships. A total of five phases of organization-public relationship development and five phases of organization-public relationship decline are reported. The paper concludes with a discussion of the role that relationship management should play in the study and practice of public relations.     

Designing for Cost Transparency in Investment Advisory Service Encounters

Investment advisory services of financial service providers (FSPs) exhibit several characteristics that are detrimental to advisory quality. The interaction of advisor and client is strained by a lack of transparency regarding the advisory process (what activities are performed and why) and the information used therein (what information is used for what purpose and with what effect), as well as regarding the precise costs of the service and the recommended products. In prior research, we suggested that process and information transparency issues may be appropriately addressed with collaborative information technology (IT) artifacts. In this paper, we argue that collaborative, transparent artifacts may also be a premise of enabling cost transparency. To this end, we describe a complete research cycle of designing, implementing, and evaluating a shared cost-transparent IT artifact to support client-advisor interaction in investment advisory encounters. Evaluation results suggest the efficacy of our design in improving the clients?? perceived cost transparency as well as increase their satisfaction and their willingness to pay for the received investment advice. These findings may also challenge the common belief of FSPs that transparent, fee-based advisory services would neither be accepted by clients nor be economically viable. Practical implications of these findings for designing advisory encounters with supportive IT are discussed.     

Busy Auditors,Ethical Behavior,and Discretionary Accruals Quality in Malaysia

The required professional and ethical pronouncements of accountants mean that auditors need to be competent and exercise due care and skill in the performance of their audits. In this study, we examine what happens when auditors take on more clients than they should, thus raising doubts about their ability to maintain competence and audit quality. Using 2803 observations of Malaysian companies from 2010 to 2013, we find that auditors with multiple clients are associated with lower earnings quality, proxied by total accruals and discretionary accruals. Our results demonstrate that associating client firms’ reported discretionary accruals with individual auditors, rather than their firms or offices, is important in determining audit quality. Moreover, we demonstrate that the disclosure of auditors’ signatures on their reports is useful for assessing auditor quality at the individual level, thus contributing to the debate on the usefulness of having auditor identities on reports.     

The advertising creative process: A study of UK agencies

Advertising agencies are hired to develop creative advertising for their clients. This paper explores the advertising creative process used by agencies when developing new creative work. Using in-depth interviews with 21 agency practitioners in the UK this study examines the stages that take place within the advertising creative process. Findings suggest the process is made up of a series of sequentially linked stages and illustrate how agencies validate advertising creative during development. The study provides insight into how agencies customise the process and identifies that agencies have different approaches to the level of client involvement. Implications for practitioners are discussed and areas for future research identified.     

Professional service quality A step beyond other services?

The management and measurement of professional service quality is particularly problematic. To enable managers of legal practices to improve service quality they must understand the service attributes their clients consider important. Drawing on a series of focus groups conducted in the UK, this study provides insights into the assessment of legal services by commercial and corporate clients. A review of literatures pertaining to the evaluation of professional service quality, the concepts of quality and value, and dimensions relating to outcome and process is presented. The results of a series of focus groups are considered in the context of continuing research.     

Internet Marketing Communications in the Selling Process

Abstract

The internet represents an opportunity for sellers to communicate easily with potential and existing customers across the world. To what extent are websites and e-mail used in the selling process for complex services? A sample of advertising agency affiliates found some differences in the frequency of e-mail and website use for different selling tasks. In addition agencies in high-income regions used website communication more frequently than those in low-income regions, but no significant differences were discerned in e-mail use between the two groups.     

Client Selection of a Residential Real Estate Agency or Agent

Research relating to professional services marketing remains somewhat sparse, despite the increased attention the topic is receiving in the business and academic press. This article reports the findings of a study relating to client selection of a particular type of professional service provider: a residential real estate agent/agency, a virtually unresearched topic. The results clearly indicate that cli- ents tend to select a particular agent rather than an agency, which leads to a number of implications for the marketing of residential real estate-for both agents and agencies. Not only do the results provide insights into one particular decision context, but also many of the implications appear to be generalizable to other professional service providers.     

Joint Venture of Wholly-Own:

American advertising agencies have been rapidly expanding their operations abroad in recent decades. During this time, they have taken adtvantage of foreign experitise by acquiring local agencies or establishing joint venture arrangements. In other cases they have gone abraod by boldly setting up their own operations. This 15 agency - 344 subsidiary survey of agencies' abilities and performances shows that in general, wholly-owned subsidiaries have outperformed joint venture arrangements in terms of market rankings and total billings. While wholly-owned subsidiaries performed more multicountry campaigns, in terms of their operations, no differences were found concerning their service offerings of number of global campaigns performed.     

How to achieve true integration: the impact of integrated marketing communication on the client/agency relationship

ABSTRACT

Reports from the advertising industry suggest that the pressure to create effective integrated campaigns across the ever-increasing mix of paid, owned and earned media is putting an enormous strain on client/agency relationships. This research identifies the main challenges that an Integrated Marketing Communication (IMC) approach places on this relationship and thereby advances the IMC literature by examining the practical challenges of implementation. Six key issues, developed from academic and industry sources, are presented to advertising experts, through a Delphi study, to stimulate debate and identify areas of agreement. The findings are brought together in a model which presents three main areas that need to be addressed, along with specific recommendations. These topics include the need for clients to provide stronger leadership in defining agency roles and responsibilities, more transparent remuneration systems to encourage teamwork across agencies as well as individual input and an increased emphasis on the strategic contribution from agencies.     

Paying for advertising: advice for retailers

How best to pay an advertising agency is a long-standing debate, but up till now there has been little empirical evidence upon which to base decisions. In a recent survey, retailers reported lower satisfaction with their advertising agency remuneration agreement than clients in any other sector. As remuneration has the potential not only to sour day-to-day relationships, but more significandy to provide incentives to the agency for better advertising, a better agency service and value for money, getting it right is without doubt an important task. This paper examines the factors that are associated with satisfaction, notably the methods and practices of remuneration employed, the characteristics of the advertising task and advertiser situation, and advertiser attitudes on the equitability of the agreement. Findings indicate that changes to certain methods, practices and attitudes may be beneficial to both client and agency. Best-practice advice is offered, and conclusions drawn.     

Dynamic internet pricing with service level agreements for multihomed clients

With the increase in internet coverage and the decrease in internet access price, the demand for good internet service has grown. Clients expect a guarantee in the quality of service (QoS) during internet access. In this paper, we present a model in which clients are given assurances by service providers to be able to connect to the internet and to get the bandwidth requested, and, if clients do not get the services they request, the service provider pays penalties to the clients. We consider internet clients that can dynamically connect to a number of internet service providers (ISP). When a client arrives at an ISP, he has to decide whether to accept the client, and then the price to charge from the client for the duration of its connection. Rejection of a client results in a penalty and delay in getting the requested bandwidth also incurs a penalty. We assume a Poisson arrival process with the rate of arrival sensitive to the price being charged. A client requests bandwidth for a time that is exponentially distributed, then the client is idle for a time that is also exponentially distributed; and then either the client departs or requests bandwidth again after the idle period is over. A service provider tries to maximize its income by charging appropriate prices based on its current state and deciding whether to accept more clients or not. Since penalties are imposed, such solutions also automatically balance load among service providers, and so the QoS to clients improves. We present solutions that maximize the income of service providers. The solutions are then compared using simulation. Simulation results show that our solutions significantly improve QoS of clients and increase the income of service providers as compared to a simple heuristic based solution that could otherwise be used.