Improving Customer Service

Abstract

The article presents a framework for implementing a TQM-oriented management process that can enable an organization to achieve continuous quality enhancements at minimal cost while simultaneously increasing the marketability of the service. The modeled framework demonstrates how such quality improvements can be made possible by heightening employees' sensitivity towards details pertaining to the many aspects of the service delivery process. The incidence of customer dissatisfaction resulting from sheer insensitivity towards detail during the delivery of service is established through real-world examples of actual customer experiences with numerous services. The severity of the implications of customer dissatisfaction and defection on a firm's bottom line are highlighted. The role of nonverbal communication and the many relevant forms of such communication are examined. A nonverbal communication feedback-response process model is presented that can help align the service with the expectations of the customer in high-contact services. Finally, a comprehensive set of managerial requisites for the creation of an enabling service quality culture is also identified. The framework presented also shows how performance can be enhanced, and competitive advantage gained, by effectively shaping and servicing the customer satisfaction plane.     

Customer Satisfaction with Consumption Systems

ABSTRACT

Purpose: This research examines how satisfaction toward a product and its associated services offered together by a single provider jointly affects behavioral intentions toward the provider.

Design/methodology/approach: In this study, empirical tests were conducted using longitudinal data spanning 5 years from a multinational company that offers both products and associated services as part of a consumption system to their customers.

Findings: Results show a joint congruent effect of product and services satisfaction on behavioral intentions is linear and positive. It appears that offering great service cannot compensate for less-than-adequate satisfaction toward the product. The results further highlight decreasing customer sensitivity to improvements in both sources of satisfaction and imply that focusing on too high levels of one type of satisfaction for their customers can actually be counterproductive for firms.

Research Limitations: Our model was tested using the data obtained from a single firm. Future research could test this model with data from multiple firms in various different industries and establish broader generalizability to the findings.

Practical Implications: Findings provide managers with insights on how to allocate resources across product and service spaces and to manage product and services revenues over time. Results also indicate that customer behavioral intention ratings are more weighted on product quality over the service received by them. However, mere improvements in the product cannot provide the highest desired results and therefore quality improvements in the product need to be complemented by improvements in service quality.

Originality/Value: There is a rapid emergence of the phenomenon of manufacturers providing both products and services as an integrated consumption system to their customers. While the provision of both product and service subsystems by the same firm leads to certain synergies, there are obvious costs to the development of new service capabilities and coordination with existing product capabilities. Our research intends to address this issue.     

Trade Costs and Changes in Canada's Trade Pattern

This paper measures the size and composition of non‐tariff trade costs such as transport, wholesale, and network costs incurred in Canada's merchandise trade using Statistics Canada's latest ‘trade margins’ statistics. It examines how changes in these trade costs have influenced Canada's merchandise trade pattern and the course of economic integration. Our results show that as tariffs have been substantially reduced and largely abolished, costs associated with transport and distribution services now appear much larger than remaining customs duties; therefore, liberalisation in services might be the next key step in promoting greater merchandise trade. Further, reducing transport and other trade‐related costs has helped ‘reverse’ the ‘home market effect’, expanding Canada's domestic demand and production for exports of differentiated products.     

Marketing Meal Solutions

Abstract

To regain sales lost to restaurants, many supermarkets developed meal solution programs. Inadequate marketing planning and execution contributed to the disappointing performance of many of these prepared food initiatives. Trends suggest that prepared food will continue to be a growth area and more restaurants are providing takeout and delivery services. By following sound marketing principles, supermarkets may be able to compete with both existing and emerging food-service meal solution concepts.     

The influence of hospitable design and service on patient responses

ABSTRACT

A study of 216 respondents examined a medical center environment’s influence on patient responses. A stimulus–organism–response (S-O-R) model was adapted to the theory that more hospitable healthcare servicescape elements will affect patients’ overall satisfaction with healthcare experience, loyalty intentions, and willingness to pay out-of-pocket expenses for healthcare services. Servicescape elements included atmospherics of the healthcare environment, service delivery by healthcare staff, physical design of the healthcare environment, and wayfinding. Results of structural equation modeling confirmed that the four servicescape elements – had a significant impact on patients’ overall satisfaction with the healthcare experience. Furthermore, overall satisfaction with the healthcare experience predicted patients’ loyalty intentions and willingness to pay out-of-pocket expenses for healthcare services. The study makes a significant contribution to the empirical modeling of patients’ behavioral responses to hospitable healthcare environments.     

Nigerian Banks-Quality of Services

Abstract

The qualitative characteristics of the service are becoming increasingly important. Quality improvements can lead to increased revenues and decreased costs as a result of increased customer loyalty and the cross-selling of bank products, as loyal customers spend more with chosen banks, attract lower administration costs and are more profitable. The objective of this research is to identify customers' expectations and perceptions of bank service quality to determine the service quality level. It also aims to determine key factors in selecting a particular bank. The findings of the research suggest that the key factors in selecting a particular bank are credibility, location and range of services. The majority of respondents are dissatisfied with the quality of services provided by banks in Nigeria. The research has indicated that complicated procedures and forms, queuing time, lack of individual approach and absence of new technology are some of the factors which create dissatisfaction and lack of co-operation between firms and banks. Interestingly these results are similar to customers in developed countries as indicated by similar studies in developed countries.     

Country of Production Biases on Consumer Perceptions of Global Brands: Evidence From an Emerging Market

ABSTRACT

Globalization has created significant opportunities of cost reductions for players to take advantage of location specific benefits. Simultaneously, it has presented significant opportunities for countries, such as China, to actively participate in global trade, attract foreign direct investment, and improve the economic wealth of their nations. However, literature cautions marketers about consumers’ biased evaluations of products based on their country of production. Moving production to low-cost countries could potentially harm brand trust, quality evaluations, and purchase intentions due to unfavorable biases for the country of production. The objective of this study is to investigate country of production biases of Turkish consumers for two global brands, Philips and Adidas. Data for the study (N = 1,608) were collected using mall-intercepts from the 17 largest cities of Turkey. Study findings show that brand trust, perceived quality, and purchase intentions declined sharply for both brands when consumers learned that the product was manufactured in China.     

General equilibrium trade modelling with Canada–US transportation costs

Transportation costs are an important topic in international trade, but seldom have researchers paid attention to general equilibrium trade modelling with transportation costs and explored their relevant effects. This paper uses numerical general equilibrium trade model structures to simulate the impacts of transportation costs on welfare and trade for a Canada–US country pair case. We compare two groups of model structures: Armington assumption models and homogeneous goods models. Within these two groups of models, we also compare balanced trade structures to trade imbalance structures and production function transportation costs to iceberg transportation costs. Armington goods models generate more absolute welfare gains from transportation cost elimination than homogeneous goods models. Welfare gains under balanced trade structures are larger in production function transportation cost scenarios than in iceberg transportation cost scenarios, but under trade imbalance structures, welfare gains are greater under iceberg transportation cost scenarios. Canada's welfare gains in the iceberg transportation cost scenario are significantly larger than gains in the production function transportation cost scenario. On trade effects, homogeneous goods models generate more export and import gains, balanced trade structures have more trade variations, and iceberg transportation costs generate more trade effects.     

User Perceptions of Mobile and Online Channels for Purchasing Financial Products

ABSTRACT

This study investigates users' perceptions of costs and benefits of mobile versus online, PC-based, channels for accessing financial information and completing financial transactions. Results indicate that, in the financial services context, the mobile channel has no perceived advantages over the online channel. The older online channel does have several perceived advantages related to transaction cost, risk, ease of use, meeting financial goals, and information accessibility. The channels are similar on four dimensions, but most of the similarities arise because the online and mobile channels enable purchase of the same financial products. Finally, users are more willing to use the mobile channel for less risky tasks (accessing information) than they are for more risky tasks (buying financial products).     

Perceived Importance Factors of Restaurants in Relation to University Customers' Demographic Characteristics

Abstract

This research examines the attributes which influence customers' decisions to return to a restaurant for another meal. Quality of food was rated as the most important attribute, followed by quality of service, cost/value of the meal, and ambiance of the restaurant. Nutritional value was rated as the least important attribute. Male customers did not rate the attributes differently from the female customers.     

Predicting satisfaction and intentions to use online food delivery: What really makes a difference?

ABSTRACT

Online food delivery (OFD) is no longer a new concept for the majority of Americans. Large food delivery companies make millions in revenues and those numbers are expected to increase. This study was conducted to investigate customer intentions to use OFD services through the evaluation of satisfaction, food quality, and OFD service quality. The OFD service quality was assessed via e-SELFQUAL dimensions, and included perceived control, service convenience, customer service, and service fulfillment. The study determined that food quality, control, customer service, and service fulfillment affect customer satisfaction in online food delivery services. Customer satisfaction showed a strong positive impact on behavioral intentions to use OFD.     

Green cooperation in last-mile logistics and consumer loyalty: An empirical analysis of a theoretical framework

Based on the contingency, transaction, and trust theories, this paper explored how the green cooperation between supplier and customer in last-mile logistics contributes to consumers’ sustainable consumption behaviors and trust and transaction cost's contingency role. We collected survey data from 453 users of green shopping platforms in South Korea (e.g., Homepick and Smart Locker) and analyzed the data using structural equation modeling. The results suggest that green cooperation with companies positively affects consumers’ sustainable consumption behaviors and trust, and transaction costs negatively moderate such relationships. In addition, customer trust positively affects sustainable consumption behavior and loyalty. We also found that improved sustainable consumption behavior can form loyalty, but transaction cost decreases its positive impact. This paper evaluates the last-mile delivery through green cooperation and enriches the literature on contingency, transaction cost, and trust theories.     

Theoretical perspectives of supplier–buyer long-term relationships in India

Purpose: The purposes of this study are to investigate changing Indian supplier–buyer relationships and to propose an effective conceptual model using theoretically developed constructs such as power, performance, satisfaction (economic and noneconomic), conflict (economic and noneconomic), trust, cooperation, switching cost, and commitment

Methodology/approach: This study is focused on supplier–buyer relationships among Indian companies in the processed/packaged (not fresh) food business. All of the measures for the constructs were developed for and empirically tested in previous studies. Confirmatory factor analysis and path analysis were used to test the conceptual model.

Findings: First, Indian suppliers’ power sources and performance significantly influence satisfaction and conflict. Second, satisfaction and conflict are significantly related to cooperation, trust, and switching cost. Third, cooperation and trust have a significant impact on commitment.

Research implication: One of the unique aspects of the study is to analyze the differential effects of satisfaction and conflict in India. Using dichotomized (economic and noneconomic) constructs, the ways in which Indian buyers’ economic satisfaction, noneconomic satisfaction, economic conflict, and noneconomic conflict are related to other relationship constructs (power sources, performance, cooperation, trust, switching costs, and commitment) are investigated.

Originality/value/contribution: For global companies, a key requirement for success is how to develop and sustain long-term relationships with local companies. This study suggests practical and information for successful marketing strategies to establish long-term supplier–buyer relationships in India.     

Measuring International Trade Costs

The costs of international trade have become an increasingly important item in trade negotiations (under the heading ‘trade facilitation’) and element of trade theory, but definition and measurement of trade costs remain in their infancy. This paper argues that the most conceptually appropriate measure is the gap between cost‐insurance‐freight (cif) and free‐on‐board (fob) values of traded goods, but that this must be measured on a consistent volume of trade. Such data are only available for a few countries. We calculate cif–fob gap values for the three largest trading nations that report such data (Australia, Brazil and the USA). These values provide plausible estimates of ad valorem trade costs for the three importing countries and for all countries’ exports. The estimates indicate that although trade costs have fallen over the last two decades, average trade costs now exceed the average tariff rate on imports into the USA and Australia. Country rankings by the cif–fob gap values differ significantly from those by commonly used proxies for trade costs, such as the indicators of time and cost in the World Bank’s Doing Business database, and analysis based on such proxies is likely to produce misleading results.     

The Role of Marketing in Digital Business Platforms

Digital business platforms (DBPs) such as eBay, Google, and Uber Technologies have seen enormous growth; this paper explores their salient characteristics, the role of marketing in helping DBPs succeed, and important research topics for theory and practice. A new conceptual framework based on insights from transaction cost analysis outlines the role and impact of marketing in DBPs. A key role for marketing is to increase the number and quality of interactions on a DBP while reducing transaction costs for users and production costs for the DPB. The DBPs' interactions and the data thus generated are key enablers of value creation and value appropriation on these platforms. However, there are several challenges to resolve in value creation and value appropriation because DBPs cater to the needs of many different types of users. Therefore, DBPs should carefully coordinate and manage interactions among users on different sides of a platform. For researchers, there are many opportunities to reconceptualize some of the traditional roles of marketing in the context of DBPs.     

Sous Vide Technology

Abstract

Sous vide is a food production process that holds the promise for cost savings and flexibility for the foodservice industry. The process was developed in the early 1970s in France, where it has received wide acceptance. The specific production process results in food that is generally of high culinary quality and requires only retherming. Use of the products can lower overall operational costs. Although the products pose some health risks, these are being overcome by die large suppliers. The early adopters in America appear to be the hotels, but the products hold much promise for the catering industry.     

Critical success factors in relationship management for services outsourcing

This study examines the relationship between outsourcing motives, supplier–customer relationship and perceived customer value in non-core services outsourcing. 1,757 companies were randomly selected. 234 valid questionnaires were returned (13.4 % response rate). The structural equation method was used to obtain the best fit model. The most significant contribution of this study is that ‘relationship interaction’ (communication, cooperation, coordination, collaboration, conflict resolution and integration activities) has a greater impact on customer perceived value than ‘relationship quality’ (loyalty and trust) in services outsourcing. The perceived customer value is reflected in improved services quality, reliability and agility rather than the expected cost savings.     

The need for services and technologies in physical fast fashion stores: Generation Y’s opinion

ABSTRACT

This study answers the question of in which services and technologies should fast fashion retailers with physical stores invest. Fifteen improvement options were identified through a literature review, corporate practice and expert interviews. Then, a sample of 255 members of Generation Y evaluated and classified these options as attractive, indifferent, must-be, one-dimensional, or reverse according to Kano’s approach using the segmented Kano perspective. Results show that Generation Y generally values service improvements (e.g. with respect to salesperson friendliness and competence) higher than technology improvements. However, this evaluation differs among customer segments: whereas quality-conscious fast fashion shoppers are mainly indifferent to technology improvements, other customer segments rate ‘3D Bodyscan’, ‘Barcode App’, ‘Click&Collect’, ‘iDressroom’, ‘iTerminal’, ‘Loc Aware App’, or ‘Self-Checkout’ as highly attractive.     

Migration and servicification: Do immigrant employees spur firm exports of services?

Services play an increasingly important role in production, employment and international trade but are subject to substantially higher trade costs relative to manufactured goods. Knowledge of how these trade costs can be mitigated is important for facilitating trade of services. In this paper, we analyse the role of immigrant employees as facilitators of firm exports of services, a role that remains largely unexamined. We bridge the gap in existing research by drawing on new data for nearly 30,000 Swedish firms during the period 1998–2007 within a heterogeneous firm framework. The results have important policy implications. As the multilateral approach to facilitating trade is challenged and more countries are imposing measures to restrict the cross‐country mobility of people, policymakers may need to find new ways to promote exports of services. Our results indicate that immigrant employees spur firms' export of services activities: hiring one additional foreign‐born worker can increase services exports by approximately 2.5 per cent, on average, with a stronger effect found for skilled and newly arrived immigrants. Therefore, policymakers could leverage the findings of this study to implement initiatives that utilise high‐skilled immigrants to promote services exports.     

Disease management programs: program intervention, behavior modification, and dosage effect

Disease management programs provide highly personalized self- management support to consumers afflicted with chronic illnesses. Program interventions include the provision of health information, ongoing motivation, and support for behavior change, adherence to pharmacotherapy, development of self-efficacy, and the distribution of self-care tools. Interactions between program and patients are structured and repetitive over time. Consumer behavior change can result in measurable improvements in quality and medical cost savings from postponement or avoidance of preventable complications. We evaluated the impact on cost and quality of a comprehensive Diabetes Disease Management Program (DDMP) across ten US urban markets. A staggered implementation allowed for ten pre–post and five pair-wise comparisons. The DDMP demonstrated significant improvements in six diabetes-related quality indicators, lower cost, and a dose-response with greater than 6 months participation. We conclude that a DDMP improves quality of care and reduce overall medical costs.