An empirical study of the impact of consumer emotional engagement and affective commitment in firm-hosted virtual communities

ABSTRACT

Emergent perspectives in marketing highlight new opportunities for leveraging social media as a means to build customer–firm relationships through consumer engagement. Drawing from cognitive appraisal theory and aspects of the service dominant logic, this study delineates and empirically tests hypotheses regarding the effects of key components of consumer engagement (cognitive appraisal, affective states, participation) on consumers’ affective commitment, in the context of two service companies where the firms used social media to host virtual communities. The research examines how consumers’ cognitive appraisal of the engagement experience aligned with their online interaction propensity and participation in value-creating activities drive engagement outcomes. The results confirm the need to contextualise, personalise and respond to the consumer’s engagement experience to develop this engagement.     

The effects of consumer perceived value and subjective norm on mobile data service adoption between American and Korean consumers

The effects of consumer perceived value and subjective norm on using mobile data services between American and Korean consumers were examined to explain the differences and similarities in consumer mobile data service adoption behavior in this study. The antecedent effects of four dimensions of consumer perceived value showed different behavioral intention to use mobile data services between the two countries. Emotional value was found to be the most significant effect on using mobile data services for consumers in the two countries. Subjective norm was a significant antecedent of attitude and behavioral intention to use mobile data services for American consumers, but it was not evident for Korean consumers.     

Assessing the impact of a retailer's relationship efforts on consumers’ attitudes and behavior

This study focuses at the impact of different relationship efforts made by a retailer (direct mail, preferential treatment, and tangible rewards) on key relationship marketing outcomes (trust, relationship commitment, and behavioral loyalty). A cross-sectional study in a retail clothing setting was conducted based on two consumer samples drawn from Belgium and the Netherlands. SEM results indicate that retailers undertaking relationship efforts to loyal consumers can positively affect these consumers’ attitudes and behavior. Consequently, managers and employees of retail companies need to be trained, motivated, and rewarded for making relationship efforts to regular customers.     

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.     

Exploring the influence of envy on service engagement

Consumer retention is central to service firm objectives and is often the focus of firm initiated activities. However, consumer-driven processes that operate independently of firm initiated activities also influence retention. By understanding the consumption goals of service consumers, management can encourage behavioural engagement with service offerings and improve retention outcomes. Positional services provide opportunities for social status enhancement (e.g. higher education) and attract consumers seeking the positional benefits offered. Service consumers compete for positional benefits and monitor their success relative to other service consumers via positional comparisons. Envy, an emotion with benign and malicious types, is experienced if the positional comparison with another service consumer is unfavourable and influences behavioural engagement. This study proposes and qualitatively tests a conceptual model linking positional comparison and envy to changes in consumers’ behavioural engagement with a service depending on the type of envy experienced. The findings support benign envy as a motivator for increased behavioural engagement with a service. The study also supports the existence of a ‘positional’ service category in which envy is an endemic emotional theme influencing behavioural engagement in these service environments. A two-tiered approach to the management of envy involving positional goal recognition and appraisal based tactics is recommended.     

New insights into emotion valence and loyalty intentions in relational exchanges

This research examines how emotion valence and future intentions arising from relational exchanges with a service firm depend on a consumer's level of goal attainment and locus of causality (firm vs. self) of relational outcomes. Drawing on the theories of goal‐directed behavior and agency of causation, this study hypothesizes that levels of goal attainment and locus of causality influence the generation of positive emotions (gratitude), negative emotions (grudge and guilt), relational mediators (trust and commitment), and subsequent future intentions to remain loyal to the firm. Based on a controlled experiment with 284 subjects in a consumer‐determined relationship setting, the research finds that emotion valence and future loyalty intentions are contingent upon the fulfillment of relational objectives of individual consumers and the agency of causation for the outcome of the relational exchanges. In doing so, this study delineates the conditioning mechanism that directs how emotion valence influences behavioral intentions. The study contributes to the consumer behavior and services marketing literatures on consumption‐based emotions and has significant practice implications for relational behaviors.     

Multiple reference effects in service evaluations: Roles of alternative attractiveness and self-image congruity

Customer satisfaction and service evaluation research has examined the reference effect but largely adopted an expectancy-disconfirmation paradigm that focuses on referents centered on the product or service in question. This study examines two additional reference effects, alternative attractiveness and self-image congruity, and their interaction. The framework of multiple reference effects in service evaluations integrates insights from regret theory, the investment model of interpersonal relationships, and self-image congruity theory. An empirical study of a hairstyling service confirms that comparisons involving other-object and self-based reference points contribute significantly to consumer service evaluations. Self-image congruity has the most significant impact on both customer satisfaction and commitment judgments. In general, the negative effect of alternative attractiveness on both customer satisfaction and commitment becomes weaker as the level of self-image congruity increases; as long as consumers find a good fit between their self-image and the service image, they are less likely to consider alternative services. However, for consumers with high self-image congruity with the focal service, the presence of an attractive alternative may induce them to exhibit an enhancement bias or “play up” effect (i.e., report higher satisfaction with the focal service).     

Consumer Reactions to Unethical Service Recovery

Ethical business practices have been widely prescribed, but why? Consumer’s views on unethical business practices have been studied, but possibly more important to marketers and researchers are consumer actions and reactions to unethical business practices and the businesses themselves. Do consumers react negatively, or in such a way as to "punish" the unethical business? If so, what is the nature and extent of the punishment? This research seeks answers to these questions by examining consumer reactions, such as complaining and switching, to instances of unethical business practices. Using equity theory, this research proposes that consumers should be willing to tolerate some unethical behavior as long as they feel their investments and outcomes remain proportionately equal. Consumers who perceive that their outcome/investment ratio is proportionately unequal to their comparison other will respond by switching or complaining. In this research consumers were exposed to two types of service failures with different levels of service recovery in vignettes. Costs incurred by the consumer during the service transaction were also manipulated in the vignettes. Significant differences were found for complaint behavior in the failure recovery vignettes tested. Specifically, voice complaint was higher in the high cost service encounters in both types of services tested. The recovery attempt used (ethical, unethical, or none) led to significance differences in the variables of complaint, voice complaint, satisfaction, and quality. Higher satisfaction and quality ratings were found for the ethical recovery attempt and higher intentions to use complaint and voice complaint in the unethical recovery attempts. One significant interaction between cost and recovery attempt was found. Intentions to use voice complaint were higher in the high cost situations of ethical and unethical recovery, while approaching equality at the no recovery attempt.     

Impact of co-production on consumer perception of empowerment

Service-dominant logic emphasises the customer role as co-creator of value. However, there is little empirical evidence of how customers perceive and experience value co-creation from participation in service co-production. The internet and interactive websites have increased the potential for consumers to engage in co-production through increased self-service which is acknowledged to contribute to consumer empowerment. The paper explores empirically the impact of service co-production via web technology on consumer perceptions of e-empowerment. Findings suggest that e-empowerment is multidimensional comprising empowerment and disempowerment dimensions. The paper makes several contributions to services theory. Variable co-production leads to different types of empowerment/disempowerment. Value-in-use can be perceived as process value and outcome value. The findings challenge the assumption that co-production naturally leads to co-creation of value. Co-production can be a double-edged sword: for some it can be value-enhancing, whereas for others it can be value-destructing. The paper notes several implications for practice.     

Whether to trust chatbots: Applying the event-related approach to understand consumers’ emotional experiences in interactions with chatbots in e-commerce

Chatbots can be used in marketing services to substantially improve the consumer experience. Based on cognitive appraisal theory, this study applied an event-related potential (ERP) approach to investigate consumers’ emotional experiences and consumer trust in passive interaction with chatbots versus humans, taking into account objective or subjective tasks in e-commerce. The results showed that chatbot (vs. human) service interactions automatically drew more consumer attention at the subconscious stage (i.e., a larger P2); consumers purposefully allocated more resources to regulate the negative emotions elicited by chatbots at the conscious stage (i.e., a larger LPP); and there was a lower trust in chatbots than in humans. Moreover, under subjective tasks, the differences between chatbots and human agents in emotional experience (as reflected by LPP) and trust were amplified. The findings will encourage e-retailers to improve the emotional service experience of their chatbots and prioritize the application of chatbots for objective tasks in customer service.     

Customer behavioural intentions towards mobile money services adoption in Ghana

This study examined the determinants of mobile money service usage intentions and assessed the effect of social influence (SI) on mobile money services adoption and behavioural intentions (BIs). The sample of the study comprised 300 mobile money service users in Ghana. Guided by the conceptual framework and two theories identified to have an effect on technology adoption and consumer behaviour, eight hypotheses were developed and tested using Structural Equation Modelling Techniques. It is discovered that perceived ease of use, perceived usefulness, perceived trust and perceived cost of use have a strong influence on mobile money service usage. The study found SI to have a significant effect on the adoption and BI. Providers ensure that their mobile application services are simple to operate, fulfil specific consumers’ needs, protect consumers’ accounts to ensure trust and are affordable, hence positively influencing consumers’ adoption of services.     

Retailer service acceptance: simply adding a service to the offer portfolio or committing to marketing it

By virtue of their significant influence on customers’ decisions, retailers’ acceptance of a service plays a significant role in the success of that service. Therefore, retailers’ acceptance of the service and commitment to selling the service must be ensured. However, this issue has attracted limited attention in acceptance research, which tends to focus on goods, technologies and consumers. Based on a survey of consumer durables retailers in three countries, this study focuses on retailer acceptance of a complimentary use-guarantee service, which is meant to maintain customer’s ability to use a semi-durable consumer product. The results of this study link retailers’ perceived usefulness, and commitment & effort to their service acceptance. Manufacturer support was found to moderate the relationship between ease of use and acceptance. Further, nationality, retailer’s own use of the service as a consumer and the importance of the manufacturer’s business for retailers were important for retailer acceptance. Thus, manufacturers need to focus as strongly on retailer acceptance as on the end customer acceptance to ensure service success. They also need to ensure the usefulness of the service for retailer, give retailers a reason to commit to the service sales and provide enough support to make retailers comfortable in selling the service.     

The Detrimental Effect of Cause-Related Marketing Parodies

Cause-related marketing (CrM), defined as a firm’s communication activities designed to promote a consumer good or service by including an offer to contribute a specified amount to a designated nonprofit cause, has become a preponderant practice. In tandem with the development of CrM activities, criticism of CrM has increased; critics note that some CrM claims mislead consumers regarding their purchases’ donative impact. Critics such as consumers and nonprofit advocates are using ad parodies, noncommercial messages that mimic an actual advertisement. In this context, the study investigates how these ad parodies can result in a detrimental impact on consumers’ perceptual and behavioral evaluations of the sponsoring brand. By implementing a tightly controlled experiment comparing actual CrM campaigns and CrM parodies, the author shows that the detrimental effects of CrM parodies on brand attitude and word-of-mouth valence can be explained by greater skepticism toward the firm’s sincere and altruistic motivations. In addition, the author shows that a robust asymmetry emerges in which CrM ad parodies damage perceptual and behavioral evaluations of brands more than actual CrM campaigns improve them. The authors replicate the results for two kinds of critics and two types of brands. The results provide useful implications for theory and practice, documenting the backfire effect of poorly designed CrM, which may urge brands to move toward more self-regulation of CrM practices.     

When do consumers feel betrayal and face-loss? Examining service communality and social presence types in service failures

This study investigates the importance of consumer–restaurant relationship norms (service communality) in connection with consumer–companion social presence types (business versus private) in producing consumers’ feelings of betrayal and face-loss in service failures. The results suggest that consumers felt more betrayed and face-loss in service failures as service communality increased. In addition, social presence types moderated the effect of service communality on face-loss, suggesting consumers in private social presence situations were more sensitive to face-loss as service communality increases. These findings were integrated into a discussion of theoretical and managerial implications regarding restaurant service management.     

Consumer Mindfulness and Marketing Implications

The aim of this study was to examine the role of mindfulness in consumer behavior and service marketing in Australia and Malaysia. Two studies were conducted; first to identify and characterize consumers on the basis of mindfulness, and to obtain data on the dimensions of relationship quality and consumer loyalty from the groups. Results from a standard analysis of data confirmed five of the six hypotheses tested. There are significant differences in the three dimensions of relationship quality (i.e., trust, satisfaction, and commitment), and in two of three dimensions of consumer loyalty (namely, attitudinal and behavioral loyalty) between the two consumer groups—high and low mindful consumers. There is no significant difference in consumer switching restraint between the groups. These findings lead to research and managerial implications that conclude the paper.     

Applying an extended theory of planned behavior to examine state-branded food product purchase behavior: The moderating effect of gender

ABSTRACT

The purpose of this study was to use an extended model of the theory of planned behavior to investigate the antecedents which lead to consumers’ purchase of state-branded food products. Relationships among attitude, subjective norm, perceived behavioral control, health-consciousness, intention to purchase, and actual purchase were examined. In addition, the moderating role of gender on consumer purchasing was assessed. The hypothetical model was empirically tested using data collected via Amazon Mechanical Turk (Mturk). Results implicated that consumers’ attitude, subjective norm, and perceived behavioral control of purchasing state-branded products significantly predicted their intention to purchase, and consumers’ intention to purchase significantly predicted their actual purchase of state-branded products. The relationship between health-consciousness and intention to purchase, however, was not found. Gender differences were found only between consumers’ perceived behavioral control of state-branded purchasing and their intention to purchase. Implications for marketers, farmers, and restaurant owners are provided.     

Impact of actual service provider failure on the satisfaction with aggregator

The purpose of the paper is to investigate the impact of the failure caused by the actual service provider on consumer satisfaction with the aggregator firm, where the aggregator firm works as a bridge between the consumers and the actual service providers using technology, resources, information etc., thus reducing the information search cost, process-related costs, and quality risks for the consumers. We have applied retrospective experience sampling to collect data and used structural equation modeling to validate the conceptual model of the study. We found that people consider the actual service provider’s failure as the aggregator firm’s responsibility when the attributional factors (control and stability) are strong. Moreover, when consumers perceive that the aggregator firm is responsible, they will ask for less punishment of the actual service provider and more monetary compensation. Additionally, severity of the failure increases the consumer’s recovery expectations. However, the sense of power of the consumers leads to increasing expectations of punishment of actual service provider and decreasing expectations of monetary compensation. Lastly, the actual monetary compensation or actual punishment of the service provider leads to higher level of satisfaction for the consumers. We discussed the implications of the results in the light of relationship management and service recovery design of aggregator firms.     

Seller honesty and product line pricing

We study upselling in markets where the seller observes consumer need but the consumer herself may not (e.g., medical care, durable repairs, financial and legal services). The seller may recommend excessive product features to uninformed consumers. In a monopoly with two types of consumer (one with a basic need and the other an advanced need) and two types of service (a basic service which fulfills only the basic need and an advanced service which fulfills both needs), we investigate the firm’s honesty and product-line pricing. We reach several results. First, the firm is honest if the basic service is superior (in that it generates higher per-capita social surplus than the advanced service under the efficient allocation) or if the consumers with the basic need are sufficiently many. Second, when there exist informed consumers who neglect seller recommendation, the presence of informed consumers may cause consumer welfare to decrease, and a larger informed population may cause firm profits and social welfare to increase or decrease. Lastly, when the informed consumers boycott a dishonest firm and withhold purchase, firm profits may increase because the threat of boycotting makes the firm more credible and allows a higher price of the advanced service.     

Consumer behaviour and services: A review

This article reviews the current literature in the fields of consumer behaviour and the marketing of services in order to examine the main issues facing the consumer in purchasing services, as opposed to goods. Five distinguishing characteristics of services are discussed and the implications of these for the consumers are placed within the information processing model of consumer behaviour theory. The article suggests that there are particular problems for consumers in acquiring effective information regarding services, making comparisons on the basis of that information and subsequently evaluating the service encounter. It is our contention that unless consumer responses to the particular problems associated with services are clarified, service marketing may be in danger of pursuing provider‐orientated solutions rather than understanding the actual nature of the consumer decision process when purchasing services.     

Reexamining emerging market animosity toward western developed countries: A social dilemma in physical retailing consumption under normative influence

Focusing on physical retailing as an apparent target for boycotts in the context of emerging market consumers' animosity toward Western developed countries, this research pioneers in its in-depth examination of a social dilemma whereby consumers on one hand wish to avoid purchasing Western products/services to meet social expectations, while on the other wish to continue purchasing Western products/services, because of perceived Western product/service superiority, at the risk of social disapproval. Differing from conventional animosity research that largely neglects interpersonal influence, this research synthesizes social influence theory and social exchange theory to compare consumers’ purchase decisions in visible (physical retailing) and less-visible (online shopping) consumption contexts that are subject to different strengths of normative influence, and proposes a cost-benefit analysis to explain how consumers make trade-offs between social expectations and self-interest. Two studies were conducted to test the hypotheses. Our study findings have important implications for future animosity research on consumer services that are subject to stronger normative pressure.