Drivers of sales force equity in the service industry

Based on the Stimulus–Organism–Response (S–O–R) model, this paper investigates the drivers of salesperson equity by exploring the mediating role of value added by salespeople in the relationships between salesperson attributes and both sales force loyalty and salesperson equity. A questionnaire was constructed and data were collected on customers served by financial salespeople working at five banks. A structural equation model was used to empirically assess the proposed research model. The empirical results reveal that the two dimensions of value added by the salesperson (enjoyable interaction, perceived risk) partially mediate the relationship between salesperson attributes (expertise, trustworthiness) and customer loyalty to the salesperson. In addition, the relationship between salesperson expertise and salesperson equity is partially mediated by both dimensions of value added by salespeople. However, the two dimensions of value added by salespeople fully mediates the positive relationship between trustworthiness and salesperson equity. Theoretical and managerial implications of the study are addressed.     

Investigating mediators between corporate reputation and customer citizenship behaviors

Recent corporate reputation research focuses on customers as an important stakeholder group for whom firm reputation matters. The authors hypothesize that customer-based corporate reputation (CBR) may affect customer citizenship behaviors (CCB) and that both commitment and loyalty mediate the CBR-CCB relationship. The tests of the hypotheses use a sample of 583 service customers who evaluate the reputation of service firms. These results suggest that commitment and loyalty mediate the relationship between CBR and one type of CCB, that is, helping the company. The authors discuss the implications for marketing research and practice.     

Bringing meaning to the sales job: The effect of ethical climate and customer demandingness

Top performing salespeople are attracted to organizations that provide opportunities to make full use of their abilities. Responses from 1450 sales directors from a leading direct selling organization were used to examine salesperson's experienced meaningfulness. Results show that experienced meaningfulness is critical to sales because it impacts salesperson's performance, turnover intentions and felt stress. Further, ethical climate and customer demandingness influence experienced meaningfulness perceptions.     

Customer showrooming behavior,customer orientation,and emotional labor: Sales control as a moderator

Despite the popularity of customer showrooming behavior (CSB), few studies have investigated how this phenomenon affects salespeople's sales behavior. To answer this research call, we explored the effect of CSB on customer orientation (CO), as they are associated with emotional labor (EL) and perceived sales control as a moderator. We gathered data from 397 salespeople in South Korean department stores. Our study showed that CSB affected deep acting negatively by reducing CO. Perceived outcome-based sales control enhances CSB's negative impact on CO. Nevertheless, perceived behavior-based sales control does not moderate the relationship between CSB and CO. Our results indicate that supervising salespeople using outcome-based control only worsens the effect of CSB on salespeople who combat CSB.     

The influence of customer loyalty program design on the relationship between customer motives and value perception

Despite the strong use in marketing practice, the effectiveness of loyalty programs is still heavily questioned among researchers. In our study we present an empirically tested framework that views customer loyalty programs (CLPs) with their differing designs as a moderating tool in a means-end relationship between customer motives and value. By disentangling customer value perceptions of loyalty programs we contribute to the remaining question of the efficacy of CLPs and set the road for further research. Our results support the argument that CLPs can be an effective tool and are not only something that adds to the value of a product or service, but rather creates value by itself. However, this is only the case for programs that target prevailing customer motives and hence provide a higher level of perceived value.     

The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image

This study examines the mediating role of customer relationship management (CRM) quality to better explain the effects of service evaluation variables (service quality, customer satisfaction and customer value) on customer loyalty. The study also investigates the moderating effect of brand image on these mediated relationships. The mediating role of CRM quality on the relationship between the service evaluation variables and customer loyalty is supported. Further, it is found that the indirect effect of customer satisfaction on customer loyalty via CRM quality is stronger when perceived brand image is high than when it is low. The results have implications for relationship managers, brand managers and scholars who use service evaluation and relational metrics to predict customer loyalty.     

On linking the perceived values of mobile shopping apps,customer well-being,and customer citizenship behavior: Moderating role of customer intimacy

Marketing studies that seek to determine the drivers of Customer Citizenship Behavior (CCB) are still relatively rare, especially for its multi-faceted relationship with perceived values in the context of online transactions. This study seeks to bridge this research gap by exploring the relationship between the perceived values of mobile shopping applications (MSApps) and CCB through perceived well-being based upon the social exchange theory. This study also makes another original contribution by investigating the moderating role of customer intimacy. A quantitative approach was adopted by collecting data through a web survey and then applying structural equation modelling, as well as cluster and multigroup analyses to test the proposed hypotheses. Perceived values were found to influence consumer well-being, thus predicting CCB, with consumer intimacy playing a significant moderating role in this relationship. This study is one of a few seeking to verify the drivers of CCB for MSApps, and it is the first of its kind to investigate consumer intimacy as a moderating factor. The findings will prove useful to providers of MSApps and retailers.     

Service quality dimensions and superior customer perceived value in retail banks: An empirical study on Mexican consumers

This study concerns the service quality topic in the retail bank sector. A sample of 209 retail bank clients was taken, measuring the performance of service quality attributes of their principle retail bank. Behavioral performance variables such as satisfaction, loyalty and customer perceived value were also measured. In a factor analyses the attributes were separated into three factors. These three independent factors explain a considerable amount of variability of a satisfaction–loyalty factor. On the other hand, they could not explain the superior perceived value; and no differences between the service quality performances of the bank brands were found. In conclusion, regardless of the degree of satisfaction and loyalty, the customer is not willing to pay more for banking services at his regular bank than he would at other brands. This implies that superior perceived value is not being achieved via service quality, which suggests a lack of differentiation between brands in this sector.     

Exploring the relationship of perceived automotive salesperson attributes, customer satisfaction and intentions to automotive service department patronage: The moderating role of customer gender

This study examines the relationship of perceived automotive salesperson attributes and customer satisfaction behavior in the purchase experience leading to the patronage of a service department in an automotive dealership. Logistic regression analyses indicate that gender moderates the relationship of the perceived salesperson attributes and customer satisfaction as well as intentions for service department patronage. The model distinguishes users from non-users of the service department and does this better for females than for males. Finally, the paper concludes with a discussion of the managerial implications and directions for future research.     

The effect of customer service on retailers’ shareholder wealth: The role of availability and reputation cues

Retailer customer service has been shown to lead to increases in consumer attraction and retention, but what is less apparent is whether shareholders are fully rewarded for retailers’ customer service efforts. Results from an event study on 48 retailer announcements of customer service strategies indicate that customer service increases retailer market values by 1.09 percent on average. The magnitude of this abnormal return suggests that customer service is one of the more effective ways for firms to create shareholder wealth. Further, analysis of the abnormal returns suggests that the shareholder value created by the retailer's customer service is affected by the heuristics and cues used to judge the likelihood of service delivery. Consistent with the availability heuristic, we find that services that are difficult to bring to mind and non-vivid services create significantly less shareholder value. Results further show that the retailer's reputation can also significantly inhibit the customer service's shareholder wealth creation.     

Limits to growing customer value: Being squeezed between the past and the future

Marketing managers often have to balance between marketing exploitation strategies (reaping value from what already is known) and marketing exploration strategies (reaping value from new sources). However, do marketing strategies once exploited or explored in a certain way or direction leave enough potential for further exploration? Based on the various cases of Apple, Alpro, Intel, Nutella, Patagonia, and Ryanair, this article shows that several risks and limits come into play when trying to answer this question. Companies may get squeezed between the past and the future while facing the pressure of temporal consistency driven by past behavior and experiencing the limits of future growth in the dominant customer value drivers. To counter this problem, companies often start integrating new value drivers in their story, leading to other risks, such as incompatibility with existing drivers. The cases discussed in this article reveal that companies may have to accept more sacrifices in order to increase returns within their growth trajectory. Value engineering will become a crucial discipline for companies to survive in many industries. This article gives a step-by-step approach on how to implement this in an organization.     

Understanding customer participation in CSR activities: The impact of perceptions of CSR,affective commitment,brand equity,and corporate reputation

This study investigates the mediating role of affective commitment in the link between perceptions of corporate social responsibility (CSR) and the intention to participate in CSR activities. We also examine the moderating role of firms' brand equity and corporate reputation in the relationship between perceived CSR and affective commitment. The data were collected from two online surveys and analyzed using Hayes' PROCESS macro. The results indicate a partial mediating effect of affective commitment and a significant moderating effect of brand equity. However, the moderating effect of corporate reputation is not significant. This study contributes to uncovering the process of enhancing CSR performance.     

The effects of service quality,perceived value and trust in home delivery service personnel on customer satisfaction: Evidence from a developing country

The rapid growth of online purchasing in recent years has emphasized the accompanying role of home delivery service provided by delivery personnel in ensuring customer satisfaction. On-time delivery, better service, generating positive customer perceived value, and trust towards service providers are influential factors that contribute to customer satisfaction. The aim of the study was to investigate the effects of service quality of home delivery personnel and perceived value on customer satisfaction, with trust playing an intervening role. It was conducted in Dhaka, Bangladesh, a less developed country with a new but rapidly growing digital sector. Data was collected from 259 respondents who received home delivery service, using a structured questionnaire. The conceptual model was analysed using partial least square structural equation modelling (PLS-SEM) with SmartPLS tool. The findings revealed that service quality, customer perceived value, and trust influenced customer satisfaction. The relationship between service quality and customer satisfaction and the relationship between customer perceived value and satisfaction were both partially mediated by trust. The findings contribute to the development and validation of a trust-based satisfaction model by extending the SERVQUAL model to incorporate perceived value in the presence of trust, while complying with expectation disconfirmation theory This study provides insights for managers to develop reliability and build trust in their service delivery personnel.     

An empirical study of the relationship between shopping environment,customer perceived value,satisfaction, and loyalty in the UAE malls context

This study aims to investigate through structural equation modelling (SEM) the relationships between the shopping environment, customer perceived value, customer satisfaction, and customer loyalty in regard to malls in the United Arab Emirates (UAE). The main results of this study show that the mall environment is an antecedent of the customer perceived value of malls (MALLVAL) and customer satisfaction. MALLVAL has a significant positive effect on both customer satisfaction and customer loyalty to malls. In addition, MALLVAL and customer satisfaction mediate the relationship between the mall environment and customer loyalty. Finally, customer satisfaction mediates the relationship between MALLVAL and customer loyalty to malls. Some theoretical and managerial implications of these findings are discussed.     

Perception value of product-service systems: Neural effects of service experience and customer knowledge

Digital trends in product-service system (PSS) development focus on developing win-win solutions for both companies and customers, particularly when considering human behavior issues. It is useful for the PSS provider to know the PSS value creation mechanism when customers are buying and utilizing a PSS, particularly in the service-dominant logic (SDL) and cognitive neuroscience perspective. This study solved the PSS implementation that satisfied the demands of both customers and manufacturers and the value cocreation mechanism during product and service configuration with the impacts of consumer learning and the service experience. The proposed neuroscience methodology is based on an ERP (event-related potential) experiment using PSS stimuli, representing the perception value creation process during customer decision making and the PSS configuration process. The effectiveness of the service experience is more important than customer knowledge during PSS value perception due to positive emotions with pleasant memories for the service experience and the conflicting cognition process of customer learning. The combination of service science and neurology may measure and observe human behavior and psychology through the brain science method and effectively solve the human factors in service science. The findings suggest a more objective and personalized understanding of PSS value perception, particularly the practical requirements of a resulted-oriented PSS and an application-oriented PSS.     

Effect of social support on customer satisfaction and citizenship behavior in online brand communities: The moderating role of support source

Customers often join online brand communities to seek support from others when they encounter product problems. Some customers who receive good social support exhibit customer citizenship behavior. This study develops a theoretical model to investigate how social support influences customer citizenship behavior through customer satisfaction with firms in online brand communities. Moreover, the moderating role of support source (i.e., firms vs. other customers) is measured. The research model is tested by using the Partial Least Squares technique. The results show that informational and emotional support significantly affects the customer citizenship behavior of providing feedback to the firm, recommendations, and helping other customers through customer satisfaction in online brand communities. Moreover, informational and emotional support from firms and other customers exert different effects on customer satisfaction.     

Disentangling the effect of services on B2B firm value: Trade-offs of sales,profits, and earnings volatility

In the face of declining business and growing pressures from low-cost competitors, many business-to-business (B2B) manufacturers have moved from their previously successful product-centric strategies to more service-oriented business models. Yet despite their substantial investments in services, firms fail to understand the performance ramifications of these offerings. With a longitudinal data set (2001–2016) of 227 B2B manufacturers listed in the S&P 1500 index, this study disentangles the simultaneous effects of financial-based mechanisms that link the service ratio (i.e., share of a firm's revenue generated from selling services) to firm value. The findings reveal significant trade-offs across these mechanisms. Although the service ratio monotonously boosts sales growth, it has U-shaped curvilinear relationships with profitability and earnings volatility. These effects also depend on industry- and firm-level factors. Industry maturity positively moderates the effects of the service ratio on sales growth and profitability. However, business scope has an adverse effect on the service ratio–profitability relationship. Finally, industry turbulence negatively moderates the effect of services on earnings volatility.     

Organic food corporate image and customer co-developing behavior: The mediating role of consumer trust and purchase intention

The impact of organic food corporate image on customers' surpassing purchasing behavior is absent in prior literature. Based on the S–O-R framework, the current study focuses on organic food member customers to explore the influence of corporate ability (CA) image and corporate social responsibility (CSR) image of organic food company on the consumption behavior and co-developing behavior of customers. The consumer samples came from 269 member customers of an organic food enterprise in southwest China. The results show that organic food company CA and CSR image positively affect consumer trust and co-developing behavior. CSR image enhances consumer trust and co-developing behavior than CA image does. Additionally, consumer trust and purchase intention play a multi-step mediating role in the relationship between corporate image (CA and CSR) and consumers' co-developing behavior. In conclusion, our findings provide new insights for understanding the relationship between the corporate image of organic food and the co-developing behavior of customers. The research results provide support for organic food companies that can effectively promote consumer trust, continuous purchase, and active engagement in the co-development of products and services by creating an image of ability and social responsibility.     

Qualitative analysis of customer behavior in the retail industry during the COVID-19 pandemic: A word-cloud and sentiment analysis approach

The COVID-19 pandemic caused a paradigm shift in customer behavior within the retail industry. Pandemic-induced restrictions and fear of product scarcity led to a change in purchasing frequency, with customers stockpiling non-perishable products such as basic foods and hygiene items. Media and social networks also played a significant role in fueling panic-buying behavior. Although sales decreased, consumption in all food categories increased due to the closure of restaurants and the need to prepare meals at home. The pandemic had a significant impact on both customers and retailers, resulting in staff reductions and a change in business strategies.To explore how Romanian food retailers’ representatives responded to the COVID-19 pandemic and adjusted to changing consumer behavior, the authors employed a qualitative research approach based on an interview guide. The data collected were analyzed using the statistical software R. In data analysis with R, the choice of functions used depends on various factors, such as the type of data, research questions, and analysis methods. Generally, commonly used functions in R for data analysis include data cleaning and manipulation functions such as subset, merge, and transform, data visualization functions such as ggplot2, and statistical modeling functions such as lm and glm, resulting in world clouds and a sentiment analysis.The results show that to develop effective business strategies, qualitative analysis helps identify the root causes of these changes. Sentiment analysis can reveal how retail chains representatives perceived the safety measures implemented in stores, such as social distancing and mask-wearing mandates, and how these measures affected customers’ shopping behavior. It also sheds light on how customers shopped and whether they planned to continue using these methods post-pandemic. Understanding these insights is crucial for retail companies to adapt their operations and better serve their customers in the post-pandemic world.     

Between a rock and a hard place: Seizing the opportunity of demanding customers by means of frontline service behaviors

Service businesses are increasingly facing more demanding customers as a result of a shift in power from the service providers' side to the customers' side. Related literature predominantly examines the negative side of this ongoing trend, while overlooking the positive side. The major aim of this paper is to examine how frontline employees — investment account managers — deal with the ongoing increase in customer demandingness. To address this, we draw on adaptability performance theory to test the facilitating effect of frontline employees' post-transaction service behaviors (SBs) — diligence, inducements, information communication, sportsmanship, and empathy — as a means of adaptation to higher levels of customer demand. Findings indicate that frontline employees adapt most of their SBs' intensities to match customers' demands. The results show that some SBs actually increase the effectiveness and efficiency of frontline employees' service performance, leading to an increase in customer value and satisfaction. Customer value is found as a mediator in some of the relationships between SBs and customer satisfaction. Contrary to the conception of the negative outcomes of customer demandingness, service firms need to consider taking advantage of customer demandingness by stressing the role of frontline employees in adapting to customers’ demands.