China＇s manufacturing quality improves

China＇s toy exports have been hurt by the global financial crisis, with growth slowing substantially, the General Administration of Customs said on December 19. Between January and October, China exported US$7.34 billion worth of toys, up 3.7 percent year- on-year. The growth rate was 16.6 percentage points lower than the year-earlier level. Lingering pressure from safety-related product recalls last year also constrained growth, Customs said.     

Facility design consequences of different employees’ quality perceptions

An important challenge for facility management is to integrate the complex and comprehensive construct of different service processes and physical elements of the service facility into a meaningful and functional facility design. The difficulty of this task is clearly indicated by the present study that shows that different employee categories for interpersonal services have quite different perceptions of the facility design that stem from different but coherent needs and interests. Employees with management perspectives (i.e. top managers and facility managers) were significantly more positive about the facility design than frontline employees and their supervisors with providers’ perspectives. Also, providers attributed a more important role to facility design with respect to delivering interpersonal services than management did. We found strong indications for the need for cross-functional cooperation in decision making about the facility design, creating a more balanced setting and possibly empowering providers for the service encounter.     

Relationships between process quality,outcome quality,satisfaction, and behavioural intentions for online travel agencies – evidence from Taiwan

Instead of using the SERVQUAL-type scale, this study conceptualizes e-service quality by two dimensions – process quality and outcome quality – and explores the relationships between process quality, outcome quality, satisfaction, and behavioural intentions in the context of online travel agencies. Using an empirical survey consisting of 240 Taiwanese respondents who have purchased online travel agents' products, the results reveal that process quality and outcome quality have significantly direct and positive effects on satisfaction. In addition, there exists a significant influence of satisfaction on behavioural intentions. While supporting the quality–satisfaction–behavioural intentions relationship overall, this study specifically provides more insights into the construction and effects of e-service quality.     

Is empowerment really a contributory factor to service quality?

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

Dominant retailers’ incentives for product quality in asymmetric distribution channels

This paper investigates the diverging incentives for product quality in a channel with two asymmetric retailers and a common supplier. When retailers differ in terms of service provision and channel power, changes in manufactured quality cause channel conflicts. In particular, our results show that if the low service retailer becomes dominant in the channel, it may induce a low level of quality that is detrimental for the other members of the channel. The low service retailer benefits from quality reduction first by improving its competitive standing against its rival retailer by lessening the importance of quality for consumer choice and second by strengthening its relative bargaining position vis-à-vis its supplier. Our results also show that consumer surplus may increase as a result of quality reduction.     

When is quality of financial system a source of comparative advantage?

Dominant theories of trade tend to ignore the role of finance as a source of comparative advantage. On the other hand, the finance literature places financial institutions as a driver of economic growth. This paper unites these two competing schools of thought in a general equilibrium framework. For economies with high-quality institutions (defined by the competitiveness of the financial sector, the quality of corporate governance, and the level of property rights protection), finance is passive. On the other hand, for economies with low-quality institutions, the quality of the financial system is an independent source of comparative advantage. Interestingly, the conventional measure of financial development (the size of the financial market relative to GDP) does not adequately capture the underlying quality of financial institutions. In addition, free trade may reduce the aggregate income in South. Financial capital tends to flow from South to North.     

Smoke gets in your eyes—: Examining air quality in casino-hotels

When the managers of a major hotel-casino in Las Vegas investigated the air quality in selected back-of-the-house departments, the analysis sensitized those managers to the issues of indoor-air quality and led them to study the air quality of all public spaces as well. That study, the first attempt to quantify air quality in both front- and back-of-the-house areas of a major casino-hotel, may serve as a model for other property owners and managers concerned with guests' comfort and employees' well-being.     

China aims to foster more world famous bag brands with good quality

China Chamber of Commerce for hnports and Exports of Light Industrial Products and Arts-Crafts(CCCLA)signed a cooperation memo on September 18 with eastern Pinghu city to set up a suitcase and bag manufacturing base. Wang Zhongqi, vice president of the chamber told Xinhua that this would foster more export famous brands and lay a sound foundation for the long-run industry develop- ment, as well as help promote regional industrial upgrading.     

Consumer–brand relationship quality: When and how it helps brand extensions

Two studies demonstrate that strong brand relationship quality (BRQ) enhances consumer judgments about brand extensions. Different methods (survey vs. experiment), participants (real consumers vs. college students), and cultural contexts (Korea vs. Canada) demonstrate that this effect generalizes. Study results suggest that this effect only occurs for two moderately-low-fit extensions: the extension and the parent are similar product categories with inconsistent attributes, or dissimilar product categories with consistent attributes. Two different cognitive processes underlie the BRQ effects depending on these conditions.     

Hedonic study on mobile telephony market in France: pricing–quality strategies

This paper provides a hedonic price analysis of mobile telephony services for the French market. We adopt the hedonic price theory to examine the relationship between changes in price levels and the evolution of the market for mobile telecommunications industry in France from June 1996 to December 2002. The results support the hypothesis that there was price competition between service providers in the earlier period. There were also large differences in prices set by individual service providers which, however, did not persist over time. Next, using estimates from hedonic-price equation for each operator separately, we found that the three-mobile providers seemed to adopt similar pricing strategies over the period 1996–2002. Quality indexes are also calculated. The results of a comparative analysis indicate that in the period 2000–2002 neither the quality nor the price indexes show significant changes for the three mobile providers. These results are of some consequence, especially after the French competition authority decision in December 2005 which stated the existence of collusion on the mobile market during the same period (2000–2002). Surprisingly, our primer results supporting the assumption of potential collusive conduct in France are not re-affirmed when comparing the French and German markets.     

Relationship intention and relationship quality as predictors of clothing retail customers’ loyalty

Retailers endeavour to establish and maintain strong relationships with customers in order to build customer loyalty. Unfortunately, such endeavours are not always successful as not all retail customers reciprocate retailers’ relationship efforts. Customers’ intentions to engage in relationships with retailers (i.e. relationship intentions) should thus be the starting point in building customer loyalty. Moreover, customers’ perceptions of the strength of their relationship with a retailer (i.e. relationship quality) should also be considered when building customer loyalty. The purpose of this study is to determine whether clothing retail customers’ relationship intentions and relationship quality, individually and in combination, predict their loyalty to clothing retailers. Data were collected from 511 respondents in South Africa’s greater Tshwane metropolitan area. From a hierarchical multiple regression analysis, it was found that clothing retail customers’ relationship intentions and relationship quality are individually, and in combination, predictors of their loyalty to the retailer. Results furthermore indicate that relationship quality mediates the relationship between relationship intention and customer loyalty. The findings highlight the importance of first determining customers’ relationship intentions, and then reinforcing positive perceptions of relationship quality when building customer loyalty.     

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

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

The service quality–loyalty relationship in retail services: does commitment matter?

The marketing literature has produced two schools of thought on the cause of customer loyalty in services industries. The service quality perspective puts forward that service quality evaluations substantially drive customer loyalty in services industries. The relationship marketing perspective puts forward that customer commitment to the service provider substantially drives customer loyalty in services industries. In addition, commitment is a complex construct with at least two forms, one based in liking and identification (affective commitment) and one based in dependence and switching costs (continuance commitment). These positions were examined in an integrated model of retail–service relationships. It was found that affective commitment and continuance commitment were mainly partial mediators of the service quality–loyalty relationship. It was also found that affective commitment to the retailer had a positive impact on customer loyalty while continuance commitment in marketing relationship had a deleterious effect on customer loyalty.     

Product differentiation under imperfect information: When does offering a lower quality pay?

In this paper, we extend the Varian (1980) model to examine endogenous quality differentiation by firms, with a particular emphasis on the interplay between the firms’ product quality decisions and the ensuing price rivalry. Specifically, we assume that the price-sensitive (or informed) consumers hold a lower valuation for product quality than the brand-loyal (or uninformed) consumers. It is shown that the firms will choose differentiated qualities for a broad class of consumer utility functions and production technologies. We obtain two results. First, the equilibrium quality choices are efficient as they are also the welfare-maximizing qualities chosen by a social planner. The equilibrium qualities are as if one firm serves only its loyal consumers and the other serves only the price-sensitive consumers, even though they each serve both types of consumers (at least for some fraction of time). Second, the firm choosing the lower quality makes greater profits and also prices more aggressively, in the sense that it maintains a lower maximum price and offers discounts more often. The lower-quality product is more profitable because it yields higher social surplus when consumed by the price-sensitive consumers.

How do personality interactions affect service quality? the perspective of processing efficiency theory

Conscientiousness and emotional stability are important independent predictors of service outcomes. However, previous studies have not investigated the effects of their interaction on service outcomes. Thus, this study adopted processing efficiency theory to investigate how the interaction between conscientiousness and emotional stability affects service quality. This study adopted a cross-sectional design, used questionnaires to collect data. The results indicate that the interaction of conscientiousness and emotional stability influences service quality. Additionally, the study found that the conscientiousness of emotionally stable service personnel was positively related to service quality.     

Is there really an Asian connection? Professional service quality perceptions and customer satisfaction

Scenarios involving dental services investigate whether Asian cultures are similar enough to allow standardization of service offerings. The authors control and manipulate levels of service quality and performance to yield a 2 × 2 experimental design, with Japanese, Chinese, and Korean subjects (N = 637) selected to test the invariance of the measures. The findings yield significant cultural differences with the Chinese respondents perceiving significantly higher service quality and expressing greater customer satisfaction when performance is high and expressing less customer satisfaction when performance is low than do the Japanese and Korean respondents. Thus, even though all three countries are considered high-context cultures, having their roots in Confucianism, differences in national culture lead to the conclusion that “one size does not fit all” in terms of service offerings.     

Examining the healthy food consumption in full-service restaurants: quality or non-quality cues?

The purpose of this research was to examine drivers of perceived value and healthy food consumption within the context of full-service dining restaurant patronage. Specifically, this study examines the influence of quality and non-quality cues on perceived value and the impact of perceived value on postconsumption experience. The model was tested using data collected from a sample of full-service restaurant patrons residing in the United States. Results of a structural equation analysis revealed that restaurant quality cues induce patrons’ perceived value in healthy food consumption. Regarding non-restaurant quality cues, patrons’ health concerns have an impact on perceived value; however the impact of peer pressure and mass media on perceived value did not show significant impact. Data analysis also showed that both perceived value and satisfaction are significant predictors of behavioral intensions. Interpretations of these findings are limited to the full-service restaurant segment and may not be generalized across sectors. The academic and managerial implications of these findings are considered.     

Does relationship quality matter in e-services? A comparison of online and offline retailing

The quality of the relationship between customers and service firms has been found to be a major driver of customer loyalty in traditional (i.e., offline) service contexts. The increasing use of electronic services, or e-services, raises questions concerning the extent to which the relationship quality-customer loyalty link holds in an e-service context. Based on an extended model of relationship quality and by applying the social information processing perspective, this research tests the relevance of relationship quality for online relationships and explores differences of the relationship quality-loyalty link between online and offline retailers. To test the model, a large-scale study is conducted on both online and offline relationships for two service contexts (media and travel retailing). Using multi-group structural equation modeling, the authors identify differences between the online and offline environment in both service contexts. Results show that (1) relationship quality is similarly important for retaining customers online and offline and (2) differences in the impact of relationship-quality dimensions strongly depends on the service context.