Exploring the relationship between individual values and the customer orientation of front-line employees

Abstract

Because of the nature of services, namely the inseparability of production and consumption, employee behaviours influence customer perceptions of service quality and satisfaction with the service provider. In particular, customer-oriented employees seek to help customers by addressing their needs, and this contributes to the building of customer satisfaction and the development of a relationship. Not surprisingly, research has been investigating the drivers of employees’ customer orientation. This paper examines how individual values influence the customer orientation of front-line service employees, a topic that has been unexplored in extant literature, and this is useful for the selection of employees who match the firm’s service strategy. To accomplish this, the study relies on the Schwartz value theory, which is applied to front-line employees in banking. The findings indicate that both resultant conservation and resultant self-enhancement affect the customer orientation of employees, and that these effects are moderated by job satisfaction and autonomy.     

Multiple psychological climates and employee self-regulatory focus: Implications for frontline employee work behavior and service performance

Frontline employees (FLEs) play a critical role in shaping customer experiences and purchase intentions in retail settings. Yet not all FLEs display the same work behaviors or motivational tendencies. Adopting person-environment fit theory, this research investigates whether multiple work climates can coexist within a workplace to support FLEs with different work behaviors. Using multisource data from 285 FLEs and 31 supervisors in the retail banking sector, this study examines whether a quality-focused climate and an initiative-focused climate positively influence FLE service performance via different FLE behaviors. It also examines the moderating effect of FLE self-regulatory focus on the relationship between work climate and FLE behaviors. The results demonstrate that when FLEs are willing to innovate and take risks, a work climate that supports initiative-taking will encourage them to go beyond prescribed job roles to satisfy customer needs. In contrast, when FLEs seek to minimize or avoid risks, a work climate that reinforces rule adherence will support them in using standardized procedures to satisfy customer needs. Managers should not assume that one climate fits all or that one climate is better than the other as this study shows that a quality-focused and an initiative-focused climate can operate in tandem to enhance FLE service performance.     

Customer Satisfaction with Retail Banking Services in Ghana

Recent studies indicate high competitiveness of the Ghanaian banking industry, making it difficult for banks to satisfy and retain customers. However, little empirical knowledge exists on the determinants of customer satisfaction toward the services delivered by the banks. This article reports a study of the determinants of customer satisfaction of retail bank services in Ghana. An extensive review of the extant literature was used to identify the theoretical determinants of customer satisfaction in retail banking and their measurement scales. These were adapted to build a conceptual framework for the empirical investigation conducted. Data were collected using a questionnaire administered through personal interviews to 650 customers of retail banks, and the results were factor analyzed and regressed. The empirical results indicated that relational, core, and tangible dimensions of service were positively associated with customer satisfaction in retail banks in Ghana. The study discusses the strategic implications of the findings for the management of customer satisfaction for retail banks operating in Ghana. © 2014 Wiley Periodicals, Inc.     

Public sector corporate branding and customer orientation

The objectives of branding and marketing in the public sector can differ in nature from those in the private sector, to include an improved responsiveness to public needs, rather than an increase in customer numbers. In addition, the customer orientation (a disposition that will influence brand perception) of public services is often questioned. Drawing from prior work in the private sector on the relationships expected between employee and organization customer orientation (hereafter referred to as CO), corporate brand personality, and both employee and customer satisfaction, the authors propose a number of models. These models are tested using structural equation modeling on data from a study of the employees (n = 302) and customers (n = 200) of a public hospital. Corporate brand personality mediates the positive links between employee customer orientation (hereafter referred to as ECO) and satisfaction; ECO influences brand personality, which in turn influences satisfaction. However, while both the needs and enjoyment dimensions of ECO improve customer satisfaction, the former has an unexpected, negative effect on employees. Organization customer orientation (hereafter referred to as OCO) influences customer, but not employee, satisfaction. The paper discusses the implications for managing and researching corporate branding in the public sector.     

Building the bottom line by developing the frontline: Career development for service employees

Service firms must remember that the way they treat their employees is exactly how those employees will, in turn, treat customers. As such, taking good care of frontline personnel should be a top management concern. One way that service employees can be shown they are valued members of the organization entails the implementation of thoughtful and organized career development programs, initiatives which help increase employees’ job satisfaction and feelings of empowerment in their customer-facing roles. Before they can become enthusiastic about meeting the needs of their customers, employees have to feel that their own needs are being met within the organization. In this regard, firm investment in frontline employee career development programs will be money well spent: they are capable of reducing employee turnover and increasing customer satisfaction, loyalty, and profitability. This article provides a conceptual model of career development which should prove useful to service managers in evaluating their own career development efforts. Also presented herein is a framework for tying together many disparate areas of career development that have heretofore been handled separately in the services literature.     

An integrative framework for customer switching behavior

Due to increased intensity of competition, retention of customers has become a major concern in many service industries. Although researchers have investigated customer switching intention and its influential factors, the complex structural mechanisms that reduce the likelihood of switching intention in the field of financial services, especially in the banking context, have remained understudied. This paper addresses the role of customer satisfaction, customer loyalty, customer trust, and customer perceived value within a new conceptual model for customer switching intention in the banking services. In particular, the paper contributes to examine the potential moderating effect of switching barriers on the relationship between customer loyalty and switching intention as well as the relationship between satisfaction and switching intention of customers in the banking services. Data are collected through a questionnaire survey, and partial least squares-structural equation modeling is used for data analysis. Empirical results confirm the proposed model and hypotheses and show that switching barriers strengthen the impact of both customer loyalty and satisfaction on switching intention. The findings of this research offer a unified view of the structural relationships that contribute to reduced switching intention and provide more in-depth insights into the role of switching barriers in the banking context.     

Exploring manager’s perspective of service quality strategies in Malaysian Banking Industry

In service industry, the subject of service quality remains crucial as business strive to maintain a comparative advantage in the marketplace. In aftermath of globalization, the operating environment for banking industry has become more dynamic and competitive. Banks have evolved to become diversified financial providers instead of traditional banking-only service providers. With bank placing emphasis on a mutually beneficial bank–customer relationship, customer loyalty must be pursued through repeat purchases. Central to achieving this is often the quality of services offered by the bank should satisfy the customer’s needs. This article attempts to identify any service gaps in Malaysian banking industry and to recommend effective strategies to close these service gaps from bank mangers’ and executives perspectives based on GAPs Model of Service Quality (GAPs Model). Using qualitative data collected from interviews with 30 bank managers and executives, this article provides effectives strategies to close each of the gaps in GAPs Model. It is hoped that the empirical evidences and recommendations provided in this article shed some light to management of banks to improve upon their customer service quality in order to benefit from customer satisfaction, customer loyalty and other behavioural outcomes which will lead to greater competitive advantage and profitability to the banks concerned.     

Service Orientation: Its Impact on Business Performance in the Medical Service Industry

From the viewpoint of internal marketing, employees who are content in their job may be motivated to satisfy their customers better than ones who are not content. Another relevant premise is that the content employees, because of their work motivation, would eventually help improve the performance of their firm. To verify these relationships, some previous studies looked into the effects of organisational service orientation on employee's satisfaction. But only few of them investigated the mediating effects of variables such as service value and customer orientation for their role in linking service orientation to business performance. This study examines how an organisation's service orientation had an effect on its performance at hospitals. For this purpose, verification of the mediating role of service value perceived by employees as well as the role of customer orientation on the firm's performance was attempted. For this study, a total of 292 usable questionnaires were collected from hospital staffs located in metropolitan cities of Korea. The hypotheses concerning relationships among service orientation, service value, employee satisfaction and customer orientation were verified by covariance structural modelling, using SPSS 10.0 and AMOS 4.0 programs. The result is as follows. First, organisational service orientation had a positive effect on both employee satisfaction and service value perceived by hospital staff. Second, employee satisfaction had a positive impact on service value and customer orientation. Finally, service value as well as employee's customer orientation were found to exert positive influence on the medical firm's performance.     

The role of customer contact employees as external customers: A conceptual framework for marketing strategy and future research

Existing streams of literature in marketing, management, and organizational behavior are integrated to propose a conceptual framework that highlights the customer contact employee's dual role as employee and external customer of the organization. Several iterative “cycles of success” are proposed whereby job satisfaction, the employee's patronage of the company's products (i.e., goods or services), and job performance (as customer contact employees) are all enhanced, ultimately leading to long-term relationships (with customers and employees) and profits for the organization. The framework highlights the role of internal marketing as a tool for enhancing the competitive advantage gained by strategically considering the customer contact employee's role as external customer.     

The study of service innovation for digiservice on loyalty

Advocates of management of service innovation see this area as a new and promising research field. As services are increasingly becoming driving forces of economies, the introduction of new services to satisfy customer needs is becoming a critical issue for managers. This research attempts to address the consumer issue of service innovation. The research entails a comprehensive study of the impacts of service innovation on consumer loyalty in the digiservice context. The study examines service innovation loyalty from the consumer perspective; namely, technology leadership, service leadership, switching cost, brand equity, and customization. Personal interview data from 475 consumers provides the data for empirical hypothesis testing of the relationships between variables. The conceptual model investigates the relevant relationships among the constructs by using confirmatory factor analysis (CFA) and structural equation modeling (SEM). Findings from the research sample support the argument that technology leadership, service leadership, brand equity, and customization are the key determinants of loyalty. The paper also includes a discussion on the theoretical and managerial implications of the research findings.     

Service-driven social community and its relation to well-being

This study aims to develop a conceptual framework pertaining to a service-driven social community and its relation to customer well-being. This paper draws on motivations and self-determination theory to expand an existing empowerment framework for a better understanding of how a service provider, which aims at transforming its service offerings to achieve business sustainability, supports for his/her customers’ needs in value co-creation in the beginning and over the course of time, which subsequently drive their active engagement in co-creation. The framework reinforces the transformative role of a service to establish a social community to satisfy customers’ psychological needs for competence, autonomy and a sense of relatedness. The satisfaction will drive the community to form a collective commitment to shared goals and intercustomer support, which subsequently perpetuates community members’ positive experiences of living well. This is accomplished through a case study drawn from the cTaipei platform, where service providers interact with their networks and customers to co-create values in developing a creative Taipei city. This paper contributes to this practice by providing a roadmap for services and customers to be benefited from the proposed service-driven social community framework.     

Climate perceptions and the customer orientation of frontline service employees

Satisfaction of customers' needs is particularly dependent upon the customer orientation of frontline employees. Understanding the drivers of such orientation is, therefore, a key issue in current research. Research relating perceptions of organisational values with the customer orientation of employees is rather sparse. This topic is approached by investigating the role of selected dimensions of psychological climate in promoting the customer orientation of frontline service employees. A structural equations model is developed and empirically tested, indicating that perceptions of customer, ethical, and innovation climates exert an indirect effect on the adoption of customer-oriented behaviours by frontline employees.     

Investigating the Effect of Employee Empathy on Service Loyalty: The Mediating Role of Trust in and Satisfaction with a Service Employee

Abstract

This study examines the indirect effect of employee empathy on service loyalty through the intervening effect of trust in and satisfaction with service employees during service interactions. Data were obtained through a self-administered questionnaire from university students. A total of 410 useable responses were used to perform data analysis. Confirmatory factor analysis, structural equation modeling, and bootstrapping for indirect effects were conducted to test the hypotheses. The results show a significant effect of employee empathy on trust in service employee and satisfaction with service employee during customer–employee interactions. Also, satisfaction with a service employee showed a significant effect on service loyalty during service interactions. The study enhances the understanding of empathy within banking services during interactions between service employees and customers. It also provides insights for service managers and frontline service employees on how empathy develops customer’s trust and satisfaction with service employee.     

Integrating internal customer orientation,internal service quality,and customer orientation in the banking sector: an empirical study

The purpose of this paper is to examine the interrelationships between internal customer orientation (ICO), internal service quality (ISQ), and customer orientation (CO) to develop and test a conceptual model of the antecedents of CO in the banking sector. The conceptual framework consists of the following constructs: ICO, interdepartmental conflict, interdepartmental connectedness, ISQ, job satisfaction, empowerment, and CO. Moreover, 10 hypotheses were developed and tested using a sample of 202 banks. Reliability analysis and confirmatory factor analysis have been used to test the validity of the constructs, while the structural equation modelling has been used in hypotheses testing. The strength of the relationship between the constructs indicates that features of the suggested CO model including interdepartmental connectedness, interdepartmental conflict, job satisfaction, and empowerment are crucial to achieving business performance and CO. The results which emerged from our hypothesised model were found to support that ICO leads to ISQ and in turn CO. In particular, all variables show strong support for our hypothesised model, however, interdepartmental conflict was found to be a negative indicator. Findings suggest that the CO model can be deployed as a means of enhancing organisational behaviour to improve business performance.     

The Customer,Co-Worker,and Management Burnout. Distinction in Service Settings

ABSTRACT

Academic research indicates that distinct types of workplace burnout exist in service settings, including management burnout (MBO), customer burnout (CUBO), and co-worker burnout (CWBO). Each type of burnout can have detrimental influences on important service outcomes. As managers attempt to improve service quality, it is important that they consider the impact of each burnout dimension. The current work extends previous work on the psychological antecedents of burnout by considering the effects of personality traits on these distinct types of burnout and by considering the extent to which each type of burnout influences customer contact behaviors and propensity to leave the service organization. The researchers present the results of an empirical study that included survey data obtained from banking employees. The results support several hypothesized relationships that relate personality traits to each burnout facet, as well as the hypothesized influence of the burnout dimensions on customer contact performance and intentions to leave the service firm. Implications of the findings and suggestions for future research are discussed.     

The United Nations Global Compact: Engaging Implicit and Explicit CSR for Global Governance

In the past few decades, a growth in ethical consumerism has led brands to increasingly develop conscientiousness and depict ethical image at a corporate level. However, most of the research studying business ethics in the field of corporate brand management is either conceptual or has been empirically conducted in relation to goods/products contexts. This is surprising because corporate brands are more relevant in services contexts, because of the distinct nature of services (i.e., intangible, heterogeneous, and inseparable) and the key role that employees have in the services sector (i.e., they can build or break the brand when interacting with customers). Accordingly, this article aims at empirically examining the effects of customer perceived ethicality in the context of corporate services brands. Based on data collected for eight service categories using a panel of 2179 customers, the hypothesized structural model is tested using path analysis. The results show that, in addition to a direct effect, customer perceived ethicality has a positive and indirect effect on customer loyalty, through the mediators of customer affective commitment and customer perceived quality. Further, employee empathy positively influences the impact of customer perceived ethicality on customer affective commitment, and customer loyalty positively impacts customer positive word-of-mouth. The first implication of these results is that corporate brand strategy needs to be aligned with human resources policies and practices if brands want to turn ethical strategies into employee behavior. Second, corporate brands should build more authentic communications grounded in their ethical beliefs and supported by evidence from actual employees.     

基于社会关系嵌入的私人银行业务发展探究

随着高净值人群的快速增长,我国私人银行业规模也迅速扩张,但同时遭遇服务供不应求、盈利状况不佳及客户群不稳定的发展瓶颈。基于我国特有的文化背景和私人银行客户群的特殊理财观,本文指出将社会关系嵌入私人银行服务的必要性及其在现实中的发展状况。细分客户群和提升专业服务能力是社会关系嵌入式的私人银行服务得以实施的基础。     

Antecedents of customer loyalty in residential energy markets: Service quality,satisfaction, trust and switching costs

A conceptual framework is proposed that analyses the effect of perceived service quality, customer satisfaction, trust in the energy provider and perceived switching costs on customer loyalty in residential energy markets. Three distinct dimensions of perceived service quality are identified: technical quality of core services, technical quality of peripheral services and service process quality (functional service quality). The proposed model is tested within the scope of a representative survey of Spanish residential energy customers. Regarding the dimensions of service quality, the results indicate significant effects only of service process quality on satisfaction and, indirectly, on customer loyalty. Loyalty effects of further variables in the model are significant.     

Implementing Marketing Strategy Through a Market Orientation

The adoption of specific marketing strategies is related to several factors in an organization including the organization's mission, objectives, resources, and market orientation. We report an exploratory study in which we define relationships between market orientation and marketing strategy in a high technology environment - the telecommunications industry in the United States. Market orientation is defined as a culture that influences how employees think and act. Our results indicate that a market orientation provides a context for the implementation of specific marketing strategies by serving as a moderator of operational marketing strategy. For example, those organizations who possess a strong market-oriented culture (high-spirited cultures) engage in value creation strategies such as market segmentation, developing new products/services for new markets, and product or service customisation. Those organizations possessing low market orientations (ineffectual cultures) generally practice less aggressive and internally focused strategies such as charging lower prices, providing limited customer service, product/service standardization, and undertake limited market research.