Weathering consumer pricing sensitivity: The importance of customer contact and personalized services in the financial services industry

In a low-cost switching environment, certain firm actions undertaken by service employees can improve consumer loyalty, satisfaction and reduce price sensitivity. Interestingly, consumers' satisfaction levels can actually increase when experiencing a price increase. Counterintuitively, when consumers experience a price decrease, their loyalty decreases, suggesting that it might be in the firm's best interest to not offer such pricing discounts as these customers may be hypersensitive to price. Overall, it appears much easier for service employees to positively influence customer satisfaction than customer loyalty; satisfied consumers do not necessarily become loyal consumers.     

Social perspectives of e-contact center for loyalty building

Recently, e-contact centers have gained popularity among online companies as a preferred channel to communicate with their customers. E-contact centers are respected among e-retailers and online customers because they provide customers value within a social construct. This research suggests that an e-contact center serves as an effective marketing vehicle, which can be used for establishing and maintaining desired relationships with customers. E-contact centers enhance the relationship between e-retailers and online customers by providing social values and quality interpersonal service to customers. Despite the strategic importance of e-contact centers in relation to customer loyalty, little attention has been given to the topic. To remedy this, the primary objective of this study is to assess the impacts of social elements (i.e. perceived social value and interpersonal service quality) delivered by e-contact centers on customers' loyalty formation processes. Loyalty formation process is parsimoniously explained by an integrative model, which incorporates interpersonal service quality, social value, retailer satisfaction, and e-contact center satisfaction constructs.     

An Investigation of Antecedents for the Development of Customer Support Services in Manufacturing Companies

ABSTRACT

There is widespread agreement in the literature that customer satisfaction is an important driver of organizational performance. However, existing research has tended to focus on only a few variables which mediate the link between customer satisfaction and organizational performance (especially customer loyalty). The goal of this paper is to provide deeper insights into the outcomes of customer satisfaction by studying the link between customer satisfaction and price sensitivity, drawing upon different theoretical perspectives (i.e., transaction cost theory and equity theory). The study is based on a dyadic data set collected from salespeople and their customers across multiple manufacturing and services industries in a business-to-business context. Results indicate the presence of an inverse relationship between customer satisfaction and price sensitivity. Findings also indicate that the link under consideration is particularly strong in the case of high product/service specificity and product/service complexity.     

Role of downward versus upward social comparison in service recovery: Testing a mediated moderation model with two empirical studies

This paper extends prior research into the role of social comparison in service recovery by investigating the role of both downward and upward social comparison. Social comparison theory and attribution theory are applied to explore the differences in how upward and downward inter-customer comparison affects post-recovery satisfaction and word-of-mouth intentions. The mediating role of distributive justice perceptions and the moderating effects of the attribution of inter-customer differences in service recovery and customers’ justice sensitivity are also examined. Two online scenario-based experimental studies show that downward social comparison leads to greater satisfaction and lower negative word-of-mouth intentions. In addition, distributive justice mediates the relationship. Finally, attribution of difference in inter-customer influence and individual-level justice sensitivity moderate these effects. Besides its conceptual contributions, the findings from this paper may help managers design more effective service recovery strategies.     

The WOW factor: Creating value through win-back offers to reacquire lost customers

Customer reacquisition provides firms with high financial and service improvement benefits. The implications of this research are meant to stimulate a new research stream towards a theory of customer reacquisition management as well as to provide service firms with a framework to regain defected customers. Through two studies, we develop an empirical model that identifies the factors driving win-back offer effectiveness. The findings indicate that, in order for win-back offers to be effective, service providers must consider a customer's reasons for leaving and their relationships with the current service provider. Value determinants (price and service benefits provided in the win-back offer), social capital and service importance play a prominent role in shaping customer switch-back intentions regardless of the level of previous satisfaction, regret, or delight with the new service provider.     

A Comparative Analysis of the Relative Importance of Service Quality for Two UK Grocery Retailers

This article identifies the relative importance of service quality across two grocery store formats. Research to date, indicates that within the grocery sector, customers expect value for money in terms of product quality, nutritional value and service quality. If these attributes are met in relation to the customers' perceived risk, it is more likely that customer satisfaction and retention will occur. In difficult competitive, social and economic circumstances, some sources indicate that there will be a trading down in customer shopping habits, with more customers expecting higher levels of service provision across a wider range of store formats, including the discounters. This study examines the relative importance of service quality for a quality-led retailer, compared to a discounter. Quantitative and qualitative research was carried out to obtain both a demand and supply–side perspective. Research findings demonstrate that despite the fact that consumer expectations are rising in relation to the overall shopping experience, distinctions in relation to customers' expectations between the levels of service provided across quality-led stores, compared to discounters, is still evident.     

零售业的全面顾客满意

零售业的顾客识别，包括内部顾客—员工的识别及外部顾客—消费者的识别；提高顾客满意度的途径。应从对员工的定期培训、与其经常沟通、灵活的用人机制、适当的激励措施、创造良好的组织氛围等几方面来提高员工的满意度；从树立企业形象、提供超值服务、信息公开化、降低商品价格、建立服务品牌、迅速化解顾客的不满意、生产ＰＢ产品等几方面来提高顾客的满意度。     

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.     

服务质量构成要素对顾客满意影响力差异研究--现有顾客同潜在顾客间的比较

本研究通过对银行服务业现有顾客样本和潜在顾客样本的比较分析发现:两种不同类型的顾客样本分析结果都显示服务互动质量和结果质量要素对顾客满意都有显著正影响,顾客满意对(重复)购买或口头传播等行为意向有积极效应。物理环境质量对顾客满意的显著影响效应只是在潜在顾客样本中发现,而在现有顾客样本中并不显著。现有顾客样本的分析结果显示三方面服务质量要素对顾客满意的影响力是有显著差异的,而对于潜在顾客样本,三方面的服务质量要素对顾客满意的形成所起的作用没有显著差别。     

Social media's contribution to customer satisfaction with services

An important recent initiative in the effective transmission of healthcare services is the establishment of the patient-centered medicine (PCM) philosophy as a mechanism for enhancing customer satisfaction. Although the goals of PCM are important, there is less understanding of the means by which service providers can promote this philosophy.

This study examines the relationship between customers’ attitude toward and use of social media, PCM, and their satisfaction with healthcare services. Data were collected from a large, urban-based pediatric office in the northeast. The sample consisted of 234 respondents who were classified as ‘e-Patients’ – that is, they reported having access to the Internet and going online for health information. A three-stage regression analysis, conducted to establish the path coefficients for each stage in the model, shows that customers’ (patients’) attitude toward social media can be an effective method to enhance PCM and, ultimately, satisfaction. The findings contribute to theory in services by exploring the challenges of managing service delivery at the interface between customer satisfaction and the role and usefulness of adopting and effectively using social media.     

Distinguishing between the impact of social media public and private compliments on customers’ future service recovery expectations

We seek to explore whether customers’ levels of service recovery expectations differ across customers who, prior to the service failure, publicly complimented the firm on social media and customers who, in advance of the service failure, privately complimented the firm on social media. We explore these differences in terms of satisfaction with the service provider and willingness to go back to the service provider. We conduct an experiment to test the research hypotheses. Our study results show that customers who complimented the service provider publicly (relative to privately) on social media in advance of a service failure require a higher level of service recovery to be satisfied with the service provider and go back to the service provider. Further, these effects are partly moderated by customer loyalty and social media usage intensity.     

The Impact of Consumer Confidence on Store Satisfaction and Share of Wallet Formation

For retailer managers, it is crucial to understand the relationships between customers’ store attribute evaluations, satisfaction, and share of wallet as well as how these relationships change over time depending on the business cycle. This study investigates this complex relationship using an extensive dataset for all grocery chains in the Netherlands over the period 2009–2012. Our findings indicate that retailers should not overemphasize the importance of a favorable price image in times of low consumer confidence. Instead, our study shows that the relationship between service attributes and customer satisfaction is stronger in periods with low consumer confidence.     

The influence of the DinEX service quality dimensions on casual-dining restaurant customers’ satisfaction and behavioral intentions

The following empirical study examines the effects of specific service quality dimensions from the DinEX model on customers’ satisfaction and behavioral intentions. The originality of DinEX over other restaurant service quality instruments is primarily its focus on dimensions such as social connectedness and homophily, which represent social constructs that portray an internal sense of belonging and the tendency for people to affiliate with similar others. A self-administered questionnaire was distributed in an independent casual-dining restaurant located in the southeastern United States and a sample of 209 respondents was obtained. Results show that food healthfulness and food quality have an influence on customers’ satisfaction, which in turn affects their behavioral intentions. The implications for practitioners are discussed in detail.     

The effects of social justice and stigma-consciousness on gay customers' service recovery evaluation

This study examines how social justice and the stigma-consciousness level of gay customers influence their service recovery perceptions. The results, based on an experiment involving 379 gay respondents, indicate that distributive justice, procedural justice, and interactional justice significantly affect gay customers' service recovery evaluations (satisfaction) and post-complaint behavioral intentions (negative word-of-mouth and repatronage). Also, higher stigma-consciousness gay customers show more negative service recovery evaluations and behavioral intentions than those with lower stigma-consciousness. Service providers who are interested in attracting and maintaining gay customers should create awareness among their employees about stigma-consciousness.     

An integrated model of customer social exchange relationship: the moderating role of customer experience

This article addresses how the customer social exchange relationship affects customer satisfaction and, in turn, repurchase intention. On the basis of the stimulus–organism–response model, this article argues that perceived organisational support, perceived customer support, and perceived service provider support influence customer satisfaction, which in turn affects repurchase intention. Furthermore, this study argues that perceived organisational support is the most important predictor of customer satisfaction for high-experience customers, whereas perceived customer support is the most important predictor of customer satisfaction for low-experience customers. A survey of 144 users of the foreign language institute on a university reveals that most of these hypotheses are supported.     

Customer Satisfaction and Elapsed Time since Purchase as Drivers of Price Knowledge

This study investigates the influence of customer satisfaction and elapsed time since purchase on customers’ explicit and implicit knowledge of price. The results of two large, independent surveys of customers who purchased a consumer durable good indicate that customer satisfaction and elapsed time have different effects on explicit versus implicit price knowledge. Customer satisfaction has a negative impact on explicit price knowledge, but no substantial effect on implicit price knowledge. The length of time between purchase and retrieval of the price information has a negative impact on explicit price knowledge but no substantial effect on implicit price knowledge. Finally, customer satisfaction has a moderating role, in that the higher the customer satisfaction level, the stronger the negative impact of elapsed time on explicit price knowledge.     

The influence of satisfaction on customer retention in mobile phone market

This study examines the determinants of customer satisfaction and customer loyalty in the Peruvian mobile phone market. Based in a survey to 1259 customers, Multinomial Logit and GSEM estimations show how determinants of customer satisfaction can be assessed when satisfaction is measured through ordered categorical data. The results confirm that in mobile phone market Customer Satisfaction influences strongly on Customer Loyalty, and in turn Loyalty is an important determinant of Customer Retention. In contrast with previous literature, this study identified the differentiated influence of diverse factors on positive and negative customer satisfaction categories. Indeed while results show that quality of service assessments made by customers had a significant impact on both negative and positive customer satisfaction categories; assessments of other service attributes like customer care, information on tariffs and plans and billing clarity, only showed a significant statistical influence on positive categories of customer satisfaction. Similar asymmetrical results were found with regard to other economic, socioeconomic and geographical determinants of customer decisions. As well, an analog effect is also observed in the relationship between customer satisfaction and loyalty, where only positive satisfaction assessments helps to explain the loyalty of users. Finally, results show that while satisfaction can be identified as a powerful cause of CR, switching barriers did not deter more demanding customers to switch to alternative carriers, suggesting that recent pro-competition regulatory reforms implemented in Peru contributed to reduce these barriers to competition in mobile markets.     

Co-creation and service recovery process communication: effects on satisfaction,repurchase intentions,and word of mouth

After service failure situations, firms often carry out transactional activities to achieve customer recovery (CR), using corrective actions to restore the exchange (e.g., economic and social compensations). Furthermore, during the service recovery process, firms can encourage activities of co-creation (CC) to prevent similar future failures. This paper discusses the importance of CC and service recovery process communication (RPC), in which customers are informed of the adoption of solutions to address the cause of the failure, so as to avoid the same problem happening again. Experimental studies investigate the impact, individually and together, of CR, CC, and RPC on satisfaction, repurchase intentions, and word of mouth. The results indicate that CC and RPC improve customer’s satisfaction, repurchase intentions, and word of mouth. Firms that want to maximize the return on their efforts to prevent service failures, should encourage CC, develop solutions to prevent future failure recurrence, and implement strategies of RPC. Firms must decide how to promote CC and which media to use for RPC.     

Service with improper requests: How fellow customers interpret Employee's judgment call

In this paper, we examined the impact of different judgment calls by service personnel on service satisfaction, in response to inappropriate requests from customers. Based on the stereotype content model, we propose that employees servicing with these requests are often evaluated on two fundamental dimensions, warmth and competence, and the accessibility of one dimension over the other determines overall service satisfaction of fellow customers. Through three experiments, the current research shows that fellow customers perceive service employees who consent to an improper request as higher in warmth but lower in competence than those who reject the request. However, when the compliance has serious consequences for a fellow customer, this negatively affects the competence evaluation but not the warmth evaluation, which in turn reduce customer satisfaction. When the focal customer suffers from the serious consequences, this positively affect both competence and warmth perception, which in turn enhance fellow customer satisfaction. This research could be used to identify ways to handle improper requests made by customers.     

Public service quality and customer satisfaction: exploring the attributes of service quality in the public sector

Beyond the existing SERVQUAL-based research, the authors develop an alternative model of public service quality. The various sources of public service quality are explored and a new classification scheme formulated by using critical incidents technique. Four main qualities of public service are identified: process quality, outcome quality, design quality, and relationship quality. The findings suggest that the critical attributes of public service quality for customer satisfaction differ according to the types of customers in the public sector. Final customers (beneficiaries) give priority to the process and outcome qualities, whereas intermediary customers (social workers) have high regard for the design and relationship qualities.