Customer satisfaction and qualities in public service: an intermediary customer perspective

From an intermediary customer perspective, this study empirically investigates the causal relationships between service quality, relationship quality, design quality, and customer satisfaction in the public service value chain. Cross-sectional survey data were collected from social work, childcare, and healthcare services and were analyzed using structural equation modeling. It is found that all the quality dimensions are antecedents to customer satisfaction and relations between quality dimensions show distinctive patterns. The results show that relationship quality does not directly affect customer satisfaction, but can indirectly influence satisfaction through the mediation of both service and design qualities. The effect of the relationship and design qualities on customer satisfaction is stronger than that of service quality.     

The effect of service failure types and service recovery on customer satisfaction: a mental accounting perspective

Service failure recoveries play an important role in the service process. Previous research on service recovery has focused on the development of classification schemes, such as service failure types (e.g. outcome- or process-related failure), service recovery attributes (e.g. psychological or tangible recovery), and failure magnitude. Few studies in the literature have developed a theory-driven model of customer satisfaction that considers whether different types of service failure warrant different types of service recovery. This article, which reports the results of two studies, draws on mental accounting theory to examine the effect of the relationship between service failure and service recovery on customer satisfaction. The results of Study 1 show that customer satisfaction is greater when service recovery efforts truly make up for what customers have lost and that prior experience of service failure has a significant influence on the effectiveness of those efforts. The results of Study 2 indicate that the magnitude of a service failure also has an impact on the effectiveness of service recovery efforts.     

The moderating role of switching barriers on customer loyalty in the life insurance industry

In recent service management literature, researchers have incorporated switching barriers as an important potential influential factor on customer loyalty and found that the impact of customer satisfaction on customer loyalty might vary under different switching barrier conditions. However, switching barriers and their importance in the life insurance service contexts have received little in-depth attention. This study aims to examine the impact of switching barriers as a potential moderator on the complex interrelationships among the antecedents and consequences of customer satisfaction in the life insurance service context. The main findings of this study show that the switching barriers do have a moderating effect and play a crucial role in winning customer loyalty.     

Relational benefits,their consequences,and customer membership types

The purpose of this research is to develop and test a theoretical model in which customer satisfaction mediates the relationship between a firm's relational benefits efforts (i.e. psychological, social, and special treatment benefits) and customer voluntary performance behaviors. Through a review of literature, a conceptual model was developed and then tested utilizing data collected from 522 hotel restaurant patrons. The results indicated that customer relational benefits influence customer voluntary behaviors, the impact of which is mediated by customer satisfaction. More importantly, it was found that the relationships among relational benefits, customer satisfaction, and customer voluntary performance differ depending on whether the surveyed customers had paid or free memberships with the companies in question. The managerial implications of these findings are discussed in the latter part of this article.     

Do retail alliances enhance customer experience? Examining the relationship between alliance value and customer satisfaction with the alliance

Abstract

This article evaluates the role of customers in the alliance equation. Using a combination of survey and experimental data, we investigate the role of value offered by retail alliances on customer satisfaction with the alliance. We find that customer value plays a mediating role in the relationship between customer experience with the alliance and customer satisfaction with the alliance. Results also show that the nature of this relationship differs based on the type of value offered by the alliance. Cognitive processing plays a more significant role when the alliance is of a functional nature, while affect plays a more significant role when the retail alliance is of a hedonic nature.     

A re-examination of the antecedents and impact of customer participation in service

Customer participation has been argued to be a critical influence on customer satisfaction with the service received, but empirical studies are relatively lacking. This study proposes a theoretical model of the antecedents and impact of customer participation in service and re-examines the relationships among organizational support, socialization, customer participation, and customer satisfaction. Findings of a questionnaire completed by tourists of a Taiwanese theme park indicated that: (1) customer perceptions of support and socialization significantly and positively influence customer participation; (2) perceived support and socialization have a significant and positive influence on customer satisfaction; (3) the directly positive relationship between customer participation and satisfaction is not supported in this study.     

The influence of customer-to-customer interactions and role typology on customer reaction

The service encounter is an important topic in service management. Although researchers have argued that customer-to-customer interactions may affect customers' evaluation of the service experience in service encounter contexts, the impact of customer-to-customer interaction on customer reaction has not been sufficiently studied. Consequently, the objective of this research is to investigate the relationship between customer-to-customer interactions, role typology and customer reaction. This research adopted questionnaires to investigate tourists traveling to foreign areas and concluded that the perception of customer-to-customer interaction incidents could be extracted into six factors. ‘Protocol and sociability incidents’ have a significant positive impact on customer satisfaction; ‘malcontent incidents’ have a negative impact; ‘crude incidents’ and ‘malcontent incidents’ have significant negative impact on customer loyalty; and finally, the customer's role typology moderates the relationship between ‘protocol and sociability incidents’ and customer satisfaction.     

“Yes,we do. Why not use augmented reality?” customer responses to experiential presentations of AR-based applications

Augmented reality (AR) is regarded as a visually transformative technology that enables consumers to gain immersive and enjoyable information about experience products/services during the purchasing process. Based on the stimulus-organism-response (S–O-R) paradigm, this study investigates how experiential AR applications (apps) influence customers' experiential value, in turn enhancing continued usage intention. Furthermore, perceived customer support plays an even more important role in enhancing customers’ continued usage intention. This study obtained data through an online survey of 437 customers of the YouCam Makeup app in Taiwan. We used SmartPLS software to analyze the data and test the hypotheses. The findings suggest that the features of an experiential AR app have a greater positive impact on hedonic value than utilitarian value; in turn, only hedonic value has a positive impact on continued usage intention. The results further demonstrate that the effect of hedonic value on continued usage intention is positively moderated by perceived customer support.     

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.     

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.     

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.     

The effect of product category on customer motivation for customer engagement behaviour

Recently, research on customer engagement behaviour (CEB) has rapidly developed. However, comparative studies on the motivational drivers of CEB across different product contexts are lacking. This study aims to understand the nature of customer motivation (CM) and investigate how its elements and impact on CEB differ between product settings (tangible vs. intangible and high involvement vs. low involvement). Based on surveys of 2080 consumers, this study validates CM for CEB as a construct comprising hedonic, normative, and gain dimensions. The findings highlight significant differences in the importance of hedonic and normative dimensions as affected by the product category. The findings of this study can help marketing and brand managers understand how they can improve their engagement strategies by stimulating motivation-based CEB.     

Memorable customer experiences and autobiographical memories: From service experience to word of mouth

The aim of this paper is to study the relationship between customer experience and word of mouth (WOM) through two mediating variables: customer satisfaction and memorable characteristics of service experience (MCSE). Memory theory is adopted as a theoretical background, with emphasis on the key role of episodic or autobiographical memory. Memorable customer experience (MCE) is defined from this perspective, thereby enabling the connection between human memory theory and service-dominant (S-D) logic. As for the impact of the internet on WOM, two types of WOM behaviours are examined: positive WOM (pWOM) and eWOM. A methodology was designed from a survey that used a questionnaire based on measurement scales validated by the literature. The sample is of 1476 tourists who visited seven Spanish tourism destinations. The results show service experience precedes customer satisfaction and MCSE. Both pWOM and eWOM are significantly influenced by customer satisfaction and MCSE. Various scenarios are put forward in which several combinations of customer satisfaction and MCSE give rise to different intensities and valence of pWOM and eWOM.     

An integrative approach to relationship marketing,customer value,and customer outcomes in the retail banking industry: a customer-based perspective from Turkey

Given how important it is to provide superior value to customers and to maintain customer loyalty for a sustainable competitive advantage, the aim of this paper is to examine the relationships among relationship marketing components of – trust, competency, commitment, communication, and conflict handling, – relationship investment, relationship quality, perceived customer value, satisfaction and loyalty in an integrated framework in the Turkish retail banking industry. Unlike previous studies, this research extends the literature by analysing affective as well as cognitive dimensions in the same model with a holistic view by simultaneously examining the direct and indirect effects of the related concepts. The distinctive nature of this study is its evaluation of customer satisfaction and loyalty from the perspective of actual consumers. The research model was tested using data collected from 685 retail banking customers by applying structural equation modelling. The findings show that relationship marketing induces loyalty through relationship quality, customer value, and satisfaction, which are mainly provided by trust, communication, and relationship investment. Furthermore, relationship investment and relationship quality are the most important factors in the development of customer value, satisfaction, and loyalty. The emotional value dimension, which captures the affective aspects of perceived value, has the strongest effect on both satisfaction and loyalty.     

Service value and switching barriers: a personal values perspective

This research aims to investigate how customers, the key actors in a service relationship, perceive service value and switching barriers. The study is framed along the means-end-chain theory of personal values and theory of customer resources in the service-dominant logic. Hypotheses about the impact of personal values on customer value, switching barriers and customer loyalty were tested using structural equation modeling of survey data obtained from the health care and retail banking sectors in Vietnam. The results show that in both sectors, personal values have a significant impact on perceived process and outcome value as well as on perceived economic and relational switching barriers. Economic barriers were found to affect loyalty in the banking sector, in the same way that relational barriers affect loyalty in the health-care sector only. Loyalty in both sectors is influenced by process but not by outcome value. The implications of these findings are discussed.     

The interrelationships among service quality,customer satisfaction,and customer loyalty: Examination of the fast-food industry

The purpose of this study was to use customers’ perspectives to develop a conceptual model for improving service quality and enhancing customer satisfaction and loyalty. The 197 samples were selected from customers of leading fast food franchise enterprises in Taiwan. The research results indicate that service quality positively influences customer satisfaction and customer loyalty. Service quality positively influences customer loyalty through customer satisfaction. The research findings indicate that managers need to ensure they have efficient service quality to enhance customer satisfaction and customer loyalty levels.     

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.     

The effect of perceived economic mobility on customer aggression toward service employees: A darker aspect of customer behavior

The current research illuminates perceived economic mobility (PEM) as a causal antecedent of customer aggression. Study 1 with large‐scale panel data shows that PEM is positively related to attribution of poverty to personal characteristics and self‐centered intention to change jobs. Study 2 based on an experimental design shows that PEM causally induces customer aggression. Study 3 reveals that the effect of PEM on customer aggression varies depending on income; PEM increases customer aggression among low‐income earners, but the effect disappears among high‐income earners. Study 4 examines control over service employees to get self‐beneficial outcomes as a mechanism for the interaction effect of PEM and income on customer aggression. A moderated mediation analysis shows that the indirect effect of PEM on customer aggression through the proposed mechanism is significant among low‐income earners but not among high‐income earners. In sum, main findings of the present article are threefold: (a) PEM induces customer aggression, (b) income moderates the causal relationship, and (c) control to get benefits explains the joint effect of PEM and income on customer aggression. By delineating the dark side of PEM in consumer behavior, this study provides useful marketing implications for lessening side effects.     

From perceptions to propositions: Profiling customer value across retail contexts

The core claim made in the paper is that retailers wishing to identify and manage competitive customer value propositions succeed by measuring and modeling customer value perceptions with reference to specific contexts relevant for their competitive advantage. Hence, the purpose of the paper is to present development and validation of a scale for measuring and modeling customer value and to illustrate how contextual perspective contributes to the evaluation of customer value propositions. The findings, based on empirical data from Finland, Japan, and the U.S., validate a framework wherein customer value reflects economic, functional, emotional, and symbolic dimensions of value, associating with satisfaction and word of mouth effects. The customer value profiles generated on this basis provide analytical insight for evaluating how country, channel, product category, and competitive situation influence the criteria for contextual evaluation of customer value propositions.     

Relating strategic market orientation and market performance: role of customer value types

A service provider achieves competitive advantage by configuring appropriate strategic orientation and customer value type. This paper addresses three important issues: (i) which customer value type (economical, relational or technical) is important for bank customers? (ii) which strategic market orientation (customer or competitor) helps in achieving the desired value type? and (iii) which value type significantly predicts market performance? We propose that a strategic market orientation pursued by a firm shall influence the customer value it intends to offer so as to maximize the market performance. Using data collected from 538 bank customers, this study reveals that when there is a perfect match between strategic market orientation and value being perceived by its customers, a firm shall achieve strategy-value fit and realize optimal market outcomes in the form of customer satisfaction, acquisition, retention, cross-selling, and up-selling. Furthermore, a bank shall realize maximum level of market performance if it pursues both customer and competitor orientation and endeavors to deliver technical/functional value to its target customers. The paper concludes with managerial implications and future research directions.