Client Relationship Marketing Practices: An Exploratory Study of the Legal Industry

This article aims to identify and examine the responsibilities of the marketing specialists and legal practitioners in the legal industry at different stages of the client relationship development process. A conceptual framework is proposed to analyse the single case study of this research. The relationship marketing practices of a global law firm were examined through fifteen in-depth semi-structured interviews with key personnel. Ten client relationship marketing practices were identified. Whereas organising and attending social events, managing the communications or interactions process, managing the cross-selling, service recovery, changing the impression, truly understanding clients' businesses and industries and other small little gestures are similar to the findings of Claycomb and Martin (2002), social bonds beyond the professional level, treating every job seriously regardless of the size, and utilising client relationship management software were three practices that emerged from this study. Although the ten practices presented are pivotal in contributing to a successful client relationship, further research is needed to examine the effects of each practice and the quality of the client relationship. This article demonstrates that in order to succeed in the highly competitive marketplace, law firms need to understand not only the potential outcomes of each relationship marketing practice but also how to practice it systematically. A new relationship development process model incorporating the essence of the customer relationship life cycle was developed and its practicality was confirmed by the research findings.     

The effect of the Internet on front-line employee skills: exploring banking in Sweden and France

This paper aims to explore (1) the Internet effects on the nature of the face-to-face service encounter and (2) what demands this introduces on front-line service employee skills in a banking context. The paper draws on empirical data generated from two banks in Sweden and France, where in-depth interviews with 21 managers have been carried out. The paper argues that in light of the Internet, the face-to-face service encounter is becoming increasingly interactive and customized, where much attention is paid towards building and maintaining relationships with customers, providing advice and support in customer's decision making, and also, learning from and acquiring qualitative information about the customer. This up-scaling of the face-to-face service encounter entails an increase in job complexity and task discretion, involving demands for high-level skills such as information provisioning and evaluation, and emotional skills such as empathy, interpretive skills, conversational skills, and management of body language.     

Designing and executing memorable service experiences: Lights, camera, experiment, integrate, action!

Designing services that deliver memorable personal experiences is a science and an art that is poorly understood. Borrowing from the masters of managing performances, the theatre industry, we examine the process for staging plays. Based on our study, we draw inferences that can help service experience managers in a variety of settings create more memorable face-to-face service encounters. To this end, we illustrate seven steps managers should follow to ensure service experience success.     

Exploring the relationship between the human resource management practices and growth in small service firms

This paper seeks to evaluate the relationship between the growth and the human resource management (HRM) practices of small service firms in catering to professional services and the retailing sectors in the UK. The paper reports and analyses the findings of 196 face-to-face structured interviews with small service business owners. Findings suggest that employee empowerment contributes to the sales growth of small firms in the different sectors of the service industry. The study also shows that employee training and recruitment through formal channels contribute to the sales growth of firms operating in the catering sector. This paper argues that contextual variables – the extent of the competition and the availability of the workforce – have a bearing on the HRM practices employed by small service businesses.     

Cross-Divisional Orientation: Antecedents and Effects on Cross-Selling Success

Purpose: To determine which company internal prerequisites must be in place and managed to realize a successful cross-selling strategy and to find answers on how to overcome cross-selling obstacles.

Methodology/approach: Qualitative and quantitative data from various industries provide insights into the implementation of a successful cross-selling strategy. Qualitative data serve to derive the hypotheses and constructs and design quantitative measures. Structural equation modeling with data from a management survey of an industrial glass manufacturer tests the proposed effects.

Findings: The cross-divisional orientation of a company affects the realization of cross-selling potential and the number of product divisions a salespersons sells. These factors then influence the salesperson's motivation and readiness to engage in cross-selling activities, which finally affect the company's overall cross-selling success. A salesperson's state of mind has the greatest impact on cross-selling success.

Research implications: Similar results might be expected for various other industries, which need to be tested. The findings could be enhanced by incorporating a wider range of customer characteristics into the analysis, as well as other mediating or moderating variables.

Practical implications: There is a clear need to enable cross-divisional acting and thinking among salespeople. Managers should foster cross-selling motivation and invest in specific training and recruitment to increase the dissemination of knowledge across divisions and reassure salespeople about offering various products.

Originality/value/contribution: This contribution to current practice clarifies why cross-selling often does not work and why it remains so challenging to realize. The combination of three sources of data—qualitative, objective, and quantitative—advances cross-selling research by considering internal obstacles to cross-selling and revealing ways to overcome them.     

The role of commitment on the customer benefits–loyalty relationship in mobile service industry

The purpose of this study is to identify appropriate combinations between various types of commitment and benefit, to induce and enhance loyalty behaviours, such as customer retention, cross-selling, and customers' positive word-of-mouth, in a matured service market. The results show that functional and economic benefits have significant effects on customer retention through calculative commitment, while experiential and symbolic benefits significantly affect cross-selling and positive word-of-mouth via affective commitment. Normative commitment mediates the relationship between affective commitment and customer retention. The implications of these findings for loyalty management strategy related with service benefits and type of commitment are discussed. Limitations and recommendations for future research are also presented.     

Service encounters as bases for innovation

This article examines the factors affecting the innovativeness of service encounters – either as drivers or as barriers. The assumption is that a considerable number of innovations in service industries are initiated in service encounters and that employees are the core factor in connecting customers with the innovating organization. Based on literature studies and pilot case studies, seven propositions are proposed and tested in a qualitative, hermeneutic way in field experiments in nine service organizations. Important new results are that encounter-based innovation requires mutual empathy between employees and customers, employees investing stubbornness and time can be a driver for innovation, and several layers of management can be a barrier. In the field experiments three new factors for encounter-based innovation were found: translation, multitasking, and hyper-professionalism. The two first are drivers; the third a barrier. A model that summarizes the findings is presented.     

The nature of an apology: An experimental study on how to apologize after a service failure

Extant service recovery research treats apology as a dichotomy, in that it is either present or absent, but how it is conveyed is neglected. Based upon social psychological research, this study argues that an apology comprises three different components: empathy, intensity, and timing, which make each apology unique. It is shown that how well an apology is delivered across failure types (outcome vs. process) drives service recovery satisfaction, not its mere presence. Empathy, intensity, and timing separately impact satisfaction. The more empathic and intense the apology is given, the more satisfied respondents are. A late apology decreases satisfaction ratings. Effect sizes indicate that empathy has the strongest impact on service recovery satisfaction followed by intensity and timing. The effect of empathy is stronger for process failures than for outcome failures. Interestingly, the apology’s overall effect size is comparable to that of compensation in case of a process failure.     

Applying latent trait analysis in the evaluation of prospects for cross-selling of financial services

Identification of the order in which households acquire financial services has important implications for market segmentation and cross-selling strategies. This study illustrates a procedure by which financial institutions, based on internal records, can estimate the likelihood that a customer will purchase/use additional services. The methodology discussed in this study positions financial services and investors along the same continuum according to the particular ownership pattern. The location of an investor indicates his financial expertise and resources, while the location of a financial service measures the level of expertise/resources needed for ownership of that service.A key feature of the methodology is its ability to predict the probability of ownership of some financial services given information on (non-)ownership of other services. This study concludes with an illustration applying the methodology for targeting customers for cross-selling efforts.     

The role of ethnicity in domestic intercultural service encounters

The current study investigates how ethnicity influences consumer (dis)satisfaction regarding service encounters in multicultural domestic service markets. The study interviews 306 ethnic Malay and Chinese respondents in Malaysia using the critical incident technique. The respondents provide 612 critical incidents for content analysis. Based on content analysis and inter-judge reliability, seven sub-categories (grouped within three major categories) emerge as integral determinants of service encounters in multicultural domestic service markets. The findings suggest intra- versus inter-ethnic affiliation between consumer and service provider influences the evaluation of domestic intercultural service encounters. Specifically, consumers are found to be more satisfied (dissatisfied) when service encounters are with service providers with the same (different) ethnic affiliation as themselves. The present study extends current literature by examining the role of ethnicity in service encounters in multi-cultural service markets. The identified determinants and associated findings from the present study further provide practical insights for managers regarding how different ethnic consumers are likely to respond to service encounters in such markets. The study indicates that different service expectations exist between consumers from different ethnic affiliations.     

Organizing for cross-selling: Do it right,or not at all

This study draws on the structural perspective of organization theory to investigate how firms can organize for cross-selling. Specifically, it analyzes how configurations of organizational structures and steering instruments are associated with cross-selling performance. Results show that mechanistic and organic organizational cross-selling structures should be closely aligned with financial and nonfinancial steering instruments: while the interactions between mechanistic cross-selling structures and non-financial steering instruments are likely to result in high levels of cross-selling performance, organic cross-selling structures should be combined with financial steering via cross-selling incentives. Findings also reveal a U-shaped relationship between cross-selling performance and firm EBITDA. These results suggest that to enhance profits, firms should either organize for very high levels of cross-selling performance or refrain entirely from investing in cross-selling structures or steering instruments.     

Language divergence in service encounters: Revisiting its influence on word-of-mouth

Research on language accommodation highlights the significance of accommodating customers' language requirements during service encounters. This replication study reinvestigates whether language divergence influences word-of-mouth intentions in a continuously-provided service of retail banking. Specifically, this study examines the relationships among language divergence, interaction quality, relationship quality, and positive word-of-mouth intentions. Consistent with previous research, study findings show that customers served in their second language perceive interactions with a service provider to be less responsive, adversely affecting positive word-of-mouth intentions. Additionally, language divergence has a negative influence on customer perception of information quality and empathy with a service provider, which affects the quality of the relationship customers have with the service provider. These results extend the understanding of the process by which language divergence affects positive word-of-mouth intentions.     

A transformative service research agenda: a study of workers’ well-being

Interest in workers’ well-being is mounting – a key driver being the growing recognition that well-being is linked to performance. Utilizing a transformative service research (TSR) agenda, this study examines how people management practices impact the well-being of hospitality and retail workers. Comparing the experiences of permanent and precarious workers, we find it is not employment practices per se that promulgate feelings of insecurity and inferiority; rather, it is the attributions ascribed to them. This has practical implications. Most notably, some of the deleterious effects of precarious employment might be mitigated where careful attention is paid to the motives underlying an organization’s people management practices. Theoretically, TSR offers a more expansive lens for understanding the social exchange occurring in both employment relationships and service encounters, thus contributing significantly to knowledge on mutual gains theories. These findings and their implications are discussed in detail in the paper.     

Consumer Perceptions,Concerns, and Purchasing Practices of Rabbit Meat in Hungary

Nationwide consumer research was conducted in 2014 on consumer perceptions, purchasing practices, and consumption of rabbit meat. The questionnaire revealed that respondents basically found rabbit meat healthy; however, better knowledge of positive physiological effects would lead to increased consumption. Transforming public awareness may also include the criticism of housing systems suspected to be “humanitarian.” The experiment-proven conditions, in which—in contrast to human empathy and preconceptions—rabbits indeed feed well and are “happy,” should be presented to the public.     

Work relationships and media use: A social network analysis

Our research provided empirical evidence about the alternative means of communication used by 25 members of a research group who had available to them: unscheduled face-to-face encounters, sheduled face-to-face meetings, electronic mail, telephone, fax, and desktop videoconferencing. The intent of our research is to learn whether there are elements in existing group communication patterns that suggest how future communication systems can be designed or selected to fit the actual work relationships of a group. A detailed social network survey provided information about what members of the group communicated about, how they communicated, and with whom they communicated. Most communication was done through a combination of media, but predominately through unscheduled encounters, electronic mail, and scheduled meetings; people rarely videoconferenced, telephoned, or faxed. Factor analysis reduced the 24 work relationships to six distinct dimensions: receiving work, giving work, collaborative writing, major emotional support, sociability, and computer programming. The proportion in which the three main media were used varied according to the nature of the work dimension. Our findings suggest that a multivariate perspective that considers group norms and practices, social networks, and work dimensions is necessary to analyze media use.     

Part-time restaurant employee perceptions of management practices: An empirical investigation

The UK hospitality industry increasingly relies on part-time rather than full-time employees to provide more flexible and cost-effective operations with potential trade-offs for service quality. Part-time employees can be divided into two distinct groups – permanent and temporary – each with very different employment rationales. This study compares full-time and part-time employee perceptions of management practices across twelve Cardiff-based restaurants using a self-administered questionnaire. There were significant differences between full-time and part-time employees but no difference between temporary and permanent part-time employees who were equally dissatisfied with management practices, job attitudes and job behaviours. The qualitative data showed the two part-time employees' sub-groups had different needs. Despite this they were treated as a homogenous group by managers. Lack of management understanding of part-time staff impacts on how they are treated and ultimately on service quality and customer satisfaction.     

Oh my gosh,I got to get out of this place! A qualitative study of vicarious embarrassment in service encounters

Vicarious embarrassment is a negative emotion, which is experienced by an individual when others misbehave. People can feel vicariously embarrassed when observing other people's pratfalls or awkward appearance. For instance, vicarious embarrassment is elicited when watching reality TV or in service encounters where many other customers are present. However, the relevance of vicarious embarrassment in physical service environments has not yet been thoroughly analyzed in the context of service encounters. The objective of the present study is to close this research gap and to introduce the phenomenon of vicarious embarrassment to service research. The findings of 25 in‐depth interviews indicate that vicariously embarrassing incidents mostly occur in service encounters and that these incidents are triggered by the violation of social norms in both customer‐to‐customer and customer‐to‐employee interactions. The authors of the present paper identified closeness of relationship, the service context, and parties involved as important situational variables influencing vicarious embarrassment and further emotional, cognitive, and behavioral consequences for the observing person. From a managerial point of view, the relevance of vicarious embarrassment in physical service environments is caused by negative spillover effects of the service experience, which lead to decreasing customer satisfaction, negative word‐of‐mouth and purchase intentions, and a negative impact on the overall image of the service provider.     

Change management practices: Impact on perceived change results

Management literature frequently proposes the use of a set of managerial practices in order to facilitate the management of organizational change processes. This paper analyses differences in perception in the use of such practices, between change strategists and change receptors, and the impact these practices have on the outcomes of organizational change programs and on organizational results, in a sample of 90 organizations in Chile. Results show that, for the same change processes, change strategists report a higher use of change management practices than change receptors. Results also show that, during organizational change processes, firms use more frequently practices related to the change preparation stage in comparison to practices related to the change implementation stage. Finally, results show that, after controlling for organizational size, change program intensity, and service versus manufacturing industries, the use of change management practices has a significant impact on the accomplishment of the change program objectives and deadlines, but results do not show an impact on perceived organizational outcomes (changes in sales, financial results of the firm, operational productivity, and employee performance).     

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.