Does online relationship marketing enhance customer retention and cross-buying?

One characteristic of online consumer behavior is the low cost of searching for alternatives. Therefore, customer loyalty is more difficult to achieve in the online context than in the offline one. Although studies have discussed the effectiveness of relationship marketing, nearly all studies examining such constructs have been in the context of ‘offline’ consumer behavior. With regard to the ‘online’ context, the integration of Internet technology with the customer loyalty concept is rarely discussed in the relationship marketing literature. Furthermore, empirical research that integrates the actual purchase behavior of customer retention and cross-buying is relatively sparse. In response to this, the current study develops and empirically tests a model that examines the relations among relationship-bonding tactics, perceived relationship investment, perceived relationship quality, customer loyalty, customer retention, and cross-buying. Using survey data from 766 online customers of a securities corporation, the results demonstrate the effectiveness of relationship marketing as it positively influences online customers' perception, then their loyalty, and ultimately, their actual purchase behavior.     

Does value chain integration dampen producer price developments? Evidence from the European Union

We draw on trade theory to empirically explore the effects of value chain integration on producer price dynamics. Using the EU as an example of an integrated area, we construct measures of backward and forward linkages with intra‐ and extra‐EU trading partners at the country‐sector level. We find that especially upstream integration and EU accession dampen inflation. The results for downstream integration indicate a price‐increasing relationship. We propose novel EU integration indicators and offer insights to both theory and applied research. We also add to the policy debate on the price effects of (dis‐)integration of EU countries.     

Does integration of services differ from integration of goods?

The theory of economic integration has been well developed over time but mainly with regard to goods. Conceptually integration for services needs to be differentiated from goods according to the characteristics of services and the nature of barriers to integration. The need for personal interaction between supplier and user gives rise to different ways in which services are traded from goods with suppliers and users crossing borders and a different balance between cross-border trade and permanent presence. Obstacles to trade take place behind rather than at the border. The European Union has been chosen as an example of integration for services both on the basis of past experience and because of its ability to remove obstacles for services using specific institutional powers. Existing levels of integration for goods and services are compared with those to be expected on the basis of theory. Market integration for manufactured goods is lower than previously estimated and services higher, although services remain considerably less integrated. Finally, explanations for differing levels of integration both compared to goods and those expected among different services are sought in terms of the barriers to cross-border trade and permanent presence in the form of regulation, market structures and cultural factors.     

Using the balanced scorecard on supply chain integration performance—a case study of service businesses

Supply chains are indispensable to corporations that seek to serve suppliers and customers better, to boost organization performance, to strengthen competitiveness, and to achieve continuous success. Currently, corporations place great emphasis on both supply chains and on balanced scorecards (BSCs) to develop effective measures to evaluate firm performance. This study discusses the integration of supply chain and performance based on the BSC measures developed by Kaplan and Norton (Harv Bus Rev 71(5):134–147, 1993; Harv Bus Rev 74(1):75–85, 1996) and Brewer and Speh (J Bus Logist 21(1): 79–93, 2000). The research applies case studies and a conceptual framework, modifying propositions accordingly. The main objectives of this study are to discuss the construction and implementation of supply chains, to determine how to handle supply chain barriers and to evaluate supply chain integration performance using the idea of a BSC. Companies at different levels in the supply chain are better served by assigning different levels of importance to different types of integration. Case studies show that supply chain integration involves supplier, internal, and customer barriers. The results of these studies have suggested that integrated supply chains can be dominated by one controlling member, which can be located either upstream or downstream in the chain. A new finding in this study is that varying degrees of supply chain integration are obtained due to corporations’ different positions in an industry. The study provides some insights for firms in the process of implementing a supply chain management system.     

Does emotional labor moderate customer participation and buying?

Two studies examined whether employees’ emotional labor as perceived by customers, moderates the relationship between customers’ participation and money spent. In Study I, 30 in-depth interviews were conducted with customers to examine participation during shopping as well as customers’ awareness of their service employees’ behaviors. The interviews revealed two types of customer participation: emotional engagement and physical effort. Based on Study I, Study II investigated 114 customers, and the moderating role of perceived employees’ emotional labor on the relationships between customer participation and spending money. Even when customers were highly involved in the purchasing process, they spent less money when they observed employee inauthenticity as manifested in Surface Acting. However, Deep Acting positively moderated the relationship between customer participation and spending money. These findings help shed light on the circumstances in which customer participation is strengthened (leading to greater spending) or weakened.     

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.     

Does high dividend payout protect investors?

This paper studies the relationship between dividend payout and investor protection through the case of Chihong Zinc & Germanium’s (Chihong) reform of nontradable shares. Results show that Chihong’s nontradable share reform integrated with equity offering may usurp the interest of small shareholders. Statistics manifest that market responds negatively to this type of dividend allocation. Managerial suggestions are also provided.     

Does managing customer accounts receivable impact customer relationships,and sales performance? An empirical investigation

The impact of accounts receivables on the performance of salespersons is largely ignored in sales literature. However, in many sales contexts, managing customers' accounts receivables is directly managed by the salespeople, and therefore substantially impacts their sales performance. Towards such sales contexts, in this empirical study, we study the effect of customer account receivables and salespersons' customer orientation on their relationship orientation and customer-related performance. We further analyse the direct impact of relationship orientation on customer-related performance. Using survey-based data from 224 salespersons based out of India, we empirically test the proposed model using partial least squares structural equation modelling. Our findings suggest that accounts receivables from customers and salespersons ‘customer orientation strongly impact relationship building and also improves customer-related performance. The salespersons’ relationship orientation also partially mediates the relationship between customer account receivables and customer-related performance. Therefore, this study provides much-required evidence to establish the salience of salesforce appropriately managing customers' account receivables so that its impact on their sales performance customer relationships are not adversely affected.     

Does foreign direct investment really enhance China's regional productivity?

While foreign direct investment (FDI) is widely recognized as one of major driving forces on promoting the regional economic growth in China, its impact on regional productivity is unclear and less systematically investigated. This article investigates the effect of FDI on regional productivity in China. Specifically, we adopt a newly developed measure of total factor productivity (TFP) to deal with the endogenous inputs choice accompanied with various measures of FDI, enabling to provide robust estimates on the TFP effect of FDI. Moreover, we examine the role of absorptive ability on the FDI-TFP nexus and explore the existence of FDI spillover effect on productivity across regions. The potential difference in productivity effect of FDI between coastal and non-coastal regions is also examined. Based on the province-level panel dataset over the period 1997–2006, the various estimates show that the overall productivity effect of FDI is significantly positive, while this effect depends heavily on the host region's absorptive ability. Technological gap is found to associate with a significantly negative coefficient along with the finding that FDI tends to exhibit a higher impact on productivity in coastal regions than their non-coastal counterparts, highlighting a widening income inequality between coastal and non-coastal regions in China.     

Does the length of a customer–provider relationship really matter?

This study examines both a moderator and a mediator of perceived service quality and payment equity as they relate to customer loyalty in the banking industry. Through the moderating factor, the length of the customer–bank relationship, this study builds a conceptual framework for distinguishing between transactional- and relationship-oriented customers and provides an empirical analysis by using structural equation modelling. The empirical findings of this study, the result of the examination of 610 banking customers, showed that different lengths of the customer–bank relationship form loyalty from different variables and from a different path. For transactional-oriented customers, loyalty was built through the achievement of overall customer satisfaction; whereas for relationship-oriented customers, loyalty was built through the establishment of trust. Suggestions and limitations based on the finding are also discussed.     

Customer experience and commitment in retailing: Does customer age matter?

While the customer experience (CX) concept has rapidly gained traction in recent years, its effect on customer brand commitment and loyalty remains tenuous. Moreover, while customer age has been identified as an influential driver of consumer behavior, little is known about its effect on the customer's brand experience. Addressing these gaps, we develop a model that examines the relationships between CX, commitment, and loyalty, while using customer age as a moderator in the proposed associations. A total of 423 valid responses was collected from branded retail customers. Structural equation modeling results reveal a positive effect of (a) CX on customers' affective/calculative commitment, and (b) customer commitment on brand loyalty. Moreover, multi-group analysis results reveal that while customer ages moderates the association between CX/affective commitment, it does not significantly moderate the relationship between CX/calculative commitment. We conclude with key implications that arise from this research.     

Does retailer CSR enhance behavioral loyalty? A case for benefit segmentation

We study the effects of consumer perceptions of four types of corporate social responsibility (CSR) activities on their behavioral loyalty toward retailers. The four activities are environmental friendliness, community support, selling locally produced products, and treating employees fairly. Behavioral loyalty is measured by share-of-wallet (SOW). We control for other retailer attributes that drive attitudes and SOW, and examine how the market is segmented in terms of consumer response. We partition the total effect of CSR on SOW into a direct effect and an indirect effect mediated through attitude towards the store. These effects differ by CSR activity and customer segment. The effects on attitude are positive and positive attitude enhances SOW, so the indirect effects on SOW are positive. While we generally find positive total effects, the total effect of one of the CSR activities, environmental friendliness, is significantly negative for one group of consumers. The magnitude of CSR's total impact on SOW is not only statistically significant but also managerially meaningful in an industry where every share point carries a substantial dollar amount. We characterize the customer segments and conclude with implications for how best a retailer can manage its CSR initiatives.     

Why offer lower prices to past customers? Inducing favorable social price comparisons to enhance customer retention

Price discrimination policies vary widely across companies. Some firms offer new customers the lowest price; others give preferential prices to their past customers. We contribute to the literature on price discrimination in behavior-based pricing by exploring how customers’ social price comparisons, i.e., comparing one’s price to that received by similar peers, impact the optimal structure of price discrimination. Social price comparisons have a negative (positive) impact on customers’ transaction utility if the price charged to past customers is higher (lower) than a new customer’s price. Using an analytical model with vertically differentiated firms, we show that a firm with relatively large market share will reward its past customers with relatively low prices when social price comparisons have a sufficiently large impact on utility. Furthermore, we find that social price comparisons lead to a relaxation of the price competition for new customers. Thus, both firms can earn higher profits when such comparisons are made than when they are absent. We also examine how other factors, such as horizontal competition and strategic customers, interact with social price comparison concerns to impact pricing strategies. Finally, we show how pricing behavior differs when price comparisons are based on historic reference prices rather than on peers’ prices.     

Is the speed of post-acquisition integration manageable? Case study: post-acquisition integration of HSBC with the Mercantile Bank, 1959–84

This study aims to fill in the gaps in existing business history research regarding post-acquisition integration by adopting a case study of the post-acquisition integration process between HSBC and Mercantile Bank (MB) 1959–84. It explores the impact of the institutional environment and organisational transformation on the speed of integration and tries to explain why the integration between HSBC and MB took so long. This study may also give some indications to the current emerging multinational companies (MNCs) from the developing countries.     

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.     

Does retail type matter? Consumer responses to channel integration in omni-channel retailing

A critical issue faced by marketing practitioners today is orchestrating strategies that provide a smooth consumer experience in an omni-channel environment. The extant literature offers limited guidance on managing the consumer journey in an omni-channel environment across different retail types. Using the S–O-R framework as its basis, this study generates novel insights by examining how different types of retailers influence consumer perceptions of channel integration (CPCI) as well as consumer empowerment, trust, satisfaction, and patronage intention. Data from 736 consumers was collected using purposive sampling to target those who interact with retailers from high-end specialty stores, department stores, and hypermarkets. The data was then analysed using partial least squares structural equation modelling (PLS-SEM). We find that consumers from high-end specialty stores, hypermarkets, and department stores have different perceptions when patronising the omni-channel retail business. The implications of the study are discussed and suggestions for future research are presented.     

Are you ready for your next product recall crisis? Lessons from operations and supply chain management

Most manufacturing companies face the possibility of a product recall crisis, if not within their own firms, then certainly somewhere within their supply chains. Recall crisis management typically finds a home within literature on crisis management, public relations, communications, marketing and brand management, and related fields. However, this research seldom addresses the operations support that must be mustered behind the scenes. The tumultuous material flows that can occur during a product recall imply a supply chain disruption. An effective response during the heat of a crisis therefore requires the foundation of a well-oiled supply chain. In this article I draw on learnings from the operations and supply chain management (OSCM) literature, integrate them with important precepts from the general crisis management and product recall literature, and identify managerial best practices that will help managers better prepare for product recall crises.