Investigating agency–client relationships in the Polish advertising industry

This paper explores selection and retention factors as perceived among agencies and clients operating in the Polish advertising industry. Initially, a broad review of advertising and marketing literature is presented in the context of those variables perceived to be important for (a) selecting/evaluating ad agencies, and (b) maintaining client loyalty and client retention. Two ad agencies and two advertisers in Poland were approached in order to explore and evaluate the variables in more depth, and as a result 15 key variables emerged that became the focus for the study. A questionnaire was designed and a postal survey was later administered to advertisers and agencies with the intentions of obtaining the views of both parties. Emerging findings of the study indicate that clients tend to focus on sales pitch and factors relating to past performance in recruiting an agency. Results also reveal that there was a close consensus among agencies and their clients concerning the relative importance of retention factors such as quality of service and customer care attributes.     

Buyer–seller relationships of the dental devices industry in Taiwan: perspective of relationship

Purpose: While research in marketing and management has addressed characteristics associated with buyer and seller, relatively little research has been reported on the marketing of relationship benefits and relationship bonding tactics, particularly involving their relationships with customers. Given a dyadic perspective, it can be surmised that gaps in buyer and seller perceptions may well dampen relationships, and will inevitably occur, since a perfect match is highly unlikely between two exchange parties. To enhance relationships, major gaps need therefore to be identified and eliminated. Therefore, the purpose of this study is developing matrices of customer relationship benefits and relationship bonding tactics separately from buyer’s and seller’s perspectives, together with the insights of interrelated propositions.

Methodology: This research subjects chosen for this study consist of those distributors of dental devices, procurement in hospitals, and dentists. Using the grounded theory, four stages of coding analysis are conducted.

Findings: The results indicated that buyers and sellers differed in their perceptions in all field interviews due to their different attitudes toward different benefits. While buyers’ perceived benefits were based on the consideration of confidence and trust in the practical use of purchased medical devices, sellers primarily considered specialized issues of provided services and technologies. Based on this, buyer and seller perspectives were distinguished.

Research Implications: As a self-enclosed system, the medical device industry is difficult to enter for new manufacturers. Therefore, from the perspective of product providers, academic support can increase their product visibility, improve their company’s image, and provide more opportunities to contact new clients. From the perspective of medical institutions, the participation of hospitals and clinics in relationship marketing activities and seminars can raise their prestige and provide more opportunities for gaining new information.

Originality/Value/Contribution: Theoretical contribution of this study is in building matrices of customer relationship benefits and relationship bonding tactics separately from buyer’s and seller’s perspectives, together with the insights of six propositions. These insights shall expose the undisclosed systems of the dental devices industry.     

Antecedents and performance outcomes of flexibility in industrial customer–supplier relationships

This paper deals with the impact of suppliers' flexibility in the industrial markets and presents empirical results from the market research sector including outcome variables (market-uncertainty, relationship-specific investments, mutuality, opportunism, long-term orientation, planning, conflict management). We examined the antecedents of supplier flexibility. Buyers need to know whether supplier will modify existing agreements in cases where environmental factors change. Insufficient flexibility can lead to problems, such as having to accept services which no longer meet the buyer's needs. Accordingly, identifying indicators of supplier flexibility is an important objective for managers involved in the purchasing process of services.     

A two-dimensional model of trust–value–loyalty in service relationships

The study examines the relationships between consumer trust (cognitive and affective), perceived value (utilitarian and hedonic), and loyalty behavioral intentions (repurchase and advocacy) in a two-dimensional (affect- and rational-based) consumer–service provider model. It provides an alternative theoretical representation of consumer behavior in service relationships and implications for service providers about consumers' loyalty intentions. A mail survey analyzed by SEM supports the model of loyalty as a function of consumers' expressive and instrumental responses resulting from intrinsic and extrinsic perceptions of trust and heuristic and rational-based perceived value. Implications for designing loyalty programs are explored and future research opportunities recommended.     

Salesperson's listening in buyer–seller service relationships

Research has consistently shown that salesperson's active listening behavior leads to strong sales performance. Yet the influence of management policies on listening has received very limited attention, and prior research linking listening to customer retention has led to mixed findings. This study examines how listening is enhanced through control systems and the influence of listening on customer retention in a service context. Dyadic data from salespeople and their customers show that a behavior-based control system (measured as a second-order construct) positively influences listening and the salesperson's customer orientation totally mediates the influence of listening on customer commitment to the salesperson and loyalty to the service company. Our findings indicate that listening is a necessary but not sufficient condition for assuring relationship development. More specifically, customer orientation is the generative mechanism through which listening is able to influence customer retention. Theoretical and practical implications are discussed.     

Measuring innovation in a ‘low-tech’ service industry: the case of the Dutch hospitality industry

This article presents the findings of a survey among 613 firms in the Dutch hospitality industry adopting a demarcation perspective. The paper illustrates that innovation in this service industry is much higher and more varied than regularly reported. It further indicates that innovation activities in ‘low-tech industries’ can be in place with less formalized forms of (service) innovation management. Finally, it is shown that a higher innovation intensity is associated with better firm performance. Based on this, some implications for managing innovation in the hospitality industry are discussed. Finally, some fundamental issues in the measurement of service innovation are raised.     

The role of national institutions in the effects of consumers’ perceived customer orientation and firm innovativeness

Many multinational corporations force global customer orientation and firm innovativeness. However, little is known about how or why they benefit from perceived customer orientation and firm innovativeness in one country but not in another. The authors fill this gap by referring to information processing and institutional theories. They contribute to research by analyzing the roles of country development and dimensions of national culture in the direct and indirect effects of perceived customer orientation through firm innovativeness on consumer product purchase intention across 53 countries. The results of multilevel structural equation modeling show different explained variances of the institutions and varying moderations for the differently strong effects of perceived customer orientation and firm innovativeness. Institutional theory strongly complements behavioral theorizing. The findings have direct implications for managers interested in understanding how perceived customer orientation and firm innovativeness interact and attract consumers in different country contexts.     

Why does service inclusion matter? The effect of service exclusion on customer indirect misbehavior

In recent years, there has been much conceptual work calling for research on transformative service, and service inclusion in particular. However, quantitative studies focusing on service inclusion are scant, and little is known about customer responses to the opposite of service inclusion, i.e. service exclusion. Taking a transformative research perspective, this study advances the service inclusion literature by focusing on service exclusion and its downstream consequences. We first build the causal link between service exclusion (vs. inclusion) and customer indirect misbehavior, reveal the underlying mechanism, and further identify negative reciprocity beliefs as a boundary condition. The results of three studies suggest that customers who experience service exclusion (vs. inclusion) are more likely to engage in indirect misbehavior (Study 1), and that this effect is mediated by perceived need threat (Study 2). Moreover, the basic effect holds true only for customers with strong negative reciprocity beliefs (Study 3). The findings of this research not only contribute to the literature on transformative services, service inclusion, and social exclusion, but also have managerial implications for marketing practitioners in terms of creating an inclusive service system.     

British corporate networks, 1976–2010: Extending the study of finance–industry relationships

Abstract

Using an extensive and unique data set that has been created to record the composition of the boards of directors of the top 250 British firms between 1904 and 2010, this article builds upon a previous study by the authors on the corporate network to 1976 by extending the study to 2010. The analysis revolves around three key observations: the nature and depth of the corporate network; the distinct stages in corporate connectivity between 1976 and 2010; and the 1980s watershed in the relationship between financial and other sectors, following which financial institutions withdrew from the corporate network. The article concludes with an analysis of how the data set has changed our perceptions of British corporate networks, wider changes in British business, and a discussion of implications for future research.     

Unravelling the impact of psychological empowerment on customer service behaviours as a consequence of ‘Leader-Member Exchange’

This study aims to investigate the cognitive process by which perceived organizational justice and leader–member exchange (LMX) are channelized into role-prescribed and extra-role customer service behaviours. It proposes the mediating role of three forms of psychological empowerment (goal internalization, perceived competence, and perceived control) in the predictor–outcome relationship, and examines this relationship from a comparative view of the role-prescribed and extra-role behaviours. Valid and reliable self-report and supervisory evaluation measures were administered to 282 nurses in Korea. The results indicate that LMX had a significantly greater effect on extra-role behaviours than on role-prescribed behaviours, and that perceived control mediated the relationship between LMX and extra-role behaviours. In terms of justice perceptions, there was no significant comparative effect on customer service behaviours. Furthermore, perceived competence mediated the relationship only between distributive justice and role-prescribed behaviours.     

Antecedents of customer participation in business ecosystems: evidence of customers’ psychological ownership in Facebook

Customers can influence the health of business ecosystem through their participation. What are the determinants of customer participation at the business ecosystem level? This study addresses this question by proposing a research model integrating the organizational socialization of customers, customer participation, and psychological ownership. It proposes customers’ psychological ownership as an antecedent of their participation in the business ecosystem. No study to date has empirically examined customer participation in business ecosystems. This study tests the hypotheses based on online survey data from 397 Facebook users. The results show that psychological ownership is a significant determinant of customer participation in the business ecosystem via word-of-mouth (WOM) and boycott intention. The result of our study also indicates that customer socialization significantly affects customer participation in the individual firm, which in turn leads to an increased psychological ownership. This study (a) broadens the concept of customer participation by examining it via the business ecosystem lens and (b) highlights WOM and boycott activities as examples of customer participation at the business ecosystem level.     

Healthier for whom? Technological service improvement in the healthcare industry

This study tackles the dilemma of a technology-based service improvement wherein an organization performs a technology change to improve its service process, while its customers do not necessarily perceive the new service as an improvement. The empirical research follows a healthcare provider that changed its primary care provider appointment scheduling using a new call centre technology. The methodology involves three processes reflecting the entire change: personal interviews, focus groups, and surveys. To facilitate adoption of a technology-based service, it is recommended that there be a focus on customers’ experience with similar service industries’ image, and organizational policies on contracting service representatives.     

Impacts of supplier–buyer relationships on modularization in new product development

Globalization of markets and new business practices are prompting high-tech firms to reconsider their strategic thinking, especially in supply chain and R&D management. This paper examines the effects of supplier–buyer relationships on modularization by evaluating the opportunities of modularization and corresponding interface constraints of a product at four different levels: component, module, sub-system, and system. The scope of modularization sensitivity is assessed in terms of the product's architecture, interface compatibility effects, component customization, value inputs, and supplier–buyer interdependence. The example of windshield wipers controller for Chrysler Jeeps illustrates that, higher opportunities for modularization can be attained through a more collaborative form of supplier–buyer partnership.     

The impact of firm and industry characteristics on small firms’ capital structure

We study the impact of firm and industry characteristics on small firms’ capital structure, employing a proprietary database containing financial statements of Dutch small and medium-sized enterprises (SMEs) from 2003 to 2005. The firm characteristics suggest that the capital structure decision is consistent with the pecking-order theory: Dutch SMEs use profits to reduce their debt level, and growing firms increase their debt position since they need more funds. We further document that profits reduce in particular short-term debt, whereas growth increases long-term debt. We also find that inter- and intra-industry effects are important in explaining small firms’ capital structure. Industries exhibit different average debt levels, which is in line with the trade-off theory. Furthermore, there is substantial intra-industry heterogeneity, showing that the degree of industry competition, the degree of agency conflicts, and the heterogeneity in employed technology are also important drivers of capital structure.     

“Untact”: a new customer service strategy in the digital age

Service Business - The Industry 4.0 era has brought a shift in consumers’ purchasing behaviors from traditional retailing to online and/or mobile channels, triggered by advanced digital...     

Service relationships and the customer disengagement – engagement conundrum

Abstract

Emergent research on customer engagement has focused on enhancing engagement within service relationships. Less attention has been given to how and why customers disengage from their relationships, and the potential interplay between engagement and disengagement has not yet been explored within the marketing literature. This study presents the findings from a qualitative exploration of the concept of customer disengagement, its initiating triggers, nature and the process by which it unfolds within functional/utilitarian (F/U) and participative/co-creative services (P/C). Rather than being mutually exclusive, it finds that engagement and disengagement are highly connected and that prior levels of engagement significantly influenced customers’ subsequent propensities to disengage. Specifically, customers’ propensity towards disengagement was higher within services considered F/U in nature and lower within services of a more P/C nature. In addition, the extent to which customers disengaged from their relationship was strongly determined by their prior levels of engagement with weak engagement for F/U services and strong engagement for P/C services. Relationships in the F/U category were subsequently transactional and volatile when compared to relationships within the P/C category that were comparatively emotionally bonded and enduring.     

“Do not impose on others what you desire.” Research on the influence of service Personnel's interactive orientation on customer comfort

Comfort carries many positive consequences, and a vital issue is how to stimulate it. Because service personnel are direct service providers, which means they have a significant impact on the customer. Apparently, it is critical to improve customer comfort from the perspective of service personnel. Based on the Service Encounter theory and Regulatory Fit Theory, this paper explores how service personnel's interactive orientation, including interaction orientation, task orientation, self-orientation, influences customer comfort and examines the mediating role of perceived control and the moderating role of self-construal. We analyzed the data collected from 257 consumers using a self-reported survey using SEM with SPSS17.0 and AMOS21.0. The results show that interaction orientation has a significant positive effect on customer comfort, self-orientation has a significant negative impact on customer comfort, and task orientation has no significant impact. Perceived control plays a mediating role in the relationship between service personnel's interactive orientation and customer comfort. The moderating effect of self-construal is significant. We discussed the implications of the findings for academics and managers.     

The development of Shanghai＇s service industry

The development of Shanghai‘s service industry should be choreographed in the following steps: (1) Actively promoting for the development of the industry through awareness of the general laws for its developmertt; (2) Speeding up the monopolies existing in some service sectors so as to open to the private some     

Determinants of change in service employment in the United States 1998–2005: findings based on a new classification of industries

This paper uses a new classification of employment in the USA based on hierarchical cluster analysis to analyze trends in employment from 1998 to 2005. Measures of growth in employment at the state level are presented, along with selected analyses of correlates of employment change. Specialization in key clusters is related to state growth rates, and the markets of the clusters are identified through the use of input–output data. Shifting consumption patterns are examined for clusters with strong household markets.     

What’s in a crowd? Exploring crowdsourced versus traditional customer participation in the innovation process

This study explores the emerging crowdsourcing phenomenon, that is, the outsourcing of idea generation to the product users (‘the crowd’), typically via online platforms to interact with many and diverse customers and glean valuable market insights. The study focuses on this phenomenon and the factors that determine the value of crowdsourced customer participation over more traditional market research methods. The authors present the results of an extensive, in-depth qualitative case-study analysis pertaining to the media industry. The authors find that crowdsourced customer participation is not consistently superior in enabling firms to discover how to serve their customers better. Instead, the results unearth a catalogue of seven interrelated value determinants that show where the boundaries of both crowdsourcing and traditional customer participation in innovation lie. These value determinants fall into three main categories: (1) innovation-specific value determinants, (2) firm-specific value determinants, and (3) managerial value determinants.