Cross-buying evaluations in the retail banking industry

Is a customer’s past purchase experience of traditional banking products applicable to the continuing purchase of insurance and investment products at a bank branch? Are service attributes used with similar extensions evaluated differently from when used with dissimilar extensions? In response to these questions, this study develops and examines a framework of service attributes (e.g., locational and one-stop shopping convenience, functional and technical service quality, and firm reputation and size) having positive effects on cross-buying. Meanwhile, this study also examines the mediating roles of satisfaction and trust on the relationship between services attributes and cross-buying. Our results indicate that the relative importance of locational convenience and functional service quality is likely to decline, while the relative importance of one-stop shopping convenience and firm size is likely to increase as category dissimilarity increases. Technical service quality and firm reputation only have indirect effects on cross-buying dissimilar product categories through trust. Instead, satisfaction plays the mediating role for cross-buying similar product categories. Our findings reinforce the view that the relative effects of service attributes, satisfaction and trust on cross-buying vary under different category similarity conditions.     

Should reputable e-retailers undertake service activities along with sales?

With the growth of e-commerce and the elevated service requirements of consumers, e-retailers should carefully evaluate the profitability of delivering product services themselves that were once provided by suppliers. Within this context, we apply game theory to construct a principal-agent model to study a sales and service choice problem faced by an e-retailer. Three strategies are proposed in our paper, pure platform strategy (as the benchmark), resale strategy, and resale plus service strategy. Through comparison and analysis, we find that the sales and service strategy preferences of the e-retailer are influenced by reputation and service costs. Additionally, highly reputable e-retailers tend to provide superior levels of service and prices rather than excessively pursue market demand under the resale plus service strategy. Furthermore, we define the ratio of quality plus service to price as the consumer's performance ratio. Interestingly, reputable e-retailer may bring bad consumer's performance ratio. Moreover, the win-win situation occurs when the e-retailer provides the resale strategy or when the supplier prefers the resale plus service strategy. Our study suggests that e-retailers should make tradeoff between control over services and service costs, and make full use of the advantage of reputation to adjust their income strategy, avoiding blindly pursuing low prices and ignoring the service. In addition, for the supplier, it is appropriate to transfer the service to the e-retailer according to his own conditions.     

Quality Dimensions in E-Commerce Software Tools: An Empirical Analysis of North American and Japanese Markets

Are customers in different countries alike in their preferences for similar software products? In this article, we examine the relative importance of 5 dimensions of product quality across customers from North America and Japan. Based on data collected from over 400 customers of a representative sample of electronic- (e-) commerce software products, we tested the relative importance of these quality dimensions for differences across samples from North America and Japan. We use Bayesian analysis for analyzing the average influence of each attribute on the overall customer satisfaction as well as the variability of each attribute across the two samples. Our findings indicate that the importance of quality attributes is significantly different in North American and Japanese samples. We find that although usability dominates other attributes in North American data, Japanese customers place emphasis on functionality and capability of software products. Our results provide managerial implications for the designers of global software applications, especially in the domain of e-commerce.     

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.     

Shaping e-retailer’s website personality: The importance of experiential marketing

This research investigates how offering experiential values by an online retailer affects the personality of the e-retailer’s website in consumers’ minds. It empirically studies the impacts of four experiential value types – aesthetics, playfulness, customer return on investment (CROI), and service excellence – on each of the five website personality dimensions of enthusiasm, genuineness, solidity, sophistication, and pleasantness. The findings confirm the overall model and the majority of the hypothesized relationships are significant. The findings show that e-retailers should use appropriate combinations of experiential values to portray their desired website personalities.     

Investigating the dynamics of service attributes in multi-channel environments

Previous research has shown that customer evaluations of attributes in existing product and service categories are dynamic. In this study, we use a response surface model based on a conjoint analysis of service profiles in the context of mobile phone service to examine the dynamics of multi-channel service attributes and their influence on customers’ intention to renew a service agreement. Our results provide insights for the design of a service that may not be what customers have experienced in the past and demonstrate the qualities of a set of multi-channel service attributes that have not been included in previous studies.     

Automated inference of product attributes and their importance from user-generated content: Can we replace traditional market research?

User-generated content, particularly online product reviews by customers, provide marketers with rich data of customer evaluations of product attributes. This study proposes, benchmarks, and validates a new approach for inferring attribute-level evaluations from user-generated content. Moreover, little is known about whether and when insights from product reviews gained in such a way are consistent with traditional research methods, such as conjoint analysis and satisfaction driver analysis. To provide first insights into this question, the authors apply their approach to a dataset with almost one million product reviews from 52 product categories and run conjoint and satisfaction driver analyses for these categories. Results indicate that the consistency between methods largely varies across product categories. Initial exploratory analyses suggest that consistency might be higher for categories characterized by low experience qualities, high hedonic value, and high customer willingness to post online reviews—but further work will be necessary to validate these findings.     

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.     

Value and Satisfaction Evaluations During a Service Relationship

Abstract

The research used a sample of credit union customers to determine (a) the relative importance of core and peripheral service attributes on customer evaluations of service value and customer satisfaction, and (b) how the relative importance of these criteria change over the life of the service relationship. For the overall sample, peripheral service attributes accounted for over three-fourths of the variance for service value and customer satisfaction. Dividing the sample into three sub-samples based on age of the customer's relationship with the credit union, peripheral service attributes drove evaluations of service value and customer satisfaction for the first stage of the relationship (ten years or less) and the middle stage of the relationship (eleven to nineteen years). Once the relationship aged to twenty or more years, core attributes drove evaluations of service value and customer satisfaction. Findings indicate that relationship strategies for the credit union may need to be customized based on the amount of time customers have had a relationship with a service firm.     

Multidimensional trust building in e-retailing: Cross-cultural differences in trust formation and implications for perceived risk

The importance of trust in consumers' purchase decisions in e-retailing is of significant interest to retailers. As retailing becomes increasingly globalized, retailers are more interested in cultural differences related to purchase decisions. This empirical study researches how cultural factors are related to multiple dimensions of trust and trust building. Although previous research has examined the influence of trust as a one-dimensional construct, this research examines three dimensions of the trust construct—competence, benevolence and integrity. This research proposes that cultural values will have an impact on how consumers with Eastern vs. Western cultural backgrounds form their trust of e-retailers and how that trust influences their interactions with e-retailers. It focuses on differences between USA (n=252) and Korean (n=256) online customers. It examines how two significant trust forming antecedents, reputation and website quality, affect the three dimensions of trust in the two different cultures, and how the trust dimensions impact two significant consequences, willingness to depend on the e-retailer and related perceptions of risk when dealing with e-retailers.     

Online grocery shopping: the impact of shopping frequency on perceived risk

Online grocery shopping has enjoyed strong growth and it is predicted this channel will continue to grow exponentially in the coming years. While online shopping has attracted an abundance of research interest, examinations of online grocery shopping behaviour are only now emerging. Shopping online for groceries differs considerably from general online shopping due to the perishability and variability of the product, and frequency of the shopping activity. Two salient gaps underpin this research into online grocery shopping. This study responds to calls to investigate the online shoppers’ experience in the context of online purchasing frequency. Second, this study examines the mediating effect of perceived risk between trust and online repurchase intention of groceries. An online survey was employed to collect data from shoppers who were recruited from a multi-channel grocery e-retailer’s database. The online survey, comprising 16 reflective validated scale items, was sent to 555 frequent and infrequent online grocery shoppers. Results find that while customer satisfaction predicts trust for both infrequent and frequent online grocery shoppers, perceived risk fully mediates the effect of trust on repurchase intentions for infrequent online grocery shoppers. Furthermore, path analysis reveals that the developed behavioural model is variant across both groups of shoppers. Theoretically, we provide a deeper understanding of the online customer experience, while gaining insight into two shopper segments identified as being important to grocery e-retailers. For managers, this study tests an online customer behavioural model with actual purchasing behaviour and identifies the continued presence of perceived risk in grocery e-retailing, regardless of purchase frequency or experience.     

Best–Worst Scaling Approach to Predict Customer Choice for 3PL Services

This study describes a simple, theoretically based methodology to analyze the nature of customer demand for third‐party logistics provider service components. The method overcomes limitations in prior studies and enables us to examine the relative importance of product and service attributes as they pertain to the choice of third‐party logistics providers. Two distinct types of customers populate our data: those professing operational attributes and those seeking relational attributes. The theoretical and practical implications are that improved supply chain models can be developed when separate demand structures are taken into account.     

Revisiting Trust toward E-Retailers among Indian Online Consumers

Despite the prospective size of the Indian market, sales on e-commerce channels are low, which could be attributed to the low trust in e-commerce vendors that tends to get influenced by culture and local elements. Therefore, the objective of current research is to unearth the primary drivers of trust between consumers and e-retailers for online transactions in India. We further explore difference in the perception of trust among different groups based on age, gender, or income level. The research framework seeks to examine returning consumers of e-retailers through the lens of Mayer and Davis complemented by institutional and transference process of trust. The data from 762 Indian respondents was analyzed using Structural Equation Modeling. Our results show that trust is a function of ability, benevolence, and perception of the e-retailer, along with online familiarity of the users. The findings also confirm variations across groups in their trust-generating antecedents. Our work contributes to existing theory by verifying an integrative conceptual model of trust in a complex sociocultural setting and brings out several insights for the practitioners.     

Investigating the importance and cognitive satisfaction attributes of service quality in restaurant business - a case study of TASTy steakhouse in Taiwan

ABSTRACT

In this research, we proposed an effective approach to investigate the importance and satisfaction attributes of service quality of a restaurant business. For understanding the gaps of service quality cognition between consumers and servers, our work can be used as a reference for helping restaurants improve their service quality and reuse their resources effectively. We applied DINESERV scales and five-point Likert scales as quantitative research tools. The Kano model, customer satisfaction index, regression analysis, improvement effort index, and importance-performance analysis (IPA) were applied as measurement tools to examine the importance of various service attributes. Our approach was implemented in a famous restaurant in Taiwan: TASTy Steakhouse. The relative priority of service quality attributes for improving this chain restaurant and its competitiveness are ranked and discussed.     

Comparative analysis of experience-oriented customer needs based on the Kano model: an empirical study

Based on the concept of experience economy, this study starts off by proposing that goods, services, and experiences are dimensions of experience-oriented service functions, illustrating an integrated approach which adopts the basic Kano model and customer satisfaction coefficients matrix to categorize and prioritize experience-oriented service functions. An empirical study was then conducted to explore customer need attributes for digital television (DTV) applications. As a result, 445 samples in Taiwan are collected and analyzed, showing different segments have different need attributes. In addition, a comparative analysis of experience-oriented customer needs for experienced and inexperienced users was applied in order to provide differentiated and continuous competitiveness during different stages of the product life cycle; then the result was used as a reference for future development of experience-oriented service functions.     

A data mining approach for segmentation-based importance-performance analysis (SOM–BPNN–IPA): a new framework for developing customer retention strategies

Importance-performance analysis (IPA) is a simple but effective means of assisting practitioners in prioritizing service attributes when attempting to enhance service quality and customer satisfaction. The purpose of this study was to demonstrate how IPA can be used with market segmentation to develop customer retention strategies for different market segments. For this purpose, a new framework have been proposed that uses self-organizing maps for customers’ segmentation and back-propagation neural network (BPNN) for implicity drive the importance of service attributes based on their effect on customers’ loyalty in each segment. Then, individual IPA matrixes are developed for each market segment. Also, an example case is presented to demonstrate the implementation and application of the proposed framework. The results of the proposed framework compared with a conventional BPNN-IPA approach indicated that it can increase reliability and applicability of IPA results.     

Bringing product and consumer ecosystems to the strategic forefront

The widespread adoption of technology and electronic media has dramatically altered the set of products consumers compare before making a purchase decision. Online platforms have succeeded at drawing linkages among products by highlighting those that are preferred, evaluated, or purchased together. However, despite the increase in both product and customer inter-connectedness across markets, managers continue to make decisions based largely on the dynamics of competition within narrow product categories. In this article, we raise the call for a migration from a category-focused mindset to an ecosystem-focused strategic mindset that acknowledges and accounts for the network of related or unrelated entities that a specific product resides within. We illustrate the importance of this shift using examples of preference, choice, and customer networks from popular online platforms. We then discuss the impact of the shift in strategic mindset toward ecosystems on competitive structure analysis, market research, brand footprint analysis, intra-band ecosystems, promotion planning, new product development, customer valuation, strategic alliances, and market segmentation.     

A Weighted Multi-Attribute Customer Satisfaction Index for Commercial and Industrial Electric Utility Customers

The ability to determine customer satisfaction is integral to the ultimate success of quality improvement efforts underway in many major corporations today. Developing a measurement system to determine customer satisfaction, therefore, becomes an important tool in the total quality, customer-driven management process. This article reports the development of a customer satisfaction index for a public utility, which, in addition to the measurement of the difference of importance and performance, is sensitive to customer perception of relative importance of key attributes. Changes or fluctuations in relativity of attribute performance are self-weighted by the use of customer importance in this customer satisfaction formula.     

An exploration of the standardization of targeting strategies and the use of promotional disciplines on the web: A cross-national study

This study examines how leading corporations standardize their regional sites from the integrated marketing communication (IMC) perspective. In terms of standardizing targeting strategies, data show that many leading brands view the online audiences as one mass. Customers and media are the two most targeted and standardized stakeholders for all brands and in each of the product categories (i.e. non-durable goods, durable goods, and service). This study also reveals that financial communities/investors, communities, and channel members are the other three most targeted and standardized stakeholders, even though their rankings are somewhat different across the product categories. Employees, government regulators, and special-interest groups are seldom targeted through corporate websites. In terms of standardizing promotional disciplines on the web, advertising is the most standardized, followed by customer relations, direct marketing, public relations, and sales promotions for all brands and each product category. As a whole, service brands have the highest standardization mean, while durable goods rank second and non-durable goods are last. The three product categories do not significantly differ in terms of the standardization of promotional tactics. A Web Standardization Model is developed to be compatible and comparable to Moriarty and Duncan's Standardization Model.