Service providers’ sustainable service innovation: service-dominant logic

This study examined the service innovation in different service providers with multiple case-study approach. From the perspective of service-dominant logic, four service innovation development models can be distinguished in Technology Development Program companies in Taiwan, including service system integrator and niche market, innovative service solution provider and niche market, innovative service solution provider and mass market, and service system integrator and mass market. Service providers develop ICT platforms, customer relationship management systems, community commerce services, and multi-channel services that are appropriate for a specific industry. On the one hand, active improvement of ICT service system integration extends company capabilities toward external cooperative partners through the provision of integrated product services and comprehensive solutions. On the other hand, innovative service solutions optimize consumer experience and customer relationship management and improve business effectiveness and reduce operations costs due to an important role assigned to services and experience in product sales.     

Buyer-Seller Exchange Situations

Abstract

From having focused almost entirely on exchange transactions in consumer goods markets, in the 1970s, academics expanded their analysis to include relational exchanges-in particular business-to-business markets and service markets. The contextual changes of the 1990s (i.e., the explosion of IT and the Internet) resulted in the introduction of relationship marketing as an alternative marketing approach in consumer goods markets introducing the notion of a shift in exchange paradigms. However, in the late 1990s, a number of authors on service marketing (e.g., Liljander & Strandvik, 1995), on business-to-business marketing (e.g., Anderson & Narus, 1999) and on contemporary marketing practices (e.g., Brodie, Coviello, Brookes & Little, 1997) supported the thesis that in many markets the process that actually takes place is one of co-existence of transactional exchanges and relational exchanges. Based on the “pluralistic approach” (Pels, Coviello & Brodie, 1999, 2000), this paper develops four cases that seek to exemplify the different exchange situations that may occur in a given marketplace.     

The changing consumer in the Netherlands : Recent changes in environmental variables and their consequences for future consumption and marketing

Changes in many environmental (exogenous) factors during the eighties and early nineties affect marketing management and consumer behaviour in the Netherlands. Some of these factors relate to the effects of the economic recessions in the early eighties and the early nineties. Other factors are autonomous trends in a number of economic, demographic, and cultural factors. These factors determine a “macro marketing mix” for marketing management decisions of companies. In this article, we discuss the changing consumer environment and its impact on production and retailing of consumer goods and services in the Netherlands for the last decade of this century. This information on the Netherlands, as well as on the other nations of the European Community, is relevant for marketers operating in, or considering entering, the Dutch market. For governmental decision makers and scientists this information on future consumption and marketing is relevant for their policy and research.     

The changing consumer in Ireland

The decade of the 1980s was a difficult time for companies marketing goods and services in Ireland. The business environment was dominated by high unemployment and economic recession, due to a combination of internal and external factors, which dampened consumer confidence and restrained spending. Fortunately, the economy is recovering rapidly in the 1990s, with low interest rates leading to greater confidence which, in turn, is promoting both increased investment and consumer spending. The prospects for the remainder of the 1990s look favourable assuming stability in the business environment.This paper describes key features of the Irish economy, demography and society which determine the nature of the consumer market, and examines the variables that affect its performance. It also outlines the structure of the macromarketing environment and highlights important trends. It concludes with a discussion of the future outlook for the market and examines some of the implications for marketing management.     

Beyond the world of packaged goods: assessing the relevance of integrated marketing communications for retail and consumer service marketing

Product and packaged goods marketers have responded to changing consumer and media environments by adopting integrated approaches to marketing communication. The value and utility of such approaches likely extend to a wide range of marketers, but there have been few published attempts to examine the viability of the integrated marketing communication concept in retail and service marketing. This study addresses this void by using a seven-stage model of integrated marketing communications to examine the media and message delivery practices of national and regional retailers and consumer service marketers. The results of a national mail survey found many of these marketers using such key integrated marketing communication elements as multiple media, databases, individual-level consumer information and behavioural response measures in their media and message delivery practices. Few, however, were using these elements in a strategic or coordinated fashion. Integrated approaches thus appear to have much value in retail and service marketing, particularly as a means for coordinating media and message delivery elements in a fashion that provides a way to link behavioural responses to media vehicles and advertising messages.     

Using consumer perceptions to operationalize the service construct: Exploratory research in theory extension and validation

Despite the ascendancy of services marketing as a topic of interest, an absence of empirical validation measures and well-grounded research techniques in the area is evident. This article explores the need for marketing to develop an approach by which services marketing empirical research can be advanced. A methodology is proposed that operationalizes the service construct by identifying consumer perceptions of goods and services, and which provides a practical basis for conducting empirical research. Empirical evidence is offered that suggests strong reliability and face validity in support of this approach. © 1995 John Wiley & Sons, Inc.     

Second-Hand Markets and Intrasupply Chain Competition

We consider a monopolistic supply chain consisting of a manufacturer and a retailer (service provider) who in addition to selling new durables, buy and resell used ones. The supply chain provides services for both new and used goods. Accordingly, consumers incur service charges for all types of goods. This study is motivated by the modern trend in cell phone businesses where retailers commence buying used phones from customers willing to upgrade their phones. The used phones are then refurbished and resold along with the services. The question that this trend gives rise to is how the interaction with the secondary market affects the performance of the supply chain in terms of its intracompetition and thereby its profit. We show that for a wide range of service rates, the second-hand market coordinates the supply chain by either reducing the double marginalization effect or by offsetting it with extra profits gained by servicing the used goods. This, however, does not imply that both parties always improve their profits. Furthermore, we find that when the service rates are low, the supply chain would be better off if the goods were not durable thereby precluding the very existence of the second-hand market.     

The Effect of Product Innovation,Promotion, and Price on Consumer Switching to Private Labels

The channel conflict that exists between retailers and manufacturers of branded products has dynamically shifted as large retailers have expanded their offerings of private label products. This study investigates the ability of consumer packaged goods companies to exert influence in the channel by testing which marketing initiatives implemented by manufacturer brands are more efficient in preventing consumer switching to private labels. We use a hazard model to simultaneously measure the effects due to product innovation, promotion, and price on consumer switching and how strong those effects are. We find that as expected product innovation, promotion, and price exert a negative effect on the consumer likelihood of switching to private labels. However, we find the strongest effect on promotion suggesting the importance of understanding how consumers perceive value in the national brands offer.     

Professional Tax Service Marketing from a Consumer Buyer Behavior Perspective

Professional services marketing such as accounting and legal services are often received as less smhisticated than product marketing. The prime message promulgated from existing research has often focused on the need for professional service firms to establish formal marketing technique; This paper investigates professional services marketing of tax services from a consumer behavior perspective and the implications of developing a marketing plan. Clearly, professional service providers are operating in a different consumer environment and the marketing implications are significantly different from product marketing.     

Analysing marketing customization strategies in Australasian firms: a framework for services and goods exporters

Previous studies suggest that services and goods marketers can share internationalization and market entry frameworks. Very little research has investigated any similarity of marketing customization frameworks of services and goods exporters. This study has proposed a common customization framework, which was examined using the experiences of 101 services and goods firms operating in a highly different environment. It was found that the marketing environment–marketing strategy framework for service and good exporters was mostly similar, but that the extent of the influence of selected factors was stronger for service firms. The framework of marketing strategy–performance was confirmed to be mostly similar. The results of this study suggest that, after internationalization and market entry mode theories, a common marketing customization framework can probably be identified across selected services and goods sectors.     

Goods retailers and service providers: comparative analysis of web site marketing communications

Retailers may engage in a range of marketing communications on their web sites. Our content analysis of web sites for 152 Fortune 500 retailers showed that more profitable retailers were more likely to use company specific, shareholder, web specific and customer service elements. We also found differences in the use of advertising, shareholder, company specific and web specific elements among goods, financial and services retailers.     

Developing a distinctive consumer marketing organization

Marketing excellence is a key success factor in virtually any industry or company focused on consumer products or services. Defining what marketing excellence really means and how to mobilize the organization to achieve that goal, however, can be extremely challenging. This article examines the changing nature of the relationship between consumer and marketer and identifies the characteristics of excellent consumer marketing companies. While there is clearly no single right answer in designing marketing organizations, a number of companies in a variety of consumer industries have begun experimenting with promising results. While the solutions are different in each case, a number of common themes—including a clear linkage between strategy and marketing skills, seamless integration across the business system, and a clear marketing culture—are beginning to emerge.     

Despite unethical retail store practices,consumers at the bottom of the pyramid continue to be loyal

Research in the area of retail store loyalty agrees that consumers reward retailers when they are satisfied with its products, services, and its image. Moreover, one would agree that if the retailer engages in unethical practices, the customer would quickly defect and even engage in word of mouth to influence others to defect. But this might not be the case universally. One consumer group that continues to be loyal to a retailer despite widespread unethical practices is the poor. A growing stream of research under the label of bottom of pyramid (BoP) and subsistence consumers has increasingly pointed out the market attractiveness of this segment to multinational companies. These poor consumers are individuals who earn approximately $2 per day. In this paper, we explain the nature of widespread unethical retail practices prevalent amongst the neighborhood retail stores (or kirana as they are referred to in India) that serve the BoP consumer, types of patronage behaviors, and the reasons ‘why’ these consumers continue to support the kirana store. The data for this paper comes from a qualitative study conducted with 58 urban poor consumers in India. This study carries significant implications for both domestic and multinational companies that market fast-moving consumer goods in the BoP market.     

Consumer behaviour and services: A review

This article reviews the current literature in the fields of consumer behaviour and the marketing of services in order to examine the main issues facing the consumer in purchasing services, as opposed to goods. Five distinguishing characteristics of services are discussed and the implications of these for the consumers are placed within the information processing model of consumer behaviour theory. The article suggests that there are particular problems for consumers in acquiring effective information regarding services, making comparisons on the basis of that information and subsequently evaluating the service encounter. It is our contention that unless consumer responses to the particular problems associated with services are clarified, service marketing may be in danger of pursuing provider‐orientated solutions rather than understanding the actual nature of the consumer decision process when purchasing services.     

A new look at faith-based marketing: The global halal market

Faith-based marketing, or addressing consumers’ religious sensibilities with faith-friendly offerings, represents a new wave of growth for companies. While kosher goods and Christian movies are well-known examples of this trend, companies continue to overlook opportunities for growing faith-based segments. Representing the fastest-growing faith-based consumer group in the world, Muslims, in particular, are a largely untapped segment. Forward-looking companies such as Nestlé, Walmart, and McDonald's consider this segment as the next ‘one-billion’ market, after China and India, and are developing strategies to appeal to the Muslim consumer. We focus on the key to tapping into the sizable Muslim spending power: halal marketing. Contrary to common belief, halal marketing is not confined to dietary goods. Rather, it pertains to a diverse range of offerings from cosmetics to tourism that represents a global market worth $2.1 trillion annually. Modern interpretations of halal echo the claims of organic and fair-trade industries, broadening the appeal of halal to mainstream consumers. Despite the vast opportunities in halal marketing, winning the pocketbooks of Muslim consumers involves cultural, operational, and geopolitical challenges. We provide an overview of this emerging market and offer five lessons for successful halal marketing.     

The Creation and Growth of Small Business Service Firms in Post-Industrial Britain

Since 1980, the United Kingdom has experienced a dramatic growth in firms and employment in information-intensive business services, such as management consultancy and market research. This article reports the results of the first substantial nation-wide investigation into the nature and causes of small professional business service firm growth in Britain, undertaken in 1991. It reveals marked differences in the characteristics, markets and competitive requirements of such firms, compared with small manufacturing firms. The demand for their services comes predominantly from large companies, and is more focussed on financial and other services and government. But small firms are also making increasing use of business services. Specialised expertise, reputation and educational and professional qualifications are essential prerequisites for the establishment of new business service firms. Their success is also being enhanced by increasing use of informal networking, collaborative partnerships, and subcontracting.     

The Rise of the Mass Market and Modern Retailers in Japan

The Japanese distribution system was established in the mid-eighteenth century, when the current stratified structure of whole-salers, brokers or middle merchants, and retailers was already evident. As a result, the mass manufacturers of consumer goods, including electric appliances and automobiles, began to market their own products in the 1950s, the traditional distribution system being unsuited to their requirements. Supermarkets and discounters emerged in the following decade. They had to compete against small retailers and the chain stores owned by large manufacturers, and their share of total consumer sales was limited even in the 1970s. Because of its history and fact of rapid post-war growth, retailing and marketing in Japan has retained unique features.     

Status of Database Marketing in the Dutch Fast Moving Consumer Goods Industry

Brand manufacturers in the fast moving consumer goods industry are under pressure. Due to increased retailer concentration, access to scanner technology, eroding brand loyalty, an increasing number of price promotions and increasing market share of private labels, power is more and more shifting towards retailers. DBM can be an alternative for brand manufacturers in building brands and gaining more knowledge about the customer. In this paper data of 91 Dutch brand manufacturers are used to find the factors that influence the adoption of database marketing (DBM). A distinction between tactical DBM and strategic DBM is made. Tactical DBM has a short-term focus and a transactional approach. Strategic DBM has a long term focus aiming at enhancing brand loyalty, brand awareness and brand associations. Our results show that DBM is relatively undeveloped in the Dutch FMCG-industry. 29% of all respondents adopted DBM. When it is used, it is mainly used tactically. It is also found that DBM adoption is influenced by top management support, the size of the brand portfolio and the adoption of DBM by a competitor.     

What is the Right Supply Chain for Your Shopper? Exploring the Shopper Service Ecosystem

The emergence of shopper marketing represents a major strategic force in consumer goods branding and retailing, and poses significant challenges to pre existing supply chain thought that most scholars have yet to address. In order to address the marketing and supply chain challenges presented by shopper marketing initiatives, scholars from both disciplines can find common ground by focusing on the shopper instead of consumers or products. The issue is no longer one of matching a supply chain to a product. Instead, marketers and supply chain managers need to ask, “What's the right supply chain for our shopper?” The shopper service ecosystem framework developed in this paper brings together the service dominant logic of marketing with the service ecosystem perspective in supply chain management. Future research frontiers suggest research directions that bridge the marketing and supply chain disciplines to create a multidisciplinary foundation for future research in the shopper marketing realm.     

The Use of the Survey in Industrial Market Research

Awareness and use of marketing research is consistently shown to be a characteristic of successful firms. Despite this, companies that market industrial goods and services still design and implement fewer market research studies than their counterparts in the consumer field. Consequently, on a first attempt their comparative inexperience leaves them vulnerable to the many pitfalls of implementing a successful survey. This paper serves as a practical guide to the issues governing choice among alternative survey methods, and to weighing up the pros and cons of personal and telephone interviews and mail questionnaires.