Is it all about consumer engagement? Explaining continuance intention for utilitarian and hedonic service consumption

This paper compares the explanatory power of consumer engagement (CE) regarding service continuance intention with the variables of attitude (utilitarian and hedonic) and satisfaction. Survey data were collected from users of mobile music (n = 596) and mobile parking (n = 297) services. The partial least squares method was applied to analyze the data. In line with expectations, the findings show that attitude and satisfaction are superior drivers of service continuance intention compared to CE when service is used for utilitarian reasons. In contrast, when service consumption is driven by hedonic reasons, CE is a stronger driver than satisfaction. However, no evidence for the superiority of CE over attitude was found in the hedonic context.     

How does customer recognition affect service provision?

We examine how channel members’ ability to recognize repeat and new customers affects service provision, profits, and welfare. In decentralized channels, when only retailers can recognize customers, customer recognition increases service levels. However, in centralized channels or decentralized channels when both manufacturers and retailers can recognize customers, customer recognition reduces (increases) service levels if service investment persists (diminishes) sufficiently over time. Moreover, in centralized channels, customer recognition reduces firm profits and consumer surplus, whereas in decentralized channels, when manufacturers and retailers can recognize customers, customer recognition increases channel members’ profits but decreases consumer surplus.     

Is there really an Asian connection? Professional service quality perceptions and customer satisfaction

Scenarios involving dental services investigate whether Asian cultures are similar enough to allow standardization of service offerings. The authors control and manipulate levels of service quality and performance to yield a 2 × 2 experimental design, with Japanese, Chinese, and Korean subjects (N = 637) selected to test the invariance of the measures. The findings yield significant cultural differences with the Chinese respondents perceiving significantly higher service quality and expressing greater customer satisfaction when performance is high and expressing less customer satisfaction when performance is low than do the Japanese and Korean respondents. Thus, even though all three countries are considered high-context cultures, having their roots in Confucianism, differences in national culture lead to the conclusion that “one size does not fit all” in terms of service offerings.     

Is the system reliability profitable for retailing and consumer service of a dynamical system under cross-price elasticity of demand?

Retailing strategy is one of the most crucial factors for industries. A proper retailing strategy can help to enhance consumer service and increase the industry's profit. An improved approach to retailing is suggested in this research to deliver superior customer service while maximizing profits in a dynamic system. The study analyzes a retailing strategy for a demand with cross-price elasticity upon the retail price. A product's cross-price elasticity and the system reliability are critical factors in retailing. Understanding the cross-price elasticity of demand between products helps retailers to make pricing decisions that maximize profits by maintaining demand. Imperfect products are produced due to an imperfect production system. The imperfect ones must be adjusted with some costs to make them perfect for better retailing. The system failure rate is crucial for retailing under cross-price elasticity of demand patterns. Production system reliability, cross-price elasticity of demand, and consumer service are all essential factors that can impact a company's success in the market. The production rate is considered time- and system failure rate-dependent. Contradictory to the literature, a dynamical system is proposed for improved retail management, which is solved using the Euler-Lagrange theory. Finally, one can achieve the expected maximum profit for this retail system with optimum selling prices for different products by reducing the system failure rate. Some numerical illustrations with graphical representations are provided to validate the current study. Numerical examples show that applying cross-price elasticity of demand for more than two identical products provides 35% more profit for the retail industry than a single type of product.     

What drives customer engagement after a service failure? The moderating role of customer trust

This study investigated the relationships between complaint handling, customer experience, and customer engagement, as well as the moderating effect of customer trust prior to a service failure. The results were obtained from 320 Indonesian consumers of courier, express, and parcel services. Favourable employee behaviour was found to be the most effective complaint handling effort that influenced customer experience, followed by organizational procedures and then compensation, indicating that positive customer experience led to customer engagement. Additionally, this study revealed that higher levels of customer trust prior to a service failure reduced the positive effects of complaint handling efforts on customer experience. This finding suggests that customers with higher levels of trust in a firm are less sensitive to that firm's complaint handling and recovery efforts. This article contributes to the literature on customer engagement in the service failure and recovery contexts, especially in developing countries. It examines the most influential complaint handling dimensions for predicting customer engagement following service failures. Furthermore, this study is one of the first to explore the moderating role of customer trust in service failure and recovery literature.     

Is consumer psychology research ready for today’s attention economy?

ABSTRACT

Attention has become an area of major interest in marketing research as a dependent or moderating variable. In this article, we argue for respondent attention as a pivotal part of any consumer psychology research protocol and highlight the risks of not incorporating realistic attention components into research design. We propose four areas where this approach can help the external validity of consumer psychology research. Our recommendations include accounting for variability in the baseline attention levels; smart use of distractions; allowing for variability in attention over the task and avoiding attention leading/assumptive questions.     

Is exchange rate stability beneficial for stabilizing consumer prices in China?

This study examines the relationship between real effective exchange rates (REERs) and the consumer price index (CPI) in China, utilizing a bootstrap Granger full-sample causality test and a sub-sample rolling-window estimation. Considering structural changes, we assess the stability of the parameters and find that both the short-run and long-run relationships between the two estimated variables are unstable. This result suggests that full-sample causality tests cannot be relied upon. We instead employ a time-varying (bootstrap) rolling-window approach to revisit the dynamic causal relationship, and we find that the CPI is affected by the REER for several sub-samples due to the role of exchange rate pass-through (ERPT) under the managed floating exchange rate regime in China. These findings provide further proof of the impact of stable exchange rates on the maintenance of relatively steady price levels especially during the economic crisis and economic reform in China. The policy implication of these findings is that maintaining exchange rate stability is beneficial for controlling inflation during the economic crisis and economic reform.     

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.     

Preference for green packaging in consumer product choices – Do consumers care?

In this paper, consumer environmental choice is studied by analysing the relative importance of green packaging when compared with other relevant product attributes. The empirical study is based on a choice‐based conjoint analysis of preferences for functional drink products of a sample of 330 consumers using these products. Our choice‐based approach on environmental behaviour brings new insights to previous research, which predominantly relies on attitude models. Results indicate that consumers differ in their preferences for packaging, brand, price and convenience of use of daily products. In addition, various distinctive consumer segments can be identified on the market. Contrary to several previous studies, we found that the largest consumer segment, one‐third of consumers, favoured environmentally labelled packaging as the most important criteria in their choice. The findings emphasize the increasing importance of ethical and environmental dimension in product choices. We also propose that the attention in environmental consumer research should be shifted from general attitude studies towards the study of actual product choices.     

Influence of customer–firm relationships on customer participation in the service industry

Previous research has focused on relationship value and outcome as ‘consequence variables’ of customer participation (CP). This study examines customer–firm relationships as an ‘antecedent variable’ of CP. Early contact and relationships with customers build confidence in the service encounter and create customer trust, which leads to commitment and improves customer cooperation. Likewise, interaction and relationship building in the service encounter encourage active customer cooperation and participation in the later stages of interaction. This study analyzes the influence of relational antecedent factors affecting customer participation intention, examines the moderating effects of customer relationship proneness, and suggests some theoretical and practical implications.     

WHY do YOU care about me? The impact of retailers’ customer care activities on customer orientation perceptions and store patronage intentions

The present research conceptualizes customer care activities as the process through which retailers satisfy consumers' needs by means of a set of interconnected services and address the role of warmth and competence perceptions, as well as consumers' inferred motives, in determining the downstream effects of care management activities on consumers' perceptions and intentions. The results from two experiments show that the number and framing of customer care activities affect customer orientation perceptions (Study 1) and that their fit with the overall retailer's image and the level of professionalism required to carry them out affects store patronage intentions (Study 2).     

I complain for your good? Re-examining consumer advocacy

Marketplace helping behavior such as opinion leadership, market maven, and purchase pals that benefit others has been extensively studied. A diverse but similar to other marketplace helping behaviors is the concept of consumer advocacy. Extant review of literature reveals that customer advocacy and consumer advocacy are conceptually different. The former is an organization level construct, and the latter is an individual consumer's ‘generalized tendency to share market information’. It is argued that a following dissatisfactory service encounter, consumer advocates would indulge in market placing helping behavior such as negative word of mouth to prevent other consumers' from having similar marketplace disappointments. Hence, prior studies link consumer advocacy to ‘altruistic tendencies’. On the basis of self-construal theory, this study investigates the motivations for consumer advocacy. Using a scenario-based experimentation implemented in survey method; we establish that consumer advocacy is motivated by an amalgamation of altruism and self-interest. We also operationalize third-party complaint construct and empirically test whether consumer advocacy is a predictor.     

Who's got my back? Comparing consumers' reactions to peer-provided and firm-provided customer support

This study demonstrates that when an individual encounters a product-related problem, fellow consumers (i.e., one's peers) have a unique advantage in providing social support to the affected consumer. Specifically, we find that social support can be a dominant driver of consumer satisfaction when the risk of customer defection is at its highest (i.e., following an unsuccessful attempt to solve the consumer's problem). Using real-world data from an online support community, a pilot study finds that if the problem that a consumer faces goes unsolved, satisfaction is greater when consumers receive peer-provided versus firm-provided support. Study 1 replicates this finding in a controlled experiment that realistically simulates an actual customer support incident in real-time. Study 2 identifies social support as the mechanism that underlies this effect and investigates whether firm employees can take steps to appear more customer-like and thereby replicate the advantage of peer-provided support. Finally, Study 3 reveals an alternative strategy (i.e., utilizing multiple employees) that firms can use to enhance social support and provides evidence that peer-provided support not only enhances satisfaction but also positively influences consumers' behavioral intentions.     

Exploring the link between customer experience–loyalty–consumer spend

Customer experience has drawn significant interest in recent times from both academicians as well as practitioners. There is growing understanding in literature that attitudes are formed by past and present experiences and are expected to change as a function of consumer experience. Attitudes are described as one of the most important determinant of the behaviour. Dick and Basu (1994) were precise in suggesting that a favourable attitude and repeat purchase were required to define loyalty as they viewed loyalty in an attitude-behaviour framework, loyalty is an important concept related with repetitive purchasing behaviour and high Consumer spend. Literature suggests that building loyalty is found in successful management of Customer experience yet little research exist that incorporated this variable into explaining customer loyalty therefore signifying a gap in existing substantive knowledge. The current paper studies the impact of customer experience on attitudinal and behaviour loyalty. The study extends the findings by adding an observed behaviour- share of spend in the frame work. The present study will provide valuable insights to theorist in the retail context as well as practitioners ability to develop more effective strategies.     

Is it better for salespeople to have the highest customer orientation or a strong fit with their group's customer orientation? Findings from automobile dealerships

The purpose of this study is to examine how retail salesperson-group fit on customer orientation impacts sales performance. Customer orientation fit will be compared against the amount of customer orientation to answer the question of whether it is better to have higher customer orientation or consistent customer orientation. This study shows that fit with the group's customer orientation is more important than having a high customer orientation; individuals who deviate from the group's customer orientation have lower performance than individuals who fit their group's customer orientation. Although previous research finds that group-level performance is stronger in groups that have consistently high customer orientation, we find that individual sales performance depends on fit with other group members, regardless of the orientation of the group.     

Customer value and customer loyalty: Is competition a missing link?

This study is aimed at providing an insight into the effects of competition on customer value delivery for customer loyalty. Data were collected using a questionnaire on dyads of service employees and customers. The techniques of ANOVA, ordinary least squares, and logistic regression were used to analyze the dyad data in terms of research purposes. Results show that competition is a moderator of the relationship between customer value and customer loyalty from the consumer perspective. Also, competition is a predictor of customer loyalty from the employee perspective. Insights into this asymmetry in the view on competition between employees and consumers are found. Findings of the moderating effects of competition on the customer value-customer loyalty relationship suggest the significance of competition in the service encounter. In addition, this study found that the predictive validity of the loyalty model for consumers is significantly higher than that for employees. This finding suggests that the factors driving customer loyalty are better captured from the consumer perspective. Findings of the impact of competition on the consumer’s experience of different types of value provide insights as to where to invest in generating customer value to achieve desired customer loyalty. This study also suggests to managers how service employees could be recruited and managed to achieve a service competitive advantage. This study extends our understanding of the customer value–customer loyalty relationship by uncovering the significant role of competition from a dyadic viewpoint.     

Is empowerment really a contributory factor to service quality?

This article investigates how empowerment of front-line staff affects service quality in mass and technological services. A questionnaire survey and in-depth interviews were conducted. Analysis of the questionnaire data revealed that although there was a moderate association between empowerment and service quality in mass services, the relationship was not statistically significant in technological services. The interview data explain these results and highlight important differences between mass and technological services, both in the type of staff and in the nature of tasks undertaken. Moreover, it was apparent that there were difficulties in implementing empowerment in mass services.     

Is bank staff interaction associated with customer saving behavior in banks?

Major changes are underway in the U.S. retail banking sector toward heavy investments in technology and fewer in personnel. Using the 2017 survey of household economics and decision‐making (SHED) (n = 11,359), we examine the relationship between saving behavior related to emergency, long‐term and periodic expenses and personal, technological, and hybrid bank account access methods. Binary logistic regression models were used to estimate the odds of reporting various saving behaviors in relation to various banking access methods. Findings suggest that the personal access method is positively associated with savings behavior for periodic expenses for the general population, and negatively associated with emergency savings in people with lower education attainment. Technology is associated with all types of saving behavior, while the hybrid access method is associated only with saving for periodic expenses. As investments in self‐service technology increase, the importance of access methods to savings behavior must be considered.     

Is that website for me?

This study proposes and tests a moderated mediation model for website-self-congruency effects triggered by the visual designs of websites. The model specifies the conditions (i.e. when participants are not involved with the product category) in which website-self-congruency effects emerge, and identifies specific cognitive processes (i.e. generating self-referencing and self-brand connection perceptions) and affective processes (i.e. experiencing positive emotions and browsing enjoyment) that mediate the influence of website-self-congruency effects on attitudes and purchase intentions. The findings of this study support the proposed model and hypotheses, and thereby offer significant implications for research and practice.