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.     

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.     

How special rewards in loyalty programs enrich consumer–brand relationships: The role of self-expansion

Although brands offer different kinds of rewards through their loyalty programs, little is known about how they can impact consumer–brand relationships and brand attitude. How do loyalty program rewards influence the consumer–brand relationship? And which kinds of rewards establish or maintain closer relationships between consumers and brands than others? To answer these questions, the present research makes use of self-expansion theory (Aron & Aron, 1986) and two experiments that manipulate the extraordinary character of rewards offered to consumers. Our findings show that special rewards produce higher self-expansion than mundane rewards. Moreover, the positive effect of the rewards’ extraordinary character on brand evaluation, recommendation, and identification is sequentially and fully mediated by self-brand inclusion and self-expansion. Finally, we show that consumer satisfaction moderates the impact of special and mundane rewards on self-brand inclusion.     

Does the value manufacturers (brands) create translate into enhanced reputation? A multi-sector examination of the value–satisfaction–loyalty–reputation chain

Literature has widely acknowledged that the main purpose of company–customer relationships is to create value for both sides. Satisfaction, loyalty behaviours, and reputation are considered customer-related performance measures. However, research has not fully uncovered the complicated interrelationships among these constructs, particularly with regard to multiple mediations and in the case of manufacturer corporate brands. To examine the hypothesised relationships between and among our constructs, we go beyond the commonly studied single mediator and test a four-path model (three mediators in a series). The results indicate that satisfaction and loyalty behaviours mediate the relationship between customer value and reputation. In theoretical terms, we contribute to the literature by showing that customer value creation is a reputation-building strategy that bridges the gap among product, brand, and corporate performance levels.     

Collaborative orientation to advance value co-creation in buyer–seller relationships

This study extends the theory of value co-creation by investigating how collaborative orientation advances value co-creation drivers that benefit both buyers and sellers in competitive markets. With direct field research, conducted in a real-life context, the authors interviewed (using a mirrored, semi-structured protocol) buyer–seller respondents at multiple levels in 1 seller and 10 buyer firms. Ten cases developed from these data reflect how buyers and sellers develop value and share resources to advance value co-creation during a formal buyer–seller relationship effort. Our findings suggest four propositions and identify four drivers that may advance value co-creation in buyer–seller relationships: (a) mutual understanding of industry problems through continuous interactions during the relationship period; (b) ability to develop and leverage knowledge and resources; (c) share asset-specific investments; and (d) shared long-term goals. This article extends previous resource-based models and provides novel insights into value co-creation.     

The service quality–loyalty relationship in retail services: does commitment matter?

The marketing literature has produced two schools of thought on the cause of customer loyalty in services industries. The service quality perspective puts forward that service quality evaluations substantially drive customer loyalty in services industries. The relationship marketing perspective puts forward that customer commitment to the service provider substantially drives customer loyalty in services industries. In addition, commitment is a complex construct with at least two forms, one based in liking and identification (affective commitment) and one based in dependence and switching costs (continuance commitment). These positions were examined in an integrated model of retail–service relationships. It was found that affective commitment and continuance commitment were mainly partial mediators of the service quality–loyalty relationship. It was also found that affective commitment to the retailer had a positive impact on customer loyalty while continuance commitment in marketing relationship had a deleterious effect on customer loyalty.     

Customer-perceived value and loyalty: how do key service quality dimensions matter in the context of B2C e-commerce?

This paper develops a research model to examine the effect of e-service quality dimensions on customer-perceived value and customer loyalty. Based on a survey of 235 online customers, we identify five key e-service quality dimensions: care, reliability, products portfolio, ease of use, and security. Our empirical results show that all the five dimensions have significant and positive impacts on customer-perceived value which, in turn, increases customer loyalty. We further examine the mediating role of customer-perceived value in the relationship between each e-service quality and customer loyalty. The results suggest that customer-perceived value plays a partially mediating role in the effect of ease of use, care, product portfolio, and reliability on customer loyalty, and a fully mediating role in the relationship between security and customer loyalty. Managers may be in a position to benefit by employing the model presented in this study in an effort to improve service performance and, hence, retain customers.     

From sustainability to customer loyalty: A case of full service hotels’ guests

More hotels adopt ecofriendly practices and implement innovative technologies to reduce carbon footprints and increase a viable green image. Many hotel guests value hotels that offer up-to-date technology and demonstrate sustainability efforts through various sustainable programs. Previous studies investigated how ecofriendly practices would induce higher customer loyalty and increase the image of a hotel brand in the past decade and reported the benefits of implementing green efforts in hotels. This study, which included distributing surveys to over 1200 existing hotel guests in 2013–2014 in the southeastern United States, examined how technologies, innovations, and sustainable-effort-related factors have an impact on customer perceptions, selection decisions, experience, and post-experience.     

Hospital trust or doctor trust? A fuzzy analysis of trust in the health care setting

Are interpersonal trust and organizational trust mutually complementary or substitutable in determining patient purchasing intention? To address this issue, we develop a theoretical model to distinguish and test the interrelationship between the two types of trust in the setting of the health care industry. Using multiple regression analysis and fuzzy-set qualitative comparative analysis, we reveal that organizational trust and interpersonal trust are complements rather than substitutes. We also examine how four primary boundary conditions (i.e., trust propensity, perceived behavioral control, price sensibility, and brand awareness) influence the relationships between the two types of trust and purchase intention. Our findings provide unique insights for health care practitioners to effectively manage trust in hospital-doctor-patient relationships.     

When can interaction orientation create more service value? The moderating role of frontline employees' trust in managers and employee deep acting

Despite the well-recognized importance of interaction orientation, limited studies have investigated its boundary conditions from the frontline employees' perspective. To address this issue, this study investigates the effect of interaction orientation in service value creation and identifies hierarchical trust and deep acting of frontline employees as two moderators. This study conducts a moderated regression analysis for hypotheses testing using a triadic data set of 2090 responses from managers, frontline employees, and customers of 209 firms. The findings show that interaction orientation has no effect on service value. Rather, interaction orientation contributes to perceived service value only when frontline employees have higher trust in their managers or when employee deep acting is high. The value of this study is in revealing the contingencies of interaction orientation on service value. It offers managerial implications that firms should build high trust in managers and encourage deep acting among frontline employees when implementing an interaction orientation strategy.     

A network text analysis of published papers in service business, 2007–2017: research trends in the service sector

The service sector has become the most important part of the global economy. Thus, Service Business: An International Journal (SB) was launched in 2007 to deliver innovative studies that can provide resonating insights to researchers and practitioners in services. This study analyzed 311 articles published in SB during the past 10+ years (2007–2017) by conducting network text analysis (NTA). The published papers’ keywords link relations were analyzed to create network maps of research topics, ranging from traditional to emerging ideas of researchers. Influential research topics and their clusters were identified using centrality and community analyses. Research trends were identified for the first 5 years (Volume 1–5) and later years (Volume 6–11) separately through NTA. The results reveal interesting change in research topics over time. Common keywords of studies published in the first 5 years were: Service, Innovation, Customer, Strategy, Tourism, and Quality. The primary frequent keywords of articles published during 2012–2017 were: Customer, Quality, Satisfaction, Innovation, Mobile, and Technology. The results of the study shed valuable insights to the researchers and practitioners in the service sector. Applications of keyword network building and analysis methods provided in this study would be helpful to researchers who are interested in exploring trends of emerging new topics.     

Building chain loyalty in grocery retailing by means of loyalty programs – A study of ‘the Norwegian case’

The aim of the paper is to analyze chain loyalty effects of customers' perceived value of loyalty programs in grocery retailing. It contributes to filling a gap in the literature, as there has been little earlier focus on the links between customers' perception of loyalty program value and satisfaction, image, and loyalty, at the chain level. One main finding is that customers’ perceived value of a loyalty program has significant direct and moderating effects on chain loyalty, and the moderation effects are chain dependent. Managers should thus consider satisfaction creation, image building, and loyalty program value creation as parallel processes.     

Theoretical perspectives of supplier–buyer long-term relationships in India

Purpose: The purposes of this study are to investigate changing Indian supplier–buyer relationships and to propose an effective conceptual model using theoretically developed constructs such as power, performance, satisfaction (economic and noneconomic), conflict (economic and noneconomic), trust, cooperation, switching cost, and commitment

Methodology/approach: This study is focused on supplier–buyer relationships among Indian companies in the processed/packaged (not fresh) food business. All of the measures for the constructs were developed for and empirically tested in previous studies. Confirmatory factor analysis and path analysis were used to test the conceptual model.

Findings: First, Indian suppliers’ power sources and performance significantly influence satisfaction and conflict. Second, satisfaction and conflict are significantly related to cooperation, trust, and switching cost. Third, cooperation and trust have a significant impact on commitment.

Research implication: One of the unique aspects of the study is to analyze the differential effects of satisfaction and conflict in India. Using dichotomized (economic and noneconomic) constructs, the ways in which Indian buyers’ economic satisfaction, noneconomic satisfaction, economic conflict, and noneconomic conflict are related to other relationship constructs (power sources, performance, cooperation, trust, switching costs, and commitment) are investigated.

Originality/value/contribution: For global companies, a key requirement for success is how to develop and sustain long-term relationships with local companies. This study suggests practical and information for successful marketing strategies to establish long-term supplier–buyer relationships in India.     

Determinants of attitudinal loyalty in Nigerian telecom service sector: Does commitment play a mediating role?

This paper explores the mediating role of commitment in the relationships between service assurance, service reliability and attitudinal loyalty. A quantitative cross-sectional data generated from 138 experienced users of telecommunication services formed the final database. Attitudinal loyalty was found to be a process-based construct that starts from service assurance and proceeds to service reliability and finally to customer commitment and loyalty. The entire process explained 69 per cent of the total variance in attitudinal loyalty. The relationship between service assurance and attitudinal loyalty was insignificant. No support was found for the proposed mediating role of customer commitment in the relationship between service assurance and attitudinal loyalty. In contrast, the relationship between service assurance and attitudinal loyalty was fully mediated by service reliability. Finally, service reliability was both directly and indirectly related to attitudinal loyalty through customer commitment. To attract customers' attitudinal loyalty therefore, services companies especially those within the low-contact service category must deliver reliable services and make efforts to assure customers that their services are reliable. The implications for customer loyalty theory and future research are also discussed.     

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.     

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 role of benefits and transparency in shaping consumers’ green perceived value,self-brand connection and brand loyalty

Building on the literature on green consumption, this study investigates consumers’ perceptions of a brand's green benefits (utilitarian environmental and warm glow) and green transparency on their green perceived value (GPV). In particular, this study tests the mediating role of GPV and self-brand connection on the relationships between green benefits and green transparency and brand loyalty. We used structural equation modeling to test the research model with a sample of 826 Chinese respondents. Our findings suggest that most of the hypotheses were supported. However, comparison between brands of physical goods and services indicate that the approach to develop consumers’ green value perceptions is different and that the influences of GPV and self-brand connection on brand loyalty are significantly different between these two groups of brands. Hence, it would be more effective for organizations to have diverse green branding strategies between these two groups of brands.     

Headquarters–subsidiary relationships in MNCs: Fifty years of evolving research

We review the contributions to research on headquarters–subsidiary (HQS) relationships published in the Journal of World Business (known as the Columbia Journal of World Business until 1997) from the late 1960s to the present day. Based on 81 articles on the topic, we identify trends and dominant approaches in the journal's contributions to this area and link them to trends in the broader field of international management (IM) research and practice. We underline the journal's pioneering role in identifying and bringing to the forefront novel research questions and ideas that would later become central to the IM field. We conclude by assessing the importance and relevance of the journal's contributions to the literature on HQS relationships and by suggesting several directions for future research in this area, which could build on past work and leverage new phenomena.     

How do cross-country differences in institutional trust and trust in family explain the mixed performance effects of family management? A meta-analysis

Cross-country research finds mixed performance effects of family involvement in management (FIM) but consistently positive performance effects of family involvement in ownership (FIO). We argue that cross-country differences in institutional trust and trust in family can help explain this discrepancy. We reason that trust in family normalizes family managers’ use of firm resources to satisfy family needs. In contrast, institutional trust orientates family managers’ attention toward improving firm performance. A meta-analysis supports our theory: greater trust in family increases and greater institutional trust reduces the gap between FIM and FIO's performance effects across countries.