Close to the customer: But is it really a relationship?

Everyone is developing relationships. Customers are being invited to have relationships with telephone companies, banks, auto dealers, airlines, and other suppliers of products and services. Relationship marketing is being touted as an effective strategy to guide companies into the next millennium. Recently there has been widespread reference to relationship marketing in the popular literature, and the concept has been embraced by many companies and organizations. There is little consensus, however, on what the concept means and even less consistency in how it is practised. What is relationship marketing? Practising marketers and articles in the trade press use the term in one way, while authors in academic journals seem often to be referring to something quite different. This paper reviews how the concept has been viewed by marketing authors and draws from social psychology to shed light on the characteristics of relationships. Some insights are drawn from a preliminary analysis of the results of focus group interviews that suggest how consumers describe their relationships with businesses.     

Exploring the role of extrovert-introvert customers’ personality prototype as a driver of customer engagement: Does relationship duration matter?

Drawing on social exchange theory, the current study examines new drivers and their associated processes of customer engagement. In spirit, the study tests the direct and indirect impacts of the extraversion–introversion personality trait on customer engagement. The study takes into consideration the contingency role of time by testing the moderating role of relationship duration. Results demonstrate that the more extraverted customers are, the more they are likely to engage with service firms. Further, extraversion is positively related to customer–employee interaction, which in turn leads to more utilitarian and hedonic values perceived by customers. Both types of value, then, induce higher customer engagement behaviors in terms of customer referrals, knowledge sharing, and social-influence. Findings demonstrate that relationship duration moderates some of the examined relationships. The current study contributes to the literature by extending the knowledge on customer engagement's predisposition and social causes.     

Does customer sex influence the relationship between perceived quality and share of wallet?

This study examines the within and between sex differences on the relative importances of merchandise quality and interaction quality as drivers of behavioral loyalty (share of wallet). A sample of customers of a national retail chain serves as the study setting. The results indicate that for female customers, interaction quality and merchandise quality have equally strong total influence on share of wallet. For male customers, the total effect of merchandise quality on share of wallet is significantly stronger than the total effect of interaction quality. Across sex comparisons reveal that the total effect of interaction quality on share of wallet is stronger for female customers. However, merchandise quality exerts a stronger total influence on share of wallet for male customers. Implications of the results are discussed and avenues for future research are offered.     

Does relationship psychic distance matter for the learning processes of internationalizing SMEs?

This study builds on two theoretical assumptions: (1) Because SMEs tend to internationalize fast on a wide global scale, their market selections do not seem to be dictated by distance measures. (2) Business relationships seem to be vital for these firms when acquiring knowledge and developing their ongoing businesses in foreign markets. Based on these assumptions, this study applies Linear Structural Relations (LISREL) analysis to investigate the relationships of 314 Swedish SMEs and their most important foreign customers. In specific, we investigate what potential effects relationship psychic distance has on SMEs’ knowledge transfer in ongoing foreign customer relationships. The results demonstrate, rather counter-intuitively, that relationship psychic distance actually enhances knowledge transfer in the investigated customer relationships.     

Service with a smile: Does the type of smile matter?

Service providers have often used the mantra of “service with a smile” as a strategy to engender customer satisfaction. The findings of the current research indicate that a smile alone may not be sufficient in achieving service excellence. Specifically, this work extends prior research suggesting that customers have more positive reactions to Duchenne, or authentic, smiles compared to non-Duchenne, or non-genuine, smiles. Two experimental vignette studies examined the influence of the type of smile a service provider displays (Duchenne vs. non-Duchenne) and gender of the service provider on perceptions of service quality, as well as the Stereotype Content Model dimensions of competence and warmth. The results suggest that the type of smile (Duchenne vs. non-Duchenne) impacts evaluations of service providers in terms of their perceived level of competence, as well as their perceived service quality ratings. Implications for the hiring and training of service providers are also discussed.     

Does online relationship marketing enhance customer retention and cross-buying?

One characteristic of online consumer behavior is the low cost of searching for alternatives. Therefore, customer loyalty is more difficult to achieve in the online context than in the offline one. Although studies have discussed the effectiveness of relationship marketing, nearly all studies examining such constructs have been in the context of ‘offline’ consumer behavior. With regard to the ‘online’ context, the integration of Internet technology with the customer loyalty concept is rarely discussed in the relationship marketing literature. Furthermore, empirical research that integrates the actual purchase behavior of customer retention and cross-buying is relatively sparse. In response to this, the current study develops and empirically tests a model that examines the relations among relationship-bonding tactics, perceived relationship investment, perceived relationship quality, customer loyalty, customer retention, and cross-buying. Using survey data from 766 online customers of a securities corporation, the results demonstrate the effectiveness of relationship marketing as it positively influences online customers' perception, then their loyalty, and ultimately, their actual purchase behavior.     

Knowledge transfer in the context of buyer–supplier relationship: An analysis of a supplier's customer portfolio

In the context of buyer–supplier relationship, the present study will not only analyse the role of formal and informal mechanisms to transfer knowledge but also the direct and moderating effect of trustworthiness, as relational dimensions, to understand how customers acquire knowledge from suppliers. The results related to a sample of 105 customers belonging to a medium-sized Italian manufacturer's customer portfolio show that both formal and informal transfer mechanisms positively impact knowledge acquisition. Trustworthiness positively moderates the effect of informal transfer mechanisms and negatively moderates the effect of formal transfer mechanisms on knowledge transfer. Some considerations regarding the customer portfolio are suggested to enhance our understanding of the effectiveness of knowledge transfer mechanisms in relation to different trustworthiness contexts.     

Antecedents and consequences of psychological contracts: Does organizational culture really matter?

Exploring the role of psychological contracts, this study proposes that different organizational cultures are associated with relational psychological contracts compared to transactional contracts while both types of contracts serve as mediators. While clan cultures positively impact relational contracts and are negatively associated with transactional contracts, hierarchical cultures have the reverse effect. In addition, psychological contract types mediate the two culture types' relationship to both organizational commitment and employee yearly earnings. In sum, clan cultures relate to more positive organizational outcomes than hierarchical cultures, a finding which as implications for future research and practice.     

Do the magnitude and asymmetry of specific asset investments matter in the supplier–buyer relationship?

Abstract

Despite a body of literature on specific asset investments, the extant literature falls short of exploring the magnitude and symmetry of specific asset investments in supplier–buyer relationships. This paper builds on prior research to identify and examine the impact of total and asymmetric specific asset investments on commitment, trust, and conflict in supplier–buyer relationships. Covariance structure analysis is used to analyse survey data. The results show that total SAI are positively related to commitment and trust, while asymmetric SAI are negatively related to trust and positively related to conflict in supplier–buyer relationships. Decision-making uncertainty affects trust, commitment, and conflict more than any other variables. Therefore, firms should work to strengthen their relationships by increasing the magnitude of specific asset investments with the aim of increasing trust and commitment. We also discuss the limitations of this study and suggestions for future research.     

Does sustainability really matter to consumers? Assessing the importance of online shop and apparel product attributes

Although there is a shift in consumers' consumption behavior towards more sustainable patterns across a variety of different contexts, sustainable apparel has still not become a mainstream trend despite the textile industry's excessive usage of valuable resources. Albeit extant research found different potential barriers elucidating why consumers hesitate to purchase such apparel, it remains unclear whether sustainability really matters to consumers in a clothing context and further, which aspects are of relevance during consumers' purchase decision. We thus conducted two studies with four best-worst scaling experiments in which 4,350 online shoppers assessed the importance of both conventional and sustainable apparel attributes, as well as sustainable apparel attributes only, and the willingness to pay for sustainable product attributes. We further inquired the importance of conventional as well as sustainable online shop attributes. Our findings indicate that conventional apparel attributes such as fit and comfort, price-performance ratio, and quality are of higher relevance to consumers than sustainable attributes. The most important sustainable apparel attributes are the garment's durability, fair wages and working conditions, as well as an environmentally friendly production process. Consumers also indicated to prefer the latter three attributes to a 20% discount. Moreover, consumers demand less as well as sustainable packaging, free returns, and discount campaigns. Our findings reveal a gender gap regarding green consumerism with female respondents assessing most sustainable attributes as more important than male respondents do.     

Customer experience and commitment in retailing: Does customer age matter?

While the customer experience (CX) concept has rapidly gained traction in recent years, its effect on customer brand commitment and loyalty remains tenuous. Moreover, while customer age has been identified as an influential driver of consumer behavior, little is known about its effect on the customer's brand experience. Addressing these gaps, we develop a model that examines the relationships between CX, commitment, and loyalty, while using customer age as a moderator in the proposed associations. A total of 423 valid responses was collected from branded retail customers. Structural equation modeling results reveal a positive effect of (a) CX on customers' affective/calculative commitment, and (b) customer commitment on brand loyalty. Moreover, multi-group analysis results reveal that while customer ages moderates the association between CX/affective commitment, it does not significantly moderate the relationship between CX/calculative commitment. We conclude with key implications that arise from this research.     

Does the origin of a succession CEO matter in the market value of innovation? Disentangling the origin of internal CEOs

This study complements previous research regarding CEO origin and family businesses by incorporating upper echelons theory with the perspective of family effect as well as disentangling CEO origin to provide a better understanding of how external, unrelated internal, and family succession CEOs affect innovation performance. We further reveal how a family founder helps improve the value of innovations undertaken by family heirs. The results show that firms with unrelated internal succession CEOs experience higher (lower) stock market reactions to innovation announcements than those with family (external) succession CEOs. Founders serving on the board reduce the negative effect between family heirs and innovation performance. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

The role of commitment on the customer benefits–loyalty relationship in mobile service industry

The purpose of this study is to identify appropriate combinations between various types of commitment and benefit, to induce and enhance loyalty behaviours, such as customer retention, cross-selling, and customers' positive word-of-mouth, in a matured service market. The results show that functional and economic benefits have significant effects on customer retention through calculative commitment, while experiential and symbolic benefits significantly affect cross-selling and positive word-of-mouth via affective commitment. Normative commitment mediates the relationship between affective commitment and customer retention. The implications of these findings for loyalty management strategy related with service benefits and type of commitment are discussed. Limitations and recommendations for future research are also presented.     

Does relationship quality matter in e-services? A comparison of online and offline retailing

The quality of the relationship between customers and service firms has been found to be a major driver of customer loyalty in traditional (i.e., offline) service contexts. The increasing use of electronic services, or e-services, raises questions concerning the extent to which the relationship quality-customer loyalty link holds in an e-service context. Based on an extended model of relationship quality and by applying the social information processing perspective, this research tests the relevance of relationship quality for online relationships and explores differences of the relationship quality-loyalty link between online and offline retailers. To test the model, a large-scale study is conducted on both online and offline relationships for two service contexts (media and travel retailing). Using multi-group structural equation modeling, the authors identify differences between the online and offline environment in both service contexts. Results show that (1) relationship quality is similarly important for retaining customers online and offline and (2) differences in the impact of relationship-quality dimensions strongly depends on the service context.     

Does the importance of value,brand and relationship equity for customer loyalty differ between Eastern and Western cultures?

The use of the customer equity framework as a focal marketing strategy to increase customer loyalty has emerged as an important topic. Despite a growing number of investigations, previous studies are limited by their strong U.S. and European orientations. Research into Western consumers cannot necessarily predict the behaviour of Eastern consumers though. Therefore, this study investigates whether the link between customer equity drivers (value equity, brand equity and relationship equity) and loyalty intentions is sensitive to the cultural environment. A sample of 1553 Chinese and 1085 Dutch consumers in the banking and supermarket industries reveals that all three customer equity drivers exert a greater impact in Western than in Eastern cultures. This study also shows that Eastern consumers in general have higher loyalty intentions than Western consumers.     

Do retail alliances enhance customer experience? Examining the relationship between alliance value and customer satisfaction with the alliance

Abstract

This article evaluates the role of customers in the alliance equation. Using a combination of survey and experimental data, we investigate the role of value offered by retail alliances on customer satisfaction with the alliance. We find that customer value plays a mediating role in the relationship between customer experience with the alliance and customer satisfaction with the alliance. Results also show that the nature of this relationship differs based on the type of value offered by the alliance. Cognitive processing plays a more significant role when the alliance is of a functional nature, while affect plays a more significant role when the retail alliance is of a hedonic nature.     

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.     

Examining the influence of brand-based value congruity: do the values of the International Olympic Committee really matter?

Service Business - This paper argues that international sport organizations may be able to use value congruity in order to assess the effect of their current corporate social responsibility...     

The international diversification-performance link in Spain: Does firm size really matter?

This study provides new insights into the link between international diversification and firm performance in a sample of large manufacturing firms and SMEs based in Spain for the 1994–2008 period. Specifically, the focus is on how the nature and shape of this relationship may vary over time with firm size. The results show the existence of a horizontal-S curve when the whole sample of firms is considered in the empirical analysis. However, major differences are found between SMEs and large firms, and even within the actual group of SMEs. Strong support is found in large firms for the existence of a horizontal-S curve. Within the group of SMEs, there are small firms with a linear and negative relationship, whereas medium-sized firms record a U-shaped form. These findings suggest that as the international diversification-performance link is size-dependent, future research should explicitly consider firm size in order to better understand the nature of this relationship.     

Does size matter? The state of the art in small business ethics

In this paper the exclusive focus on large firms in the field of business ethics is challenged. Some of the idiosyncrasies of small firms are explained, and links are made between these and potential ethical issues. A review of the existing literature on ethics in small firms demonstrates the lack of appropriate research, so that to date we can draw no firm conclusions in relation to ethics in the small firm. Recommendations are made as to the way forward for small firm business ethics research. Questions for investigation are suggested using micro, meso and macro perspectives. Much exploratory work needs to be done to lay the groundwork for this important area of social and commercial research in the future.