Perceived power imbalance and customer dissatisfaction

This study explores the causes of customer dissatisfaction in service interactions in which customers perceive a status of lower power than the service providers. Characterizing such service encounters as encounters between powerful service providers and subordinate customers, the study attempts to identify the service providers' specific actions that caused customers to experience memorable dissatisfaction. For contexts of the study, professional, judgemental, and governmental services are used. The customers' dissatisfying experiences with these services were studied by using the critical incident technique to uncover and classify the causes of dissatisfaction as well as their post-encounter behaviours. During the data analysis, 10 causes of dissatisfaction emerged. In addition, customers' reactions to their dissatisfaction were noted and classified. Implications for practitioners and academicians are provided.     

Between a rock and a hard place: Seizing the opportunity of demanding customers by means of frontline service behaviors

Service businesses are increasingly facing more demanding customers as a result of a shift in power from the service providers' side to the customers' side. Related literature predominantly examines the negative side of this ongoing trend, while overlooking the positive side. The major aim of this paper is to examine how frontline employees — investment account managers — deal with the ongoing increase in customer demandingness. To address this, we draw on adaptability performance theory to test the facilitating effect of frontline employees' post-transaction service behaviors (SBs) — diligence, inducements, information communication, sportsmanship, and empathy — as a means of adaptation to higher levels of customer demand. Findings indicate that frontline employees adapt most of their SBs' intensities to match customers' demands. The results show that some SBs actually increase the effectiveness and efficiency of frontline employees' service performance, leading to an increase in customer value and satisfaction. Customer value is found as a mediator in some of the relationships between SBs and customer satisfaction. Contrary to the conception of the negative outcomes of customer demandingness, service firms need to consider taking advantage of customer demandingness by stressing the role of frontline employees in adapting to customers’ demands.     

Restaurants’ outdoor signs say more than you think: An enquiry from a linguistic landscape perspective

Building on the linguistic landscape theory and literature on customers' experience with restaurants' authenticity and status, this study investigates whether restaurants' outdoor signs influence customers' perceptions and behavioral intentions. Using an experimental design comprising two studies, supported by data collected from Chinese consumers, we test how display characters and text flow may jointly impact on customers' perceptions of the status and authenticity of ethnic (Japanese and Taiwanese) restaurants, thus influencing their visiting intentions and willingness to pay. We find that display characters influence Chinese customers' perceptions of authenticity and status in both Japanese and Taiwanese restaurants in Mainland China. There is an interaction effect between display characters and text flow on customers' perception of authenticity and status in Japanese restaurants in Mainland China. This study applies the linguistic landscape theory to a restaurant context and examines how such features may influence customers’ perceptions and decisions. The findings have important practical implications on managing customer experiences and perceptions via effective restaurant sign designs.     

Differentiation value through services in a manufacturer's delivery chain

The delivery of industrial goods includes various possibilities for service business. Previous research has concentrated on third-party logistics (3PL) providers' perspective on service opportunities. This study takes the manufacturer's perspective in inter-organizational relationships and investigates the potential for differentiation value though services associated with the delivery of industrial goods. Field observation was carried out on three high-volume construction component deliveries, to uncover differentiation value drivers and the emergence of service opportunities in a manufacturer's delivery chain. The results complement earlier 3PL-centered goods delivery research by showing that the manufacturer's unique product and process competences, and activities in the delivery chain drive differentiation value, enable new service opportunities. The findings, thereby, draw attention to manufacturers and their competences as sources of added-value service in the delivery of industrial goods. Manufacturing firms have various options for differentiation and centrality in the inter-organizational network through cooperation with third parties. The results reveal that third parties can be hidden sources of added customer value in the goods delivery chain. The differentiation value for different firms in the industrial goods' delivery chains can emerge when firms begin to develop and offer services to each other, and therefore a proactive and in-depth analysis of their customers' differentiation-oriented value hierarchies is required.     

Internet Banking–An Empirical Investigation of a Trust and Loyalty Model for New Zealand Banks

ABSTRACT

The development of Internet Banking (I-Banking) requires a new recognition of customers' values for building long-term organization-customer relationships in the E-era. A Structural Equation Model was developed and tested in this paper to identify the determinants that influence customers' trust in, and loyalty to, I-Banking in New Zealand. The results indicated that shared value was the most critical factor impacting customers' trust in I-Banking, compared with two other important factors: communication and opportunistic behaviour control. With regards to improving loyalty among I-Bank customers, findings suggest that I-Banking needs to take satisfaction, trust, brand reputation and switching cost seriously. In particular, satisfaction needs to be regarded seriously, as it is the most important factor influencing customers' loyalty. Based on these findings, the paper culminates in recommendations to improve I-Banking services for customers.     

Language divergence in service encounters: Revisiting its influence on word-of-mouth

Research on language accommodation highlights the significance of accommodating customers' language requirements during service encounters. This replication study reinvestigates whether language divergence influences word-of-mouth intentions in a continuously-provided service of retail banking. Specifically, this study examines the relationships among language divergence, interaction quality, relationship quality, and positive word-of-mouth intentions. Consistent with previous research, study findings show that customers served in their second language perceive interactions with a service provider to be less responsive, adversely affecting positive word-of-mouth intentions. Additionally, language divergence has a negative influence on customer perception of information quality and empathy with a service provider, which affects the quality of the relationship customers have with the service provider. These results extend the understanding of the process by which language divergence affects positive word-of-mouth intentions.     

Employees' overestimation of functional and relational service quality: A gap analysis

This study extends previous research on gap analysis of service quality by including not only functional service quality but also relational benefits. To this end, a field study was carried out in 36 hotels and 35 restaurants. The samples consisted of 213 employees and 657 customers. A questionnaire format was used to measure both functional and relational service quality, as well as customers' loyalty. When comparing employee and customer perceptions, gaps potentially range from ‘overestimation’ (employees' perceptions are greater than customers' perceptions) to ‘underestimation’ (customers' perceptions are greater than employees' perceptions). In general, the results indicated that the employees surveyed overestimated the service quality they offer to customers, although gaps were greater for certain service attributes than for others. In addition, some gaps were more related to customer loyalty than others. The findings also showed that employees' overestimation of relational benefits plays a moderating role, increasing the negative relationship between employees' overestimation of functional service quality and customers' loyalty. The theoretical and managerial implications of the results are discussed further in this paper.     

Perception Gaps in Customer Expectations: Managers Versus Service Providers and Customers

Two new gaps are added to the 5-gap model proposed by PZB. These new gaps reflect the differences in the understanding of customer expectations by manager and front-line service providers and in customer expectations and service providers' perception of such expectations. Using room service as the object for investigation, the present study provides empirical evidence indicating the existence of these gaps which have negative impact on overall service quality. The findings also disclose that the gap between customer expectations and managers' perception of such expectations is much larger than the gap between customer expectations and service providers' understanding of such expectations.     

Understanding the impact of online customers’ shopping experience on online impulsive buying: A study on two leading E-commerce platforms

Research offers some indication that the online customers' shopping experience (OCSE) can be a strong predictor of online impulsive buying behavior, but there is not much empirical support available to form a holistic understanding; whether, and indeed how, the effects of the OCSE on online impulsive buying behavior are affected by customers' attitudinal loyalty and self-control are not well understood areas of research. In this study, we examine how functional and psychological dimensions of the OCSE influence online impulsive buying within e-commerce platforms. We will investigate customers' attitudinal loyalty as a mediator between the OCSE and online impulsive buying behavior, and the customers' self-control as a moderator between customers' attitudinal loyalty and online impulsive buying. To analyze these relationships we will conduct an online survey (n = 1489) with customers of two leading Chinese e-commerce platforms: Jindong and Taobao. The findings from structural equation modeling indicate a positive relationship between the tested dimensions of the OCSE and customers' online impulsive buying. We also find a mediating role of customers' attitudinal loyalty and negative moderation of customers’ self-control. Theoretically, the findings contribute to the literature regarding online impulsive buying and the online customer experience. For managers, the findings stress the importance of ethical management with regard to the online shopping experiences.     

Detection of potential customers’ empathy behavior towards customers' reviews

The aim of the current study is to identify potential customers' empathy behavior and their behavioral reactions based on appraisal and stimulus–organism–response (SOR) theories to customers' reviews of financial services firms using lexicon-based unsupervised learning techniques. After filtering, we obtained 30263 reviews from the Yelp dataset of financial service companies. We examined the connections between several sorts of emotional dimensions and different types of behavioral reactions of potential consumers using lexicon-based unsupervised machine learning methods. Our findings show that the various types of customer sentiment have a significant impact on potential customers' emotional experiences on social media platforms, prompting them to behave differently. Furthermore, potential consumers' reactions to the customers' reviews varied according to their seven emotional aspects. The study is the first to examine the impact of potential customers' empathetic behavioral reactions on customers' evaluations using lexicon-based unsupervised learning techniques.     

Atypical Shifts Post-failure: Influence of Co-creation on Attribution and Future Motivation to Co-create

This study investigates how the effect of the failure of co-created products or services influences: (a) internal attribution (i.e. the self) and external attribution (i.e. the firm), (b) customers' expectancies of success, and (c) customers' future motivation to co-create and contribute to recovery from failure. We use attribution theory and the attribution–expectancy framework to explain the theoretical relationships we advance and test our hypotheses in two independent experiments that stimulate co-creation through role-play and vignettes. The results show that customer co-creation shifts the attribution for failure to the self, resulting in atypical shifts in expectancy (increasing customers' expectancy of future success and motivation to continue co-creating in the future). Our results suggest that utilizing customers' efforts and skills in the co-creation of products and services can help firms to manage failure effectively. The implications of our findings on co-creation research and product and service failures are discussed, specific applications within the digital context are considered, and suggestions are offered for future research.     

The role of memorable experience and emotional intelligence in senior customer loyalty to geriatric hotels

Drawing on service encounters and experiential marketing theories, this study examined the relationship between geriatric service, memorable experience, emotional intelligence, and senior customers' attitudinal and behavioural responses. The research was conducted at geriatric hotels in Portugal. The results showed that, compared to impersonal encounters, employee service has a significantly greater effect on customer satisfaction, memorable experience, and customer loyalty. In addition, customers' memorable experiences mediated the relationship between different service encounters and organisational outcomes. However, customers’ emotional intelligence had minimal effects on these relationships. The discussion and implications of these findings are offered to researchers and practitioners.     

The influence of culture,emotions, intangibility,and atmospheric cues on online behavior

This paper examines how emotions and website atmospheric cues influence service tangibility and consumer attitudes. The proposed model was compared across three cultures: North America (Canada and U.S.), China, and the Middle East. The findings support the overall model and demonstrate several non-invariant paths across the groups. Particularly, the results suggest how the influences of two emotional dimensions (pleasure and dominance) on consumer perceptions of site atmospherics vary across cultures. Moreover, the effects of service tangibility dimensions (physical tangibility, specificity, and mental tangibility) on consumers' attitudes toward the website and service vary significantly across the three cultures. Mental tangibility has the greatest influence on North American customers' attitudes, while physical tangibility and specificity have the greatest impact on Chinese and Middle Eastern customers' attitudes, respectively.     

The authentic service employee: Service employees' language use for authentic service experiences

This study analyzes how service employees' language use influences the authenticity of a service. The extant service literature on language use remains exclusively focused on the customer's perceptions of first language use in direct communication. Shifting the focus to the service employee, this paper posits that language could exert a wider influence, contributing both to how customers perceive the authenticity of the service and the entire service experience. Analyzing language use in service encounters, the paper addresses this research gap in the literature from the perspective of the service employee. In many service settings, authenticity is an important part in customers' construal of their experience. The study analyzes how service employees in British pubs outside the UK may use English with local customers who frequent these pubs to get a taste of Britain and British culture, contributing to the service literature by introducing a typology to align the service employees' language use with authenticity to strengthen the customer experience. The paper further contributes to service theory by extending the understanding of service sabotage by showing how, why, and in which circumstances service employees may use a language switch to sabotage the customer experience. Finally, the study extends the extant human resources literature on the effects of allowing service employees to be themselves to show that this managerial practice not only benefits the service employees also results in a more authentic customer experience.     

Speak my language or look like me? – Language and ethnicity in bilingual customer service recovery

This research examines the influence of verbal (language) and non-verbal communication (ethnicity) of service providers on customers' perceptions of service recovery. Drawing insights from speech accommodation theory and inferiority complex, this study uses between subject experimental design to explore conditions under which language convergence and divergence are effective ways to build rapport. Results show that the influence of ethnicity and language cannot be interpreted without considering the ethnic composition of customers and service providers. Results also show that language can trigger stigma with positive country image that interact together to create a more favorable rapport.     

How do customers meet their needs in in-store and online fashion shopping? A comparative study based on the jobs-to-be-done theory

Understanding customer needs is key for fashion retailers to stay competitive and innovative. Surprisingly, however, extant literature mainly explores customer needs in terms of a garment and its attributes rather than viewing shopping as a problem-solving process to meet customer needs. Moreover, these studies fail to address how customers meet their needs in-store (ISFR) and online fashion retailing (OFR). To fill this research gap, we empirically investigate customers' personal and social needs and how they can be met through the jobs-to-be-done theory. Findings reveal that, beyond the purchase of a garment, customer needs can be fulfilled through different ways, such as smart technology or a person's high interaction with social others in ISFR and the online shop experience or a social linkage without social interaction in OFR. Additionally, our findings offer potential service innovations for fashion retailing managers.     

An Investigation of Trust,Satisfaction, and Commitment on Repurchase Intentions in Professional Services

Abstract

The predictive ability of trust, satisfaction, and commitment regarding a customer's intent to retain professional service providers is explored. Trust, in business relationships, is typically perceived as a consequent of satisfaction and experience. However, professional service customers may be unable to commence relationships without trusting their providers; thus, the stance that trust leads to commitment may not hold. Given the difficulty that professional service customers have regarding their ability to assess their providers' trustworthiness, customers may take trust for granted once the relationship begins. Regression analyses suggest that professional service customers utilize satisfaction and commitment, rather than trust, to determine repurchase intentions.     

Does educating customers create positive word of mouth?

This research theorizes and empirically examines whether and how educating customers—a brand's efforts to enhance customers' product-related knowledge—affects customer word of mouth (WOM). In two lab experiments across service and retailing contexts, we find that educating customers enhances customers' positive WOM for a brand. Customer satisfaction and perceived expertise mediate this effect. Critically, the positive impact on WOM is stronger for customers who have less prior knowledge regarding the educational topic and are more amenable to knowledge sharing. The current findings add to the literature on customer education and WOM and offer managerial insights for improving brands' WOM campaigns.     

A service quality measurement derived from the theory of needs

A literature review has indicated that a majority of researchers tend to define quality as meeting customers' needs. This study therefore attempts to develop a new service quality instrument called SQ-NEED based on Maslow's theory of needs. The results from the empirical analysis suggest that the SQ-NEED not only has a sound theoretical basis, but also possesses a reasonable reliability and validity. Moreover there is significant evidence to show that SQ-NEED performs better in this study than SERVQUAL for services directed at people and providing intangible actions.     

Examining the relationship between language divergence and word-of-mouth intentions

More than half of the countries in the world are multilingual, and more than half the world's consumers speak more than one language. Thus, bilingual consumers often receive services provided in a second or nonnative language. This article examines these consumers' word-of-mouth intentions after a service provision in a second language. Two studies show that consumers served in a second language are less likely to spread positive word of mouth. The results also reveal a negative halo effect, such that consumers served in a second language perceive the service provider as less responsive in general. Furthermore, the service provider's perceived responsiveness appears far more important for determining positive word-of-mouth intentions than other factors, such as service reliability. This study therefore contributes to the fields of service and sociolinguistics, with important implications for managers as well.