Reprint of “Enhancing green supply chain initiatives via empty container reuse”

In this paper, the maritime industry’s commitment to green supply chain has been analyzed. The objective of this study is to show that the reuse of empty containers not only adds value to a firm, but leads to waste reduction in the supply chain. The novelties of this article include (i) empty and laden containers are treated in accordance with a shipping company’s green effort; (ii) both the volume and weight of containers are introduced to indicate a potential constraint on green effort; (iii) empty container storage costs are included as a value-added component which stem from green effort.     

The effects of tipping policies on customer satisfaction: A test from the cruise industry

Many in the media have called for the abolition of the practice of tipping and at least some resorts, private clubs, hotels, and restaurants have replaced tipping with automatic service charges or service inclusive pricing. Particularly notable in this regard is the cruise industry, where several of the largest brands have switched to an automatic service charge system. Given the popularity of tipping and its perceived role as an incentive/reward for service, such moves to replace tipping with service charges seem likely to have negative effects on customer satisfaction. We test this expectation by examining the effects of Carnival Cruise Line's tipping policy change in the early 2000s on its customers’ evaluations of their cruise experience. After controlling for the effect of ship and review date, we found that Carnival Cruise Line's guests rated their cruise more positively when they sailed under a voluntary-tipping policy than when automatic service charges were added to their onboard bills. However, this effect was small and need not deter firms from replacing voluntary tipping with service charges. Discussion of this finding focuses on ways services marketers might be able to mitigate this modest negative effect of service charges.     

Offshoring,wages, and heterogeneity

Considering heterogeneous responses by skill group to material and service offshoring, we examine the relationship between offshoring and the individual wages of workers in the U.S. labor market. We find that offshoring has been beneficial for high-skill workers but detrimental for middle- and low-skill workers. In particular, service offshoring, which has been widespread since 2000, has severely affected the labor market, compared to material offshoring.     

Applying mixed methods to identify what drives quick service restaurant's customer satisfaction at the unit-level

The current study addresses issues related to developing a set of critical quality attributes. The primary research objective was to address drawbacks of importance–performance method and develop a novel approach that identifies satisfaction drivers for unit-level quick service restaurant (QSR). The new approach is based on synthesis of qualitative, PRCA, and importance grid methods. Basic (taste, temperature, and accuracy), performance (friendliness) and excitement (cleanliness, speed, and ease of understanding) factors were identified for a QSR context. The current findings help to resolve the problem of performance optimization and identify an optimal set of QSR attributes to allocate resources. Taste, temperature, and accuracy must be ensured as top priority. Then, friendliness should also be ensured and only after that the resources should be allocated to cleanliness, speed, and ease of understanding. Generalizability of the findings is bounded by the fact that only one QSR chain was examined. Additionally, only a limited number of QSR attributes was examined.     

The role of emotions in utilitarian service settings: The effects of emotional satisfaction on product perception and behavioral intentions

The role of emotions in hedonic service settings is well established, but their role in utilitarian service settings has received scant attention. This research attempts to fill this gap by investigating the effects of customers’ perceptions of service quality and servicescape on their emotional reactions, and their perceptions of product quality and subsequent behavioral intentions. Data are collected from 189 clients/patients who visited an optometry clinic. The study reports that perceived service quality (reliability, responsiveness, assurance, and empathy) and service environment (atmosphere and layout) both increase positive emotional satisfaction. In turn, positive emotional satisfaction leads to a high perception of product quality, high recommendation, patronage intention, and likelihood of purchase. Additionally, product quality perceptions have a significant positive impact on behavioral intentions.     

Pricing the cloud: a QoS-based auction approach

ABSTRACT

Cloud computing is an evolutionary technology that offers on-demand resources and elastic services through the Internet. Most providers adopt fixed-price mechanisms (e.g. pay-as-you-go). However, a few providers have recently employed auction-like approaches to price cloud services. Meanwhile, cloud consumers pay more attention to Quality of Service (QoS) such as availability, which measures how well a service is performed. This paper proposes a novel auction approach that can efficiently allocate resources according to customers’ QoS preferences. The QoS-based pricing can generate more revenue than a fixed-price strategy. This research lies at the intersection of cloud computing, economics, and information systems.     

What recovery options to offer for loyalty reward program members: Dollars vs. Miles?

Research shows that offering monetary compensation is effective in restoring customers’ equity perceptions following a service failure. However, little is known about loyalty reward program members’ responses to various types of recovery options. This study fills this important void by investigating two types of compensation: a discount coupon (in dollars) and bonus reward points (in miles) in the airline context. This study further investigates the boundary effect of controllability of a service failure. Our findings show that, when the flight delay is perceived as highly controllable by the airline company (i.e., scheduling error by flight crews, repatronage intention was higher in the 50-dollar discount vs. 2500 bonus miles condition. Conversely, repatronage intention did not differ between the two compensation options when the flight delay was perceived as uncontrollable i.e., inclement weather. Our findings help hospitality and tourism firms leverage service recovery initiatives for loyalty reward program members.     

Tell us your concern,and we shall together address! Role of service booking channels and brand equity on post-failure outcomes

The extant literature on service failure and recovery has overlooked the post-service failure evaluations when customers interact through different online service booking channels, such as direct websites (Direct) and online travel agents (OTAs). In this study, following the attribution theory and the expectation disconfirmation framework, we analyse the impact of service failure across service booking channels (direct vs. OTA) and its influence on post-service failure outcomes. Besides this, the study also examines the moderating roles of co-created service recovery and brand equity between channel type and post-recovery outcomes. A between-subjects experimental design revealed that when a service failure occurs in a direct (vs. OTA) website, it creates adverse outcomes of higher magnitude. The results also suggest that, in the case of a direct channel, co-created service recovery generates favourable service outcomes when the channel carries low brand equity. However, in the case of an OTA, the use of co-created service recovery works better when that OTA carries high level of brand equity. Further, the results also supported that these post-recovery outcomes are driven by recovery satisfaction and channel engagement. Thus, this study findings offer novel insights into online service recovery literature and managerial practice, primarily for efficient design and execution of recovery efforts across channels.     

Hospitality employee and customer role in value co-creation: Personal,organizational and collaborative outcomes

With the growing frequency and importance of peer-to-peer service exchanges, the role of front-line employees for traditional hospitality service providers is changing. This study is the first to examine differences in value co-creation appraisal between front-line employees and customers. Respondents (N = 720) were equally assigned to either an employee or customer role and performed that role for four different online co-creation scenarios based on destination resort context: co-innovation, co-creation of marketing, co-production, and co-recovery. The results of between-within online experimental design were analysed using repeated measures ANOVA and PLS-SEM. Co-created value was appraised significantly higher by employees and positively affected well-being, satisfaction, and competitive advantage for both employees and customers. Co-created value served as a mediator between the four types of co-creation and outcomes only for customers. The study contributes to understanding roles as knowledge-based resources in value co-creation and provides practical implications for successful value co-creation in hospitality.     

Effect of airline choice and temporality on flight delays

The civil aviation industry is critical to the economic development of any nation. Being a key infrastructure service, the performance of the civil aviation industry spills over to other segments of the economy. We investigate service failure among US airlines, using departure delay, and model its likelihood using mixed-logit regression. We characterize arrival performance for delayed departures using a service recovery/double deviation framework. We model the likelihood of different arrival possibilities using multinomial logistic regression. We use the chosen airline, temporality, and flight duration as predictors. Our key results include: (i) Afternoon/evening flights, and longer duration flights are more likely to depart late; (ii) Delta Airlines is most likely to depart on time; (iii) Southwest Airlines is best in recovering from delayed departures; (iv) United Airlines is most likely to aggravate delays.