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1 – 10 of over 14000Prashant M. Ambad and Makarand S. Kulkarni
The purpose of this paper is to develop an attractiveness index-based warranty cost model considering decision variables as design alternatives, warranty duration and support…
Abstract
Purpose
The purpose of this paper is to develop an attractiveness index-based warranty cost model considering decision variables as design alternatives, warranty duration and support level.
Design/methodology/approach
A warranty optimization approach is illustrated using a real life example of an automobile engine with Mean Time Between Failures and Warranty Attractiveness Index as constraints.
Findings
It will help to improve the customer satisfaction by giving a more attractive warranty compared to that being offered by the competitors.
Practical implications
Approaches that consider the effect of decision variables on attractiveness of a warranty policy in a quantitative manner have received relatively less attention. The paper attempts to capture the attractiveness of warranty from the manufacturer as well as customer point of view.
Originality/value
The proposed approach will help manufacturers to take appropriate decisions related to warranty parameters and component selection at the design stage.
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Mahafuz Mannan, Md. Fazla Mohiuddin, Nusrat Chowdhury and Priodorshine Sarker
The purpose of this paper is to link customer satisfaction, switching intentions, perceived switching costs, and perceived alternative attractiveness in the context of the…
Abstract
Purpose
The purpose of this paper is to link customer satisfaction, switching intentions, perceived switching costs, and perceived alternative attractiveness in the context of the Bangladeshi mobile telecommunications market (MTM). In addition, this study develops three key formative determinants of customer satisfaction: financial factor, technological factor, and customer service factor.
Design/methodology/approach
A model is developed and tested using PLS-SEM with a sample size of 442 respondents. The three key formative determinants of customer satisfaction were developed using a panel of five industry experts.
Findings
Financial, technological, and customer service factors were found to have significant positive effects on customer satisfaction. Customer satisfaction and perceived switching costs were found to have a significant direct effect on switching intentions, and perceived switching costs and perceived alternative attractiveness were found to have significant moderating effects on switching intentions through customer satisfaction. However, no significant direct effect of perceived alternative attractiveness on switching intentions was found.
Originality/value
This is the first study to link customer satisfaction, switching intentions, perceived switching costs, and perceived alternative attractiveness using structural equation modeling in the context of the Bangladeshi MTM. In addition, three key formative determinants of customer satisfaction are developed.
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Zsófia Tóth, Martin Liu, Jun Luo and Christos Braziotis
Managing attractiveness is a constant challenge to mobilize relationship-specific investments, especially in a business environment increasingly enhanced by social media (SM…
Abstract
Purpose
Managing attractiveness is a constant challenge to mobilize relationship-specific investments, especially in a business environment increasingly enhanced by social media (SM) activities. There is limited knowledge on how SM activities contribute to supplier attractiveness, so decisions about strategizing with SM and consequent resource allocations become highly uncertain. The purpose of this paper is to examine how suppliers’ SM activities influence supplier attractiveness.
Design/methodology/approach
Altogether, 57 senior managers were interviewed: 32 semi-structured in-depth interviews were conducted with senior managers in strategic decision-making roles regarding SM on the supplier side, along with 20 senior managers responsible for purchasing or looking after supplier development; one-to-one interviews were complemented by a focus group with 5 senior managers on the buyer side.
Findings
The study reveals an inverse U-shaped relationship between the intensity of the supplier’s SM activity and its attractiveness and offers a set of propositions about the influence of SM on supplier attractiveness, with special regard to the perceived risks of increased transparency and becoming “too social” on SM.
Practical implications
The study highlights SM management results for supplier attractiveness and their impact areas on business growth and supply chain development.
Originality/value
This paper provides in-depth insights into the role of SM in managing supplier attractiveness. Various effects of SM activities are identified that aim to contribute to the body of literature on supplier attractiveness as well as SM management in buyer–supplier relationships.
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Prior research on user-generated content (UGC) contributions has primarily focused on self-centered or other-centered motives, paying limited attention to the concept of…
Abstract
Purpose
Prior research on user-generated content (UGC) contributions has primarily focused on self-centered or other-centered motives, paying limited attention to the concept of enlightened self-interest, in which both motives coexist in a single organism. Additionally, the factors influencing enlightened self-interest and their effects in different circumstances are yet to be explored. Drawing on theoretical lenses rooted in the switching barriers perspective and stimulus–organism–response framework, this study posits that dedication-based switching barriers (community–member relationship quality, member–member relationship quality, and content attractiveness) positively relate to enlightened self-interest, whereas constraint-based switching barriers (switching costs) moderate the relationship between dedication-based switching barriers and enlightened self-interest in social media communities (SMCs). Members' enlightened self-interest in turn influences both the creation and co-creation of UGC.
Design/methodology/approach
This study comprised two quantitative studies: an online survey-based study (Study 1) and an online scenario-based experiment (Study 2). Study 1 surveyed 613 respondents, while Study 2 included 749 participants. Both studies employed structural equation modeling and bootstrapping techniques for analysis.
Findings
The findings indicate that dedication-based switching barriers positively affect users' enlightened self-interest, which in turn is positively associated with UGC creation and co-creation. Switching costs moderate the relationship between relationship quality (community–member and member–member) and enlightened self-interest.
Originality/value
This study complements the current understanding of how the association between dedication- and constraint-based switching barriers and users' enlightened self-interests influence user-generated contributions.
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Many companies have now built brand fan pages (BFPs) on social media platforms to connect with their existing and potential customers. Nevertheless, the inability to retain…
Abstract
Purpose
Many companies have now built brand fan pages (BFPs) on social media platforms to connect with their existing and potential customers. Nevertheless, the inability to retain existing followers would severely threaten the survival of BFPs and the effectiveness of a company's social media strategies. Drawing upon Furneaux and Wade's discontinuance framework, our study develops a research model to understand the BFP user's intention to discontinue following a BFP.
Design/methodology/approach
An empirical study was conducted through an online survey of Chinese social media users. The proposed model was tested by analyzing the collected data using the partial least squares structural equation modeling (PLS-SEM) approach.
Findings
The results reveal that dissatisfaction with information quality, unfollowing costs, trust and alternative attractiveness affect the individual's intention to unfollow a BFP. Notably, unfollowing costs is the most powerful factor to predict followers' propensity to discontinue.
Originality/value
Our study contributes to the understanding of the discontinuance of information systems. Theoretical implications for future social commerce research as well as practical suggestions for BFP operators are also discussed.
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Michael Haenlein and Andreas M. Kaplan
The management of unprofitable customer relationships and particularly their abandonment is a topic that has received increasing interest among practitioners and researchers over…
Abstract
Purpose
The management of unprofitable customer relationships and particularly their abandonment is a topic that has received increasing interest among practitioners and researchers over recent years. Within this manuscript, the authors aim to analyze the impact of unprofitable customer abandonment on the abandoning firm's current customers, specifically their exit, voice, and loyalty intentions toward the abandoning firm.
Design/methodology/approach
The study is based on an online experiment conducted among 385 US customers. Respondents were allocated randomly to one of ten conditions (five levels of tie strength x two types of abandonment strategy) and exposed to a scenario describing a customer abandonment decision implemented by a mobile phone provider. The resulting data were analyzed using a combination of analysis of variance (ANOVA) and structural equation modeling.
Findings
The study shows that current customers are significantly more likely to respond actively to unprofitable customer abandonment (exit/voice) than passively through silence and loyalty. Additionally, it shows that increasing satisfaction or switching cost among current customers are unlikely to limit the potential negative consequences of unprofitable customer abandonment. The only variable that drives the choice between exit, voice, and loyalty is the perceived attractiveness of the best alternative relationship.
Originality/value
This work analyzes for the first time how existing customers that the firm would like to retain react toward the news that the company proactively terminates unprofitable customer relationships. Therefore, insight is provided into the likely cost associated with unprofitable customer abandonment – a question that has not been the subject of any empirical study as of today.
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Junyun Liao, Muhua Li, Haiying Wei and Zelin Tong
Recent years have witnessed the increasingly fierce competition amongst smartphone brands. Hence, smartphone firms urge to prevent current consumers from switching to maintain…
Abstract
Purpose
Recent years have witnessed the increasingly fierce competition amongst smartphone brands. Hence, smartphone firms urge to prevent current consumers from switching to maintain market position. Based on the push–pull–mooring (PPM) framework, this study aims to explore the drivers of users' intentions to switch from their current smartphone brands.
Design/methodology/approach
Based on previous literature and the characteristics of the smartphone purchase, this study identified one pushing, two pulling and five mooring factors. Online questionnaires were collected to test hypotheses using the structural equation modelling approach. An additional netnography study provides further support to the hypotheses.
Findings
Results show that regret is a push factor that enhances consumers' switching intentions. Moreover, two pull factors, subjective norms and alternative attractiveness positively influence consumers' switching intentions. Finally, switching costs, emotional commitment and brand community engagement are mooring factors that negatively affect brand-switching intention, whereas consumers' variety seeking has a positive effect.
Originality/value
This study enriches the brand switching literature and offers significant implications for customer retention.
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Bernhard Swoboda, Thomas Foscht, Cesar Maloles and Hanna Schramm‐Klein
The purpose of this paper is to explore how firms that do both sourcing and selling choose which countries to source from and to which countries to sell. It also looked at the…
Abstract
Purpose
The purpose of this paper is to explore how firms that do both sourcing and selling choose which countries to source from and to which countries to sell. It also looked at the role of competitive strategy, vertical integration, and foreign involvement in the decision‐making.
Design/methodology/approach
A survey instrument that was designed based on personal interviews with 20 German garment industry executives was administered to 750 German, Austrian and Swiss garment manufacturers. In total, 93 questionnaires were usable. Factor analysis was employed in evaluating the data.
Findings
The results indicate that firms that both source and sell at the same time have more complex decision making than normative models suggest. These decisions tend not to be isolated decisions. The factors that are considered in sourcing are different in the decision as to where to sell. Foreign involvement, competitive strategy, and vertical integration influence the firms' decision making.
Research limitations/implications
The study is exploratory in nature and it is limited in its application. Moreover, the disproportionately large number of German respondents may skew the results. In addition, the total number of respondents is relatively small. The study may also suffer from any or all of the following deficiencies: lack of reliability and validity test, having only one executive per firm respond to the survey, not considering country‐specific characteristics, and lack of control for the market‐entry strategy and market size variables.
Originality/value
Most research in this area focuses on either the sourcing or the selling side. This study looks at how sourcing and selling decisions are made by firms engaged in both activities. Additionally, the roles of competitive strategy, vertical integration, and foreign involvement in relation to the decision making are investigated.
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Isabel Sánchez García and Rafael Curras-Perez
The purpose of this paper is to study the drivers of service provider switching intention other than satisfaction and, additionally, analyse the moderating role of the type of…
Abstract
Purpose
The purpose of this paper is to study the drivers of service provider switching intention other than satisfaction and, additionally, analyse the moderating role of the type of service (utilitarian vs hedonic). Specifically, the authors study the effects of alternative attractiveness, post-purchase regret, anticipated regret and past switching behaviour.
Design/methodology/approach
A representative survey with 800 consumers of mobile phone services (utilitarian) and holiday destinations (hedonic) was carried out.
Findings
Satisfaction is not a significant antecedent of switching intention in the hedonic service and its effect is marginal in the utilitarian service. In the utilitarian service, the main predictor of switching intention is post-purchase regret, whereas in the hedonic service, the main determinants of switching intention are past switching behaviour and anticipated regret.
Originality/value
The main contribution of this study is the analysis of the determinants of provider switching behaviour that may explain abandonment by satisfied customers, to see if their influence is greater or smaller than that of satisfaction itself, which has been the most analysed variable. Furthermore, there are expected to be differences between utilitarian and hedonic services, an aspect which is also studied in this work.
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Evgeniya Tsybina and Vera Rebiazina
The purpose of this paper is to broaden the current view of customer portfolio management by including the notion of customer interconnectedness.
Abstract
Purpose
The purpose of this paper is to broaden the current view of customer portfolio management by including the notion of customer interconnectedness.
Design/methodology/approach
The previous research in customer portfolio theory is reviewed, with special attention to customer interconnectedness. Customer interconnectedness as a criterion to build customer portfolios is studied in the example of large Russian b2b company. First, the results of participative inquiry research within the company are presented and then the insights from five in‐depth interviews are described.
Findings
Findings suggest that the assumption of customer independence in a portfolio, on which most of customer portfolio models are based, may not fit certain markets and industries. This paper sheds light on to the specifics of customer portfolio building, in the Russian context and results in the customer interconnectedness assumption.
Research limitations/implications
Additional research beyond the provided exploratory study is needed to quantitatively test the assumption and generalize the results. The main research implications relate to the new perspective on customer portfolio theory based on customer interconnectedness.
Practical implications
The paper provides researchers and practitioners with insights into customer portfolio models specifics existing in Russia. This knowledge can be helpful, also, for foreign companies entering the Russian market.
Originality/value
The process of customer portfolio building in the Russian b2b markets has been addressed for the first time in b2b marketing research. The analysis of customer portfolio building in Russian b2b context shows that customer independence assumption is challenged and should be replaced with customer interconnectedness approach.
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