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1 – 10 of 104Weiting Wang, Yi Liao and Jiacan Li
The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism.
Abstract
Purpose
The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism.
Design/methodology/approach
This study develops a stylized game-theoretic model of delegating customer acquisition and retention, focusing on how firms choose delegation and wage information disclosure strategy.
Findings
The results confirm the necessity for enterprises to disclose salary information. When sales agents are risk neutral, firms should choose multi-agent (MA) delegation and disclose their wages. However, when agents are risk averse, firms may disclose the wages of acquisition agents or both agents in MA delegation, depending on the uncertainty of the retention market.
Originality/value
This paper contributes to the literature on delegation of customer acquisition and retention and demonstrates that salary disclosure can be used as a supplement to the incentive mechanism.
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This study explores the mediating effects of relationship marketing orientation (RMO) and service quality orientation (SQO) on market orientation, selling orientation, and…
Abstract
Purpose
This study explores the mediating effects of relationship marketing orientation (RMO) and service quality orientation (SQO) on market orientation, selling orientation, and policyholder retention in non-life insurance services. Additionally, it offers important recommendations for non-life insurers in Taiwan for policy development and improving policyholder retention.
Design/methodology/approach
Data were collected from a sample of policyholders belonging to the top five non-life insurance companies in Taiwan. The data were then analyzed with structural equation modeling.
Findings
RMO and SQO mediate the effects of the salesperson’s market orientation on policyholder retention. Thus, RMO and SQO are key factors influencing policyholder retention. Consequently, high levels of market orientation should be maintained to increase RMO and SQO, strengthening the retention rate of non-life insurance policyholders.
Research limitations/implications
The main limitation of this study is its cross-sectional nature. In the future, researchers should collect data from other countries and service industries (e.g. banks, securities, and other financial institutions), expand to different insurance contexts (e.g. life insurance), and conduct longitudinal studies or experimental research.
Practical implications
The results of this study can act as a guide for providers of non-life insurance services. Based on the research results, we recommend decision-makers pay increased attention to increasing policyholder retention rates by strengthening their firm’s RMO and SQO.
Originality/value
Few studies have investigated the relationships among market orientation, selling orientation, RMO, SQO, and policyholder retention in non-life insurance services within Asian contexts in general and specifically in Taiwan. Thus, this study’s theoretical contributions, managerial implications (especially for decision-makers), and the proposed future research directions represent timely and valuable additions to the literature.
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Abstract
Purpose
The purpose of this study is to examine the underlying mechanisms of exploitative innovation and exploratory innovation between social media usage and organizational agility, and elucidate the moderating role of learning goal orientation (LGO) in the above relationships, based on adaptive structuration theory (AST).
Design/methodology/approach
Based on a multiple-respondent matched survey of 334 Chinese e-commerce firms, authors employed structural equation modeling to examine the correlations among social media usage, exploitative innovation, exploratory innovation and organizational agility. Hierarchical regression analysis was used to examine the moderating role of LGO.
Findings
This study's empirical findings demonstrate that exploitative innovation and exploratory innovation mediate the relationship between social media usage and organizational agility in different ways. Further, LGO positively moderates the relationship between social media usage for customer acquisition and exploratory innovation, as well as the relationship between social media usage for customer relationship and exploitative innovation.
Practical implications
Firms are advised to leverage different types of social media usage to facilitate exploitative innovation and exploratory innovation and promote organizational agility. In addition, LGO within a firm should be established to enhance the effects of social media usage on exploitative innovation and exploratory innovation.
Originality/value
This study adds to the literature on social media usage by proposing and examining exploitative innovation and exploratory innovation as explanatory mechanisms to facilitate organizational agility. This study further identifies LGO as a boundary condition of social media usage's effect on exploitative innovation and exploratory innovation. By contextualizing social media as advanced information technology, this study contributes to the contextualization of AST in the social media context.
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K.S. Ranjani, Sumi Jha and Neeraj Pandey
After reading this case study, the students will be able to identify the various choices available in social e-commerce using network marketing, interpret data-driven decisions in…
Abstract
Learning outcomes
After reading this case study, the students will be able to identify the various choices available in social e-commerce using network marketing, interpret data-driven decisions in social e-commerce and evaluate their role in scaling business, analyse cost and revenue management in value segments, evaluate technology adoption among the masses using appropriate communication structures and develop customer relationships and manage their sentiments in the era of social media.
Case overview/synopsis
DealShare became a unicorn in 2022 and targeted the rural and low-income groups. Based on a networking model for customer acquisition and a hyperlocal supply chain model, DealShare is increasing its customer base at a rapid pace. However, profitability was still a challenge, and converting high volume into high value continued to be a daunting task. This case study delves deep into the challenges co-founder Sourjyendu Medda and the DealShare team faced. It seeks to address key issues: how should DealShare leverage customer network for faster customer acquisition and how should they increase ticket size and profitability? As a data-driven business, what advantages does DealShare have in influencing customers’ buying behaviour using data? Dependence on social media could have a cascading effect on “word of mouth”. How can they manage customer complaints and increase engagement?
Complexity academic level
This case study has the potential to be used in different settings. In strategic cost management, this case study can demonstrate strategies for cost management in the value-conscious segment. This case study can be used in marketing management courses while teaching “positioning” in business-to-consumer markets and CRM. For second-year management students, this can be used in entrepreneurship and strategic management courses to demonstrate the network effect in social e-commerce start-up businesses. This case study is also relevant for various course modules in graduate management programmes to demonstrate the power of data-driven decision-making in business.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 8: Marketing
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Nitin Patwa, Monika Gupta and Amit Mittal
This study aims to examine the impact of consumer risk appetite, biases (specifically negative recency bias), and the importance of reviews in enhancing information quality. By…
Abstract
Purpose
This study aims to examine the impact of consumer risk appetite, biases (specifically negative recency bias), and the importance of reviews in enhancing information quality. By analyzing these variables, the authors gain insights into their role in enriching the overall information spectrum available to consumers. The findings contribute to a better understanding of how risk appetite, biases and consumer reviews shape the quality of information.
Design/methodology/approach
The questionnaire assessed the relationship between dependent and independent variables by asking participants to rate their experiences in relevant scenarios. Variance-based structural equation modeling with the ADANCO program was used to examine the data. ADANCO software is used explicitly for variance-based structural equation modeling. To evaluate research models and test hypotheses, partial least square path modeling is used.
Findings
The efficiency of reviews and ratings is greatly influenced by consumer risk appetite. Businesses should focus on clients who are willing to take risks and balance positive and negative feedback. It is essential to comprehend how customers understand reviews. Credibility is increased by taking biases into account and encouraging unbiased criticism. Promoting thorough reviews strengthens influence. Monitoring and making use of these elements improve online reputation and commercial success.
Research limitations/implications
The research has limitations due to the simplicity of the attributes taken into account and the requirement for a larger sample size. Overcoming barriers to promote consistent client feedback is essential, and tailored emails can help with assessment generation. Increased customer participation in writing evaluations can be achieved by removing obstacles and highlighting the advantages of participation.
Originality/value
Businesses and buyers rely on this “organically” generated content as the basis of their promotional strategy and buying decisions. Most of the research is related to consumer reviews, their behavior and the importance of social validation. However, some critical aspects related to this need further investigation.
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This paper aims at understanding how automotive firms integrate customer relationship management (CRM) tools and big data analytics (BDA) into their marketing strategies to…
Abstract
Purpose
This paper aims at understanding how automotive firms integrate customer relationship management (CRM) tools and big data analytics (BDA) into their marketing strategies to enhance total quality management (TQM) after the coronavirus disease (COVID-19).
Design/methodology/approach
A qualitative methodology based on a multiple-case study was adopted, involving the collection of 18 interviews with eight leading automotive firms and other companies responsible for their marketing and CRM activities.
Findings
Results highlight that, through the adoption of CRM technology, automotive firms have developed best practices that positively impact business performance and TQM, thereby strengthening their digital culture. The challenges in the implementation of CRM and BDA are also discussed.
Research limitations/implications
The study suffers from limitations related to the findings' generalizability due to the restricted number of firms operating in a single industry involved in the sample.
Practical implications
Findings suggest new relational approaches and opportunities for automotive companies deriving from the use of CRM and BDA under an overall customer-oriented approach.
Originality/value
This research analyzes how CRM and BDA improve the marketing and TQM processes in the automotive industry, which is undergoing deep transformation in the current context of digital transformation.
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The Central Bank of Nigeria (CBN) recently relaunched Nigeria’s cashless policy initiative which seeks to reduce financial crime and tax avoidance, decrease cash dependency…
Abstract
Purpose
The Central Bank of Nigeria (CBN) recently relaunched Nigeria’s cashless policy initiative which seeks to reduce financial crime and tax avoidance, decrease cash dependency, advance the adoption of digital financial services (DFS), decrease the risks to the payment system and foster financial inclusion. This study aims to identify the unique challenges of going cashless in Nigeria, particularly in terms of infrastructural, exclusionary and cost implications of the policy on the average citizens.
Design/methodology/approach
The author applies a doctrinal research methodology to identify and reflect on key challenges of the cashless policy from the economic, regulatory and transactional perspectives.
Findings
The cashless policy initiative in Nigeria heralds value for financial integrity, financial policy regulation and user convenience. The mode of introduction, however, ushers in significant challenges and hardly considers Nigeria’s inadequate payment infrastructure, persistent financial exclusion, low levels of financial and digital literacy and capability, high cost of using DFS and pervasive proclivity for cash. As Nigerians adjust albeit inconveniently to the policy, the CBN can ameliorate the hardship by strengthening the payment infrastructure, particularly for digital payments, fostering consumer trust by safeguarding user funds and enabling consumer preferences.
Research limitations/implications
Research materials include the national regulator’s policy documents and newspaper articles that have not been published in formal reports but non-the-less adequately mirror the policy intention of the CBN and the lived experiences of Nigerians.
Practical implications
This study identifies the practical steps and regulatory measures that the CBN can take to improve acceptance and meaningful and sustainable adoption of the cashless policy by the majority of Nigerians.
Social implications
The recommendations that are proffered provide some rich insights to inform regulatory direction for the CBN to seamlessly phase-in the cashless policy and consequently drive down financial exclusion in Nigeria.
Originality/value
This study contributes to the policy discussion around the introduction of the cashless Nigeria project. The doctrinal research method highlights the policy intentions of the regulator in juxtaposition with lived experiences of Nigerians. This study offers recommendations to bolster financial inclusion, stability and integrity.
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António Miguel Martins and Cesaltina Pacheco Pires
This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.
Abstract
Purpose
This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.
Design/methodology/approach
The authors use an event study, for a sample of 2,576 product recalls in the United States (US) automobile industry, between January 2010 and June 2021.
Findings
The authors found that stock market's reaction to a product recall announcement is less negative for family firms. This superior performance is partially driven by the family firms' long-term investment horizons and higher strategic emphasis on product quality. However, the relationship between family ownership and cumulative abnormal returns around product recall announcements is nonlinear as the impact of family ownership starts by being positive but becomes negative for higher levels of family ownership. The authors also find that family firm's chief executive officer (CEO) and managerial ownership influence positively the stock market reaction to product recall announcements.
Practical implications
This work has several implications for family firms' management as well as for investors and financial analysts. First, as higher managerial ownership is associated with a greater emphasis on product quality, decreasing stock market losses when a product recall occurs, family firms should consider increasing equity-based compensation. Second, as there seems to exist an optimal proportion of family ownership, family firms should consider the risks of increasing too much their ownership share. Third, investors and financial analysts can use the results in the study to help them in their investment and trading decisions in the stock market.
Originality/value
The authors extend the knowledge of product recalls by studying the under-researched role of the flexible, internally focused culture of family businesses on the stock market reaction to product recalls.
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Pedro G.C. Pio, Tiago Sigahi, Izabela Simon Rampasso, Eduardo Guilherme Satolo, Milena Pavan Serafim, Osvaldo L.G. Quelhas, Walter Leal Filho and Rosley Anholon
This paper compares traditional and digital banks in nine categories of complaints and provides insights to improve complaint management performance.
Abstract
Purpose
This paper compares traditional and digital banks in nine categories of complaints and provides insights to improve complaint management performance.
Design/methodology/approach
A sample of the major Brazilian banks was defined, with four traditional and four digital banks. The grey relational analysis (GRA) method was applied as an analytical tool to compare the most frequent complaints of traditional and digital banks. The most critical complaints identified were considered to discuss potential improvements in complaint management using quality and service management system concepts.
Findings
The GRA method enabled the development of a ranking of nine complaint categories, considering the uncertainty involved in the data and differentiating between traditional and digital banks. The most critical complaint categories, regardless of business model, were “unauthorized charges” and “poor service,” which were ranked first and second in the frequency rankings. Traditional and digital banks differed the most in the complaint category “unfair charge,” ranking third and eighth in the rankings, respectively.
Practical implications
Managers from traditional and digital banks can improve complaint management performance by applying ISO 9001 and ISO 20000 concepts such as incident, problem, change, service level, availability, capacity, information technology service continuity and financial management.
Social implications
The study's findings can help bank managers improve service levels in the face of technological competition. Improving these organizations is an important factor for developing countries such as Brazil.
Originality/value
This paper reveals the differences between two business models regarding complaint management. It also considers a methodological approach to include the uncertainty related to customers' perception and subjectivity inherent to complaints.
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While existing literature extensively explores manufacturing firms expanding into services, little is known about the modes of servitisation, the means by which they carry it out…
Abstract
Purpose
While existing literature extensively explores manufacturing firms expanding into services, little is known about the modes of servitisation, the means by which they carry it out. This paper concentrates on acquisitions as a mode of servitisation. Post-acquisition integration is when the potential of an acquisition is realised. The paper therefore aims to categorise types of integrations following the acquisition of servitised firms and discusses their consequences for servitisation.
Design/methodology/approach
The empirical part of the paper is based on two case studies, each involving the acquisition of servitised firms. Both acquirers changed their integration approach over time.
Findings
The paper conceptualises three types of integrations: rhetorical, insulated and transformative integrations, indicating whether and how the acquirer becomes servitised following the integration. These highlight the analysis of integration based on business models and customer orientation in relation to servitisation.
Originality/value
This paper contributes to research on servitisation by emphasising acquisitions as a mode of servitisation and conceptualising three integration types related to business models and customer orientations. Furthermore, the paper highlights how an acquirer's servitisation leads to new offerings targeting new customers, as opposed to strengthening existing relationships.
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