Search results

When customers feel that they have no choice but to stay with their current provider to obtain a service that they need, they feel captive. This study aims to investigate customer captivity as a type of vulnerability and evaluate its effects on customers’ service evaluation and word-of-mouth (WOM) behavior, as well as to identify solutions that reduce customers’ feelings of captivity and improve their well-being.

This sequential, quantitative–qualitative, mixed-methods study draws from a survey of 1,017 customers and a qualitative analysis of 20 in-depth semi-structured interviews. Moderated mediation analysis is used to test the quantitative hypotheses; a thematic analysis explores the qualitative data.

The results of the quantitative study show that captivity emotions and price unfairness perceptions are two manifestations of customer captivity, which directly and indirectly affect service evaluations and WOM behavior. The findings of the qualitative study highlight how captive customers use emotional support-seeking negative word-of-mouth (NWOM) as a solution to reduce their captivity emotions and improve their well-being, by reinforcing their social ties and regaining a sense of control.

This study advances transformative service research by demonstrating how captivity affects customers’ well-being and customer vulnerability literature by investigating captivity as a type of vulnerability. It contributes to service marketing literature by identifying customer captivity as a boundary condition for generic service evaluation models.

Captive customers seek emotional support and consequently spread NWOM. Therefore, it is critical for service providers to reduce customers’ captivity feelings and implement adequate solutions to prevent NWOM and decrease the risk of negative impacts on their profitability.

Any customer can become vulnerable, due to contextual circumstances. This study focuses on customer captivity as a type of vulnerability and proposes adapted solutions to improve customers’ well-being.

Service captivity is described as the experience of constrained choice whereby a consumer has no power and feels unable to exit a service relationship. This study aims to explore how positive service experiences can contribute to service captivity in the alternative financial services (AFS) sector for consumers experiencing financial vulnerability.

A total of 31 interviews were undertaken with Australian consumers of payday loans and/or consumer leases.

The authors reveal a typology of consumers based on their financial vulnerability and their experience with AFS providers. Then they present three themes relating to how the marketing practices of these providers create a positive service experience, and, in doing so, can contribute to service captivity for consumers experiencing financial vulnerability.

The benefits derived from positive service experiences, including accessible solutions, self-esteem, and a sense of control over their financial situation, contribute to the service captivity of some consumers, rendering alternative avenues less attractive.

AFS providers must ensure a socially responsible approach to their marketing practices to minimize potentially harmful outcomes for consumers. However, a systems-level approach is needed to tackle the wider issue of financial precarity. Policymakers need to address the marketplace gaps, regulatory frameworks and social welfare policies that contribute to both vulnerability and captivity.

This research extends the understanding of service captivity by demonstrating how positive service experiences can perpetuate this situation. Further, specific solutions are proposed at each level of the service system to address service captivity in the AFS sector.

The purpose of this paper is to explore the reasons why customers often cannot or do not exit a negative service encounter (lock-in) and to discuss how this affects their well-being and coping responses. This contributes to the research on how negative service encounters emerge and evolve and how such encounters impact customer well-being and subsequent responses.

An inductive, exploratory approach was used. Interviews with 20 service customers yielded over 90 detailed lock-in experiences across 25 different services. A multi-step, iterative coding process was used with a mixture of coding techniques that stem from a grounded theory approach.

Four categories of factors that caused customers to endure a negative event were identified (physical lock-in, dependency on the service, social lock-in and psychological lock-in). Customers either experienced inner turmoil (if they perceived having the option to stay or leave) or felt captive; both impacted their well-being and coping strategies in different ways. Three characteristics of negative events that caused lock-in to persist over time were identified.

This is a qualitative study that aims to identify factors behind customer lock-in, reduced well-being and coping strategies across different types of service encounters. Future research may build on these themes to investigate lock-in during specific service encounters in greater depth.

This research provides insights regarding how service providers can anticipate lock-in situations. In addition, the findings point to several ways in which frontline employees can assist customers with the coping process, during lock-in.

Customer lock-in during a service encounter is a common, yet unexplored phenomenon. This research contributes to a better understanding of why customers endure negative events and how such perceptions are reflected in their experiences and behaviors.

Contractual services are characterized by features such as termination fees, long-term commitment, and complex terms. When customers find better deals from other providers, they may want to switch, but contractual obligations prevent them from doing so. Thus, this study aims to draw upon the stimulus-organism-response paradigm and theories of emotion regulation to examine how punitive switching costs (PSCs) can evoke negative emotions (NEs) from customers and, consequently, lead to negative behavioral responses in contractual service settings.

This study collected data from 395 customers of telecommunications companies, fitness centers, tutoring firms/centers, and house leasing companies in Taiwan. We tested the hypotheses using partial least squares structural equation modeling via SmartPLS 3.0.

The results show that NEs partially mediate the relationship between PSC and customers’ switching intention and negative word-of-mouth. This study also finds alternative attractiveness (AA) and service recovery (SR) do not moderate the PSCs–NEs relationship, but AA does directly influence NEs.

First, this study contributes to the literature on switching costs by exploring how PSC exerts a detrimental impact on behavioral responses. Second, this study adds to the literature on service failures by identifying the mediating role of NEs in such a relationship.

The purpose of this paper is to examine a typology of competitive strategies, which has not been extensively researched in the context of the accommodation sector in Barbados, a small developing island state in the Caribbean.

Data is collected through self‐administered questionnaires from 51 per cent of the hotels in Barbados. Respondents are Human Resource Managers, General Managers or Managing Directors.

Hotels in the five‐star and higher category place substantial strategic focus in the area of defining service standards and performance, as compared with hotels in the one‐star category. This study suggests that hoteliers should focus on a combination of different strategies advanced by Vandermerwe et al. as a means of securing a competitive advantage. Changes in strategy should be accompanied by training employees as the service and the quality of hotels change. As their customers' demands change, and as the competition changes, the competitive strategies of hotels will change.

Due to cultural differences among the islands in the Caribbean, the findings in this study need to be confirmed by undertaking similar investigations in other islands. Future research should consider the use of a more qualitative approach to better understand the nature of these competitive strategies in the hotel sector. Future research should examine the link between these strategies and company performance in order to determine the best combination of competitive strategies needed for maximum organisational performance.

This study highlights many challenges to be met and opportunities to be seized by managers in Barbados's accommodation sector. Systematically linking different strategies highlighted by Vandermerwe et al. and proactively managing the hotel is one way to do both.

Few studies in this area have been undertaken in small developing island states in the Caribbean. This study attempts to fill this gap by comparing and contrasting the competitive business strategies employed by hotels in Barbados.

The purpose of this paper is to provide an interdisciplinary framework bridging service design and social entrepreneurship with transformative service research (TSR) to create greater synergetic effects to advance wellbeing and drive social impact.

This research provides an interdisciplinary review and synthesis of literature to establish a basis for a conceptual framework advancing human wellbeing and driving social impact.

The overarching framework created incorporates various concepts, methods and tools across the three research domains. At the core of the framework is the ultimate goal of multilevel wellbeing and social impact. The core is subsequently supported by established social entrepreneurship concepts and strategies: prosocial motivation, hybrid identity, social bricolage, entrepreneurial thinking, community engagement, business model design and innovative delivery. The implementation of these concepts could benefit from the methods and tools used in service design, such as: design probes, service blueprints, appreciative inquiry, contextual interviews, actor maps, sustainable business model canvas and service prototyping.

The paper uses the refugee crisis as an illustrative example of how the proposed framework can be put into action by service organizations.

By bridging literature in TSR, service design and social entrepreneurship, this paper provides service managers with a framework to guide scalable systemic solutions for service organizations interested in advancing human wellbeing and driving social impact.

This paper aims to present a case for the practical management of corporate reputation, in relation to two groups of concepts: communication, identity, and trust; and communication, identity, and image.

A review of the current knowledge of corporate reputation, personality, identity, and image leads to development of a strategy framework to enhance/protect corporate reputation. A case study involving a corporate logo introduced into a developed market by an emerging multinational corporation (EMNC) is presented.

The paper identifies that credibility and trust are significant elements which must be managed and communicated to maintain the firm's corporate image and reputation.

A conceptual model is presented illustrating a series of internal and external factors affecting communication and trust, which influence the customer and assist in shaping corporate reputation. The case of the EMNC Chinese corporation Haier to introduce its brand into a developed market may enlighten others pursuing this path.

This paper introduces the base‐case‐valuation pattern, which is derived from the modern Graham and Dodd valuation methodology, and it demonstrates how that pattern could be utilized in M&A by way of a case study.

The paper presents a case study of the 2004 acquisition of Sears by hedge‐fund manager Eddie Lampert. It draws on previously published Graham and Dodd methodological materials as well as Sears' publicly available financial information. The valuation calculations presented in the case is the sole work of the author.

The results of the case suggest that base‐case valuation could be practically utilized in M&A. Significantly, it could also be utilized in the formulation of an M&A‐negotiating strategy, shareholder‐communication plan, and performance‐improvement plan.

The paper demonstrates how that acquisition contained a reasonable margin‐of safety, or price discount to estimated value, even though it occurred at a multiple of 1.8x Sears' book value at the time.

This case demonstrates the practical utility of base‐case value in M&A by way of the 2004 Sears acquisition.

This work introduces the base‐case‐valuation pattern, and it is the first work, as far as we are aware, that applies the Graham and Dodd methodology to the Sears acquisition even though Eddie Lampert is a noted Graham and Dodd‐based practitioner.

Emerging transformative service research (TSR) studies adopt a service system lens to conceptualise well-being across the micro, meso and macro levels of aggregation, typically within an organisation. No TSR has yet examined well-being across multiple interconnected organisations at the highest level of aggregation, the meta or service ecosystem level. This study aims to explore how value co-creation and, critically, co-destruction among different actors across interacting organisations enhances or destroys multiple levels of well-being.

This study uses semi-structured, in-depth interviews to collect data from five types of key actors (n = 35): players, team owners, tournament operations managers, casters and viewers, across 29 interconnected organisations in the oceanic esports industry. The interviews were coded using NVivo 12 and thematically analysed.

Resource integration on each level of aggregation within a service ecosystem (micro, meso, macro and meta) can co-create and co-destroy value, which leads to the enhancement and destruction of multiple levels of well-being (individual, collective, service system and service ecosystem). Value co-creation and co-destruction, as well as the resultant well-being outcomes, were interconnected across the different levels within the service ecosystem.

To the best of the authors’ knowledge, this research is the first to incorporate a multi-actor perspective on the well-being consequences of value co-creation and value co-destruction within a service ecosystem as opposed to service system. Thus, this research also contributes to the minimal research which examines the outcomes of value co-destruction, rather than value co-creation, at multiple levels of aggregation.