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Article
Publication date: 19 June 2009

Kostis Indounas and George J. Avlonitis

The purpose of this paper is to provide insights into how service firms price the services that they render in the market. In particular, the association between the…

Abstract

Purpose

The purpose of this paper is to provide insights into how service firms price the services that they render in the market. In particular, the association between the pricing objectives that they pursue and the organizational and environmental characteristics that influence pricing decisions are investigated.

Design/methodology/approach

Data are collected from 170 companies operating in six different service sectors in Greece through personal interviews. Moreover, qualitative research through 26 in‐depth interviews is also conducted.

Findings

Following the classification scheme put forward by Avlonitis and Indounas, it can be concluded that a combination of different organizational and environmental characteristics leads to each one of the eight pricing objectives examined in the study.

Research limitations/implications

The above findings indicate the need to treat pricing decisions using a contingency approach. Formulating a specific pricing objective requires an examination of certain organizational and environmental concerns. The significance of these findings notwithstanding, the context of the study (Greece) is the most important caveat, since it limits the ability to generalize the results to other countries.

Originality/value

This paper represents the first attempt to empirically examine the potential association between the aforementioned pricing objectives and characteristics.

Details

Journal of Service Management, vol. 20 no. 3
Type: Research Article
ISSN: 1757-5818

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Article
Publication date: 11 June 2019

Kristina Blinda, Oliver Schnittka, Henrik Sattler and Jan-Frederik Gräve

A distinct view of customer participation in services classifies the characteristics of the participation process as experience- versus outcome-oriented, each of which…

Abstract

Purpose

A distinct view of customer participation in services classifies the characteristics of the participation process as experience- versus outcome-oriented, each of which affects customer participation success uniquely for different types of services (utilitarian vs hedonic). This study aims to investigate if service managers should differentiate and focus on distinct characteristics according to the service types.

Design/methodology/approach

Two consumer experiments serve to assess the potential moderating effect of service type on consumer preferences for experience- versus outcome-oriented forms of customer participation.

Findings

The two empirical studies affirm the proposed moderating effect of service type on the effect of experience- and outcome-oriented customer participation characteristics. Experience-oriented characteristics work better for hedonic than for utilitarian services, and one study confirms a stronger positive effect of outcome-oriented characteristics for utilitarian services.

Research implications

Further research should replicate the experimental findings with a field study. Furthermore, continued research could analyze the mediators of the interaction of co-production characteristics with the service type in greater detail.

Practical implications

Managers can design the characteristics of the customer participation processes according to the nature of the service (hedonic vs utilitarian) and, thus, maximize customers’ willingness to pay.

Originality/value

This study offers a new perspective on customers’ reactions to customer participation in services: depending on the service type or situation in which a service is being consumed, different customer participation characteristics lead to (financial) success.

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Article
Publication date: 8 April 2019

Björn A. Hüttel, Zelal Ates, Jan Hendrik Schumann, Marion Büttgen, Stephanie Haager, Marcin Komor and Julian Volz

This paper aims to investigate the influence of individual customer characteristics on frontline employees’ (FLEs) customer need knowledge (CNK), a construct that…

Abstract

Purpose

This paper aims to investigate the influence of individual customer characteristics on frontline employees’ (FLEs) customer need knowledge (CNK), a construct that objectively measures FLEs’ ability to accurately identify a given customer’s hierarchy of needs.

Design/methodology/approach

The study uses hierarchical data involving the customer and bank advisor levels in the banking sector of three European countries. The matched sample consisted of 1,166 customers and 332 employees. To account for the nested structure of the data, the study used hierarchical linear modeling (HLM) using HLM software.

Findings

The results show that customers’ financial experience and risk aversion positively influence CNK and customer-perceived responsibility for the service outcome negatively impacts CNK. The results further show the impact of individual customer cultural values on CNK, which can be influenced by customer-oriented employee training. Cross-level interaction effects indicate that training measures can reverse negative influences of customers’ high power distance and uncertainty avoidance on CNK, whereas for customers characterized by high long-term orientations, training measures can backfire.

Originality/value

This study contributes to research on the antecedents of FLEs’ CNK by examining the currently overlooked influence of individual customer characteristics that are pertinent to the employee–customer interaction process. The study reveals customer characteristics as a new area of antecedents influencing FLEs’ accurate perceptions of customer needs.

Details

Journal of Services Marketing, vol. 33 no. 2
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 1 February 2002

Josée Bloemer, Tom Brijs, Gilbert Swinnen and Koen Vanhoof

Customer satisfaction continues to be an important topic in the financial services industry. However, there is an increasing awareness that customer satisfaction as such…

Abstract

Customer satisfaction continues to be an important topic in the financial services industry. However, there is an increasing awareness that customer satisfaction as such is not enough. Distinguishes between overall satisfied customers and latently dissatisfied customers; the latter being those customers who, although reporting satisfaction in a survey, have other characteristics (i.e. satisfaction with specific service items and/or socio‐demographic characteristics) that resemble dissatisfied customers. The identification of these latently dissatisfied customers may function as an early warning signal. Indeed, their probability to defect is relatively high and can be compared to that of dissatisfied customers. Proposes a data mining technique called “characteristic rules” to identify latently dissatisfied customers of a Belgian bank. Appropriate marketing actions (dissatisfaction management) may help to avoid these customers leaving. Therefore, the objective of this study is to provide scholars and business managers with theoretical, methodological and managerial insights into identifying latently dissatisfied customers.

Details

International Journal of Bank Marketing, vol. 20 no. 1
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 30 March 2012

Nataša Golik Klanac

The purpose of the paper is to investigate the nature of linkages between characteristics of a service and customer consequences and elicit the types of such linkages.

Abstract

Purpose

The purpose of the paper is to investigate the nature of linkages between characteristics of a service and customer consequences and elicit the types of such linkages.

Design/methodology/approach

The paper builds on current research on linkages and customer consequences within the means‐end approach and on a qualitative case study in the context of website use in business‐to‐business relationships.

Findings

The paper introduces six types of linkages between characteristics of a service and customer consequences: common and unique, conflicting and non‐conflicting, and homogenous and heterogeneous linkages.

Practical implications

The paper portrays four cases of implications of the linkages for simplicity and homogeneity of the design of services and of their marketing strategies.

Originality/value

The ways in which characteristics of a service are linked with customer consequences of an engagement with the service are of crucial importance in marketing. Despite the importance, research on linkages is scarce. By considering currently neglected aspects such as different units of analysis, different relationships between characteristics and customer consequences, and diversity in characteristics and consequences, the paper introduces new types of linkages. It also depicts the relevance of the knowledge of the linkages for portraying customer value fully.

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Article
Publication date: 18 January 2013

Tor W. Andreassen and Sandra Streukens

The purpose of this paper is twofold. First, develop and test a conceptual model to understand customers’ intention to adopt online complaining. Second, to assess two…

Abstract

Purpose

The purpose of this paper is twofold. First, develop and test a conceptual model to understand customers’ intention to adopt online complaining. Second, to assess two competing perspectives regarding elaboration likelihood for the moderating impact of individual differences.

Design/methodology/approach

A scenario‐based survey was used to assess respondents’ beliefs, attitude, and usage intentions toward online complaining. Furthermore, individual and situational characteristics were assessed. The data were analyzed using partial least squares path modeling.

Findings

Attitude toward online complaining is a function of both process and outcome beliefs. It is also influenced by individual characteristics, but remains unaffected by situational characteristics. In contrast, usage intentions are influenced by situational characteristics, but by personal differences. For the moderating impact of affect‐based personality characteristics, the often used cognitive effort perspective to elaboration likelihood is not supported. Rather the consumption value perspective applies for these variables.

Research limitations/implications

The use of a single setting, as well as the use of scenarios, may negatively impact external validity. Future research is needed to further explain the contradictory perspectives regarding information processing.

Practical implications

The results provide insight into determinants of customer online complaining. This opens up new possibilities to increase the number of complainants in case of service failures and for firms to take corrective action.

Originality/value

To the authors’ best knowledge, this is a first empirical study aimed at understanding what drives online customer complaining.

Details

Managing Service Quality: An International Journal, vol. 23 no. 1
Type: Research Article
ISSN: 0960-4529

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Article
Publication date: 25 November 2013

Patti Collett Miles

This study aims to examine how firm strategy may affect customer satisfaction in relationship to service the characteristics of quality, servicescape and value…

Abstract

Purpose

This study aims to examine how firm strategy may affect customer satisfaction in relationship to service the characteristics of quality, servicescape and value. Specifically, this research utilizes Porter's depiction cost leaders and differentiation strategy to suggest customers may be satisfied even if they rate value or quality lower than for another similar firm.

Design/methodology/approach

This research utilizes survey data gathered from 179 customers of four services representing two industry segments. Analysis of variance is utilized to test four hypotheses proposing firm strategy may affect customer rating of a service characteristic, while customers may still remain loyal with high levels of customer satisfaction.

Findings

The results support the assertion that customer expectations of firm strategy may enable firms in the same industry to receive very different ratings on service characteristics such as value, quality and servicescape, while having equally loyal and satisfied customers.

Practical implications

The results point to the importance of aligning firm strategy and operational decisions when seeking to maximize customer satisfaction. Decision-makers benefit from understanding how strategy matters in service operational choices.

Originality/value

This research connects strategy and operations academic disciplines, highlighting the importance of linking firm competitive strategy with service operation choices to enhance customer satisfaction. The model developed here, supported with empirical results, provides decision-makers with an important tool to help determine the competitive payoff for investment in service dimensions.

Details

International Journal of Quality and Service Sciences, vol. 5 no. 4
Type: Research Article
ISSN: 1756-669X

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Book part
Publication date: 20 September 2014

Hui Zhang, Shu Cole, Xiucheng Fan and Myungja Cho

As the hospitality industry is shifting its focus from service to experience, customers are becoming co-creators of the perceived value of a hospitality service because…

Abstract

As the hospitality industry is shifting its focus from service to experience, customers are becoming co-creators of the perceived value of a hospitality service because experiences customers obtained when consuming a hospitality service involve the participation of the customers. Thus, more research is needed to examine the relationships among consumer’s personal factors and their evaluations of hospitality services. This study developed and tested hypotheses that examined the effects of customers’ intrinsic characteristics on their evaluations of a restaurant service. Data were collected from college students in the United States (n = 220) and China (n = 254) using a scenario approach. Findings reveal that customers’ gender, personality, and cultural background had significant effects on their evaluations of a restaurant service. Specifically, female customers rated the same service higher than male customers on the reliability dimension of service quality and overall service quality; customers with personalities of extroversion, conscientiousness, agreeableness, and openness rated the service higher than customers with neuroticism personality on the responsiveness dimension; and customers in individualistic cultures rated the service higher than those in collectivistic cultures on most of the service evaluation measures. Implications of the study’s findings are discussed.

Details

Advances in Hospitality and Leisure
Type: Book
ISBN: 978-1-78441-174-9

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Book part
Publication date: 2 June 2015

Maureen L. Ambrose, Regina Taylor and Ronald L. Hess Jr

In this chapter, we examine employee prosocial rule breaking as a response to organizations’ unfair treatment of customers. Drawing on the deontic perspective and research…

Abstract

In this chapter, we examine employee prosocial rule breaking as a response to organizations’ unfair treatment of customers. Drawing on the deontic perspective and research on third-party reactions to unfairness, we suggest employees engage in customer-directed prosocial rule breaking when they believe their organizations’ policies treat customers unfairly. Additionally, we consider employee, customer, and situational characteristics that enhance or inhibit the relationship between employees’ perceptions of organizational policy unfairness and customer-directed prosocial rule breaking.

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Article
Publication date: 21 August 2017

Frederic Ponsignon, Francois Durrieu and Tatiana Bouzdine-Chameeva

The purpose of this paper is to explore the experience design phenomenon in the cultural sector. Specifically, it purports to articulate a set of design characteristics

Abstract

Purpose

The purpose of this paper is to explore the experience design phenomenon in the cultural sector. Specifically, it purports to articulate a set of design characteristics that support the alignment between an organisation’s design intention (i.e. intended experience) and the actual experience of customers (i.e. realised experience).

Design/methodology/approach

A single case study approach is adopted to explore the phenomenon from both the provider and customer perspectives simultaneously. A range of qualitative data, including 42 interviews with managers and customers as well as voluminous documentary evidence, are collected. Provider and customer data are analysed independently using a rigorous inductive analytical process to generate experience design themes and to assess possible gaps between intended and realised experience.

Findings

The findings reveal the design characteristics of touchpoints and the overall customer journey, which constitute the core experience, as well as the design characteristics of the physical and social environment, which support the realisation of the core experience, in a cultural context.

Research limitations/implications

Limitations include difficulties in generalising the findings from a single case and in claiming that the set of design characteristics identified is exhaustive.

Practical implications

The paper makes several recommendations that are useful and relevant for customer experience practitioners in the cultural sector.

Originality/value

The paper’s contribution is to provide novel empirical insights into the four experience design areas of touchpoints, journey, physical elements and social elements in an experience-centric cultural context. On that basis, a conceptual framework for experience design in the cultural context is proposed.

Details

Journal of Service Management, vol. 28 no. 4
Type: Research Article
ISSN: 1757-5818

Keywords

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