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Studies in services management from the different perspectives of marketing, operations, human resources and psychology support the existence of a variety of links between organisations and their customers. The basic premise asserts that organisational characteristics and practices are linked to employee attitudes that are reflected in service quality outcomes, customer satisfaction and loyalty and, consequently, profit. Empirical studies support many of these associations and streams of research link them into linear sequences. However, the evidence is not unequivocal and this review challenges it by highlighting the complexity and non‐linearity of many of the proposed links, and the existence of reciprocity between certain variables. In synthesising the evidence in relation to the proposed links, the paper also identifies conceptual and methodological issues, unanswered questions and potential future research.

Evidence in the literature has indicated that customer-linking marketing capabilities such as customer relationship management (CRM) and brand management are important drivers of marketing performance and that marketing analytics use (MAU) enables firms to gain valuable knowledge and insights for improving firm performance. However, there has been little focus on how firms improve their CRM and brand management via MAU. This study aims to draw on the absorptive capacity theory, research on marketing capabilities and marketing analytics to examine the capability-developing mechanisms that enable a firm to use marketing analytics to enhance its CRM and brand management capabilities, thereby improving its marketing performance.

A research model is developed and tested based on an analysis of 289 responses collected using an online survey from middle and senior managers of Chinese firms with sufficient knowledge and experience in using marketing analytics for survey participation.

The findings demonstrate that MAU is positively related to both CRM and brand management capabilities, which in turn are positively associated with marketing performance; and that both CRM and brand management capabilities mediate the relationship between MAU and marketing performance.

The study’s outcomes were based on data collected from a survey, which was distributed using mass e-mails. Thus, the study is unable to provide a meaningful response rate. The research results are based on and limited to Chinese firms.

MAU is essential for enhancing customer-linking marketing capabilities such as CRM and brand management, but it alone is not sufficient to improve marketing performance. Firms wishing to improve marketing performance should leverage the knowledge and insights gained from MAU to enhance their critical customer-linking marketing capabilities.

This study explicates the capability-developing mechanisms through which a firm can use its market-sensing capability as manifested by MAU to enhance customer-linking marketing capabilities and to improve its marketing performance. In so doing, this study extends our understanding of the critical role of absorptive capacity in helping firms identify, assimilate, transform and apply valuable external knowledge.

The purpose of this paper is to explore the relationship between the customer-contact employees’ (CCE) empowerment and customer performance indicators, namely, perceived service quality (PSQ), customer satisfaction (CS), customer loyalty (CL) and word-of-mouth (WOM). The authors deepen the analysis by highlighting the mediating role of the dimensions of the customer relationship management (CRM) effectiveness in this link. The authors also investigate links between customer performance indicators.

An empirical study was carried out on the basis of a questionnaire administrated to a sample of 215 Tunisian bank CCE and 516 customers. Data analysis was performed using the structural equation modeling method.

Findings reveal that the CCE’ empowerment contributes to PSQ, CS and all the dimensions of CRM effectiveness which in turn are key factors of customer performance. This research also outlines the mediating role of two dimensions of the CRM effectiveness, namely, organizational commitment and customer experience between CCE’ empowerment and PSQ and CS, respectively. In addition, the study highlights that PSQ improves CS which is positively linked to CL. Finally, loyal customers tend to generate positive WOM.

Few studies have investigated the effects of the CCE’ empowerment on PSQ, CS, CL and positive WOM, especially in the banking sector. This research fills this gap by highlighting the mediating role of the dimensions of the CRM effectiveness in these links. This paper offers interesting insights to bankers by providing them with tools to improve their customers’ relationship. In this sense, banks must bet on the proximity of the CCE as a key asset that allows creating a real sense of closeness with customers and offers lighting to banks on how to create customized marketing approaches to ensure customer performance.

The purpose of this paper is to understand how firms manage their product and service offerings, integrating supply chain management (SCM) and demand chain management (DCM) strategies. Adding services to the product portfolio of a firm may bring benefits to an organisation, but requires a reconsideration of the supply chain management approach.

A survey is used to collect data, with valid questionnaires obtained for 4,227 UK-based respondents. Empirical analysis utilises structural equation modelling (SEM).

The paper proposes that a combination of management approaches is required by firms which add services to their portfolio of traditional product offerings. A supply chain management approach may be suitable for traditional product offerings. The management of the services value chain, where the customers' role as value creator is a central feature of the construct, is better served by integration of the market orientation of DCM.

The paper addresses a research gap related to the shift in traditional activities carried out by a firm moving from purely product to a product service offer and reconsiders the supply and demand chain management approach. The paper is from a Business to Consumer (B2C) perspective. In this context, the work pioneers analysis into a particular case where a firm's product and service offerings may be substitutes for each other in the eyes of the customer.

The purpose of this paper is to examine if the service worker's display of smiles in the service encounter has an effect on customer satisfaction.

An experimental design was used in which participants (N=220) were randomly allocated to one of four service encounters. Two variables were manipulated; the service worker with whom the participant interacted had either a neutral facial expression or a smiling facial expression, and the service worker was either male or female.

The smiling service worker produced a higher level of customer satisfaction than the neutral service worker, regardless of the sex of the service worker (and the sex of the participant). In addition, the results indicate that this outcome involved both emotional contagion and affect infusion.

This paper extends the service literature's discourse on the impact of the service worker's smile behavior on customer satisfaction by including intermediate variables such as appraisals, emotions, and the attitude toward the service worker.

The purpose of this paper is to investigate the explanatory power of the service-profit chain (SPC) model in a context that differs from its original conception. The authors do so by considering whether the main relationships it proposes apply in the context of call centre services, characterised by remote services and cost cutting business models.

The data were gathered from a survey of call centre management with a sample of 937 call centres from 14 countries. The analysis was carried out using structural equation modelling.

Findings reveal that the SPC model behaves somewhat differently in call centres. Although there is general support for most of the links in the model, the results indicate that customer satisfaction in the call centre industry is a separate outcome, rather than a precursor to company performance.

As is common in most research of this type, the present study is based on cross-sectional data.

Managers would be well advised to keep in mind that even minimum investments in human capital can make a difference in customer satisfaction and company results.

This is the first study to examine the main links in the SPC in non-traditional, non-face-to-face services. It demonstrates that the basic logic of the model is upheld, thus providing evidence that the boundaries of the SPC model may be further pushed in line with the peculiarities of the evolving service economy. Also, the authors make a methodological contribution by proposing a series of organisational level proxies for measuring elements of the chain that are typically assessed using individual level data that is expensive to gather.

This study aims to focus on what types of atmospheric experiences emotionally touch visitors at a winter park. The objective is to describe and explain the relationship between: three atmospheric constructs (ambience, interaction, and design); the construct of joy; and the construct of customer loyalty.

The research data are based on a study of customers visiting a Norwegian winter park, in which 162 visitors participated in the survey. Confirmatory factor analysis and structural equation modeling were used to test the measurements and structural properties between atmospheric experiences, joy, and loyalty to winter parks.

The findings reveal that two out of the three constructs of atmospheric experiences are linked to customers' feelings of joy, namely, design and interaction. The atmospheric construct of design had the strongest impact on customers' emotions. Furthermore, the study finds that customers' feelings of joy are highly related to the construct of customer loyalty.

The study limits its focus to one type of hedonic service, namely customers visiting a winter park. Although the results from the study offer implications for other winter parks, there is a need for further research in other hedonic services to verify their validity, reliability, and generality.

The study emphasizes how important it is that managers of hedonic services consider the significance of the atmospheric construct of design in such a way that it contributes positively to customers' experiences of the service setting. In particular, managers should focus on design in relation to customers' experiences in order to evoke feelings of joy.

The study establishes the need to manage customers' atmospheric experiences in winter parks. It also links atmospheric constructs to customers' emotions.

The purpose of this paper is to develop and test a model examining the key factors that emerge from the social customer relationship management (CRM) process. Specifically, this study aims to address the chain-of-effects that occurs as a result of the social CRM process, leading to superior levels of hotel performance.

Data were collected using a quantitative approach. Using a mail and online questionnaire, data were gathered from 120 key informants in hotels in Ireland. The proposed model was tested using partial least squares structural equation modelling.

Results demonstrate that the social CRM activities of hotels enhance hotel service innovation activities. This positively impacts the ability to develop a customer-linking capability, resulting in higher levels of customer performance. In turn, higher levels of customer performance leads to higher levels of financial performance.

Service innovation and customer-linking capability are identified as critical outcomes of the social CRM process that lead to enhanced hotel performance.

This study explains the chain-of-effects through which the social CRM process results in higher levels of performance.

Models of value creation that have been proposed for supporting value-based management are described and analyzed, including the Balanced Scorecard, the Baldrige Quality Award Criteria, the Deming Management Method, the Service-Profit Chain, and the Skandia Intellectual Capital Model. These models are compared, their potential for guiding the identification of value drivers and performance measures for value-based management is assessed, and management issues that must be addressed if such models are to contribute to long-run value creation are explored. These issues include causally linking value drivers to each other and to financial outcomes, the extent to which the models take a dynamic, or whole-system, view of value creation, and whether multiple value drivers should be explicitly weighted and combined to form a “value index.” Finally, the substantial body of research evidence linking intangible value drivers to financial outcomes is reviewed, and some directions for further research are offered.

Quality Function Deployment (QFD) proposes to take into account the “voice of the customer,” through a list of customer needs, which are (qualitatively) mapped to technical requirements in House One. But customers do not perceive products in this space, nor do they not make purchase decisions in this space. Marketing specialists use statistical models to map between a simpler space of customer perceptions and the long and detailed list of needs. For automobiles, for example, the main axes in perceptual space might be categories such as luxury, performance, sport, and utility. A product’s position on these few axes determines the detailed customer requirements consistent with the automobiles’ position such as interior volume, gauges and accessories, seating type, fuel economy, door height, horsepower, interior noise level, seating capacity, paint colors, trim, and so forth. Statistical models such as factor analysis and principal components analysis are used to describe the mapping between these spaces, which we call House Zero.

This paper focus on House One. Two important steps of the product development process using House One are: (1) setting technical targets; (2) identifying the inherent tradeoffs in a design including a position of merit. Utility functions are used to determine feature preferences for a product. Conjoint analysis is used to capture the product preference and potential market share. Linear interpolation and the slope point formula are used to determine other points of customer needs. This research draws from the formal mapping concepts developed by Nam Suh and the qualitative maps of quality function deployment, to present unified information and mapping paradigm for concurrent product/process design. This approach is the virtual integrated design method that is tested upon data from a business design problem.