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Drawing on signaling theory, this paper aims to argue in favor of a “placebo outsourcing effect” (POE) consisting of a positive relationship between provider’s bluffing and customer satisfaction.

The authors applied prediction-oriented segmentation SEM on a dyadic sample of 171 outsourcing relationships.

The authors highlighted two segments that display a form of POE, representing about three-quarters of the customer-provider dyads. The first segment exhibits a positive relationship between the provider’s bluffing and customer satisfaction that is further strengthened by the provider’s reputation and customer’s operational capabilities, while for the other segment, the provider’s bluffing has positive interactions with both operational capabilities and outsourcing experience. These findings show that service providers have reached the bluffing proficiency that enables them to bluff customer firms with varying levels of operational capabilities and outsourcing experience by using the most appealing signals for every type of customer.

Based on the findings, the authors provided to customer firms extensive guidelines to avoid the POE by frustrating service provider’s bluffing proficiency.

This study’s originality resides in the amendment of the disconfirmation paradigm of satisfaction in the outsourcing context by introducing and testing the POE.

The purpose of this paper is to assess, clarify and consolidate the terminology around the co-creation of services, establish its forms and identify its outcomes, to resolve the conceptual pluralism in service co-creation literature.

A focused literature review screened the articles published in five major service research journals to determine relevant contributions on the concept of co-creation of services. Then, a thematic analysis identifies the forms, themes and outcomes of co-creating services in the set of 80 qualifying articles.

The study reduces conceptual pluralism by establishing different forms of co-creating services and developing an explicit definition of co-creation in services. The authors develop an integrative framework that recognizes involvement, engagement and participation as prerequisites for co-creation. Relating to the different phases of the service process, the specific co-creation forms of co-ideation, co-valuation, co-design, co-testing and co-launching are classified as regenerative co-creation, while the specific co-creation forms of co-production and co-consumption are recognized as operative co-creation. Both beneficial and counterproductive outcomes of co-creation are identified and arranged into a typology.

The integrative framework illustrates that service providers and customers are involved, engaged and participate in co-creating services, which manifests in specific forms of co-creation; they attain beneficial and counterproductive outcomes (personal, social, hedonic, cognitive, economic and pragmatic); and are influenced by a contextual multi-actor network.

Co-creation in services is actionable; the typology of outcomes suggests service managers ways to motivate customers and employees to participate in co-creating services.

This paper defines and establishes the conceptual forms of co-creating services and the identified outcomes, and develops an integrative framework of co-creation in services.

The purpose of this paper is to describe and conceptualize customer relationships in the financial service sector, focussing on three aspects of customer-bank relationships: the financial service provider perspective, the customer-provider dyad, and the customer context.

Through a short review of the eight papers included in this special issue, this paper illustrates different aspects of customer relationships. It explores customer value formation in the context of banking services, the dynamics and strength of customer relationships, and strategies for financial service provision and consumer trust.

Customer relationships in the financial service sector are increasingly dynamic and unpredictable. This may be due to both activities within the control of financial service providers, such as strategies for service provision, but is more often attributable to factors beyond the control of providers. What empowered customers are doing in their own settings influences their attitudes toward and evaluations of financial services.

The paper is conceptual. It challenges the firm-centric approach to customer relationships and compares different perspectives of customer relationships. The significance of the customer-centric perspective is emphasized.

Awareness of uncontrollable and idiosyncratic aspects of customer relationships will offer financial service providers new opportunities for being present in the customers’ lives and business.

This paper illustrates the importance of extending the focus from what financial service providers are doing to what customers are doing within their own domains. Financial service providers need to understand more about their customers than their perceptions of service quality, satisfaction, and loyalty in different distribution channels, such as internet and mobile banking. The focus should be instead on how customers integrate their financial activities and experiences in their own life or business.

This paper aims to examine the notion of value propositions (promises of reciprocal value between service providers and their customers), value‐in‐exchange and value‐in‐use, all within the conceptual context of service‐dominant (S‐D) logic.

Responding to calls in the recent literature for an academic critique of S‐D logic, its key constructs, and its application in marketing situations of varying complexity, the paper presents a conceptual analysis of the determinants of value emphasis in value propositions from the S‐D perspective.

Four guiding principles are derived from a rigorous analysis of the relevant literatures. Ways are discussed in which firms might achieve greater flexibility in designing their market offerings, and thus manage different customer segments using different value propositions. The general conclusion is that the ability to communicate a firm's value propositions strategically and effectively is a new area for the development of competence at the core of competitive advantage.

The findings pave the way for empirical research into the dynamics of value propositions. Since the main focus of the conceptual framework is on the customer‐provider dyad, future studies should broaden coverage to multilateral settings and networked environments.

Factors that determine the relative emphasis in value propositions between value‐in‐exchange and value‐in‐use are discussed, and the management implications derived from each of the four principles identified.

The paper elaborates the application of S‐D logic in marketing by investigating the determinants of relative emphasis of value propositions.

The peer-to-peer (P2P) accommodation-sharing market has developed rapidly on the strength of information technology in recent years. Matching providers and customers in an information technology (IT)-enabled platform is a key determinant of both parties' experiences and the healthy development of the platform. However, previous research has not sufficiently explained the mechanism of provider–customer matching in accommodation sharing, especially at the psychological level. Based on field cognitive style theory, this study examines how the match and mismatch affect customers' online and offline satisfaction and whether a significant difference exists between online and offline satisfaction under different matching patterns.

The authors test the proposed theoretical model using 122 provider–customer dyad data collected through a field study.

The results suggest that customers' online and offline satisfaction under match is significantly higher than that under mismatch. In addition, customers' online satisfaction is significantly higher than their offline satisfaction under mismatch, but there is no significant difference between the two under match. The perceived price fairness also plays a moderating role in the case of mismatch.

In summary, these findings provide a novel understanding about the matching patterns and their outcomes in the accommodation-sharing context and expand the contents and applications of field cognitive style theory and matching theory. This study will help these IT-enabled platforms to provide personalized matching services at the psychological level, thereby enhancing user experience and corporate competitiveness. 10; 10;

This paper aims to extend understanding of business-to-business relationship dynamics by introducing and discussing the phenomenon of a “negative critical wave” (NCW), defined as a disturbance in a relationship that emerges and develops within or beyond individual working relationships.

The dynamics of working relationships in two manufacturing firms in Finland and Sweden were studied by analysing the narratives of unstructured personal interviews with 16 middle managers and 14 operational executives, who recalled experiences of relevant situations over three years, with emphasis on unexpected disturbances, challenges and problems.

Respondents discussed 77 NCWs, the development and effect of which proved to depend upon the original “locus”, “magnitude” and “amplitude”, and embedded “energy”. Waves could be distinguished as: “silent compact”, “silent extensive”, “intense compact” or “intense extensive”.

The wave metaphor for relationships dynamics, consistent with but distinct from established notions of “critical time” and “critical incidents” and the associated classification system are a useful starting point for further research into the phenomenon. Though the qualitative methodology achieved richness, the small sample and restricted scope place limits on the objectivity and generalisability of the findings.

The NCW framework offers strategists and managers a holistic understanding of the dynamic process of criticality, synthesising the complexities of relationship dynamics and pointing to ways in which to absorb the energy of negative waves.

More is now known about the domino effects of critical incidents in internal and external business-to-business relationships.

This study aims to examine how the modern marketing expectation of treating the customer like a king can become a source of power differential in societies that already have a predisposition for hierarchical structures. The authors explore how this marketing-generated power differential might have an adverse impact on service providers in Eastern cultures with high power distance.

Four studies involving receivers and providers of services in Canada and South Korea were conducted. The experiments required participants to read service scenarios and respond to survey questions.

The authors find that practicing the “The Customer is King” philosophy does produce a power differential between the customer and the service provider in Eastern cultures. In such cultures, customers may feel superior in social hierarchy compared to the service providers, may develop a sense of entitlement that infringes on the rights of the service providers and may carry over that expectation from service to non-service contexts. The power differential is also a source of stress for the service provider.

The use of scenarios in our experiments may limit the generalizability of the study’s findings.

Although sharing of best practices across cultures can be a worthwhile goal for managers, blind copying of some Western practices in Eastern markets can be problematic. The cultural context of markets calls for caution. In their quest for excellent customer service, managers should not let customers expect the service provider to become subservient and servile.

This study is the first attempt at examining the social impact of a marketing philosophy (customer is king) and how the outcomes might be different depending on the culture in which the philosophy is practiced.

The purpose of this paper is to suggest a typology of customer value cocreation activities and explore the psychological drivers and quality of life outcomes of such activities in a complex health care service setting.

Focus groups with people with Type 2 diabetes and in-depth interviews with diabetes educators were conducted.

Four types of customer value cocreation activities were found (mandatory (customer), mandatory (customer or organization), voluntary in-role and voluntary extra-role activities). In addition, health locus of control, self-efficacy, optimism, regulatory focus and expected benefits are identified as key psychological factors underlying the customers’ motivation to be active resource integrators and resulting in physical, psychological, existential and social well-being.

The study highlights the various types of customer value cocreation activities and how these affect the various quality of life dimensions.

In the contemporary hospitality industry, superior customer experiences are essential in gaining customer loyalty and achieving a competitive advantage. However, limited research addresses this subject. The purpose of this study is to advance scholarly research on customer experience management (CEM) in the hospitality field by providing a comprehensive overview of the key elements of CEM, a framework for managing customer experience and a rich agenda for research.

An extensive literature review produces a comprehensive overview of the existing knowledge of CEM. A synthesis of previous literature reveals the need for additional, contemporary information sources. The study is, therefore, supplemented by invited commentaries on CEM from senior scholars and hospitality managers.

The proposed model takes a holistic perspective on managing a positive customer experience, through collaboration among marketing, operations, design, human resources and strategy, in association with technology and social media.

The literature review and commentaries from leading experts reveal six areas for further research on CEM in the hospitality industry.

This study provides a comprehensive, systematic review of CEM literature and detailed understanding of the mechanisms for managing customer experiences in the hospitality industry. It integrates state-of-the-art CEM knowledge in the generic business context, along with principles of hospitality management, and advances CEM research by emphasizing the need for collaboration among marketing, operations and human resources.

People with complex health conditions must often navigate landscapes of uncoordinated public, private and voluntary health-care providers to obtain the care they need. Complex health conditions frequently transcend the scope of typical health-care service systems. The purpose of this paper is to explore and characterize such unique assemblages of actors and services as “user-defined ecosystems”.

Building on literature on customer ecosystems, this paper introduces the concept of the user-defined ecosystem (UDE). Using an abductive approach, the authors apply the concept in an interpretive, qualitative study of ten families with special needs children.

This study uncovers complex UDEs, where families actively combine a broad range of services. These ecosystems are unique for each family and extend beyond the scope of designed service ecosystems. Thus, the families are forced to assume an active, coordinating role.

This paper shows how to identify ecosystems from the user’s point of view, based on the selected user unit (such as a family) and the focal value-creating function of the ecosystem for the user.

This paper highlights how service providers can support and adapt to UDEs and, thus, contribute to user value and well-being. This can be used to understand users’ perspectives on service and systems in health and social care.

This study develops the concept of the UDE, which represents a customer-focused perspective on actor ecosystems and contrasts it with a provider-focused and a distributed perspective on ecosystems. This study demonstrates the practical usefulness of the conceptualization and provides a foundation for further research on the user’s perspective on ecosystems.