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1 – 10 of 13Controversy exists about the shape of the relationship between loyalty and profitability. This paper aims to address the possibly nonlinear effects of behavioral loyalty (BLOY) on…
Abstract
Purpose
Controversy exists about the shape of the relationship between loyalty and profitability. This paper aims to address the possibly nonlinear effects of behavioral loyalty (BLOY) on customer spending (as a proxy for profitability). Building on social exchange theory and the norm of reciprocity, it examines the asymmetries between BLOY and customer spending and the moderating influence of personal communication (PCOMM) as a social reward and dispositional positive reciprocity as process evidence.
Design/methodology/approach
Study 1a (n = 309) gathered customer data from four restaurants and Study 1b (n = 252) data from hotel guests after they checked out. Study 2 is an experimental study with two manipulated factors (BLOY and PCOMM). In total, 295 participants from a large German online panel completed the study.
Findings
The results indicate an inverted-U shaped relationship between BLOY and customer spending: after reaching a turning point, customers gradually curb spending as their BLOY further increases. High PCOMM acts as a reciprocal response while triggering additional customer spending particularly at higher levels of behavioral loyalty; positive reciprocity adjusts the differences in customer spending when social rewards such as PCOMM are present.
Research limitations/implications
The asymmetric relationship between BLOY and customer spending is tested only for hedonic service settings.
Practical implications
Not all loyal customers spend more – companies need to meet their reciprocal obligations before they can benefit from increased customer spending.
Originality/value
The present research re-considers the nature of the relationship between BLOY and customer spending and reveals an inverted-U shaped relationship, with a turning point beyond which greater customer loyalty decreases customer spending. It finds converging process evidence for the mechanism of reciprocity underlying this relationship. This study also details the financial impact of BLOY on the firm by investigating actual customer spending.
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Victoria Kramer and Manfred Krafft
As empirical insights into when salespeople should integrate information and communication technology (ICT) into their sales tasks are limited, the purpose of this study is to…
Abstract
Purpose
As empirical insights into when salespeople should integrate information and communication technology (ICT) into their sales tasks are limited, the purpose of this study is to investigate the impact of salespeople’s ICT orientation on role stress by considering the interplay of individual salesperson characteristics and the complexity of the selling environment, differentiating between customer and supplier complexity.
Design/methodology/approach
The authors develop an empirical framework based on the Job Demands-Resources model and previous research in the area of technology in sales. They test their hypotheses by means of a survey of 255 business-to-business salespeople which is analyzed using ordinary least squares regressions.
Findings
The results of this study show that ICT orientation generally helps salespeople to reduce role ambiguity. However, the benefits salespeople derive from ICT orientation to reduce role conflict depend on an interplay of both their job tenure and the average relationship duration with customers as well as the complexity of the selling environment.
Originality/value
This study contributes to research on the impact of technology use on salespeople by enhancing the understanding of contexts that make ICT valuable for them. In particular, the findings of this study demonstrate that the impact of ICT orientation on salespeople’s role stress depends on an interplay of individual salesperson characteristics, that is, resources, and environmental complexity characteristics, that is, demands.
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Markus Ellmer, Astrid Reichel and Sebastian T. Naderer
The purpose of this paper is to generate insights into how multinational companies (MNCs) promote global mobility in their Employer Branding (EB) messages on Facebook.
Abstract
Purpose
The purpose of this paper is to generate insights into how multinational companies (MNCs) promote global mobility in their Employer Branding (EB) messages on Facebook.
Design/methodology/approach
The authors analyzed 13.340 EB messages found on the Facebook career pages of 30 major MNCs (10 of each in the US, UK and Germany) drawing on a methodological approach combining Grounded Theory and text-mining.
Findings
Building on the perspective of psychological contracts as sensitizing concept, the analysis of the overall sample reveals a range of core themes in EB messages across all MNCs studied. With regards to global mobility, MNCs emphasize relational, i.e. socio-emotional, contents, particularly, highlighting opportunities of experience and personal development. While global mobility is an overall marginal theme, German MNCs extensively promote global mobility, whereas US- and UK-based MNCs do not explicitly make it a subject of their messages. The findings are discussed in the light of institutional theory.
Originality/value
Despite mega-trend, little is known about social media EB, especially when it comes to the contents that MNCs communicate to (potential) employees. Applying an innovative methodological approach, the authors offer insights into these contents. Discussing the findings in the light of institutional theory, it is concluded that promoting global mobility in socio-emotional terms seems of high importance to reduce uncertainties associated with living and working abroad. This might help firms to hire internationally mobile employees, especially in countries where job mobility is generally low.
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Barbara Bigliardi, Eleonora Bottani, Serena Filippelli, Leonardo Tagliente and Karen Venturini
The aim of this paper is to explore whether open innovation is emerging in the Italian fashion industry.
Abstract
Purpose
The aim of this paper is to explore whether open innovation is emerging in the Italian fashion industry.
Design/methodology/approach
Based on available studies on innovation and open innovation, we first identified the main facets of open innovation within the industry investigated, such as the process of searching for new ideas, the involvement of external partners in the new product development process and the use of collaboration mechanisms between supply chain partners. Starting from these findings, the authors designed a semi-structured questionnaire that was used as a guideline for 15 case studies, carried out in the Italian fashion industry.
Findings
The outcomes from the case studies allow drawing some conclusions about the emergency of open innovation in the fashion industry and the related patterns.
Originality/value
Given its exploratory nature, this study is expected to start a debate about open innovation in the fashion industry, as well as to encourage future studies in this field.
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Marcello Risitano, Giuseppe La Ragione, Alessandra Turi and Marco Ferretti
The purpose of this article is to better understand the relevance of value creation in the interconnection amongst entrepreneurship, marketing and innovation by reviewing the…
Abstract
Purpose
The purpose of this article is to better understand the relevance of value creation in the interconnection amongst entrepreneurship, marketing and innovation by reviewing the literature.
Design/methodology/approach
The authors employed a systematic review methodology using the Preferred Reporting Items for Systematic Review and Meta-Analyses (PRISMA) protocol to analyse the literature in depth. The articles were selected from the Scopus database and dated from 1987 to 2021. An initial total of 1,158 articles was successively narrowed down to a final list of 123 papers matching the selection criteria. Moreover, content analysis on the sample was performed to explore and analyse whether value creation directly or indirectly appears as a goal or antecedent amongst entrepreneurship, marketing and innovation.
Findings
The findings suggest that the literature does not clearly define the topic linkage, and with the authors' results, the authors provide a comprehensive mapping of the contributions to a theoretical framework that synthesises knowledge. Moreover, the authors highlight that the interconnection between marketing and entrepreneurship, i.e. entrepreneurial marketing, requires an innovative approach for satisfying customer needs and creating value. Co-occurrence analysis of the keywords also allowed to identify four clusters that were open to new research streams.
Originality/value
Entrepreneurship, marketing and innovation are recognised research topics in the business and management literature. However, prior research has not provided clear and comprehensive evidence about how these three research topics are linked to each other. This work analyses the hidden relationship amongst them.
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Christopher Amaral, Ceren Kolsarici and Mikhail Nediak
The purpose of this study is to understand the profit implications of analytics-driven centralized discriminatory pricing at the headquarter level compared with sales force price…
Abstract
Purpose
The purpose of this study is to understand the profit implications of analytics-driven centralized discriminatory pricing at the headquarter level compared with sales force price delegation in the purchase of an aftermarket good through an indirect retail channel with symmetric information.
Design/methodology/approach
Using individual-level loan application and approval data from a North American financial institution and segment-level customer risk as the price discrimination criterion for the firm, the authors develop a three-stage model that accounts for the salesperson’s price decision within the limits of the latitude provided by the firm; the firm’s decision to approve or not approve a sales application; and the customer’s decision to accept or reject a sales offer conditional on the firm’s approval. Next, the authors compare the profitability of this sales force price delegation model to that of a segment-level centralized pricing model where agent incentives and consumer prices are simultaneously optimized using a quasi-Newton nonlinear optimization algorithm (i.e. Broyden–Fletcher–Goldfarb–Shanno algorithm).
Findings
The results suggest that implementation of analytics-driven centralized discriminatory pricing and optimal sales force incentives leads to double-digit lifts in firm profits. Moreover, the authors find that the high-risk customer segment is less price-sensitive and firms, upon leveraging this segment’s willingness to pay, not only improve their bottom-line but also allow these marginalized customers with traditionally low approval rates access to loans. This points out the important customer welfare implications of the findings.
Originality/value
Substantively, to the best of the authors’ knowledge, this paper is the first to empirically investigate the profitability of analytics-driven segment-level (i.e. discriminatory) centralized pricing compared with sales force price delegation in indirect retail channels (i.e. where agents are external to the firm and have access to competitor products), taking into account the decisions of the three key stakeholders of the process, namely, the consumer, the salesperson and the firm and simultaneously optimizing sales commission and centralized consumer price.
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Yudi Fernando, Muhammad Shabir Shaharudin and Ahmed Zainul Abideen
The study aims to propose a circular economy-based reverse logistics (CERL) that emphasises the mediation effect of reverse logistics (RL) on sustainable resource commitment and…
Abstract
Purpose
The study aims to propose a circular economy-based reverse logistics (CERL) that emphasises the mediation effect of reverse logistics (RL) on sustainable resource commitment and financial performance.
Design/methodology/approach
The structural equation modelling (SEM) approach has been applied to analyse the data acquired through the survey method that included 113 vendors of automotive supplies of the 1st and 2nd levels.
Findings
The results confirm that CERL acts as an essential intervening entity between resources and financial performance. The findings of the study have provided research and development (R&D) opportunities for the industries to find alternative revenue streams and generate profit from resource investment whilst upholding environmental standards through reverse logistic practices.
Practical implications
Reverse logistic practices are the key components of a circular business model and a sustainable supply chain. The manufacturing companies need to explore critical enablers that can contribute to business productivity and financial growth.
Originality/value
The study has validated a CERL model that portrays the circular economy's resilient relationship with RL practices.
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Ramatu Abdulkadir, Dante Benjamin Matellini, Ian D. Jenkinson, Robyn Pyne and Trung Thanh Nguyen
This study aims to determine the factors and dynamic systems behaviour of essential medicine stockout in public health-care supply chains. The authors examine the constraints and…
Abstract
Purpose
This study aims to determine the factors and dynamic systems behaviour of essential medicine stockout in public health-care supply chains. The authors examine the constraints and effects of mental models on medicine stockout to develop a dynamic theory of medicine availability towards saving patients’ lives.
Design/methodology/approach
This study uses a mixed-method approach. Starting with a survey method, followed by in-depth interviews with stakeholders within five health-care supply chains to determine the dynamic feedback leading to stockout and conclude by developing a network mental model for medicines availability.
Findings
The authors identified five constraints and developed five case mental models. The authors develop a dynamic theory of medicine availability across cases and identify feedback loops and variables leading to medicine availability.
Research limitations/implications
The need to include mental models of stakeholders like manufacturers and distributors of medicines to understand the system completely. Group surveys are prone to power dynamics and bias from group thinking. This survey’s quantitative output could minimize the bias.
Originality/value
This study uniquely uses a mixed-method of survey method and in-depth interviews of experts to assess the essential medicine stockout in Nigeria. To improve medicine availability, the authors develop a dynamic network mental model to understand the system structure, feedback and behaviour driving stockouts. This research will benefit public policymakers and hospital managers in designing policies that reduce medicine stockout.
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