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1 – 10 of over 14000
Article
Publication date: 8 July 2014

James F. Devlin, Sanjit Kumar Roy and Harjit Sekhon

The purpose of this article is to derive, test and validate a comprehensive, inclusive measure of perceptions of fairness in consumers of financial services, as current attempts…

2534

Abstract

Purpose

The purpose of this article is to derive, test and validate a comprehensive, inclusive measure of perceptions of fairness in consumers of financial services, as current attempts to measure fairness in a broad-based multi-dimensional manner are underdeveloped.

Design/methodology/approach

A quantitative approach where a large-scale sample of the perceptions of financial services consumers is taken in three periods. Subsequently, exploratory and confirmatory factor analysis are used to analyse the data.

Findings

Fairness comprises three distinct but related elements, namely, procedural, interactional and distributive fairness, and further sub-dimensions are also apparent. The measurement scale exhibits a high degree of validity and reliability and represents a robust measure of fairness perceptions.

Research limitations/implications

Previous conceptual suppositions as to the multi-dimensional nature of fairness are strongly supported. A comprehensive scale is provided for fellow researchers to utilise in other settings. The main limitation is that the measures were tested in a single context, although this is offset by the large scale of the pilot exercise and multiple waves of data collection.

Practical implications

Perceptions of fairness can be measured accurately and tracked, measures for sub-dimensions of fairness can be compared and differences among sectors and demographic segments can be explored. Perceptions of fairness can be related to factors such as trust and purchase intentions in addition to other attitudinal measures.

Originality/value

The fairness measure developed, tested and validated here is the most comprehensive, multi-dimensional measure of fairness available that the authors know of. As such, it represents a valuable conceptual contribution to the assessment of perceptions of fairness.

Details

European Journal of Marketing, vol. 48 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 4 April 2016

Harjit Singh Sekhon, Sanjit Kumar Roy and James Devlin

The purpose of this paper is to examine fairness within financial services. In making the contribution the authors examine fairness by four different channels to market and across…

1527

Abstract

Purpose

The purpose of this paper is to examine fairness within financial services. In making the contribution the authors examine fairness by four different channels to market and across a range of financial services products. The product categories in the study are those with the highest density levels in the UK.

Design/methodology/approach

Underpinned by the development of new measures, this paper is based on telephone interviews and on-line surveys with UK customers of financial services. More than 1,000 customers participated in the survey during the middle of 2013. After reporting the measurement model, the authors use ANOVA to report the differences in the perception of the dimensions of fairness by channel to market.

Findings

The authors found there to be significant differences in perceptions using different channels to market. The research shows that where a face-to-face interaction takes place, such as branch contact, they are perceived to be fairer than when interactions are more remote. Given the dimensions of fairness, this reveals the importance of communications during explanations so that interactions are deemed to be fair.

Research limitations/implications

The focus of this research was the examination of fairness within the setting of the UK’s financial services sector. The authors are minded that if the research is replicated in other countries or contexts then different aspects of fairness might emerge.

Practical implications

Given the challenges faced by the financial services sector, there are implications for practitioners because they must be seen to be treating customers fairly. The research shows that remote contact such as the internet is not perceived as being as fair as face-to-face contact. The fair treatment of customers is likely to lead to positive brand benefits.

Originality/value

This study complements the understanding of fairness and provides insight for scholars and practitioners, within financial services.

Details

International Journal of Bank Marketing, vol. 34 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 9 November 2015

Apostolos Giovanis, Pinelopi Athanasopoulou and Evangelos Tsoukatos

The purpose of this paper is to extend the well-established nomological network of service quality-relationship quality-customer loyalty by introducing service fairness – a…

6707

Abstract

Purpose

The purpose of this paper is to extend the well-established nomological network of service quality-relationship quality-customer loyalty by introducing service fairness – a distinct service evaluation concept. Specifically, the study aims to investigate the impact of service fairness on relationship quality as a complementary to service quality driver, and the direct and indirect effect of service fairness on customer loyalty in the presence of service quality and relationship quality in a no failure/recovery effort service context.

Design/methodology/approach

A telephone survey of a random sample of 408 customers of auto repair and maintenance services was implemented using a structured questionnaire with established scales. Data were analyzed with partial least squares path methodology, a structural equation modeling methodology.

Findings

Interactional fairness is the most important formative determinant of customers’ overall fairness perception, followed by procedural and distributive fairness. Relationship quality measured as a higher order construct, made of satisfaction; trust; affective and calculative commitment, is the main determinant of customer loyalty. Also, it partially mediates, along with service quality, the relationship between service fairness and customer loyalty and fully mediates the effect of service quality on customer loyalty. Finally, service fairness has the highest overall effect on customer loyalty.

Research limitations/implications

The sample is industry-specific and this may affect generalizability of findings. Also, the cross-sectional design adopted does not reflect temporal changes.

Practical implications

Interactional fairness is of utmost importance to customers of the investigated industry. So, customers should be fairly treated at every point of contact. Also, service quality is heavily affected by service fairness. Thus, fair service leads to high-perceived service quality. Third, service quality affects customer loyalty only through relationship quality. Only when service quality is coupled by long-term quality relationships, signs of customer loyalty appear. Finally, service fairness influences customer loyalty mainly through service and relationship quality and has the highest overall effect on customer loyalty. So, fairly treating customers is crucial for developing long-term relationships that lead to customer loyalty.

Originality/value

The role of service fairness in the service quality-relationship quality-customer loyalty chain is investigated and using a higher order construct for relationship quality.

Details

Journal of Service Theory and Practice, vol. 25 no. 6
Type: Research Article
ISSN: 2055-6225

Keywords

Book part
Publication date: 23 September 2014

Chong M. Lau and Vimala Amirthalingam

Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance measurement…

Abstract

Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance measurement systems to communicate information to their employees, it is useful to ascertain if and how the developments of performance measurement systems that are far more comprehensive than traditional financial systems affect employees’ perceptions of informational fairness through the information communicated to employees. Informational fairness refers to employees’ perceptions of workplace fairness that is based on the amount and the truthfulness of information that organizations provide to their employees. Based on a sample of managers from manufacturing organizations, the Partial Least Square results indicate that comprehensive performance measurement systems (comprehensive PMS) have a significant direct effect on job-relevant information. They also indicate that comprehensive PMS have an indirect effect on informational fairness via job-relevant information. In contrast, systems that are based on financial measures have no significant effects on job-relevant information and informational fairness. These results demonstrate how comprehensive PMS (through the communication of a greater amount of job-relevant information) can be used to engender employees’ perceptions of high workplace fairness.

Book part
Publication date: 10 June 2015

Russell Cropanzano, Marion Fortin and Jessica F. Kirk

Justice rules are standards that serve as criteria for formulating fairness judgments. Though justice rules play a role in the organizational justice literature, they have seldom…

Abstract

Justice rules are standards that serve as criteria for formulating fairness judgments. Though justice rules play a role in the organizational justice literature, they have seldom been the subject of analysis in their own right. To address this limitation, we first consider three meta-theoretical dualities that are highlighted by justice rules – the distinction between justice versus fairness, indirect versus direct measurement, and normative versus descriptive paradigms. Second, we review existing justice rules and organize them into four types of justice: distributive (e.g., equity, equality), procedural (e.g., voice, consistent treatment), interpersonal (e.g., politeness, respectfulness), and informational (e.g., candor, timeliness). We also emphasize emergent rules that have not received sufficient research attention. Third, we consider various computation models purporting to explain how justice rules are assessed and aggregated to form fairness judgments. Fourth and last, we conclude by reviewing research that enriches our understanding of justice rules by showing how they are cognitively processed. We observe that there are a number of influences on fairness judgments, and situations exist in which individuals do not systematically consider justice rules.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78560-016-6

Keywords

Open Access
Article
Publication date: 16 October 2017

Rita Faullant, Johann Fueller and Katja Hutter

Companies are discovering the power of crowdsourcing as a source of new ideas for products and services. It is assumed that the personal engagement and the continuous involvement…

4816

Abstract

Purpose

Companies are discovering the power of crowdsourcing as a source of new ideas for products and services. It is assumed that the personal engagement and the continuous involvement with a company’s products or services over a period of several weeks positively affect participants’ loyalty intentions toward the host companies. The research leads the authors to challenge this assumption. In addition to mere participation in crowdsourcing initiatives, the authors argue that perceptions of fairness will explain changes in customer relationship-related consequences such as loyalty, perceived innovativeness and product interest. The paper aims to discuss these issues.

Design/methodology/approach

The authors analyzed a real-life crowdsourcing contest launched by a leading lighting manufacturer and investigated the impact of two fairness dimensions (distributive and procedural) on participants’ future behavioral and attitudinal intentions (n=121). The analysis was performed with SEM.

Findings

The results suggest that fairness perceptions are significantly related to evoked product interest, perceived innovativeness and loyalty intentions. The analysis reveals that the influence of the fairness dimensions is asymmetric: while distributive fairness can be considered as a basic factor that must be fulfilled in order to avoid negative behavioral consequences, procedural fairness instead is an excitement factor that causes truly positive behavioral consequences.

Research limitations/implications

The results are particularly relevant for companies launching a crowdsourcing competition under their own brand name, and for broadcasting platforms. For companies with no relations to end-users, these findings may not be as relevant.

Practical implications

Organizers of crowdsourcing contests should be aware that such initiatives can be a double-edged sword. Fair Play is a must to gain the positive effects from crowdsourcing initiatives for both new product development and the customer relationship. For companies lacking the capabilities to manage crowdsourcing initiatives professionally it is advisable to rely on intermediary broadcasting platforms.

Originality/value

The research is the first to investigate systematically the consequences of fairness perceptions in a real-life crowdsourcing idea contest. The authors demonstrate the asymmetric nature of fairness perceptions on three different outcome variables that are important for the customer relationship.

Details

Management Decision, vol. 55 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 16 January 2009

Ruth Klendauer and Jürgen Deller

The purpose of this paper is to investigate whether perceptions of distributive, procedural and interactional justice can explain the frequently reported low organizational…

4590

Abstract

Purpose

The purpose of this paper is to investigate whether perceptions of distributive, procedural and interactional justice can explain the frequently reported low organizational commitment of managers in corporate mergers. Specifically, it aims to examine whether each of the justice dimensions is significantly and uniquely related to affective commitment, which of the justice dimensions has the strongest relationship with the criterion, and whether instrumental evaluations or trust might function as a mediator.

Design/methodology/approach

A total of 128 managers from 37 companies completed a questionnaire. They had been involved in domestic or European mergers or acquisitions, which varied in the application of fairness rules.

Findings

Although each fairness dimension correlated positively with affective commitment, only interactional justice showed a unique relationship with it. Results indicate that both instrumental evaluations and trust can function as a mediator.

Research limitations/implications

Because of the cross‐sectional design, conclusions about the causal order of the variables cannot be drawn.

Practical implications

The authors recommend that top managers should pay extra attention to timely, candid and specific internal communication with thorough and reasonable explanation of decisions, as well as the respectful treatment of managers. Moreover, the results indicate that managers reacted positively to fairness because it conveys positive relational signals, and because one can gain personal advantages through fair outcomes and processes.

Originality/value

The organizational justice approach has not yet been applied, to the authors' knowledge, in quantitative field studies of mergers. Furthermore, this paper offers a contribution to the literature on fairness heuristic theory.

Details

Journal of Managerial Psychology, vol. 24 no. 1
Type: Research Article
ISSN: 0268-3946

Keywords

Article
Publication date: 13 February 2017

Ateeque Shaikh, Saswata Narayan Biswas, Vanita Yadav and Debiprasad Mishra

The purpose of this paper is to develop, test and validate a measure of fairness in the context of franchisor-franchisee relationship and test for the dimensionality of fairness.

Abstract

Purpose

The purpose of this paper is to develop, test and validate a measure of fairness in the context of franchisor-franchisee relationship and test for the dimensionality of fairness.

Design/methodology/approach

The authors surveyed 300 franchisees of a large-scale franchisor in India. The authors employ confirmatory factor analysis (CFA) to analyse the data.

Findings

The authors tested four models of the fairness construct through CFA using structural equation modelling. The three-factor corrected model of the fairness construct exhibits comparatively better goodness of fit indices as compared to the other correlated models of the fairness construct. It clears the threshold level of validity and reliability test. The findings of the study suggest that the factor structure of fairness is three-factor correlated model with aspects of procedural fairness and informational fairness getting subsumed into one construct.

Research limitations/implications

Factor structure of fairness construct differs with earlier empirical research findings with both interpersonal fairness and informational fairness subsuming into each other to form one construct.

Practical implications

This measure can be utilized by franchisee managers to track perceptions of fairness among franchisees to manage the franchise relationship in a better way. Franchisees expect information sharing from the franchisor and not the representative of the franchisor.

Originality/value

To the best of the authors’ knowledge, this study is the first to develop a valid and reliable measure of fairness construct in the context of franchise relationship. This study also identifies factor structure of fairness construct.

Details

International Journal of Retail & Distribution Management, vol. 45 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 19 June 2019

Xiaoyun Han, Shujie Fang, Lishan Xie and Junfeng Yang

The purpose of this paper is to investigate the relationship between service fairness and customer satisfaction, and test the mediation role of customer psychological empowerment…

Abstract

Purpose

The purpose of this paper is to investigate the relationship between service fairness and customer satisfaction, and test the mediation role of customer psychological empowerment in this relationship.

Design/methodology/approach

A cross-sectional empirical study is designed to test the research model. Customers of retail bank in South China are surveyed. Regression analysis and structural equation model analysis are done with SPSS 21.0 and LISREL 8.72 separately.

Findings

The results indicate that: first, service fairness increases customer satisfaction. Specifically, distributive fairness, procedural fairness and interactional fairness affect customer satisfaction positively and directly, while informational fairness affects customer satisfaction indirectly. Second, customer psychological empowerment fully mediates the relationship between informational fairness and customer satisfaction, while plays a partial mediating role between distributive fairness, procedural fairness, interactional fairness and customer satisfaction. Third, four kinds of service fairness have different influences on three dimensions of customer psychological empowerment.

Practical implications

The findings provide suggestions for managers to improve customer psychological empowerment by treating customer fairly, and to increase customer satisfaction through empowering customer in services, especially for state-owned banks.

Originality/value

It is recognized that service fairness leads to customer satisfaction in marketing literature; however, the empirical research studies about this are rare. This research not only contributes to service fairness theory, but also enriches our understanding of customer empowerment in service process.

Details

Journal of Contemporary Marketing Science, vol. 2 no. 1
Type: Research Article
ISSN: 2516-7480

Keywords

Article
Publication date: 8 August 2018

Min-Seong Kim, Dong-Jin Shin and Dong-Woo Koo

Service fairness has been conceptualized as a major part of the foodservice industry due to the intangibility of foodservice, which is difficult to be evaluated by customers…

3095

Abstract

Purpose

Service fairness has been conceptualized as a major part of the foodservice industry due to the intangibility of foodservice, which is difficult to be evaluated by customers. Considering this challenge, this study investigates the impacts of perceived service fairness dimensions in encouraging brand citizenship behaviors (i.e. brand enthusiasm and brand endorsement) along with the mediating roles of brand trust and brand experience in the foodservice industry.

Design/methodology/approach

Based on an established framework of perceived service fairness, brand trust, brand experience and brand citizenship behavior, an exploratory conceptual model was formulated and empirically assessed. Survey data were collected from customers of casual dining franchise restaurants in Korea. Data analysis consisted of frequency analysis, reliability analysis, confirmatory factor analysis, correlation analysis and structural equation modeling.

Findings

The empirical results indicated that brand trust was significantly influenced by price, procedural, outcome and interactional fairness, while brand experience was significantly affected by price, outcome and interactional fairness. Additionally, brand trust and brand experience had positive influences on brand enthusiasm and brand endorsement, respectively.

Practical implications

A foodservice enterprise’s violation of customers’ fundamental need for fairness leads to negative outcomes, such as customers voicing the undesirable situation and/or leaving the restaurant. Thus, this study provides a strategy for maintaining service fairness to better develop brand relationships with customers in the restaurant industry.

Originality/value

There is a paucity of research on the effect of perceived service fairness on brand development in the restaurant industry. The findings provide greater insights into the impacts of perceived service fairness, brand trust and brand experience on customers’ brand citizenship behaviors.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 7
Type: Research Article
ISSN: 0959-6119

Keywords

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