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1 – 10 of 21Amin Nazifi, Dahlia El-Manstrly and Katja Gelbrich
This study aims to examine the effects of organizational tactics (e.g. explanation and monetary compensation) on customers’ reactions to service termination. The mediating role of…
Abstract
Purpose
This study aims to examine the effects of organizational tactics (e.g. explanation and monetary compensation) on customers’ reactions to service termination. The mediating role of anger and the moderating role of termination strategy on the effectiveness of organizational tactics are examined to enhance the understanding of customers’ reactions to service termination.
Design/methodology/approach
Three experimental studies are conducted with different contexts (telecom and banking) and samples (students and consumers).
Findings
Study 1 results show that explanation and high monetary compensation reduce negative word-of-mouth and enhance corporate image and anger mediates these effects. Study 2a results show that high monetary compensation becomes ineffective when firms use a soft termination approach. Study 2b results show that an explanation is equally effective in soft and hard termination approaches. Importantly, unlike high monetary compensation, the explanation can fully eliminate the negative consequences of service termination.
Practical implications
Managers can mitigate negative customers’ reactions to service termination by offering a truthful explanation. Further, they should provide high monetary compensation only if they do not help dismissed customers find an alternative provider.
Originality/value
This paper contributes to the service termination literature by shedding more light on the effectiveness of different organizational tactics following different termination strategies. The findings challenge existing wisdom on the overrated role of monetary compensation showing that in service termination, the explanation is the most effective remedy. Further, unlike justice, anger better explains customers’ reactions to service termination.
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Amin Nazifi, Dahlia El-Manstrly, Angela Tregear and Kristina Auxtova
This paper empirically examines the direct and indirect effects of perceived termination severity on customers' behavioral reactions via betrayal and justice. It also examines the…
Abstract
Purpose
This paper empirically examines the direct and indirect effects of perceived termination severity on customers' behavioral reactions via betrayal and justice. It also examines the moderating effects of attitude toward complaining (ATC).
Design/methodology/approach
This paper employs a quantitative method approach using a scenario-based experiment in a banking setting.
Findings
The results show that a more severe termination approach results in higher customer negative reactions. Betrayal is shown to be a key driver of customers' behavioral reactions, and ATC moderates these effects.
Research limitations/implications
Future studies should examine the effects of different termination strategies in markedly different cultures and should also examine other boundary conditions such as prior warning, relationship quality and service importance in influencing customers' negative behavioral responses.
Originality/value
This paper contributes to the service termination literature by shedding light on the impact of termination severity on customers' reactions. It also unveils the mechanism that explains customers' reactions to service termination. Further, it reveals that ATC moderates customers' public (but not private) complaining behaviors.
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Hauke Wetzel, Christina Haenel and Alexandra Claudia Hess
Profitability considerations lead service providers to terminate service contracts with low-value customers. However, customers targeted by service contract terminations often…
Abstract
Purpose
Profitability considerations lead service providers to terminate service contracts with low-value customers. However, customers targeted by service contract terminations often take revenge through negative word-of-mouth (NWOM). Presently, it is unclear how service contract termination initiatives prevent this harmful side effect. The purpose of this study is to compare the effectiveness of common service contract termination initiatives for reducing NWOM of customers whose service contracts are being cancelled. The study results provide guidance for minimizing the downside of service contract termination.
Design/methodology/approach
This study distinguishes between service contract termination initiatives common in practice (preannouncement, explanation, financial compensation, apology and support in finding an alternative provider). Drawing on a multi-industry survey of 245 customers who have experienced service contract terminations in real life, the authors estimate regression models to link perceived service contract termination initiatives to NWOM.
Findings
All else equal, only preannouncement and support in finding an alternative are effective to reduce NWOM. This study also shows that the right choice of service contract termination initiatives depends on the context of the termination. Making a preannouncement, offering an explanation and providing support in finding an alternative are more effective in reducing NWOM when these actions are aligned with the contextual factors of relationship duration and competitive intensity.
Research limitations/implications
This study shows that service contract termination needs to address several aspects of the service termination experience. The key implication for future research is that it matters in terms of NWOM how service contract terminations are performed.
Practical implications
This research identifies the service contract termination initiatives that are most effective to reduce NWOM after service contract termination in general and under consideration of the moderating roles of relationship duration and competitive intensity.
Originality/value
While most related studies have considered customer responses to the cancellation of other customers’ contracts, this study contributes to the scarce literature on the undesirable customer responses (such as NWOM) to the termination of their own contract. To the best of the authors’ knowledge, it is the first study in this emerging stream of research that accounts for the effects of process- and outcome-oriented contract termination initiatives on NWOM. To the best of the authors’ knowledge, it is also the first study to account for moderators of the effect of contract termination initiatives on NWOM, namely, relationship duration and competitive intensity.
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Stephanie Hui-Wen Chuah, Philipp A. Rauschnabel, Ming-Lang Tseng and T. Ramayah
The purpose of this paper is to propose a dedication-constraint-temptation (DCT) model to study the factors influencing customers’ loyalty to mobile data service (MDS) providers…
Abstract
Purpose
The purpose of this paper is to propose a dedication-constraint-temptation (DCT) model to study the factors influencing customers’ loyalty to mobile data service (MDS) providers. The DCT model explicitly explores the important yet overlooked role of alternative attractiveness (the temptation-based mechanism) as a mediator and the boundary condition of their interrelationships (e.g. relationship length). The model also integrates new and established antecedents of customer-based brand equity (C-BBE) (the dedication-based mechanism) and switching barriers (the constraint-based mechanism).
Design/methodology/approach
The proposed model is tested using partial least squares–structural equation modeling with a sample of 331 MDS users.
Findings
The results indicate that C-BBE has an indirect effect on customer loyalty (via alternative attractiveness) in both relationship groups (shorter- vs longer-term). However, the indirect effect of switching barriers on customer loyalty only exists in longer established relationships. The results from multi-group analysis reveal that the effect of switching barriers on alternative attractiveness significantly differs across groups. In addition, customer value anticipation and procedural switching costs appear to be the most salient antecedents of C-BBE and switching barriers for both groups.
Originality/value
This study makes an incremental contribution by incorporating the temptation-based mechanism as a mediator and relationship length as a moderator into the dedication-constraint model. This study also extends the information systems and brand management literatures by demonstrating the strategic importance of customer value anticipation in the information and communication technology brand equity-building.
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Pradeep Kumar Ponnamma Divakaran
The purpose of this paper is to explore when, why and to what extent firms should intervene in firm-hosted idea-generation communities, and to develop a framework for…
Abstract
Purpose
The purpose of this paper is to explore when, why and to what extent firms should intervene in firm-hosted idea-generation communities, and to develop a framework for firm-intervention.
Design/methodology/approach
A single case-study is conducted in a highly successful firm-hosted idea-generation community called Dell IdeaStorm, whereby the netnographic approach is applied.
Findings
The findings indicate that, overall, firm-participation is minimal and passive, and varies according to the three stages of the idea lifecycle in the community, such as ideation stage – here firm-participation is limited to acknowledgement of new ideas, checking for redundancy, managing search tool and profanity filtering; discussion and development stage – here firm-participation is more active by providing feedback and clarification when needed, troubleshooting, asking for additional input on an idea, etc.; and completion stage – here a firm intervenes to screen and select the most promising ideas for implementation and also provides status updates on ideas.
Originality/value
This study contributes by developing a new framework for firm-participation, which is useful for the early diagnosis of community issues in idea generation. The framework is also a tactical tool which can be used to guide community managers in selecting the correct moderation approach, depending on the specific stage in the idea lifecycle.
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Davide C. Orazi, Amanda Spry, Max N. Theilacker and Jessica Vredenburg
Past integrated marketing communications (IMC) frameworks have established brand contacts as important sources of information and feedback. This paper aims to discuss how the…
Abstract
Purpose
Past integrated marketing communications (IMC) frameworks have established brand contacts as important sources of information and feedback. This paper aims to discuss how the presence of multiple brand stakeholders and the proliferation of digital media increase the amount of brand information generated exponentially. When a firm fails to harness this information, it risks misalignment between brand identity and brand image, which, in turn, tarnishes brand-equity.
Design/methodology/approach
Past IMC frameworks are reviewed and extended to identify specific brand contact points between multiple stakeholders that hold significant potential to dynamically reconfigure brand identity. Theoretical propositions regarding the IMC function’s role in managing these contact points to generate brand-equity are offered.
Findings
The brand contacts described and their successful integration into a firm’s brand-equity strategy extend current IMC-based brand-equity models and suggest fruitful, novel avenues for creating brand-equity. Further, these brand contacts offer practical examples of how the scope of marketing communications can be redefined.
Originality/value
This paper contributes to the body of research on the elevation of IMC to a strategic level function. In addition to the synergistic communication of the brand offering, IMC needs to play a pivotal role in coordinating the contacts between the brand and stakeholders, and in extrapolating relevant brand insights from these contacts.
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This paper aims to define and frame the understanding of customer journeys, associated areas of consumer decision-making process stages and touch point categories based on an…
Abstract
Purpose
This paper aims to define and frame the understanding of customer journeys, associated areas of consumer decision-making process stages and touch point categories based on an ownership perspective.
Design/methodology/approach
The research is based on a detailed literature review of customer journeys, in peer-reviewed marketing and retail journals, within the last decade. The Chartered Association of Business Schools (ABS) academic journal guide marketing discipline list was used because it only includes peer-reviewed journals, based on an internationally accepted quality ranked list.
Findings
The detailed analysis of the journals identified three groups of touch points (brand owned, partner owned/managed and outside the control of brand owner/partner) and three decision-making process stages (pre-purchase, purchase and post–purchase) that informed a clearer definition and understanding of the customer journey.
Research limitations/implications
Limitations concern the ABS database was used and a ten-year date period was selected, which may exclude some relevant journal articles, particularly those written in a language other than English.
Originality/value
The authors have provided a revised definition of customer journey, clarified the decision-making stages and subsequent categorisation of touch points from an ownership perspective.
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This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network…
Abstract
This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.
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Xiaowei Feng, Jiming Cao, Guangdong Wu and Kaifeng Duan
Frequent renegotiations within public-private partnership (PPP) have been recognised and affect project efficiency. Literature has focussed on diverse issues associated with…
Abstract
Purpose
Frequent renegotiations within public-private partnership (PPP) have been recognised and affect project efficiency. Literature has focussed on diverse issues associated with renegotiation within PPP, especially in Latin America and Europe. However, a systematic summary what they have already provided appears lacking. Thus, the paper aims to conduct a critical review of publications concerning PPP renegotiation and explore the status quo, future interests and gaps in research.
Design/methodology/approach
This study carried out a four-phase literature review research framework to identify the quality PPP-renegotiation articles published from 2003 to 2020. Assessing the full articles for eligibility by providing a structured summary including: background; objectives; data sources; study appraisal; results; limitations; conclusions and implications of key findings. After that, filtering papers associated with PPP renegotiation in terms of the structured summary, and a total of 60 research papers were selected in the database of web of science and Scopus for review.
Findings
Methods adopted by researchers, research topics and theoretical foundations of PPP renegotiation research in different disciplines were identified through content analysis. Amongst the popular research topics identified were renegotiation factors, the outcomes with renegotiations, the framework to deal with renegotiations and contract design dealing with renegotiation based on rigid or flexible contracts.
Originality/value
This study contributes to the current body of PPP knowledge by revealing the research trend in the past 20 years. It also points out the directions that the renegotiations of PPP research may go towards in the future. Moreover, this study is very valuable in understanding how governments and concessionaires effectively handle renegotiations.
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Lisa Jane Hewerdine, Maria Rumyantseva and Catherine Welch
There has been growing interest in studying the internationalisation of small and medium-sized high-technology firms. This literature tends to equate “internationalisation” with…
Abstract
Purpose
There has been growing interest in studying the internationalisation of small and medium-sized high-technology firms. This literature tends to equate “internationalisation” with the “internationalisation of sales”. Yet sales are not the only international activity of high-tech firms. High-tech firms need resources and not just markets. The purpose of this paper is to contribute to an understanding of this resource dimension of the international behaviour of high-tech firms.
Design/methodology/approach
The empirical basis for the study lies in a multiple case study of six high-tech small and medium-sized enterprises (SMEs). The authors selected two firms from each of three high-tech industries: biotechnology (specifically drug development), renewable energy and ICT. The key decision makers in each firms were then interviewed in depth.
Findings
The authors show that for the case firms in the study, internationalisation can take the form of searching, prospecting or “scavenging” for resources. “Resource-seeking” behaviour occurs because the SMEs do not own, control or have access to sufficient resources to bring their technology to market on their own. The pattern of internationalisation that results from resource scavenging is different to that of traditional “market-seeking” internationalisation.
Originality/value
This paper provides evidence of how the resource-acquisition behaviour of high-tech SMEs can be an important element of their internationalisation. Yet existing literature has focused almost exclusively on the market-seeking internationalisation of these firms.
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