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Article
Publication date: 29 January 2024

Aditi Sarkar Sengupta, Marla Royne Stafford and Alexa K. Fox

The authors' research examines how negative electronic word-of-mouth (e-WOM) alters focal customers' post-recovery justice perceptions and attitudes to determine their future…

Abstract

Purpose

The authors' research examines how negative electronic word-of-mouth (e-WOM) alters focal customers' post-recovery justice perceptions and attitudes to determine their future behavior with the service provider. Specifically, this paper develops and tests a conceptual model to investigate how negative e-WOM alters focal customers' perceptual and attitudinal outcomes after the service recovery experience. It also examines the post-recovery effect of negative e-WOM on focal customers’ willingness to patronize the service after their recovery experience.

Design/methodology/approach

To test the hypotheses, two pretests and two experimental studies with created scenarios in the retail context were conducted.

Findings

The authors' findings reveal that services are judged during and well beyond failure and recovery occurrences. To maintain a loyal customer base, service managers should develop processes that address service complaints both within and beyond the service consumption stage. The authors also find that despite a favorable recovery, focal customers gravitate toward the failure experience and develop unfavorable attitudes toward the service provider, leading to likely defections.

Originality/value

The authors' research demonstrates the persuasive power of negative e-WOM at the post-service recovery stage, making a unique contribution to the service recovery literature. This research also contributes to the persuasive effect of negative e-WOM, demonstrating message context as a boundary condition of negative e-WOM effects. In general, the authors' work highlights the importance of understanding the psychological processes involved in eliciting the persuasive influence of negative e-WOM in the post-service recovery stage that may lead to the defection of “so-called” successfully recovered customers.

Details

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

Keywords

Article
Publication date: 12 March 2024

Bai Liu, Tao Ju, Jiarui Lu and Hing Kai Chan

This research investigates whether focal firms employ strategic supply chain information disclosure, focusing on the concealment of supplier and customer identities, as part of…

Abstract

Purpose

This research investigates whether focal firms employ strategic supply chain information disclosure, focusing on the concealment of supplier and customer identities, as part of their supply chain environmental risk management strategies (supplier sustainability risk and customer loss risk, respectively).

Design/methodology/approach

Using a panel dataset of Chinese listed firms from 2009 to 2019 and utilizing the suppliers’ environmental punishment of peer firms (peer events) as an exogenous shock and employing ordinary least squares (OLS) estimation, this study conducts a regression analysis to test how focal firms disclose the identities of their suppliers and customers.

Findings

Our results indicate that focal firms prefer to hide the identities of their suppliers and customers following the environmental punishment of peer firms’ suppliers. In addition, supplier concentration weakens the effect of withholding supplier identities, whereas customer concentration strengthens the effect of hiding customer identities. Mechanism analysis shows that firms hide supplier identities to avoid their reputation being affected and hide customer identities to prevent the deterioration of customers’ reputations and thus impact their market share.

Originality/value

Our study reveals that reputation spillover is another crucial factor in supply chain transparency. It is also pioneering in applying the anonymity theory to explain focal firms’ information disclosure strategy in supply chains.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 28 February 2023

Andrea Sabatini, Federica Pascucci and Gian Luca Gregori

This paper aims to explore how customer involvement unfolds in the development of a smart product. Smart product development poses new challenges to firms. In particular, the…

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Abstract

Purpose

This paper aims to explore how customer involvement unfolds in the development of a smart product. Smart product development poses new challenges to firms. In particular, the buyers’ and users’ involvement has shown novel dynamics in smart product development. These peculiarities are linked with the specific characteristics of the digital technology embedded into the smart products. This study’s rationale is to analyse the frictions arising from potential divergent objectives between the focal firm and its customers when digital technologies are embedded in traditional products.

Design/methodology/approach

This study adopted an explorative and qualitative approach to investigate new emerging dynamics of customer involvement during technological development. A coffee machine producer is selected as a case study to uncover new insights and a novel perspective on the phenomenon of customer involvement in smart product development. Data analysis followed an abductive approach that allowed to identify the dimensions of friction emerging during the technological development process.

Findings

The case study analysis depicts that smart product development presents novel customer involvement dynamics. In particular, this study abductively identifies dimensions of friction emerging between the focal firm and buyers/users. Friction arises in the technological interface between the actors involved. These dimensions of friction address the complexities of developing technology in terms of smart products with customer involvement. This study suggests that embedding of technology into an existing product might change how customers are involved.

Originality/value

Even though customer involvement in product innovation has been extensively studied in management literature, this paper focused on a new type of innovation, smart products. To the best of the authors’ knowledge, no previous studies have yet empirically explored customers’ involvement while embedding digital technologies into existing products to create smart products. In particular, this study sheds light on the dimensions of friction emerging between the focal firm and the actors of the business network. This study unfolds novel contributions to the Industrial Marketing and Purchasing literature on technological development.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 31 March 2023

Demi Shenrui Deng, Soobin Seo and Robert J. Harrington

The purpose of this study is to unearth antecedents of regrettable dining experiences related to the information source, action and inaction perspectives, dining companion…

Abstract

Purpose

The purpose of this study is to unearth antecedents of regrettable dining experiences related to the information source, action and inaction perspectives, dining companion influence and interactions among information source, the focal customer’s valence and the dining companion’s valence on regret, leading to sequential behavioral outcomes.

Design/methodology/approach

Using a scenario-based experimental study, 344 qualified questionnaires were collected. Univariate ANOVA and multiple linear regression analyses were implemented.

Findings

The results of this study reveal that action regret is more intense than inaction regret during the choice-making phase; dining companion negative feedback intensifies focal customer’s regret. The significance of the information source on regret disappeared when only one party reported negative feedback; conversely, when two parties in the co-consumption experience revealed negative feedback, the relationship between information source of choice and regret was sustained.

Research limitations/implications

The nature of scenario-based design may lack realism. Thus, more field experiments are encouraged to test the propositions further. This research enhances our understanding of gastronomic experiences in a negative disconfirmation context, drawing upon action/inaction regret theory, attribution theory and the expectancy disconfirmation model.

Practical implications

From a triad relationship perspective, this study provides valuable input on who or what will be attributed to the issues when encountering a food and wine sensory failure. Additionally, insightful recommendations are supplied on avoiding the possibility of inducing the experience of regret and how practitioners can increase the potential for a memorable dining experience.

Originality/value

To the best of the authors’ knowledge, this is the first study that enriched the existing knowledge of regrettable dining experiences relating to information sources and social influence.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 12
Type: Research Article
ISSN: 0959-6119

Keywords

Content available
Article
Publication date: 2 May 2023

Miao Hu, Shenyang Jiang and Baofeng Huo

Drawing on absorptive capacity theory, this study explores the impacts of supply visibility and demand visibility on product innovation (i.e. exploratory and exploitative…

Abstract

Purpose

Drawing on absorptive capacity theory, this study explores the impacts of supply visibility and demand visibility on product innovation (i.e. exploratory and exploitative innovation), and it examines how supplier integration, customer integration and internal integration mediate these impacts.

Design/methodology/approach

The authors employ empirical survey data from 200 Chinese manufacturers and use structural equation modeling to test the proposed relationships.

Findings

The results show that supply visibility is positively related to supplier integration and internal integration and that demand visibility is positively related to customer integration. Furthermore, only customer integration and internal integration positively relate to exploratory and exploitative innovation.

Originality/value

First, this study emphasizes that supply visibility and demand visibility are important sources of a firm's innovation performance and that supply chain integration increases focal firms' capability of exploiting information and facilitates product innovation. Second, the study shows that supply visibility and demand visibility have distinct effects on three dimensions of supply chain integration and exploratory and exploitative innovation. The study also provides significant managerial guidelines for effectively leveraging supply chain visibility and integration in the promotion of product innovation.

Article
Publication date: 1 February 2024

Andreawan Honora, Kai-Yu Wang and Wen-Hai Chih

This research investigates the role of customer forgiveness as the result of online service recovery transparency in predicting customer engagement. It also examines the…

Abstract

Purpose

This research investigates the role of customer forgiveness as the result of online service recovery transparency in predicting customer engagement. It also examines the moderating roles of timeliness and personalization in this proposed model.

Design/methodology/approach

An online survey study using retrospective experience sampling and a scenario-based experimental study were conducted to test the proposed hypotheses.

Findings

Customer forgiveness positively influences customer engagement and plays a mediating role in the relationship between service recovery transparency and customer engagement. Additionally, timeliness and personalization moderate the positive influence of service recovery transparency on customer forgiveness. The positive influence of service recovery transparency on customer forgiveness is more apparent when levels of timeliness and personalization decrease.

Practical implications

To retain focal customers' engagement after a service failure, firms must obtain their forgiveness. One of the firm's online complaint handling strategies to increase the forgiveness level of focal customers is to provide a high level of service recovery transparency (i.e. responding to their complaints in a public channel), especially when the firm is unable to respond to online complaints quickly or provide highly personalized responses.

Originality/value

This research provides new insights into the underlying mechanism of customer engagement by applying the concept of customer forgiveness. It also contributes to the social influence theory by applying the essence of the theory to explain how other customers' virtual presence during the online complaint handling influences the forgiveness of focal customers in order to gain their engagement. Additionally, it provides insight into the conditions under which the role of service recovery transparency can be very effective in dealing with online complaints.

Details

Internet Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 25 January 2024

Süleyman Çelik, Öznur Özkan Tektaş and Bahtışen Kavak

Service failures usually occur in front of third-party customers. Third-party customers react emotionally and behaviorally to service failure and recovery efforts aimed at focal…

Abstract

Purpose

Service failures usually occur in front of third-party customers. Third-party customers react emotionally and behaviorally to service failure and recovery efforts aimed at focal customers. However, there is a gap in the literature on how third-party customers react to a service failures incident and a recovery over another customer, depending on how socially close or distant they are from. This study investigates the effect of third-party customers' emotions on consumer forgiveness, negative word-of-mouth (WoM) and repatronage intentions in the service recovery process by comparing close and distant third-party customers.

Design/methodology/approach

This study utilizes a 2 (social distance to the focal customer: close, distant) × 2 (service recovery: yes, no) between-subjects design. The authors used a scenario-based experiment to test the proposed hypotheses. A total of 576 respondents were involved in the study.

Findings

The results from the authors' scenario-based experimental study show that positive and negative emotions felt by distant third-party customers are higher than those of close third-party customers. In addition, the effect of positive emotions on customer forgiveness is more substantial for distant third-party customers. Third, moderated-mediation analysis indicates that social distance has a moderator effect only on the relationship between positive emotions and customer forgiveness.

Originality/value

This study contributes to the service literature by comparing socially close and socially distant third-party customers' reactions to service failure and recovery attempts.

Details

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

Keywords

Article
Publication date: 5 March 2024

Cong Zhou, Weili Xia and Taiwen Feng

This study aims to explore how relationship trust and different types of influence strategy (i.e., non-coercive and coercive influence strategy) impact green customer integration…

Abstract

Purpose

This study aims to explore how relationship trust and different types of influence strategy (i.e., non-coercive and coercive influence strategy) impact green customer integration (GCI), while investigating the moderating mechanisms of big data development and social capital.

Design/methodology/approach

Following hierarchical linear regression analysis, the authors examine hypothesized relationships by combining survey data from 206 Chinese manufacturers with secondary data.

Findings

The results show that relationship trust positively affects non-coercive influence strategy, while its impact on coercive influence strategy is insignificant. Non-coercive influence strategy has an inverted U-shaped impact on GCI. Furthermore, big data development flattens the inverted U-shaped relationship between non-coercive influence strategy and GCI. Conversely, social capital steepens the inverted U-shaped relationship between non-coercive influence strategy and GCI.

Practical implications

This study sheds light on managers on how to involve customers in GCI through friendly strategies that favor the involvement of customers and the willingness to develop environmentally friendly initiatives.

Originality/value

Although GCI has received widespread attention, how it can be enhanced remains unclear. These findings provide novel insights into the emerging GCI literature and complement social exchange theory.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 14 March 2023

Khadijeh Momeni, Eija Vaittinen, Markus Jähi and Miia Martinsuo

Smart services have gained attention both among academics and practitioners, but manufacturing firms struggle in getting their new smart services extensively adopted by customers…

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Abstract

Purpose

Smart services have gained attention both among academics and practitioners, but manufacturing firms struggle in getting their new smart services extensively adopted by customers, employees and distributors. The purpose of this paper is to identify and analyse the requirements of different actors and the interconnectedness between their requirements in introducing smart services.

Design/methodology/approach

An embedded single-case study was conducted with a manufacturing firm and its network, including its sales and service personnel, customers and external salespeople. Data were collected via 30 in-depth interviews.

Findings

The paper advances the multi-actor perspective by identifying the requirements of key actors for introducing smart services. These requirements were divided into eight categories: value of smart services, reliability of smart services, competence for smart services, data security and management, attitude towards services, reliance, knowledge of installed base of equipment and services and service reputation. The findings reveal the interconnectedness of different actors’ requirements for introducing new smart services and how discussion and relationships between actors affected their requirements.

Practical implications

The findings represent a comprehensive template of requirements, as well as mapping the interconnectedness of actors’ requirements, serving as a practical guideline for managers.

Originality/value

This study characterises the introduction of smart services as a multi-dimensional, interconnected effort by manufacturing firms and their networks. It shows that service introduction cannot be viewed as manufacturer’s development task or customers’ adoption decision only. Propositions are offered on how multiple actors’ viewpoints can be combined to achieve success in introducing smart services.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 2 November 2023

Olivier Furrer, Mikèle Landry and Chloé Baillod

This study aims to develop a comprehensive, theoretically grounded framework of customer-to-customer interaction (CCI) management, by revisiting three older services marketing…

Abstract

Purpose

This study aims to develop a comprehensive, theoretically grounded framework of customer-to-customer interaction (CCI) management, by revisiting three older services marketing models: the servuction model, the services marketing triangle and the services marketing pyramid.

Design/methodology/approach

Noting the lack of theoretical frameworks of CCI management, this study adopts a problematization approach to identify foundational services marketing models, question their underlying assumptions, develop an alternative conceptual framework and evaluate its adequacy for CCI management, on the basis of a systematic literature review and content analyses.

Findings

By revisiting the assumptions underlying three relevant models in the light of the present-day, technology-infused service environment, this study proposes a four-triangle CCI management framework encompassing four specific modes of CCI management: managerial decisions by the firm; frontline employees; the design of the physical environment; and technology. Furthermore, this study emphasizes the triadic relationships involving the focal customer, other customers and the four modes of CCI management. Building on these findings, this study concludes with an extensive research agenda.

Originality/value

To the best of the authors’ knowledge, this study represents the first scholarly effort in services marketing literature to provide a comprehensive, theoretically grounded framework of CCI management. With its basis in foundational models, the new framework is well-suited to address future challenges to service marketplaces too.

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