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1 – 10 of over 3000
Article
Publication date: 27 August 2020

Jun Liu, HengJin Zhang, JingJing Sun, NingXin Li and Anil Bilgihan

This paper aims to clarify the effects of motivations on negative online customer reviews (OCRs) behavior in an integrative framework and to identify the moderating role of…

1640

Abstract

Purpose

This paper aims to clarify the effects of motivations on negative online customer reviews (OCRs) behavior in an integrative framework and to identify the moderating role of monetary compensation and psychological compensation in the Chinese food and beverage industry.

Design/methodology/approach

Data were collected from 377 consumers who posted a negative review online. Hierarchical regression analyses were used to test the research hypotheses.

Findings

The authors identified some characteristics of the consumers who posted negative online reviews in the Chinese food and beverage industry and found evidence that reveals the positive effects of emotional venting motivation and altruism motivation on posting negative customer online reviews. Economic motivation and self-enhancement motivation were not significantly connected to negative OCRs behaviors. Service recovery strategies can moderate the relationship between certain motivations and behaviors. The absence of psychological compensation will aggravate the influence of emotion venting motivation on consumers’ negative online reviews, while monetary compensation can restrain the influence of altruism motivation on negative online rating behavior.

Research limitations/implications

This paper did not explore the effect of the fairness and timeliness of service recovery on negative OCRs behavior. This paper did not consider the different restaurant types and customers' characteristics, and future research can test similar models with different and more diverse samples.

Practical implications

When implementing service recovery strategies, it is important to consider the psychological component of recovery. The absence of psychological compensation aggravates the influence of high levels of emotion venting motivation on consumers’ negative OCRs, leading to a lower rating, more word comments and negative photos. High levels of monetary compensation can restrain the influence of altruism motivation on negative online rating behavior.

Originality/value

The current paper contributes to the hospitality management literature by investigating the motivations behind consumer decisions to post negative OCRs in a food and beverage context. In addition, the moderating effect that service recovery strategies have on this relationship was also explored in depth.

Details

International Journal of Contemporary Hospitality Management, vol. 32 no. 10
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 12 January 2021

Ke Ma and Xin Zhong

The purpose of this study is to examine the effect of perceived justice and consumer's moral judgment of a service failure on recovery outcomes.

Abstract

Purpose

The purpose of this study is to examine the effect of perceived justice and consumer's moral judgment of a service failure on recovery outcomes.

Design/methodology/approach

The research model is examined by adopting a field study approach followed by an experiment. The SPSS program with the PROCESS tool was used to analyze the simple moderation and moderated mediation effects.

Findings

The research findings show that consumer's moral judgment of a service failure moderates the relationship between service recovery (psychological compensation vs monetary compensation) and recovery outcomes (recovery satisfaction, negative word of mouth and repurchase intention). Moreover, the conditional indirect effect of service recovery on recovery outcomes through perceived justice is significant when service failure is seen as less moral. Specifically, consumers report lower perceived justice and react negatively to recovery measures when service failure is seen as less moral. In contrast, when consumers perceive a service failure as moral, a psychological compensation outperforms a monetary compensation, lessening negative word of mouth (NWOM).

Originality/value

These findings provide important insights into recovery measure development when considering consumer moral perspectives.

Details

Marketing Intelligence & Planning, vol. 39 no. 4
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 11 October 2021

Durgesh Agnihotri, Kushagra Kulshreshtha, Vikas Tripathi and Pallavi Chaturvedi

The purpose of this study is to conceptualize and analyze a framework that provides greater understanding toward the impact of service recovery antecedents such as role clarity…

Abstract

Purpose

The purpose of this study is to conceptualize and analyze a framework that provides greater understanding toward the impact of service recovery antecedents such as role clarity, customer service orientation, employee empowerment and employee relational behavior on customer satisfaction and customer delight in the context of quick-service restaurants (QSRs).

Design/methodology/approach

A self-administered questionnaire was distributed to 408 participants who had experienced service recovery efforts by leading QSRs on social media. The current paper draws upon the prevailing literature to test a series of research hypotheses through structural equation modeling.

Findings

The findings of the study have confirmed that antecedents of service recovery are good to describe customer satisfaction and customer delight in the setting of QSRs. Besides, the study provides an understanding on how monetary compensation moderates the relationship between customer delight and customer satisfaction.

Practical implications

This study carries an understanding on how frontline employees must operate in a non-conventional and innovative way to resolve customers' issues and show commitment with truthfulness to provide excellent services to make customers feel delightful.

Originality/value

This is a unique study to understand the role of service recovery antecedents to describe customer satisfaction and customer delight in the social media environment. In addition, the results support the possibilities of implementing prompt service recovery efforts using social media.

Details

Asia-Pacific Journal of Business Administration, vol. 14 no. 4
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 28 March 2023

Jun Liu, Sike Hu, Fuad Mehraliyev and Haolong Liu

This study aims to investigate the current state of research using deep learning methods for text classification in the tourism and hospitality field and to propose specific…

Abstract

Purpose

This study aims to investigate the current state of research using deep learning methods for text classification in the tourism and hospitality field and to propose specific guidelines for future research.

Design/methodology/approach

This study undertakes a qualitative and critical review of studies that use deep learning methods for text classification in research fields of tourism and hospitality and computer science. The data was collected from the Web of Science database and included studies published until February 2022.

Findings

Findings show that current research has mainly focused on text feature classification, text rating classification and text sentiment classification. Most of the deep learning methods used are relatively old, proposed in the 20th century, including feed-forward neural networks and artificial neural networks, among others. Deep learning algorithms proposed in recent years in the field of computer science with better classification performance have not been introduced to tourism and hospitality for large-scale dissemination and use. In addition, most of the data the studies used were from publicly available rating data sets; only two studies manually annotated data collected from online tourism websites.

Practical implications

The applications of deep learning algorithms and data in the tourism and hospitality field are discussed, laying the foundation for future text mining research. The findings also hold implications for managers regarding the use of deep learning in tourism and hospitality. Researchers and practitioners can use methodological frameworks and recommendations proposed in this study to perform more effective classifications such as for quality assessment or service feature extraction purposes.

Originality/value

The paper provides an integrative review of research in text classification using deep learning methods in the tourism and hospitality field, points out newer deep learning methods that are suitable for classification and identifies how to develop different annotated data sets applicable to the field. Furthermore, foundations and directions for future text classification research are set.

Details

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

Keywords

Article
Publication date: 3 April 2018

Hulda G. Black, Emily A. Goad and Jill S. Attaway

The purpose of this research is to investigate the relationship among jurors’ attribution of responsibility of the error, patient styles and juror decisions (e.g. acquittal of the…

Abstract

Purpose

The purpose of this research is to investigate the relationship among jurors’ attribution of responsibility of the error, patient styles and juror decisions (e.g. acquittal of the physician). Specifically, this research examines the influence of an individual’s approach to their healthcare (active vs. passive), and decisions to acquit in malpractice cases.

Design/methodology/approach

In total, 459 individuals were surveyed using a commercial call center for participation in a corresponding mail survey. Surveys were also distributed to undergraduate business students at a Midwestern university.

Findings

Cluster analysis revealed two categories of patient styles: “active patients” (39.4 per cent) and “passive patients” (60.6 per cent). Regardless of patient style, this research found all respondents viewed medical error disclosure as important. However, respondents in the passive group were more likely to acquit the physician and the hospital nursing staff as compared with those classified as active.

Practical implications

The safety of patients in the healthcare system and prevention of errors is a critical issue. However, when errors occur, medical providers should disclose information to the patient and take responsibility to attenuate their negative impact. Further, this research reveals that patients who rely more on their physicians, trust their recommendations and question physicians less are more likely to acquit. Medical providers can use this information as motivation to continue to build this type of trust with their patients.

Originality/value

Medical errors are costly for all parties involved. This research provides insight for not only members of the legal profession involved in medical malpractice cases, but also risk managers and hospital administrators and healthcare providers regarding the decision-making process used by individuals serving on a jury.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 12 no. 1
Type: Research Article
ISSN: 1750-6123

Keywords

Book part
Publication date: 18 January 2023

Bernhard E. Reichert and Matthias Sohn

Many companies use competition for either monetary or non-monetary rewards to induce employee effort. Pitting employees against each other in a competition could come at a thus…

Abstract

Many companies use competition for either monetary or non-monetary rewards to induce employee effort. Pitting employees against each other in a competition could come at a thus far insufficiently considered cost of leading to lower employee cooperation. The authors examine how competition for monetary rewards in the form of tournament incentives or non-monetary rewards in the form of standing in uncompensated public rankings affects employee cooperation with former competitors in a subsequent task where the extent of the cooperation does not affect the welfare or social standing of the person deciding to cooperate. The authors hypothesize that competition in the first task negatively affects cooperation in the second task. The authors further predict that competition leads to psychological pressure, which mediates differences in cooperation. The results support the authors’ hypotheses. In addition, the authors find that the decrease in cooperation results from the behavior of low performers, whereas cooperation by high performers is not affected. The findings are important because they show that inducing effort in one dimension leads to an unintended cost in the form of lower cooperation in another dimension. This cost occurs for both types of competition – competition for monetary payoffs and for non-monetary rewards. Ultimately, the size of this cost depends on the marginal benefit from any cooperation of low performers.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-80382-031-6

Keywords

Article
Publication date: 11 December 2019

Amin 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.

Details

European Journal of Marketing, vol. 54 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 4 April 2020

Marjan Abbasi

The purpose of this paper is to investigate the effect of complete versus partial observations of service failure and recovery. This study also aims at investigating the effect of…

Abstract

Purpose

The purpose of this paper is to investigate the effect of complete versus partial observations of service failure and recovery. This study also aims at investigating the effect of observing customers’ need for cognitive closure and types of compensation that a service provider offers.

Design/methodology/approach

Two experiments are conducted to test the research hypotheses. The authors use scenarios describing failure and recovery encounters that occur to a target customer at restaurant settings, and through manipulation of complete versus partial observations, they investigate observers’ attitudes and behavioral intentions.

Findings

The results suggest that customers with a partial observation are less forgiving than those with a complete observation. In particular, the former sympathized more with a target customer, blamed a service provider more and a target customer less and had lower repurchase intentions than the latter. The authors find that the need for cognitive closure heightens this tendency following a partial observation of service failure. They also find that following a complete (versus partial) observation, observers reacted more favorably to service recovery when it included (versus did not include) monetary compensation.

Research limitations/implications

This research studies the effect of locus of causality following a partial versus complete observation. Future research could further examine the effect of stability and controllability. Also, the authors examined the effect of the need for cognitive closure on evaluations of service failure following a partial versus complete observation. Future research could examine the effect of some other individual difference variables.

Practical implications

The results offer some measures to be taken by practitioners. In particular, practitioners are advised to not offer monetary compensation when majority of observers have had a partial observation. Moreover, they are advised to offer some explanation in a timely and effective manner to ensure observers who are under the negative impact of a partial observation have some information so that they revisit their service evaluations.

Originality/value

The literature assumes that in failure and recovery incidents, all observing customers would know the entire story. This research challenges this assumption and highlights the key role of observation type (partial versus complete observation). Further, this research examines the effect of the need for cognitive closure on service evaluations following a partial versus complete observation. The current research finds that supposedly favorable measures by a firm (i.e. monetary compensation) may in fact backfire when a partial observation is at play.

Details

European Journal of Marketing, vol. 54 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 3 August 2015

Mingming Feng, Xiaodan "Abby" Wang and Jagjit S. Saini

Prior literature has established the theoretical and statistical linkages between monetary compensation and firm performance, yet little is known about how the association between…

2503

Abstract

Purpose

Prior literature has established the theoretical and statistical linkages between monetary compensation and firm performance, yet little is known about how the association between monetary compensation and firm performance is moderated by companies’ engagement in corporate social responsibility (CSR) activities. Further, compared to executive compensation, non-executive compensation remains an underexplored topic. The purpose of this paper is to investigate how workforce-oriented CSR moderates: first, the association between non-executive compensation and firm performance; and second, the association between executive compensation and firm performance.

Design/methodology/approach

Using a sample of 181 from the largest 3,000 US companies for the years 1991-2011, the authors investigate how workforce-oriented CSR moderates the association between compensation and firm performance. Compensation is examined at two levels – non-executive versus executive compensation. The workforce-oriented CSR score is constructed as total strengths minus total concerns in Kinder, Lydenberg, and Domini’s employee relations dimension.

Findings

The authors find an improvement in firm performance with increases in both non-executive and executive compensation. Further, workforce-oriented CSR positively moderates the association between non-executive compensation and firm performance, and negatively moderates the association between executive compensation and firm performance.

Research limitations/implications

This study adds to the literature of the compensation-performance linkage by including both non-executive and executive compensation as important determinants of firm performance and incorporating workforce-oriented CSR as a moderator on the compensation-performance linkage. It also provides new angles for CSR scholars.

Practical implications

This study helps managers understand the importance of fulfilling employees’ social emotional needs and the potential of workforce-oriented CSR in shaping employees’ perceived distributive justice. The findings also help managers make critical decisions regarding the allocation of limited corporate resources and prioritization of investment options. In addition, the findings are also useful to boards of directors and human resources managers who are in charge of hiring executives, building top management teams, and deciding executive compensation.

Originality/value

This study helps advance our understanding of the compensation-performance linkage. The results suggest that the relationship between compensation and financial performance is contingent on other organizational factors. In addition, the findings provide practical implications on how CSR engagement moderates the association between non-executive compensation and firm performance differently than the association between executive compensation and firm performance and how to allocate corporate resources and prioritize strategic options effectively.

Details

American Journal of Business, vol. 30 no. 3
Type: Research Article
ISSN: 1935-5181

Keywords

Open Access
Article
Publication date: 25 August 2023

Nathalie Kron, Jesper Björkman, Peter Ek, Micael Pihlgren, Hanan Mazraeh, Benny Berggren and Patrik Sörqvist

Previous research suggests that the compensation offered to customers after a service failure has to be substantial to make customer satisfaction surpass that of an error-free…

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Abstract

Purpose

Previous research suggests that the compensation offered to customers after a service failure has to be substantial to make customer satisfaction surpass that of an error-free service. However, with the right service recovery strategy, it might be possible to reduce compensation size while maintaining happy customers. The aim of the current study is to test whether an anchoring technique can be used to achieve this goal.

Design/methodology/approach

After experiencing a service failure, participants were told that there is a standard size of the compensation for service failures. The size of this standard was different depending on condition. Thereafter, participants were asked how much they would demand to be satisfied with their customer experience.

Findings

The compensation demand was relatively high on average (1,000–1,400 SEK, ≈ $120). However, telling the participants that customers typically receive 200 SEK as compensation reduced their demand to about 800 SEK (Experiment 1)—an anchoring effect. Moreover, a precise anchoring point (a typical compensation of 247 SEK) generated a lower demand than rounded anchoring points, even when the rounded anchoring point was lower (200 SEK) than the precise counterpart (Experiment 2)—a precision effect.

Implications/value

Setting a low compensation standard—yet allowing customers to actually receive compensations above the standard—can make customers more satisfied while also saving resources in demand-what-you-want service recovery situations, in particular when the compensation standard is a precise value.

Details

Journal of Service Theory and Practice, vol. 33 no. 7
Type: Research Article
ISSN: 2055-6225

Keywords

1 – 10 of over 3000