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Article
Publication date: 6 July 2012

Houn‐Gee Chen, Julie Yu‐Chih Liu, Tsong Shin Sheu and Ming‐Hsien Yang

Customer satisfaction in the banking industry has long been measured as a function of service quality by using a variation of the SERVQUAL instrument. The purpose of this paper is…

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Abstract

Purpose

Customer satisfaction in the banking industry has long been measured as a function of service quality by using a variation of the SERVQUAL instrument. The purpose of this paper is to build a broader understanding of the determinants of customer satisfaction throughout the financial services industry by incorporating the perceptions of fairness in service delivery (FAIRSERV) and outlining why and how FAIRSERV is important to customer satisfaction.

Design/methodology/approach

The authors conduct a cross‐sectional questionnaire survey, including samples of 420 customers from the financial services industry in Taiwan. PLS‐Graph is used to evaluate the measures of reliability as well as validities, and to test the hypotheses.

Findings

The results show that fair service not only has a significant impact on customer satisfaction, but also plays a role equivalent to service quality in determining customers’ trust and perceived value, which in turn lead to customer satisfaction.

Research limitations/implications

The impact of FAIRSERV on customer satisfaction should be emphasized. Future studies examining the impact of service quality on customer satisfaction should incorporate the concept or instruments of fair service as a major contributor.

Practical implications

The results imply that financial institutions must carefully implement policies and practices to ensure that perceptions of fairness are propagated throughout the organization.

Originality/value

The paper proposes a complementary component to service quality in determining the perceived value and satisfaction. The paper emphasizes the significance of fairness on service, and provides additional insights into the impacts of FAIRSERV on customer satisfaction.

Details

Managing Service Quality: An International Journal, vol. 22 no. 4
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 14 March 2022

Selim Ahmed, Ahmed Al Asheq, Ezaz Ahmed, Ujjal Yaman Chowdhury, Tahir Sufi and Md. Golam Mostofa

The purpose of this study is to determine how consumers perceive restaurant service in Bangladesh. The goal of this study is to determine the impact of perceived service quality…

6076

Abstract

Purpose

The purpose of this study is to determine how consumers perceive restaurant service in Bangladesh. The goal of this study is to determine the impact of perceived service quality and price fairness on consumer satisfaction and loyalty toward restaurant services.

Design/methodology/approach

The data for this study were collected from 326 respondents who have used restaurant services in Bangladesh. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to evaluate the research data with SmartPLS 3.3.3.

Findings

The current study’s findings indicate that perceived service quality and price fairness both have a direct and significant effect on consumer satisfaction. Additionally, the research findings reveal a considerable association between perceived pricing fairness and consumer pleasure and consumer loyalty. Additionally, findings indicate that perceived service quality and price fairness both have a significant indirect effect on customer loyalty via the mediating effect of consumer satisfaction.

Practical implications

The current study demonstrates that perceived price fairness has a substantial effect on restaurant consumers’ satisfaction and loyalty; thus, this evidence can assist restaurant owners and managers in developing and implementing their pricing strategy to retain customers. Additionally, the findings have significant implications for restaurant operators, practitioners and policymakers.

Originality/value

Only a few research have been conducted to determine the effect of service quality and pricing fairness on consumer satisfaction and loyalty when it comes to restaurant services. This research conclusion provides guidance to service providers on how to increase customer satisfaction and loyalty through an emphasis on price fairness and service quality.

Article
Publication date: 22 March 2021

Zhongpeng Cao

From the perspective of customer segmentation, most scholars show more interest in the very important person (VIP) customer’s service experience and satisfaction; however, the way…

Abstract

Purpose

From the perspective of customer segmentation, most scholars show more interest in the very important person (VIP) customer’s service experience and satisfaction; however, the way in which ordinary customers view VIP services has received less attention. Based on fairness heuristic theory and social comparison theory, this study aims to examine the impact of the social visibility of VIP services on ordinary customers’ satisfaction and explored the underlying mechanisms and boundary conditions of this effect.

Design/methodology/approach

Two experiments were conducted, Study 1 verified the main effect and mediating effect, Study 2 tested the moderating effect.

Findings

The results show that the social visibility of VIP services decreases ordinary customers’ satisfaction and perceived fairness mediates this effect. The deservingness of VIP status moderates the connection between social visibility and perceived fairness.

Research limitations/implications

This research changes the objects of VIP services research and focuses on ordinary customers as its main group and expands the scope of social comparisons among customers.

Practical implications

The findings expand the scope and perspective of research on VIP services and provide guidance to service providers to reduce ordinary customers’ feelings of unfairness so as to improve customer satisfaction.

Originality/value

This study explores the effect of the social visibility of VIP services on ordinary customer satisfaction from the perspective of perceived fairness, as well as the underlying mechanism and boundary conditions of the effect.

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

Article
Publication date: 1 June 2006

Robin L. Snipes, Neal F. Thomson and Sharon L. Oswald

The presence of gender biases in performance evaluations has been previously demonstrated in a number of studies. This study aims to extend current research by examining gender…

5316

Abstract

Purpose

The presence of gender biases in performance evaluations has been previously demonstrated in a number of studies. This study aims to extend current research by examining gender differences in customer ratings of service performance. A secondary research objective of this study is to investigate gender differences in perceptions of service fairness.

Design/methodology/approach

Using the SERVQUAL scale to measure service quality perceptions, responses from a sample of 8,667 customers are examined in a hierarchical regression analysis to determine if gender biases are present.

Findings

The results of this study show that biases exist in service quality evaluations. Specifically, the data show that male service providers will receive higher service quality ratings than female service providers. However, the gender bias seems to diminish when service fairness is considered. It appears that customer perceptions of fair treatment are far more powerful and important determinants of overall satisfaction than the gender of the service provider. Customers expect justice in regards to fair service delivery. Interestingly, a significant difference appears to exist between males and females in their perceptions of service fairness. Males tend to rate the fairness of service encounters higher than females.

Research limitations/implications

This research looked at only one service industry, that of higher education. As with any other study utilizing one industry, this study should be replicated to provide validation across all industries.

Originality/value

The paper offers new insights into gender bias in customer evaluations of service quality.

Details

Journal of Services Marketing, vol. 20 no. 4
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 30 November 2006

Lien‐Ti Bei and Yu‐Ching Chiao

The purpose of this study is to investigate how customers’ perceptions of service quality, product quality, and price fairness influence their loyalty to a particular service

4462

Abstract

The purpose of this study is to investigate how customers’ perceptions of service quality, product quality, and price fairness influence their loyalty to a particular service provider. Based on the results of a pilot study, we have elected to study banks, auto repair and maintenance shops, and (gasoline) filling stations, each of which are characterized by differing degrees of intangible service provision. Our results show that customer satisfaction either fully or partially mediates the relationship between consumers’ perceptions and their loyalty. The direct or indirect effects on customer loyalty of the perception of product and service quality, as well as of perceived price fairness, are related to the differing levels of intangible service associated with each of the three different service industries.

Details

International Journal of Commerce and Management, vol. 16 no. 3/4
Type: Research Article
ISSN: 1056-9219

Keywords

Article
Publication date: 27 July 2012

Breffni M. Noone

This study aims to examine the perceived fairness of overcompensation for severe service failures. The mediating effect of perceived fairness in the overcompensation‐negative…

3536

Abstract

Purpose

This study aims to examine the perceived fairness of overcompensation for severe service failures. The mediating effect of perceived fairness in the overcompensation‐negative word‐of‐mouth (NWOM) intent relationship is also explored.

Design/methodology/approach

An experimental design approach was utilized to test the study's hypotheses. Overcompensation amount was manipulated at three levels (50 percent, 100 percent, 200 percent of purchase price), with two forms of overcompensation (cash or credit) tested.

Findings

Cash‐based overcompensation yielded higher perceptions of distributive justice than full compensation, with no significant difference in distributive justice perceptions across cash amounts. Credit‐based overcompensation was perceived as no fairer than full compensation. Perceived distributive justice fully mediates the overcompensation‐NWOM intent relationship.

Research limitations/implications

The study's findings are based on a single service context. Further research across different service environments is needed to confirm the robustness of the results. The results are based on scenarios rather than real events. A longitudinal field study that examines consumer reaction at the point of service recovery and tracks actual subsequent behaviors is merited.

Practical implications

The study's findings suggest that, when a severe service failure occurs, service firms should consider going beyond full compensation, offering the consumer an additional cash amount. However, more is not necessarily better – a small additional cash amount may induce similar perceptions of fairness to larger amounts.

Originality/value

This study yields insights into the perceptions of distributive justice associated with different amounts and forms of overcompensation for severe service failure, and demonstrates the mediating effect of perceived distributive justice in the overcompensation‐NWOM intent relationship.

Details

Journal of Services Marketing, vol. 26 no. 5
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 10 August 2012

Yu‐Qian Zhu and Houn‐Gee Chen

The purpose of this paper is to explore and empirically test fairness in predicting online customer satisfaction in the internet banking context. The paper also aims to further…

6085

Abstract

Purpose

The purpose of this paper is to explore and empirically test fairness in predicting online customer satisfaction in the internet banking context. The paper also aims to further explore the mechanism through which fairness influences customer satisfaction online, i.e. identifying the mediators.

Design/methodology/approach

A survey is used to validate a research model based on equity theory and relationship marketing theory that incorporates fairness, trust, perceived value and customer satisfaction. A total of 331 surveys were analyzed using Partial Least Square.

Findings

In internet banking, fairness that includes distributive fairness, procedural fairness and informational fairness is positively related to customer satisfaction. Trust is identified as the key mediator of fairness to customer satisfaction.

Research limitations/implications

In an online context, where human interactions are replaced by graphic user interfaces, fairness still plays an important role in customer satisfaction. Further comparison of online and offline context could be conducted.

Practical implications

For online service managers, it is crucial to incorporate the fairness perspective into operations, which involves topics like segmented marketing efforts, consistency in procedures, and providing ample information to customers.

Originality/value

This research is one of the first attempts to examine fairness in internet banking, as well as to delineate the mediating process of fairness to satisfaction online.

Details

Internet Research, vol. 22 no. 4
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 22 February 2021

Mornay Roberts-Lombard and Daniël Johannes Petzer

Using the stimulus–organism–response (S–O–R) framework, this study investigates the role of trust (organism) in influencing the behavioural intentions (response) of emerging…

1319

Abstract

Purpose

Using the stimulus–organism–response (S–O–R) framework, this study investigates the role of trust (organism) in influencing the behavioural intentions (response) of emerging market retail banking customers, based on the banks' selected customer-focused efforts (stimuli) to influence behavioural intentions. The study also looks at the moderating effects of customers' perceived value and the duration of their support on these relationships.

Design/methodology/approach

The data analysed were collected from 599 retail banking customers in an emerging market via a self-administered questionnaire.

Findings

Customer-focused efforts, except for expertise, significantly and positively influence trust. Trust partially mediates the relationships between the remaining customer-focused efforts and behavioural intentions. Furthermore, perceived value moderates the relationships between these stimuli and trust, excluding information sharing. The duration of customer support for the bank also moderates the relationships between these stimuli and trust, bar customer orientation.

Research limitations/implications

The study augments the understanding of trust's role as the organism from an S–O–R framework perspective.

Practical implications

The study assists banks in emerging markets in understanding trust's role in influencing customers' behavioural intentions, given the application of selected customer-focused efforts. It highlights the significance of perceived value and duration of customer support in the relationships between these customer-focused efforts and trust.

Originality/value

Using a single S–O–R framework, the role of trust in mediating the relationships between retail banks' selected customer-focused efforts and customers' behavioural intentions is uncovered.

Details

International Journal of Bank Marketing, vol. 39 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 21 September 2010

Young Namkung and Soo Cheong (Shawn) Jang

This study aims to investigate interrelationships among perceived service fairness, emotions and behavioral intentions in a restaurant context.

8067

Abstract

Purpose

This study aims to investigate interrelationships among perceived service fairness, emotions and behavioral intentions in a restaurant context.

Design/methodology/approach

Data were collected from two casual dining restaurants in the USA. The data were analyzed following Anderson and Gerbing's two‐step approach, utilizing both a measurement model and a subsequent structural model.

Findings

This study shows different roles for each fairness perception in relation to emotions and behavioral intentions based on the Mehrabian‐Russell model. Setting reasonable prices and providing efficient services in a timely manner were found to be the key to negate negative emotion. At the same time, the findings suggest that providing high‐quality tangible outcomes and intangible services are critical to evoke positive emotions and eventually to generate future favorable behaviors.

Research limitations/implications

The data were collected from only casual dining restaurants. Therefore, generalizing the results to other segments of the restaurant industry may not work.

Practical implications

The results of this study can help restaurant managers to develop more effective and efficient strategies for ensuring fairness, thus resulting in higher levels of customer retention and profits.

Originality/value

Compared with previous fairness studies, which have focused exclusively on the role of justice after service failure and recovery, this study considers all service delivery contexts (with or without service failure) in order to provide a richer portrait of service fairness. Also, this study contributes to the services marketing and consumer behavior literature by shedding light on the issue of “fairness” as an axiom for evaluating services in restaurants.

Details

European Journal of Marketing, vol. 44 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

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