Search results
1 – 10 of 36Nathalie 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…
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
Keywords
Jannik Kretschmer and Peter Winkler
The debate on digitalization in the public relations (PR) literature has fragmented considerably over the past decade because of its focus on upcoming media-technological…
Abstract
Purpose
The debate on digitalization in the public relations (PR) literature has fragmented considerably over the past decade because of its focus on upcoming media-technological innovations, required professional skills and management concepts. Yet the field has difficulties in developing an integrative perspective on the implications of digitalization as a broader socio-technological transformation with a balanced consideration of prospects and risks.
Design/methodology/approach
This paper proposes an integrative perspective that focuses more on the enduring imaginaries of how digitalization can transform society for better or worse. It traces the historical roots of five imaginaries of digitalization, which have already emerged over the past century yet have experienced a significant revival and popularization in the current debate. Based on these five imaginaries, the authors performed a narrative literature review of the digitalization debate in 10 leading PR journals from 2010 to 2022.
Findings
The five imaginaries allow for a systematization of the fragmented digitalization debate in the field, reconstructing recurrent narratives, prospects and risks.
Originality/value
The originality of this contribution lies in its reconstructive approach, tracing societal imaginaries of digitalization and their impact on the current disciplinary debate. This approach provides context for a balanced assessment of and engagement with upcoming, increasingly fragmented digital advancements in PR research and practice.
Details
Keywords
Jörgen Johansson, Michel Thomsen and Maria Åkesson
This paper aims to highlight problems and opportunities for introducing digital automation in public administration (PA) and to propose implications for public value creation of…
Abstract
Purpose
This paper aims to highlight problems and opportunities for introducing digital automation in public administration (PA) and to propose implications for public value creation of robotic process automation (RPA) through the perspective of good bureaucracy as a guiding framework.
Design/methodology/approach
This conceptual paper addresses the purpose by applying three normative ideal types: Weber’s ideal type for a bureaucracy, new public management and public value management. This paper synthesizes an analytical framework in conducting case studies of the implementation of RPA systems in municipal administration.
Findings
This paper contributes to new insights into public value creation and digital automation. The following four implications are proposed: the deployment of RPA in municipal administration should emphasize that organizing administrative tasks is essentially a political issue; include considerations based on a well-grounded analysis in which policy areas that are suitable for RPA; to pay attention to issues on legal certainty, personal integrity, transparency and opportunities to influence automated decisions; and that the introduction of RPA indicates a need to develop resources concerning learning and knowledge in the municipal administration.
Originality/value
This paper is innovative, as it relates normative, descriptive and prescriptive issues on the developing of digital automation in PA. The conceptual approach is unusual in studies of digitalization in public activities.
Details
Keywords
Marco Tregua, Danilo Brozovic and Anna D'Auria
The purpose of this article was to provide an outline of the citation practices of “Evolving to a new dominant logic for marketing” by Vargo and Lusch (2004) to identify and…
Abstract
Purpose
The purpose of this article was to provide an outline of the citation practices of “Evolving to a new dominant logic for marketing” by Vargo and Lusch (2004) to identify and discuss the most prominent research topics in which citations were used and to suggest future research based on the results of the analysis.
Design/methodology/approach
The authors used a comprehensive framework of citation practices based on iterations of previous literature to analyze the relevant literature, which they identified by accessing, systematically and rigorously, every available contribution matching a set of criteria. The authors then categorized these contributions and highlighted the main topics of research interest in each category.
Findings
The findings identify some of the factors in the continuous development of SDL, the way this new marketing logic permeated the scientific debate, the infusion of Vargo and Lusch (2004) into several contributions framed in the new logic or justified through it, and a general perception of a default reference. Additionally, the findings highlight the main topics of research interest in each category.
Research limitations/implications
The analysis enabled the detection of the original paper's influence through advances in service studies, pollination into other fields of research and continuous scientific debate. The authors have highlighted several avenues for research and proposed future research directions.
Originality/value
This research analyzed the effects of the spread of the SDL cornerstone article and emphasized the advantage of using an in-depth approach to the analysis of studies through a framework applied to more than 4,600 studies.
Details
Keywords
Maral Mahdad, Mustafa Hasanov, Gohar Isakhanyan and Wilfred Dolfsma
All firms' business models are based on their interdependencies with other parties in their ecosystems. The Internet of Things (IoT) is beginning to fundamentally disrupt the…
Abstract
Purpose
All firms' business models are based on their interdependencies with other parties in their ecosystems. The Internet of Things (IoT) is beginning to fundamentally disrupt the agri-food industry, forcing the ecosystem to change. When an ecosystem is transforming, the interdependencies among its actors can create friction. Technology providers and core actors should consider these interdependencies as they update their strategies for value creation and capture. The purpose of the present research is to consider what it might take for agri-food firms to capitalize on these interdependencies by moving from traditional business models to business models based on collaboration and open innovation.
Design/methodology/approach
The present paper draws on data from four online focus groups that we created to discuss how to co-create the business models agri-food firms need in a constantly changing environment. The paper presents an application of phenomenon-driven research (PDR), an engaged methodology. The study method enables novel pathways to develop and implement innovative solutions. This study draws on the interaction of theory and practice and involves multiple stakeholders with varying roles in the agri-food ecosystem.
Findings
The authors found that any open innovation setup in agri-food needs to constantly reconfigure itself to balance the needs of farmers and the needs of the market. This interplay can only support the IoT-enabled ecosystem if continuous interaction and negotiation occur among various stakeholders of the food system. When the farmers' needs and the market's needs are aligned, the space for developing a collaborative and open business model is prepared.
Originality/value
The insights gained from this study inspire action and commitment to common goals when developing collaboration-based business models (CBMs). The paper offers insights for players in the agri-food industry who are considering CBMs in the course of digital transformation.
Details
Keywords
Kaisa Koskela-Huotari and Jaakko Siltaloppi
Only a few concepts in the service literature are as pervasive yet as undertheorized as is the concept of the actor. With a growing interest toward value creation as a systemic…
Abstract
Purpose
Only a few concepts in the service literature are as pervasive yet as undertheorized as is the concept of the actor. With a growing interest toward value creation as a systemic and institutionally guided phenomenon, there is a particular need for a more robust conceptualization of humans as actors that adopts a processual, as opposed to a static, view. The purpose of this paper is to build such processual conceptualization to advance service-dominant (S-D) logic, in particular, and service research, in general.
Design/methodology/approach
The paper is conceptual and extends S-D logic's institutionally constituted account of the actor by drawing from identity theory and social constructionism.
Findings
The paper develops a processual conceptualization of the human actor that explicates four social processes explaining the dynamics between two identity concepts—social and personal identity—and institutional arrangements. The resulting framework reveals how humans are simultaneously constituted by institutions and able to perform their roles in varying, even institution-changing, ways.
Research limitations/implications
By introducing new insights from identity theory and social constructionism, this paper reconciles the dualism in S-D logic's current description of actors, as well as posits the understanding of identity dynamics and the processual nature of actors as central in many service-related phenomena.
Originality/value
This paper is among the few that explicitly theorize about the nature of human actors in S-D logic and the service literature.
Details
Keywords
Jonas Nilsson, Jeanette Carlsson Hauff and Anders Carlander
In modern societies, consumer well-being is dependent on choices regarding complex services, such as investments, health care, insurance and lending. However, evaluating costs of…
Abstract
Purpose
In modern societies, consumer well-being is dependent on choices regarding complex services, such as investments, health care, insurance and lending. However, evaluating costs of such services is often difficult for consumers due to a combination of limited cognitive resources and complexity of the service. The purpose of this study is to empirically examine to what extent three specific consequences of complexity influence consumer tendencies to make mistakes when evaluating the costs (or price) of complex services.
Design/methodology/approach
Three studies were conducted (survey: n = 153, experiment: n = 332 and conjoint analysis: n = 225), all focusing on how consumers evaluate costs in the complex mutual fund setting.
Findings
The authors find that consumers struggle with estimating and using cost information in decision-making in the complex services setting. Consumers of complex services frequently underestimate the costs over the long-term, may see costs as a signal of service quality and are susceptible to influence from presentation formats when evaluating costs.
Research limitations/implications
The study investigates mutual funds, which is one example of a complex service. In order to get a full picture of how consumers deal with costs in complex setting, future research needs to expand this focus to other types of complex services.
Practical implications
The results have implications for both marketers of complex services and policymakers. For marketers, this paper highlights that competing with a low-cost strategy may be difficult in the complex services setting as consumers may lack the ability to actually evaluate what they pay over the long term. For policymakers, increased simplification of prices may be an attractive option. However, it is important that this simplification is done in a way that increases the possibility to compare prices.
Originality/value
As complexity influences several aspects of decision-making, an understanding of how consumers evaluate costs in complex settings is dependent on taking a multidimensional research approach. This paper makes a novel contribution to the literature on pricing by showing that consumers struggle with multiple aspects when evaluating costs in complex contexts. Understanding these effects is important to policy, as well as to research on the cognitive value of simplicity that is currently gaining traction in marketing research.
Details
Keywords
Sascha Kraus, Dominik K. Kanbach, Peter M. Krysta, Maurice M. Steinhoff and Nino Tomini
In a move characterized by ambiguity, Facebook changed its name to Meta in October 2021, announcing a new era of social interaction, enabled by the metaverse technology that…
Abstract
Purpose
In a move characterized by ambiguity, Facebook changed its name to Meta in October 2021, announcing a new era of social interaction, enabled by the metaverse technology that appears poised to become the future center of gravity for online social interactions. At first glance, the communicated change signals a radically new business model (BM) based on an unprecedented configuration of the three following components: value creation, value proposition and value capture. The purpose of this paper is to analyze Facebook’s announced changes in its BM to clarify whether the change is as radical as communicated or rather represents an incremental transformation of the current BM.
Design/methodology/approach
This investigation adopted an in-depth case study research method. The process included using a structured approach to collect 153 data points, including academic studies and publicly available information, followed by qualitative content analysis.
Findings
The results of our analysis of Facebook’s entrepreneurial journey indicate that the communicated strategic refocusing does not correspond to a radical BM innovation pattern. Even though Facebook’s BM might evolve into the innovation phase, as the current changes appear very futuristic, the authors estimate that the core elements of the BM will change incrementally. The investigation indicates that the underlying logic of the straightforward communicative efforts primarily serves two purposes: to improve the external perception of the company and to disseminate an internal change signal within the organization.
Originality/value
This paper is the first study that takes an entrepreneurship and BM perspective in analyzing Facebook’s approach in rebranding to Meta and refocusing its strategy on building the metaverse. The academic and practical relevance, as well as the potential future impact on business and society, makes the investigation of this case an intriguing prospect. Additionally, the study illuminates the difference between the communicated vision and the real impact on the business, suggesting critical questions about future large-scale rebranding efforts and their effects.
Details
Keywords
Anupama Sukhu and Anil Bilgihan
The purpose of this research is to investigate the effects of service recovery experiences on customer engagement in negative word-of-mouth (WOM) in the hotel industry and explore…
Abstract
Purpose
The purpose of this research is to investigate the effects of service recovery experiences on customer engagement in negative word-of-mouth (WOM) in the hotel industry and explore the psychological motives and mediating mechanisms driving consumer behavior.
Design/methodology/approach
A scenario-based experimental design on Qualtrics was used, with a pre-test (N = 200). The main study data were collected using Amazon's Mechanical Turk platform.
Findings
Findings reveal that negative service experiences lead to higher engagement in negative WOM compared to positive and satisfactory recovery service experiences. Even well-executed recovery efforts may not completely eliminate negative WOM. The mediating role of emotional responses is substantiated, as heightened negative service experiences result in more intense negative emotional responses, leading to increased engagement in negative WOM.
Originality/value
The study emphasizes the importance of service recovery strategies and the need for businesses to consistently strive for exceptional service quality. It also highlights the complexity of customer reactions to service experiences, suggesting that further research is needed to explore the factors that minimize negative WOM across various service contexts.
Details
Keywords
Boumediene Ramdani, Ahmed Binsaif and Elias Boukrami
The aim of this paper is to review and synthesise the recent advancements in the business model literature and explore how firms approach business model innovation.
Abstract
Purpose
The aim of this paper is to review and synthesise the recent advancements in the business model literature and explore how firms approach business model innovation.
Design/methodology/approach
A systematic review of business model innovation literature was carried out by analysing 219 papers published between 2010 and 2016.
Findings
Evidence reviewed suggests that rather than taking either an evolutionary process of continuous revision, adaptation and fine-tuning of the existing business model or a revolutionary process of replacing the existing business model, firms can explore alternative business models through experimentation, open and disruptive innovations. It was also found that changing business models encompasses modifying a single element, altering multiple elements simultaneously and/or changing the interactions between elements in four areas of innovation: value proposition, operational value, human capital and financial value.
Research limitations/implications
Although this review highlights the different avenues to business model innovation, the mechanisms by which firms can change their business models and the external factors associated with such change remain unexplored.
Practical implications
The business model innovation framework can be used by practitioners as a “navigation map” to determine where and how to change their existing business models.
Originality/value
Because conflicting approaches exist in the literature on how firms change their business models, the review synthesises these approaches and provides a clear guidance as to the ways through which business model innovation can be undertaken.
Details