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Article
Publication date: 20 September 2021

Subimal Chatterjee, Debi P. Mishra, Jennifer JooYeon Lee and Sirajul A. Shibly

Service providers often recommend unnecessary and expensive services to unsuspecting consumers, such as recommending a new part when a simple fix to the old will do, a phenomenon…

Abstract

Purpose

Service providers often recommend unnecessary and expensive services to unsuspecting consumers, such as recommending a new part when a simple fix to the old will do, a phenomenon known as overprovisioning. The purpose of this paper is to examine to what extent consumers tend to defer their decisions should they suspect that sellers are overproviding services to them and they cannot prevent the sellers from doing so (they lack personal control); and how proper market signals can mitigate such suspicions, restore personal control and reduce deferrals.

Design/methodology/approach

The paper conducts three laboratory experiments. The experiments expose the participants to hypothetical repair scenarios and measure to what extent they suspect that sellers might be overproviding services to them and they feel that they lack the personal control to prevent the sellers from doing so. Thereafter, the experiments expose them to two different market signals, one conveying that the seller is providing quality services (a repair warranty; quality signal) and the other conveying that the seller is taking away any incentives their agents (technicians) may have to overprovide services (the technicians are paid a flat salary; quantity signal). The paper examines how these quality/quantity signals are able to reduce overprovisioning suspicions, restore personal control and reduce decision deferrals.

Findings

The paper has two main findings. First, the paper shows a mediation process at work i.e. suspecting potential overprovisioning by sellers leads consumers to defer their decisions indirectly because they feel that they lack personal control to prevent the sellers from doing so. Second, the paper shows that the quantity signal (flat salary disclosure), but not the quality signal (warranty), is able to mitigate suspicions of overprovisioning, restore personal control and reduce decision deferrals.

Practical implications

The paper suggests that although buyers may rely on quality signals to assure them of superior service, these signals do not guarantee that the quantity of service they are receiving is appropriate. Therefore, sellers will have to send a credible quality signal and a credible quantity signal to the consumers if they wish to tackle suspicions about service overprovision and service quality.

Originality/value

The paper is original in two ways. First, the paper theorizes and tests a mediation process model whereby quality/quantity signals differentially mitigate overprovisioning suspicions, restore personal control and reduce decision deferrals. Second, the paper speaks to the necessity of expanding the traditional signaling literature, designed primarily to detect poor quality hidden in the products/services of lower-quality sellers, to include detecting/solving overprovisioning often hidden in the services provided by higher-quality sellers.

Details

Journal of Consumer Marketing, vol. 38 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 20 October 2020

Aly Owida, P.J. Byrne, Cathal Heavey and Khaled S. El-Kilany

The purpose of this paper aims to evaluate field repair within product-service system (PSS) models operated by multinational manufacturers in the Egyptian emerging market to…

Abstract

Purpose

The purpose of this paper aims to evaluate field repair within product-service system (PSS) models operated by multinational manufacturers in the Egyptian emerging market to better understand the unique characteristics of this evolving market and to identify differences compared to established markets.

Design/methodology/approach

Case research was conducted on multinational manufacturers providing field repair services in Egypt. The sample is made up of 12 companies across different industries using convenience and purposive sampling. Data were collected using structured interviews.

Findings

There is no common model for field repair PSSs provision in the Egyptian emerging market even within the same industry, which is influenced by several factors. One of these factors is the market type being emerging or established. However, some commonalities have been found between some industries such as computer, telecommunications and document processing. Yet, there is no structural difference in the supply networks used to provide field repair service offerings in the Egyptian emerging market compared to established markets with the trend of outsourcing evident as a main attribute of a PSS in emerging markets. The main differences between established and emerging markets are related to country, culture and customer factors, which are market-based. Among the main challenges and risks that internationalized manufacturers face in Egypt, is the low level of customer awareness.

Research limitations/implications

Findings are limited to the studied cases and industries; yet, internationalized firms must deal with some unique challenges and difficulties in emerging markets.

Practical implications

This paper assesses PSS requirements and provides deeper insights for companies looking to provide or expand manufacturing-based offerings into the Egyptian emerging market.

Originality/value

This paper contributes to the evolving research on PSSs, particularly in emerging markets through identifying and describing different field repair PSS models in the Egyptian emerging market.

Details

International Journal of Emerging Markets, vol. 17 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 8 July 2020

Colin Williams and Brunilda Kosta

The purpose of this paper is to explain who purchases undeclared home repairs and renovations and their motives to tackle the cash-in-hand consumer culture. The conventional view…

Abstract

Purpose

The purpose of this paper is to explain who purchases undeclared home repairs and renovations and their motives to tackle the cash-in-hand consumer culture. The conventional view has been that undeclared home repairs and renovations are sought by those consumers needing to save money and desiring a lower price. Here, this is evaluated critically.

Design/methodology/approach

To do so, evidence from a 2019 Eurobarometer survey involving 27,565 face-to-face interviews in 28 European countries is reported.

Findings

The finding is the need for a nuanced and variegated understanding of who purchases undeclared home repairs and renovations and why. Lower price is their sole rationale in just 25% of purchases, one of several rationales in 34% of cases and not a reason in the remaining 42% of purchases. Besides a lower price, consumers purchase undeclared not only unintentionally but also to circumvent the failings of formal sector provision in terms of its availability, speed and quality, as well as for social and redistributive rationales.

Practical implications

To reduce the cash-in-hand consumer culture, not only are incentives needed to persuade consumers to purchase declared along with awareness-raising campaigns about the benefits of purchasing declared services but initiatives are also needed to improve the availability, speed, reliability and quality of formal provision and to address undeclared purchases conducted for social and redistributive purposes.

Originality/value

This paper improves understanding of how governments can stop consumers asking “how much for cash” and reduce demand for undeclared home repair and renovation services.

Details

Journal of Financial Management of Property and Construction , vol. 25 no. 3
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 7 September 2015

Ernest Emeka Izogo

– This purpose of this paper is to investigate the diagnostic abilities and dimensional structure of the SERVQUAL scale within a non-western automotive repair services setting.

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Abstract

Purpose

This purpose of this paper is to investigate the diagnostic abilities and dimensional structure of the SERVQUAL scale within a non-western automotive repair services setting.

Design/methodology/approach

Data collected from a randomly generated sample of 555 participants that produced a 50.63 percent response rate was factor analyzed and tested for internal scale consistency. A one sample t-test and a median ranking statistics of component extractions were also conducted.

Findings

This study reveals that the SERVQUAL scale is a valid and reliable measure of service quality within the automotive repair services setting in a non-western context. Further outcomes from the assessment show that, even though the original five dimensional SERVQUAL structure was successfully replicated, there were definite differences in items assignment. Empathy also emerged as the most important dimension of service quality.

Research limitations/implications

The outcomes of this study cannot be generalized. As such, the SERVQUAL scale should receive more rigorous research in non-western contexts in two directions. First, the scale should be tested across other services fields to further confirm its diagnostic abilities and dimensional structure. Second, more multi-sectoral as well as cross-cultural studies tested across larger data sets is equally required to enhance generalizability of findings across other non-western environments.

Originality/value

This study demonstrated that the SERVQUAL scale is a valid and reliable measure of service quality within the automotive repair services setting in a non-western context with empathy emerging as the most significant dimension of service quality.

Details

African Journal of Economic and Management Studies, vol. 6 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 7 October 2013

Sergiy Eugene Pogodayev

The purpose of this paper is the justification of a new conception of the marketing of works. The paper supports this new conception of the marketing of goods, works, and services

Abstract

Purpose

The purpose of this paper is the justification of a new conception of the marketing of works. The paper supports this new conception of the marketing of goods, works, and services instead of the existing conception of the marketing of goods and services. The paper also introduces new concepts of hybrid offerings.

Design/methodology/approach

The paper develops hypotheses on the basis of a hypothetical-deductive method, the application of analysis and synthesis for justification of the proposed concepts, and interviews with top marketing managers of shipyards to substantiate the necessity of marketing of works.

Findings

Marketing of works is a new line of marketing activity and a source of new hybrid offerings. A widened marketing of goods, works, and services must replace the existing marketing of goods and services, which does not apply completely in the sale of works. The main difference between works and services is an ability to change the market value of objects. “Goods+works” and “works+services” are the new particular hybrid offerings and “goods+works+services” is the new general hybrid offering.

Practical implications

Marketing of works plays a key role in many branches of industry, including house building, airplane production, the repair of vessels, the reclamation of land, and so on. Works are elements of the new hybrid offerings and the new marketing of goods, works, and services.

Originality/value

Initially, the new marketing of works appeared as a part of the marketing of industrial services. Conceptions of the marketing of works and the marketing of goods, works, and services are new results that develop the existing marketing of goods and services. The particular hybrid offerings “goods+works” and “works+services” and the general hybrid offering “goods+works+services” are also new results.

Details

Journal of Business & Industrial Marketing, vol. 28 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 December 2002

Veronica Liljander and Inger Roos

Relationship marketing (RM) has been widely accepted as an important determinant of long‐term business success and is believed to be especially well suited for services because of…

8586

Abstract

Relationship marketing (RM) has been widely accepted as an important determinant of long‐term business success and is believed to be especially well suited for services because of the personal contact between customers and service providers. Past research has focused mainly on the advantages of RM for companies, while less attention has been paid to relationships from the customer’s point of view. We suggest that relationships may be described as ranging from spurious to true, depending on customer‐perceived relationship benefits, trust and commitment. A qualitative study of customer relationships was conducted in a car dealership, where profitability depends on customer commitment to both after‐sales services and the car brand. Customer relationships were found to be more spurious than true. The study revealed that behavioural commitment to after‐sales services was high, but that affective commitment was low to moderate. Customers were satisfied but did not perceive the services to be superior to the competitors’ service offerings. They trusted authorised repair in general and did not feel that after‐sales service would have more than a minor influence on their future car purchases.

Details

Journal of Services Marketing, vol. 16 no. 7
Type: Research Article
ISSN: 0887-6045

Keywords

Abstract

Details

Servitization Strategy and Managerial Control
Type: Book
ISBN: 978-1-78714-845-1

Article
Publication date: 1 June 2005

Mark Peterson, Gary Gregory and James M. Munch

To evaluate the cross‐regional equivalence of repair service quality for mission‐critical equipment.

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Abstract

Purpose

To evaluate the cross‐regional equivalence of repair service quality for mission‐critical equipment.

Design/methodology/approach

Using the five dimensions of SERVPERF as a framework, clinical laboratory directors across Europe and the USA were surveyed about repair service for mission‐critical equipment. Assessment of construct equivalence across the two regions was then performed using item bias analysis. Following this, assessment of model equivalence across the two regions was conducted using both the Chow test of model equivalence and regression in structural equation modeling (SEM).

Findings

Results suggest that service quality in this B2B domain is perceived to be remarkably the same in both the USA and Europe.

Research limitations/implications

Future research could focus on repair services for other types of mission‐critical equipment, and another region of the world, such as Asia. Both of these steps would boost the generalizability of the study's findings.

Practical implications

The practical implications of the study's results suggest not only the applicability of the SERVPERF framework across these two regions, but also standardization possibilities in repair service for mission‐critical equipment because of the homogeneity evident in these markets regarding service quality.

Originality/value

This study should be valuable reading for those interested in issues related to service quality, as well as international services. The paper provides new insight into the relative importance of service quality dimensions, as the “responsiveness” dimension was found to be more than twice as important as any other dimension – even the “reliability” dimension.

Details

International Marketing Review, vol. 22 no. 3
Type: Research Article
ISSN: 0265-1335

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

4464

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

Abstract

Details

Servitization Strategy and Managerial Control
Type: Book
ISBN: 978-1-78714-845-1

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