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Article
Publication date: 10 September 2019

Sérgio Dominique-Ferreira and Cristina Antunes

The purpose of this paper is to investigate and identify the price sensitivity of consumers of three- and five-star hotels and to determine the impact of bundling strategies on…

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Abstract

Purpose

The purpose of this paper is to investigate and identify the price sensitivity of consumers of three- and five-star hotels and to determine the impact of bundling strategies on consumers’ price sensitivity.

Design/methodology/approach

To calculate price sensitivity, authors apply the van Westendorp’s price sensitivity meter (PSM). To understand the impact of bundling strategies, univariate and bivariate techniques are applied.

Findings

PSM results reveal the optimal prices and the range of acceptable prices for three- and five-star hotel. The bundling strategy results reveal that five-star customers are less sensitive to mixed-leader bundling. Regarding mixed-joint bundling, managers could improve sales through bundling strategies if they selected an attractive service (e.g. restaurants).

Practical implications

Findings assist hotel managers to understand the different price sensitivities, according to the hotel typology. Managers can manage prices without the risk of losing market share or revenue. The results help managers in deciding which bundling strategies they can create, as well as the services to be included to achieve highest profitability.

Originality/value

No research to date to the best of the authors’ knowledge has attempted to understand and compare the role of bundling strategies in three- and five-stars hotels. Moreover, no research has attempted to measure and compare customers’ price sensitivity of three- and five-stars hotels.

Details

European Journal of Management and Business Economics, vol. 29 no. 2
Type: Research Article
ISSN: 2444-8494

Keywords

Article
Publication date: 31 March 2023

Catherine Prentice, Sergio Dominique-Ferreira and Xuequn Wang

In view of the complexity of supply chain management (SCM) in the insurance industry, to the best of the authors’ knowledge, this paper was the first to use symmetrical and…

Abstract

Purpose

In view of the complexity of supply chain management (SCM) in the insurance industry, to the best of the authors’ knowledge, this paper was the first to use symmetrical and asymmetrical methos to examine how the insurer’s service quality and SCM can be configurated to explain the relationships between the insurance companies and brokers as the intermediaries. This study positions insurance brokers as the insurance companies’ customers and supply chain partners, aims to examine the relationships between service quality, SCM and relationship quality.

Design/methodology/approach

This paper undertook two studies and used two methods to examine how the insurer’s service quality and SCM can be configurated to explain the relationships between the insurance companies and brokers as the intermediaries. Both symmetrical and asymmetrical analyses were performed including regression and fuzzy-set qualitative comparative analysis (fsQCA).

Findings

The results from symmetrical analyses and fsQCA from two countries show substantial differences in how service quality and SCM affect relationship quality. In particular, fsQCA show that all service quality dimensions are important antecedent conditions of relationship quality for Portuguese brokers. Interestingly for Irish brokers, the combination of assurance, responsiveness and the insurer’ empathy conjunctively accounted for their satisfaction, whereas none of these quality factors are related to their commitment and trust. All SCM factors are important to explain the brokers’ relationship quality with their chosen insurers for both countries.

Research limitations/implications

This study contributes to three areas of research: service quality, SCM and relationship marketing. Firstly, this study used an asymmetrical approach to providing insights into the effect of service quality dimensions by showcasing how these dimensions were configurated to explain the outcome of interest, rather than examining their symmetrical path coefficients. Secondly, this study identified the key factors of SCM in the insurance industry and how these factors can be configurated through Boolean algebra to explain relationship quality between supply chain partners. Finally, this study has implications for relationship marketing research.

Practical implications

As the study was conducted with the insurance brokers in Portugal and Ireland, the findings have implications for the insurance companies for the two countries. As different service quality factors and SCM exert different effects on relationship quality, the insurance companies should look into these factors to modify their current practice to improve relationship quality with their brokers.

Originality/value

Theoretically, to the best of the authors’ knowledge, this is the first study to approach from intermediaries to address effectiveness of SCM. Methodologically, to the best of the authors’ knowledge, this is the first study to use fsQCA – a case-based approach to understand SCM and relationship quality between stakeholders.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 11
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 9 May 2016

Sérgio Dominique-Ferreira, Helder Vasconcelos and João F. Proença

Consumer price sensitivity has become a major issue over the past few decades. This paper aims to investigate the importance that insurance customers give to premiums, insurers…

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Abstract

Purpose

Consumer price sensitivity has become a major issue over the past few decades. This paper aims to investigate the importance that insurance customers give to premiums, insurers, intermediary recommendations and bundling strategies. The relationship between attributes and consumer price sensitivity is also studied.

Design/methodology/approach

To calculate the importance of attributes and part-worth utilities, a Conjoint Analysis with Full Profile was performed. To segment the market, a two-stage cluster analysis was performed. The traditional formula for estimating price elasticity of demand was also used.

Findings

Price sensitivity is affected by the level of purchase involvement, bundled discounts and brand loyalty. Also, brand loyalty has a strong influence on customer acceptance of bundled discounts. Price bundling increases a firm’s revenues and profits.

Research limitations/implications

The size of the sample of the second stage of the research could be higher.

It would also be interesting to have the collaboration of an actuary to carry out more precise analysis of premium estimation of bundling strategies and to study the ideal number of products that would compose the bundling strategy. Moreover, it could be relevant to consider life insurance products as part of the bundling strategy. It would also be interesting to study whether there is any benefit in applying the bundle discount to the anchor product instead of applying it to the accessory product.

Practical implications

Insurers and intermediaries can benefit from price bundling strategies to increase sales and profit.

Originality/value

The study contributes to the service marketing literature and marketing of the insurance sector by providing empirical evidence of the impact of price bundling on insurance customer sensitivity, with the use of a methodological and experimental approach.

Details

Journal of Services Marketing, vol. 30 no. 3
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 5 November 2018

Sérgio Dominique-Ferreira

The insurance market has high churn rates because customers’ purchase decision-making process and claims management rely heavily on intermediaries. The purpose of this paper is to…

1319

Abstract

Purpose

The insurance market has high churn rates because customers’ purchase decision-making process and claims management rely heavily on intermediaries. The purpose of this paper is to investigate the role played by insurers and intermediaries in customer satisfaction, as well as in the preferences of customers regarding the purchase decision-making process.

Design/methodology/approach

The first step was to select the most important attributes for Portuguese insurance customers. Three focus groups were conducted (using B2C and B2B markets), and data from Portuguese car insurance customers were gathered through an ad hoc questionnaire. Structural equation models and the multidimensional scaling unfolding model were applied.

Findings

Intermediaries play a key role in the retail insurance distribution channels by influencing customer satisfaction, claims management and the purchasing process (premium acceptance).

Practical implications

Because of the influence that intermediaries have on customer satisfaction, insurers should improve their partnerships (back office support) with intermediaries.

Originality/value

The study contributes to the retail distribution literature of the insurance sector by providing empirical evidence of the impact of intermediaries on customers’ satisfaction.

Details

International Journal of Retail & Distribution Management, vol. 46 no. 11/12
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 6 April 2021

Elia Oey and Benjamin Suwito Rahardjo

The COVID-19 pandemic has hit all nations across the globe since the beginning of 2020. As the whole world is connected ever than before, the virus has spread very fast and…

Abstract

Purpose

The COVID-19 pandemic has hit all nations across the globe since the beginning of 2020. As the whole world is connected ever than before, the virus has spread very fast and affected almost all nations worldwide. Despite facing a common enemy, each nation reacts and manages the virus differently. The research studies how culture influences the way nations and society choose different approaches towards the pandemic.

Design/methodology/approach

The study uses classical cultural dimension by Hofstede and links them with three conflict management styles “integrating”, “avoiding” and “competing” in analysing three main measurements of the pandemic (test rate, case rate and death rate). The study analyses data from 116 countries and clusters them using a combination of agglomerative hierarchical clustering (AHC) and K-means clustering.

Findings

The study shows there are six nation clusters with different ways of handling COVID-19, driven by their underlying dominant culture dimension. It shows that individualistic culture combined with high indulgence dimension makes fatality worse, while nations with collectivism culture or uncertainty avoidance culture are better off, especially if accompanied with restraint dimension or long-term orientation.

Originality/value

The originality of the research lies in linking Hofstede cultural dimension with modified Onishi's conflict management style in analysing how different cultures and nations manage the COVID-19 pandemic.

Details

International Journal of Sociology and Social Policy, vol. 41 no. 11/12
Type: Research Article
ISSN: 0144-333X

Keywords

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