Search results

Despite service downgrades' undisputed practical relevance, service downgrades (e.g. customers shifting the price tier downward) have received surprisingly little attention from scholars. Previous studies have focussed on either the public policy issue of tiered pricing or optimal pricing by the service provider. Only a few studies have examined why customers shift across different price tiers and how such activities indicate their future behaviour.

Based on customer data collected from a major telecommunications company, the authors use a logistic regression model to investigate how two service modification levers (i.e. transaction- and relationship-level factors) influence the likelihood of service downgrade. The authors apply a survival model to study how service downgrades affect customer churn.

Transaction-level factors such as service usage (e.g. the frequency and recency of underuse experiences) are positively associated with the likelihood of a downgrade. However, relationship-level factors (e.g. relationship duration and customer status) are negatively associated with the likelihood of downgrades. Customers engaging in downgrades are more likely to churn in the future.

The authors focus on downgrade behaviour, which can be perceived as customers' choice to move down the price tier, which likely ruins the service provider's performance. The authors conceptualise two fundamental driving forces behind a service downgrade: the misfits between the actual usage and the service plan chosen and the deteriorating relationships. The authors' empirical findings on the factors influencing downgrades provide insights for service providers seeking to prevent such behaviour.

Examines the restructuring of Hong Kong Telecom Ltd with respect to its two subsidiaries: Hong Kong Telecommunication International Ltd and Hong Kong Telephone Company Ltd. The process and impact of this restructuring is discussed. Investigates particularly the impact of internal and external factors such as functional structure, government regulations, customers, potential competitors and labour unions.

Componentization is a common approach in manufacturing that is suggested to lead to increased innovativeness at the firm level. Componentization has recently been given attention as a relevant approach for service providers. However, due to differences between services and manufactured products, and due to the diversity of the service sector, it is not obvious to what degree the application of componentization is relevant for all service providers. The purpose of this paper is to explore the usefulness of componentization for specialized service providers in the public sector.

The paper applies an interventionist research design, in which the componentization approach is implemented in one case organization.

The paper finds that componentization increases the service orientation of specialized public sector organizations (PSOs) and improves the ability of the top management to manage and control specialized PSOs. Perhaps most importantly, the paper determines that componentization represents a foundation and a baseline for identifying service innovation ideas in specialized PSOs.

The practical experiences reported in the paper may provide guidance to managers of specialized service providers who are seeking for ways to increase the efficiency, flexibility, and innovativeness of their organization.

By empirically testing and evaluating a componentization approach, the paper contributes to the knowledge base of how componentization increases the efficiency, flexibility, and innovativeness of specialized service providers. In addition, the paper demonstrates that the application of an interventionist research approach may be useful when the research aims to develop, adopt, or evaluate new service management methodologies.

The purpose of this paper is to present an integrative approach for the problem of service capacity design for the ground crew at the airport check-in counters.

Using data collected from the airport check-in counters, several characteristics of the service demand were studied. First, many service time-dependent operating characteristics are addressed over a specified time window to evaluate the problems from the current ground crew allocation. Second, a linear programming model is developed to determine the optimal number of check-in counters to open over the specified time window based on the case study. In addition, sensitive analysis is conducted to further explore the dependency effect of the factors as well as improve the model. Third, the shift adjustment of the ground crew allocation is provided so as to satisfy the given service demand.

Numerical results indicated the effectiveness in the improvement of the human resource utilization of the proposed approach. The superiority of performance is illustrated in terms of less counters to be opened and decreased daily working hours.

The study is novel by applying the integrated approach so as to design a proper service capacity and thus the service supply and demand can be balanced.

Dysfunctional customer behavior is believed to engender employee stress and, in turn, fuel employee turnover. However, little research has examined the moderating role of individual-level and contextual-level resource variables. The purpose of this paper is to fill these gaps by examining employee embeddedness and individualism–collectivism as putative moderators of the hypothesized mediation chain.

The authors conducted a field study involving 264 service employees working in two hotels operated by the same international hotel chain, one in South Korea (n=138) and the other in the UK (n=126).

Results show that employee embeddedness weakens the impact of dysfunctional customer behavior on employee turnover via employee stress. In addition, findings suggest that collectivists (individualists) are more (less) likely to be receptive to embeddedness cues.

This is the first known study to show that employee embeddedness can mitigate the impact of dysfunctional customer behavior on turnover via employee stress. This moderated-mediation model is further moderated by employees’ cultural value orientation (individualism–collectivism). Prior literature is not explicit on these complex models.

This study examines rating agency explanations that accompany changes in credit ratings for nonprofit hospitals. A national sample of Standard & Poor’s revision announcements is used to identify hospital characteristics that purportedly motivate credit rating changes. Significant differences in agency-cited performance dimensions, such as profitability, liquidity, service-mix, capital structure and market share, are observed across upward and downward revisions. The relative usefulness of these citations for explaining and classifying credit changes is also evaluated. The results suggest that agency explanations provide limited value relative to conventional, multivariate information sets.

The purpose of this paper is to investigate how customers’ upgrading/downgrading _(t−1) behavior may be predictive of future spending. Further, this paper also investigates how customers’ post-consumption evaluations of upgrades and downgrades [satisfaction_(t−1) and perceived value_(t−1)] may moderate the relationship between upgrades/downgrades and future spending.

The predictions are tested using a large longitudinal data set of river cruise purchases (N = 48,103) and largely replicated using a data set of zoo membership purchases (N = 2,469).

Satisfaction_(t−1) mitigates the positive relationship between prior upgrades_(t−1) and future spending_(t). In contrast, perceived value_(t−1) magnifies the positive relationship between prior upgrades_(t−1) and future spending_(t). However, no positively moderating effects are observed to alleviate the negative relationship between prior downgrades_(t−1) and future spending_(t).

This research suggests that managers should work hard early in customer–firm relationships because of an asymmetric difficultly in altering the trajectory of an established relationship. Specifically, relationships that are trending downward (as consecutive downgrades would suggest) are difficult to repair – a mechanism to alter this trajectory is not observed. In contrast, relationships that are trending upward (as consecutive upgrades would suggest) can be improved with high perceived value evaluations but also degraded with high satisfaction evaluations.

This research should recast marketers’ understanding of the value of customers’ upgrade and downgrade decisions. Instead of using customers’ upgrade or downgrade decisions as the dependent variable, or final outcome in buyer behavior, this study shows how the accumulation of prior upgrades and prior downgrades, over time, acts as a bellwether of the customer–firm relationship. Further, to the best of the authors’ knowledge, this study is the first to connect these upgrade/downgrade decisions to customers’ evaluations of those purchases to understand how individual purchases can impact the overall customer–firm relationship.

Discusses the revolution in the distribution of financial services, the main benefits of telephone banking and emphasizes the continuing importance of the branch channel. Presents a framework for understanding the different spatial scales involved in the “marketing of place” in this industry sector along with a description of the scope of network management activities. Provides considerable detail concerning recent physical transformations of branch networks, focusing specifically on the changing size, role, appearance, spatial arrangement and structure of this key distribution channel. These network adjustments have created significant savings for institutions and will continue in pursuit of optimum network morphology.