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Article
Publication date: 22 September 2022

Hauke Wetzel, Christina Haenel and Alexandra Claudia Hess

Profitability considerations lead service providers to terminate service contracts with low-value customers. However, customers targeted by service contract terminations

Abstract

Purpose

Profitability considerations lead service providers to terminate service contracts with low-value customers. However, customers targeted by service contract terminations often take revenge through negative word-of-mouth (NWOM). Presently, it is unclear how service contract termination initiatives prevent this harmful side effect. The purpose of this study is to compare the effectiveness of common service contract termination initiatives for reducing NWOM of customers whose service contracts are being cancelled. The study results provide guidance for minimizing the downside of service contract termination.

Design/methodology/approach

This study distinguishes between service contract termination initiatives common in practice (preannouncement, explanation, financial compensation, apology and support in finding an alternative provider). Drawing on a multi-industry survey of 245 customers who have experienced service contract terminations in real life, the authors estimate regression models to link perceived service contract termination initiatives to NWOM.

Findings

All else equal, only preannouncement and support in finding an alternative are effective to reduce NWOM. This study also shows that the right choice of service contract termination initiatives depends on the context of the termination. Making a preannouncement, offering an explanation and providing support in finding an alternative are more effective in reducing NWOM when these actions are aligned with the contextual factors of relationship duration and competitive intensity.

Research limitations/implications

This study shows that service contract termination needs to address several aspects of the service termination experience. The key implication for future research is that it matters in terms of NWOM how service contract terminations are performed.

Practical implications

This research identifies the service contract termination initiatives that are most effective to reduce NWOM after service contract termination in general and under consideration of the moderating roles of relationship duration and competitive intensity.

Originality/value

While most related studies have considered customer responses to the cancellation of other customers’ contracts, this study contributes to the scarce literature on the undesirable customer responses (such as NWOM) to the termination of their own contract. To the best of the authors’ knowledge, it is the first study in this emerging stream of research that accounts for the effects of process- and outcome-oriented contract termination initiatives on NWOM. To the best of the authors’ knowledge, it is also the first study to account for moderators of the effect of contract termination initiatives on NWOM, namely, relationship duration and competitive intensity.

Article
Publication date: 1 March 1987

P. de Groot

Termination resistances can affect the behaviour of thin‐film resistors. Depending on the dimensions of a resistor both the TCR and the long‐term stability will be…

Abstract

Termination resistances can affect the behaviour of thin‐film resistors. Depending on the dimensions of a resistor both the TCR and the long‐term stability will be affected, while the termination resistance forms part of the practical resistance value. This paper deals with the results of an investigation concerning the influence of termination resistances with respect to the behaviour of thin‐film resistors. Three thin‐fiim technologies were investigated. Values for the resistance, TCR and ageing drifts of both the bulk material and the terminations will be discussed. Some remarks on the structure of a termination will be mentioned.

Details

Microelectronics International, vol. 4 no. 3
Type: Research Article
ISSN: 1356-5362

Article
Publication date: 1 August 1997

Zahid Iqbal, Shekar Shetty, Joseph Haley and Maliyakkal Jayakumar

Terminations of overfunded pension plans may strengthen a financially‐weak firm. When manager's interests are aligned with shareholder's, either through high levels of…

Abstract

Terminations of overfunded pension plans may strengthen a financially‐weak firm. When manager's interests are aligned with shareholder's, either through high levels of stock ownership, or through labor and takeover market discipline at low levels of ownership, termination strengthens the firm and the stock price should react positively. In contrast, managers at middle levels of ownership hold enough stock to be entrenched, but not enough to be aligned with shareholder interests. Terminations may then be for reasons other than strengthening a financially‐weak firm and may not generate a positive stock price reaction. We find that the financial incentives for terminations differ significantly between terminators and nonterminators at high and low levels of managerial ownership, but not at intermediate levels. Our stock return analysis indicates that terminations by high and low ownership firms are consistent with shareholder welfare. Concern has been expressed that terminations of defined benefit pension plans transfer wealth from plan participants to plan sponsors. Plan terminations can have a value‐maximizing motive when the reversions are used as a source of financing, thereby helping firms avoid bankruptcy and liquidation. The empirical evidence (e.g., Alderson and VanDerhei (1992), VanDerhei (1987), and Hsieh, Ferris, and Chen (1990)) showing favorable stock price reactions to terminations by financially‐weak firms are consistent with the value‐maximizing justification for plan terminations. Prior studies (e.g., Agrawal and Mandelker (1987), Kim and Sorensen (1986), Sicherman and Pettway (1987), Hill and Snell (1989), Benston (1985), Morck, Shleifer, and Vishny (1988), Carter and Stover (1991) and Hermalin and Weisbach (1991)) have also documented that management's ownership interest in the firm has an important effect on the incentive to maximize firm value. This paper examines the effect of managerial ownership on financial termination. Specifically, we address whether or not financial motivation to terminate plans exists at all levels of managerial ownership. Our results suggest that the terminating firms, when compared to the nonterminating firms, are financially weak at high and low levels of managerial ownership. In contrast, there is no significant difference in financial weakness between the terminators and the nonterminators at the middle ownership levels. Also, stockholders reactions to terminations are higher at high and low levels of managerial ownership.

Details

Managerial Finance, vol. 23 no. 8
Type: Research Article
ISSN: 0307-4358

Book part
Publication date: 12 May 2022

Ryan Thorneycroft

PurposeThis chapter examines the relationship between prenatal testing, Down syndrome identification, and selective termination practices, and it does so by considering

Abstract

PurposeThis chapter examines the relationship between prenatal testing, Down syndrome identification, and selective termination practices, and it does so by considering whether the selective termination of fetuses with Down syndrome might constitute genocidal practices.

Methodology/approachExploratory and speculative in nature, this chapter brings the phenomenon of prenatal testing and selective termination practices together, and explores whether the increasingly widespread termination of fetuses with Down syndrome fits within definitions of genocide.

FindingsAddressing perceptions of Down syndrome and disability, and integrating aspects of crip politics and definitions of genocide, this chapter concludes that the phenomenon of selective termination involving fetuses with Down syndrome can constitute genocide when particular definitions and interpretations are adopted.

Originality/valueThis chapter is perhaps the first academic text to critically evaluate the relationship between prenatal testing, selective termination of fetuses with Down syndrome, and criminological genocide scholarship. Importantly, it does not evaluate individual decision-making practices regarding termination, but instead focuses on collective practices and conditions that work to minimize the number of people with Down syndrome in society.

Details

Diversity in Criminology and Criminal Justice Studies
Type: Book
ISBN: 978-1-80117-001-7

Keywords

Book part
Publication date: 1 July 2004

Catherine J Ross

This article considers the independent liberty interests of children in foster care and their mothers in parental termination proceedings. Recent federal reforms impose a…

Abstract

This article considers the independent liberty interests of children in foster care and their mothers in parental termination proceedings. Recent federal reforms impose a mandatory deadline for the state to terminate parental rights. That policy erroneously presumes that the passage of time alone establishes parental fault and satisfies a parent’s due process rights. It also fails to protect the minority of children who assert an interest in preserving a safe relationship with mothers who are unlikely to meet the state’s schedule – including many substance abusers and victims of domestic violence.

Details

Studies in Law, Politics and Society
Type: Book
ISBN: 978-0-76231-109-5

Article
Publication date: 1 October 2021

Nakul Parameswar, Sanjay Dhir, Tran Tien Khoa, Antonino Galati and Zafar U. Ahmed

While the number of global alliance terminations in the business world has grown steadily during the past few decades, the scholarly literature on strategic alliance (SA…

Abstract

Purpose

While the number of global alliance terminations in the business world has grown steadily during the past few decades, the scholarly literature on strategic alliance (SA) termination remains limited. This research paper aims to perform a bibliometric analysis of the literature on alliance termination and propose a model for future research agenda that links the termination phase to the pre-alliance termination phase and post alliance termination phase.

Design/methodology/approach

A search query on global alliance termination identified a total of 69 research papers from the Scopus database, and a bibliometric analysis was performed using the bibliometrix R-package and VOSviewer. The analysis further used the TCCM framework to review the set of papers.

Findings

This research analysis reveals that, compared to the pre-formation, formation, and process stages of alliances, limited research has been undertaken on global alliance termination. The bibliometric analysis and TCCM framework provide a complete view of the extant literature on global alliance termination from different dimensions and act as the which as the foundation for a developing the research agenda that links pre-alliance termination phase and post-alliance termination phase to that of alliance termination phase.

Research limitations/implications

The proposed research agenda is unique as it integrates multiple phases in the alliance lifecycle with global alliance termination phase and develops a distinct view for future research that emphasizes on the post-alliance termination phase.

Practical implications

The bibliometric analysis provides a precise snapshot of the state of the literature on global alliance termination. The research agenda developed provides a direction for further academic research that links alliance termination not only to pre-alliance termination phase but also to the post-alliance termination phase that is nascently explored in the literature.

Originality/value

This study is among the few to review and synthesize the literature on global alliance termination. It, therefore, functions as a catalyst to draw global scholars' attention. Further, it provides global researchers with direction by proposing a global research agenda.

Details

International Marketing Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 28 January 2013

Jens Geersbro and Thomas Ritter

Most firms have a number of unprofitable customer relationships that drain the firms' resources. However, firms in general and sales representatives in particular hesitate…

1014

Abstract

Purpose

Most firms have a number of unprofitable customer relationships that drain the firms' resources. However, firms in general and sales representatives in particular hesitate to address this problem and, ultimately, to terminate business relationships. This paper therefore aims to investigate the antecedents and consequences of sales representatives' relationship termination competence.

Design/methodology/approach

A model of antecedents of sales representatives' relationship termination competence is developed and tested using a cross-sectional survey of more than 800 sales representatives. The impact of the constructs “termination acceptance”, “definition of non-customer”, “termination routines” and “termination incentives” on termination competence are analyzed using PLS.

Findings

A sales representative's termination competence is positively influenced by greater clarity and wider dissemination of the definition of a “non-customer”, higher prevalence of termination routines, and increasing degrees of termination incentives. Acceptance of relationship termination at the firm level does not appear to have a significant impact on sales representatives' relationship termination competence. In addition, termination competence significantly affects the value of customer portfolios.

Practical implications

The findings suggest that managers should more actively consider relationship termination as a legitimate option in customer relationship management. In order to increase the value of a firm's customer portfolio, managers must not only provide a clear definition of the types of customers the organization does not want to serve, but must also implement termination routines within the organization. Managers also need to establish incentives for sales representatives to terminate relationships with unprofitable customers.

Originality/value

This paper contributes to the currently scarce research on relationship termination by documenting results from a large-scale analysis of relationship termination.

Article
Publication date: 13 April 2015

Valentyna Melnyk and Tammo Bijmolt

The goal of this paper is to empirically investigate the effects of an loyalty program (LP) introduction and termination, accounting for simultaneous effects of LP…

8776

Abstract

Purpose

The goal of this paper is to empirically investigate the effects of an loyalty program (LP) introduction and termination, accounting for simultaneous effects of LP designs, cross-customer effects and competition effects. Despite firms across the globe spend billions of dollars on LPs, it is not clear: whether these programs enhance customer loyalty, what happens if a program is terminated and which LP design elements enhance effectiveness of LPs.

Design/methodology/approach

The authors empirically investigate to what extent the effects of introducing and terminating a LP depend on: its monetary and non-monetary design elements, customer characteristics and competition. The empirical evidence is based on a bivariate hierarchical linear model, using a large-scale dataset involving 9,783 consumers rating 24 different LPs across eight industries.

Findings

While the characteristics of LP are more important in influencing customer behavior when they join the LP, the competitive environment and the duration of membership in an LP are the primary drivers of customer reactions to LP termination. Non-monetary discrimination between members and non-members is a more powerful tool in creating customer loyalty than offering higher discounts or saving points. The effect of discrimination on loyalty sustains when an LP is terminated.

Research limitations/implications

This is the first research to empirically investigate the effect of an LP termination, accounting for simultaneous effects of LP designs and competition effects. The authors measured behavioral intentions in a hypothetical case of LP termination. Future research could assess the effects of LP termination and the moderating role of both monetary and non-monetary design elements on other behavioral loyalty variables based on, e.g. household panel data, when such data on LP terminations across industries becomes available.

Practical implications

When a firm considers the introduction of an LP or changing an existing one, non-monetary discrimination between members and non-members seems to be the most effective tool in building sustainable customer loyalty. Further, offering a relatively low saving rate is a viable way to keep costs down because the savings percentage does not significantly affect loyalty. For the same reason, firms can also consider reducing or eliminating LP-based discounts. The competitive environment and the duration of membership in an LP are the primary drivers of customer reactions to LP termination.

Originality/value

To the best of authors’ knowledge, the potential effects of LP termination have not been addressed in the current literature. The authors empirically assess the effects of LP termination and effects of those programs at the introduction. Understanding the factors that moderate the potential negative impact of terminating an LP is of crucial importance to managers and researchers alike. The paper is of great value for firms that consider introducing, modifying or terminating an LP.

Details

European Journal of Marketing, vol. 49 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 January 2006

Christian Koziol

Seek to compare the consequences of single‐source versus multiple‐source lending for a borrower who has loans that can be prematurely terminated.

1102

Abstract

Purpose

Seek to compare the consequences of single‐source versus multiple‐source lending for a borrower who has loans that can be prematurely terminated.

Design/methodology/approach

The considered model framework is an option‐theoretic firm value model similar to Merton (1974) but where lenders have the additional right to prematurely terminate the loans. The single lender is a monopolist, while multiple lenders are represented by a continuum without individual impact on the aggregate termination decision.

Findings

The model explains that, if the borrower is in financial distress but has positive net present value projects, a single lender has a higher incentive to save the firm and therefore terminates fewer loans than multiple lenders. In the opposite case where the firm is not under financial distress, it is the other way round and multiple lenders terminate fewer loans than a single lender. As a result, equity holders are better off by having a loan from a single‐source under financial distress but multiple‐source lending is advantageous in the absence of financial distress.

Research limitations/implications

To focus on the origin for arising differences from single‐source and multiple‐source lending, consideration is given to the simple case with perfect information and without monitoring and renegotiation. These market imperfections can be incorporated into the model in a straightforward way.

Originality/value

While other models in the literature require market imperfections to explain the relevance of the bank relationship, this paper indicates that even in the absence of market imperfections the lending relationship is fundamental as long as lenders have the right for early terminations.

Details

International Journal of Managerial Finance, vol. 2 no. 1
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 24 July 2018

Yuhui Wei, Zhaowei Su, Huashan Lu and Xue Mei Ding

The purpose of this paper is to develop an efficient termination control strategy of air-vented dryer in term of energy saving, improving smoothness and reducing…

Abstract

Purpose

The purpose of this paper is to develop an efficient termination control strategy of air-vented dryer in term of energy saving, improving smoothness and reducing microscopic damage of fiber.

Design/methodology/approach

A simple, low cost termination control strategy is developed by testing the instantaneous humidity of exhaust air and then deducing the drying degree of fabric in process. The practicability evaluation of this novel strategy was investigated by using both experimental and mathematical approaches. The effect of termination control strategy on drying efficiency and fabric apparent properties were also discussed.

Findings

Termination control strategy significantly affects drying time, energy consumption, smoothness and microscopic of fiber. Specially, a novel termination control strategy that the combination of equilibrium moisture content of fabric in ambient environment and relative humidity of exhaust air in exhaust duct is workable and can save 25.2 percent of energy consumption, 26.7 percent of the drying time and improve 0.7 grade of the appearance smoothness, as well as significantly reduce the microscopic damage of fiber compare to the original control strategy of dryer. This indicates possible ways to minimize drying energy consumption and dryer damage by reducing unnecessary migrate out of the water from the clothes.

Practical implications

The paper is helpful in not only the development of new drying product but also the optimization of appearance smoothness of fabric after drying and reduce the microscopic damage of fiber.

Originality/value

A novel termination control strategy of dryer is applied to improve drying efficiency of dryer and reduce fabric damage.

Details

International Journal of Clothing Science and Technology, vol. 30 no. 3
Type: Research Article
ISSN: 0955-6222

Keywords

1 – 10 of over 10000