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Article
Publication date: 20 September 2011

Elif Karaosmanoğlu, Ayşe Banu Elmadağ Baş and Jingyun (Kay) Zhang

By drawing on theories of social identity, attraction, social comparison and consumer identification, this research seeks to examine how consumers' perceptions of other customers

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Abstract

Purpose

By drawing on theories of social identity, attraction, social comparison and consumer identification, this research seeks to examine how consumers' perceptions of other customers of an organisation (the other customer effect) may have an influence on corporate image and consumer‐company identification. This study aims to test a model integrating these constructs in two contexts, i.e. products and services. It also seeks to investigate the attitudinal and behavioural consequences of a favourable corporate image in order to provide more insights to the argument that a corporate marketing approach helps to enhance marketing performance.

Design/methodology/approach

A survey of a convenience sample of 383 adult consumers is conducted. Structural Equation Modelling (SEM) is employed in order to test the proposed model. An alternative model is examined both in products and in services contexts.

Findings

The results indicate that perceptions about other customers influence customers' affective and behavioural reactions towards a company for both products and services. This finding suggests that corporate‐level marketing activities aiming to increase interaction among consumers lead to favourable corporate image and higher consumer‐company identification and hence desirable marketing outcomes. Furthermore, results show that for services the other customer effect is more prominent than for product offerings.

Originality/value

This study extends the concept of other customer effect to the context of corporate image and consumer‐company identification studies. It provides evidence that shifting towards corporate‐level marketing gives organisations another avenue for gaining a distinct position in the minds of consumers. Furthermore, by addressing both service and product contexts, it shows that other customer effect may exist beyond services studies.

Details

European Journal of Marketing, vol. 45 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 4 April 2019

Youngsun Sean Kim and Melissa A. Baker

This study aims to examine the observing customer’s reactions, namely, gratitude, loyalty to the employee and tipping intention while observing other customer incivility during…

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Abstract

Purpose

This study aims to examine the observing customer’s reactions, namely, gratitude, loyalty to the employee and tipping intention while observing other customer incivility during another customer service failure and the frontline employee’s emotional labor strategy.

Design/methodology/approach

A 2 (emotional labor strategy: deep acting vs surface acting) by 2 (service consumption criticality: high vs low) experiment is used to test the hypotheses.

Findings

The results reveal that observing an employee’s deep acting emotional labor (vs surface acting) leads to a greater level of gratitude among the affected customers and promotes their tipping and loyalty to the employee. However, there is no significant interaction effect of service consumption criticality and emotional labor strategy on customer gratitude.

Research limitations/implications

This research builds upon the social servicescape, customer misbehavior and emotional labor literature by examining previously untested relationships.

Practical implications

In cases of other customer service failure, managers should effectively communicate to their employees how their emotional labor induces positive customer feedback. Currently, emotional labor is emphasized mostly regarding its negative effects on employees, but this research suggests that serving the recovery expectation of the affected customers, especially when it is served with authentic emotional displays, can promote increased tipping and loyalty behavior.

Originality/value

No research investigates customers’ emotional and behavioral reactions to employee emotional labor in the context of other customer service failure.

Details

International Journal of Contemporary Hospitality Management, vol. 31 no. 3
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 8 May 2017

Ziyun Yang

The purpose of this paper is to examine the effect of a firm’s customer base concentration on its loan contract terms and how this effect varies with the strength of its customer

Abstract

Purpose

The purpose of this paper is to examine the effect of a firm’s customer base concentration on its loan contract terms and how this effect varies with the strength of its customer relationship.

Design/methodology/approach

This study is an archival research based on a sample of US public firms that have loan contract data between 1990 and 2008. Major customer sales data are used to construct customer concentration and customer relationship measures. A debt contract model is employed to relate loan spread and other contract terms to customer concentration and relationship.

Findings

This study finds that firms with more concentrated customer bases have higher loan spread and shorter loan maturity and are more likely to issue secured loans. These negative effects disappear when the supplier firm maintains strong relationship with its customers.

Research limitations/implications

Additional forward-looking measure of customer relationship could benefit future research.

Practical implications

A firm’s customer base characteristics can have significant impacts on the terms of its loan contracts. Findings from this study support the notion that customer relationship is an important intangible asset that is informative to stakeholders of the firm.

Originality/value

This study proposes a new measure of customer relationship based on the past repeated relationships between a firm and its major customers. It shows that customer characteristics may affect firms’ contracts with creditors: customer base concentration increases credit risk whereas strong customer relationship improves credit quality.

Details

Journal of Applied Accounting Research, vol. 18 no. 2
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 12 October 2017

Chuanchuen Akkawanitcha and Paul G. Patterson

The purpose of this paper is to examine the impact of a loss of face on the psychological well-being of frontline employees (FLEs) in an Eastern cultural context (Thailand) when…

Abstract

Purpose

The purpose of this paper is to examine the impact of a loss of face on the psychological well-being of frontline employees (FLEs) in an Eastern cultural context (Thailand) when subjected to customer aggression. Importantly, it adopts a contingency approach and examines moderating effects by which social status, a “customer is always right” organisational philosophy and a public/private context impact the nature of the association between customer aggression and loss of face. Finally, it examines the moderating effect of regulation of emotion on the association between loss of face on psychological well-being.

Design/methodology/approach

A survey, administered to 319 FLEs in retail stores in Thailand, asked them to recall a recent experience dealing with customer aggression. The data were analysed using structural equation modelling and a moderator regression.

Findings

Customer aggression expressions are associated with FLEs’ loss of face, which in turn affects FLEs’ emotional exhaustion and anxiety. FLEs social status and a “customer is always right” organisational philosophy moderate the association between customer aggression and loss of face, and FLEs’ loss of face is greater when their physical well-being is threatened publicly rather than in private. In addition, regulation of emotion was found to increase the negative impact of loss of face on emotional exhaustion.

Practical implications

The way FLEs respond to customer aggression during service encounters, as well as the FLEs’ status and the context, can intensify their loss of face and psychological well-being. This has implications for the extent to which organisations impose a “customer is always right” dictum on FLE, as well as the need for counselling and peer support immediately following customer aggression incidents.

Originality/value

This study is the first to investigate the moderating effects of social status, a “customer is always right” philosophy and public/private context on the expression of customer aggression and FLEs’ accompanying loss of face. In other words, rather than simply examining what causes face loss, the authors shift the focus from the “Is” question to “When” – i.e., under what contingency condition is there more or less face loss?

Details

Journal of Service Theory and Practice, vol. 27 no. 6
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 5 October 2012

Laura Illia and John M.T. Balmer

The purpose of this paper is to explicate the natures, histories, similarities and differences of, and between, corporate communication and corporate marketing.

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Abstract

Purpose

The purpose of this paper is to explicate the natures, histories, similarities and differences of, and between, corporate communication and corporate marketing.

Design//methodology/approach

The modus operandi of the article is to map these two territories and, by this means, afford assistance to scholars and practitioners within the communications and marketing domains who share the authors' intellectual and instrumental interests in these two territories. As such, the article seeks to provide a general introduction to the nature of these two fields along with their bases and rationales.

Findings

Whilst there are significant differences between corporate communication and corporate marketing, the authors also found similarities in terms of the importance accorded to identities (an identity‐based view of the corporation can be significant here) and are mindful of the impact of ethics and note common grounds in their analytical focus. Both areas are also inextricably linked by virtue of their foci on corporate‐level concerns rather than product‐related concerns that have, for the main, predominated vis‐à‐vis traditional modes of communication/PR and marketing.

Research limitations/implications

From a theoretical point of view the paper invites to explore the synergies between these two disciplines. From a practical point of view practitioners are invited to rethink their communications under the lens of corporate marketing and corporate communication.

Originality/value

The contribution of the paper is to provide an extensive literature review of the two fields that uncovers the theoretical backgrounds of both disciplines, their nature and analytical focus. Also, the value is to compare these two fields one with the other.

Details

Corporate Communications: An International Journal, vol. 17 no. 4
Type: Research Article
ISSN: 1356-3289

Keywords

Book part
Publication date: 4 September 2003

Oliver Koll

Scanning both the academic and popular business literature of the last 40 years puzzles the alert reader. The variety of prescriptions of how to be successful (effective…

Abstract

Scanning both the academic and popular business literature of the last 40 years puzzles the alert reader. The variety of prescriptions of how to be successful (effective, performing, etc.) 1 Organizational performance, organizational success and organizational effectiveness will be used interchangeably throughout this paper.1 in business is hardly comprehensible: “Being close to the customer,” Total Quality Management, corporate social responsibility, shareholder value maximization, efficient consumer response, management reward systems or employee involvement programs are but a few of the slogans introduced as means to increase organizational effectiveness. Management scholars have made little effort to integrate the various performance-enhancing strategies or to assess them in an orderly manner.

This study classifies organizational strategies by the importance each strategy attaches to different constituencies in the firm’s environment. A number of researchers divide an organization’s environment into various constituency groups and argue that these groups constitute – as providers and recipients of resources – the basis for organizational survival and well-being. Some theoretical schools argue for the foremost importance of responsiveness to certain constituencies while stakeholder theory calls for a – situation-contingent – balance in these responsiveness levels. Given that maximum responsiveness levels to different groups may be limited by an organization’s resource endowment or even counterbalanced, the need exists for a concurrent assessment of these competing claims by jointly evaluating the effect of the respective behaviors towards constituencies on performance. Thus, this study investigates the competing merits of implementing alternative business philosophies (e.g. balanced versus focused responsiveness to constituencies). Such a concurrent assessment provides a “critical test” of multiple, opposing theories rather than testing the merits of one theory (Carlsmith, Ellsworth & Aronson, 1976).

In the high tolerance level applied for this study (be among the top 80% of the industry) only a handful of organizations managed to sustain such a balanced strategy over the whole observation period. Continuously monitoring stakeholder demands and crafting suitable responsiveness strategies must therefore be a focus of successful business strategies. While such behavior may not be a sufficient explanation for organizational success, it certainly is a necessary one.

Details

Evaluating Marketing Actions and Outcomes
Type: Book
ISBN: 978-0-76231-046-3

Book part
Publication date: 10 December 2015

Dekar Urumsah

The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is…

Abstract

The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is especially relevant in the context of Indonesian Airline companies. Therefore, many airline customers in Indonesia are still in doubt about it, or even do not use it. To fill this gap, this study attempts to develop a model for e-services adoption and empirically examines the factors influencing the airlines customers in Indonesia in using e-services offered by the Indonesian airline companies. Taking six Indonesian airline companies as a case example, the study investigated the antecedents of e-services usage of Indonesian airlines. This study further examined the impacts of motivation on customers in using e-services in the Indonesian context. Another important aim of this study was to investigate how ages, experiences and geographical areas moderate effects of e-services usage.

The study adopts a positivist research paradigm with a two-phase sequential mixed method design involving qualitative and quantitative approaches. An initial research model was first developed based on an extensive literature review, by combining acceptance and use of information technology theories, expectancy theory and the inter-organizational system motivation models. A qualitative field study via semi-structured interviews was then conducted to explore the present state among 15 respondents. The results of the interviews were analysed using content analysis yielding the final model of e-services usage. Eighteen antecedent factors hypotheses and three moderating factors hypotheses and 52-item questionnaire were developed. A focus group discussion of five respondents and a pilot study of 59 respondents resulted in final version of the questionnaire.

In the second phase, the main survey was conducted nationally to collect the research data among Indonesian airline customers who had already used Indonesian airline e-services. A total of 819 valid questionnaires were obtained. The data was then analysed using a partial least square (PLS) based structural equation modelling (SEM) technique to produce the contributions of links in the e-services model (22% of all the variances in e-services usage, 37.8% in intention to use, 46.6% in motivation, 39.2% in outcome expectancy, and 37.7% in effort expectancy). Meanwhile, path coefficients and t-values demonstrated various different influences of antecedent factors towards e-services usage. Additionally, a multi-group analysis based on PLS is employed with mixed results. In the final findings, 14 hypotheses were supported and 7 hypotheses were not supported.

The major findings of this study have confirmed that motivation has the strongest contribution in e-services usage. In addition, motivation affects e-services usage both directly and indirectly through intention-to-use. This study provides contributions to the existing knowledge of e-services models, and practical applications of IT usage. Most importantly, an understanding of antecedents of e-services adoption will provide guidelines for stakeholders in developing better e-services and strategies in order to promote and encourage more customers to use e-services. Finally, the accomplishment of this study can be expanded through possible adaptations in other industries and other geographical contexts.

Details

E-services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-709-7

Keywords

Article
Publication date: 1 January 1976

The Howard Shuttering Contractors case throws considerable light on the importance which the tribunals attach to warnings before dismissing an employee. In this case the tribunal…

Abstract

The Howard Shuttering Contractors case throws considerable light on the importance which the tribunals attach to warnings before dismissing an employee. In this case the tribunal took great pains to interpret the intention of the parties to the different site agreements, and it came to the conclusion that the agreed procedure was not followed. One other matter, which must be particularly noted by employers, is that where a final warning is required, this final warning must be “a warning”, and not the actual dismissal. So that where, for example, three warnings are to be given, the third must be a “warning”. It is after the employee has misconducted himself thereafter that the employer may dismiss.

Details

Managerial Law, vol. 19 no. 1
Type: Research Article
ISSN: 0309-0558

Book part
Publication date: 7 October 2015

Azizah Ahmad

The strategic management literature emphasizes the concept of business intelligence (BI) as an essential competitive tool. Yet the sustainability of the firms’ competitive…

Abstract

The strategic management literature emphasizes the concept of business intelligence (BI) as an essential competitive tool. Yet the sustainability of the firms’ competitive advantage provided by BI capability is not well researched. To fill this gap, this study attempts to develop a model for successful BI deployment and empirically examines the association between BI deployment and sustainable competitive advantage. Taking the telecommunications industry in Malaysia as a case example, the research particularly focuses on the influencing perceptions held by telecommunications decision makers and executives on factors that impact successful BI deployment. The research further investigates the relationship between successful BI deployment and sustainable competitive advantage of the telecommunications organizations. Another important aim of this study is to determine the effect of moderating factors such as organization culture, business strategy, and use of BI tools on BI deployment and the sustainability of firm’s competitive advantage.

This research uses combination of resource-based theory and diffusion of innovation (DOI) theory to examine BI success and its relationship with firm’s sustainability. The research adopts the positivist paradigm and a two-phase sequential mixed method consisting of qualitative and quantitative approaches are employed. A tentative research model is developed first based on extensive literature review. The chapter presents a qualitative field study to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. The study includes a survey study with sample of business analysts and decision makers in telecommunications firms and is analyzed by partial least square-based structural equation modeling.

The findings reveal that some internal resources of the organizations such as BI governance and the perceptions of BI’s characteristics influence the successful deployment of BI. Organizations that practice good BI governance with strong moral and financial support from upper management have an opportunity to realize the dream of having successful BI initiatives in place. The scope of BI governance includes providing sufficient support and commitment in BI funding and implementation, laying out proper BI infrastructure and staffing and establishing a corporate-wide policy and procedures regarding BI. The perceptions about the characteristics of BI such as its relative advantage, complexity, compatibility, and observability are also significant in ensuring BI success. The most important results of this study indicated that with BI successfully deployed, executives would use the knowledge provided for their necessary actions in sustaining the organizations’ competitive advantage in terms of economics, social, and environmental issues.

This study contributes significantly to the existing literature that will assist future BI researchers especially in achieving sustainable competitive advantage. In particular, the model will help practitioners to consider the resources that they are likely to consider when deploying BI. Finally, the applications of this study can be extended through further adaptation in other industries and various geographic contexts.

Details

Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics
Type: Book
ISBN: 978-1-78441-764-2

Keywords

Book part
Publication date: 8 April 2005

Petri Suomala

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is…

Abstract

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

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