Purpose - The purpose of this paper is to offer a fresh framing of innovation, as service innovation/ value innovation.Design/methodology/approach - By examining the visions, patterns and outcomes of three different research approaches to understanding innovation - goods-dominant (G-D) logic, the resource-based approach and service-dominant (S-D) logic - the authors strive to outline the contribution of each to the debate on innovation. This investigation involves a comprehensive literature review. Scrutiny of a case company provides a means of identifying and illustrating how these approaches play out in a real business context.Findings - A framework for innovation builds on the comparison of the three research approaches. G-D logic, when analysed in terms of new product development and new service development, positions innovation as an output (a new good or service) of a business's internal processes, with the firm as the main actor. The resource-based approach establishes the drivers of innovation as knowledge, capabilities and relationships, but the firm is still the main innovator. S-D logic addresses "open" innovation processes in which all actors in the network can mobilize and integrate their resources to become value co-innovators.Research limitations/implications - This study builds on the literature review by offering a more systematic way of dealing with the different research traditions in innovation debate.Practical implications - This study spurs managers to question the validity of dominant logic and how it affects the decision-making process. The conceptualization of innovation within S-D logic provides new avenues for decision makers and practitioners to tackle topical challenges of global competition.Originality/value - The value of this paper lies in defending the premise that S-D logic is better suited than the other two research traditions to frame current innovation within the context of global competition because it moves innovation beyond mainstream conceptualization: from "products and services" to "service and value", from "buyer-seller dyads" to "ecosystem relationships", and from "closed/linear process" to "open/co-created process".
Purpose – The purpose of this paper is to investigate the influential factors of the antecedents of relationship quality (RQ), RQ, and long-term relationship orientation between the members that constitute the insurance marketing channel. Design/methodology/approach – This study uses in-depth interviews as well as a survey to examine long-term relationship orientation between life insurers and insurance intermediaries in Taiwan. Findings – Results indicate that antecedents of RQ (customer orientation, expertise, similarity, and contact intensity) have a positive effect on RQ. Relationship qualities (trust, satisfaction, and commitment) have a positive effect on the long-term relationship orientation. The antecedents of RQ have a positive effect on the interaction of long-term relationship orientation through mediating effects of RQ. Originality/value – It fills a gap in the literature by explores the long-term cooperative relationship between life insurers and insurance intermediaries based on the RQ perspective. Further, previous studies have focused on the automobile, food, electronic information, textile, and financial industries. Few studies have looked at insurance marketing outsourcing from a RQ perspective. Thus, this study will be useful to decision makers in the insurance industry seeking to improve their supplier-distributor relationships.
Purpose– The purpose of this paper is to reflect upon strategic marketing in emerging economies (EEs). It tries to answer the research question: what new business models are enabled by the Viable Systems Approach (VSA) and Service-Dominant Logic (SDL) perspectives?Design/methodology/approach– The paper is developed by integrating two well-established perspectives – VSA and SDL – and applying them to inclusive businesses.Findings– The integration of these perspectives allows the authors to recognize a convergence toward business models that seem to be consistent with the principles of inclusive capitalism. The authors claim that by shifting between a reductionist/static and a holistic/dynamic view, these perspectives can be integrated, thus revealing an interesting contribution to the understanding of inclusive business. Specifically, they contribute by highlighting how the economic and social dimensions are intertwined and by highlighting that the management-thinking perspective, which has dominated in recent decades, should shift toward a more inclusive vision.Research limitations/implications– The paper represents an attempt to address an inclusive capitalism perspective in the context of marketing. Nevertheless, the conceptual reasoning developed in the paper should be further supported by empirical research carried out in the context of EEs.Practical implications– The paper has relevant managerial implications that suggest a rethinking of the business model to market with EEs.Originality/value– The paper contributes to the research on inclusive capitalism by linking it to well-grounded conceptual approaches to business that recapture a harmonious relationship between the economy and society.
Purpose – The purpose of this paper is to offer a fresh framing of innovation, as service innovation/value innovation. Design/methodology/approach – By examining the visions, patterns and outcomes of three different research approaches to understanding innovation – goods-dominant (G-D) logic, the resource-based approach and service-dominant (S-D) logic – the authors strive to outline the contribution of each to the debate on innovation. This investigation involves a comprehensive literature review. Scrutiny of a case company provides a means of identifying and illustrating how these approaches play out in a real business context. Findings – A framework for innovation builds on the comparison of the three research approaches. G-D logic, when analysed in terms of new product development and new service development, positions innovation as an output (a new good or service) of a business's internal processes, with the firm as the main actor. The resource-based approach establishes the drivers of innovation as knowledge, capabilities and relationships, but the firm is still the main innovator. S-D logic addresses “open” innovation processes in which all actors in the network can mobilize and integrate their resources to become value co-innovators. Research limitations/implications – This study builds on the literature review by offering a more systematic way of dealing with the different research traditions in innovation debate. Practical implications – This study spurs managers to question the validity of dominant logic and how it affects the decision-making process. The conceptualization of innovation within S-D logic provides new avenues for decision makers and practitioners to tackle topical challenges of global competition. Originality/value – The value of this paper lies in defending the premise that S-D logic is better suited than the other two research traditions to frame current innovation within the context of global competition because it moves innovation beyond mainstream conceptualization: from “products and services” to “service and value”, from “buyer-seller dyads” to “ecosystem relationships”, and from “closed/linear process” to “open/co-created process”.
Purpose - The purpose of this paper is to summarize and classify extant research and to better understand the past, present, and future state of the theory of value co-creation. Its main objectives are: to identify the different theoretical perspectives and research streams that characterize and define the co-creation literature, and to highlight the connections between them; to look for emerging trends and gaps in the literature by comparing the most recent papers with those representing the field's core.Design/methodology/approach - The paper relies on bibliometric data: co-citation techniques were employed to select, analyze, and interpret citation patterns within the co-creation literature.Findings - The paper identified two main clusters, as well as specific research streams and common themes, representing scholarly journals' publications on co-creation over the past years. These research streams and themes apply three different theoretical perspectives: service science, innovation and technology management, and marketing and consumer research. Data from the most recent publications has been used to verify if and how the original streams and themes are reflected in the contemporary debate.Research limitations/implications - Inevitably, the findings of the analysis have limitations related to the research design, the databases, and the applied bibliometric methods.Practical implications - From a practical perspective, the research impacts on theory building, management decision making, and teaching.Originality/value - This study depicts the remarkable development of the literature on co-creation and shows the latent structure underlying its different research streams. To the best knowledge, this study is the first to determine co-citation frequencies from both the SSCI and Scopus databases.
Purpose – The purpose of this paper is to examine the effects of offering customer decision authority on customer satisfaction in credence services, and the moderating effects of customer persuasion knowledge and service provider credibility. Design/methodology/approach – A video-based experiment is conducted to achieve high similarity to real service encounters. The video comprises three levels of customer authority while service provider credibility is manipulated. In a subsequent questionnaire, customer response and customer persuasion knowledge are measured. Findings – Results suggest that greater decision authority increases customer satisfaction. However, customer persuasion knowledge and provider credibility together were found to moderate these effects. Offering decision autonomy is most important when source credibility is low and persuasion knowledge is high. Research limitations/implications – The study setting is an initial healthcare encounter. Other service settings and service provider communication behaviors, such as empathy, responding to customer queries, and length of encounter are not considered in this study but should be further studied. Practical implications – The study confirms that offering decision authority to customers increases satisfaction only under certain circumstances. Customers are willing to relinquish authority to credible service providers who then direct customer decisions in order to maintain service quality. Offering decision autonomy to customers is suggested when provider credibility is low and customer persuasion knowledge is high. Originality/value – Analysis of credence service encounters is based on agency theory. Specifically, this study highlights the role of customer (principal) persuasion knowledge, which acts as a qualifier for the principal-agent problem because it alerts the customer to possible persuasion attempts by the service provider, whereas agent credibility eases customer suspicion.
Purpose– The commitment of service employees to an organization is a critical concern that affects the success of an organization. The purpose of this paper is to investigate whether the social bonds between the supervisor and the employee, and among employees, foster organizational commitment in employees. The study subsequently explored the moderating role of work status (full-time vs parttime) and employee individualistic values in the relationship between social bonding and commitment.Design/methodology/approach– Empirical data were collected from the frontline employees of restaurants in Taiwan (n=395). Hierarchical moderated regression analysis was used to examine the relationship between social bonds and relationship commitment and the moderating effect of work status and individualistic values on the social bonding-commitment relationship.Findings– The results show that social bonding is an antecedent to organizational commitment, and work status and individualistic values moderate the social bonding-commitment relationship. The effect of social bonding on organizational commitment is stronger for full-time and less individualistic employees than for part-time and more individualistic employees.Originality/value– This research contributes to knowledge of the effect of social bonding on employee organizational commitment, and provides evidence showing that work status and employee values affect the social bonding-commitment relationship.
Purpose– Understanding the role and implications of information and communication technology (ICT) in service is the key research priority for service science and the management of service quality. The purpose of this paper is to address this priority by providing insights into the role of “engagement platforms” (EPs), physical or virtual customer touch points where actors exchange resources and co-create value. Despite an emerging body of literature that emphasizes the fit between engagement and technology-enabled service contexts, EPs remain ill-defined. Specifically, little is known about the particular types of EPs, their characteristics, and implications for the performance of service ecosystems and managing service quality.Design/methodology/approach– By drawing on two illustrative case studies, the authors investigate and theorize about the characteristics and dynamics of EPs in virtual/physical contexts, and identify if, how and to what extent configurations of EPs may enhance resource exchange within and across service ecosystems.Findings– By building on emerging research at the service/engagement interface, the paper introduces the notion of the “engagement ecosystem,” as a configuration of individual, mutually dependent EPs that represent specific interactivity-facilitative loci. The paper explicates the relevance of the model and highlight opportunities for future research in this emerging field of inquiry.Research limitations/implications– The work addresses the call for research at the intersection of ICT and service science through development and application of the engagement ecosystem concept. The theorizing process draws on two illustrative case studies, and thereby provides a theoretical contribution and foundation for future research in this emerging area.Practical implications– The authors guide managerial decision-making regarding the implementation, adoption, and utilization of engagement ecosystems. Furthermore, the nature of “engagement” as a bridging concept implies that the work can help managers to operationalize service-centric thinking.Originality/value– By showing how individual EPs form engagement ecosystems, the paper bridges theory and practice, and offers new insight in the realm of practical application of the S-D logic.
Purpose – The purpose of this paper is to propose and empirically test a customer retention contingency model in service failure settings. Specifically, this research investigates how service recovery satisfaction (SRS) influences the relationship quality (RQ)-behavior chain. It also examines the moderating role of RQ and switching cost (SC) in the proposed model. Design/methodology/approach – A two-part survey study was performed and 303 valid responses from banking services users were obtained. The structural equation modeling was used in order to test the research hypotheses. Findings – The results of this study show that SRS influences purchase intentions and behavior via RQ. In addition, SC moderate the effect of RQ on purchase intentions whereas RQ moderates the effect of purchase intentions on purchase behavior. Practical implications – From a managerial standpoint, this research provides implications for service recovery management. In particular, the findings indicate the importance of RQ. When a service failure occurs, RQ not only mediates the effect of SRS on purchase intentions, but also facilitates transforming behavioral intentions into actual behavior. Originality/value – This research fills a void in the service recovery literature by linking service recovery performance to the RQ-behavior chain.
Purpose – The purpose of this paper is to examine how product usage satisfaction mediates the link between two types of perceived risk and loyalty intentions, and investigate the three moderating effects (overall satisfaction of provider, switching costs, and remaining contract time) of the product usage satisfaction-loyalty intentions linkage. Design/methodology/approach – Using a longitudinal study, a total of 253 usable responses are collected from time T to time T +1. The paper uses the partial least squares (PLS-Graph 3.0) approach for structural parameters in the proposed model. Findings – The findings show that the temporal effect of performance risk and product usage satisfaction negatively increases, whereas the temporal effect between product usage satisfaction and loyalty intentions decreases over time. While the moderating effect between overall satisfaction of provider and product usage satisfaction strengthens loyalty intentions, the switching costs attenuate loyalty intentions. The proposed model can be used to predict both the change in customer behavior and the moderating effects of overall satisfaction of providers (or switching costs) in the context of smartphone replacement period. Originality/value – This paper makes unique contributions to the literature. First, using the consumption-system approach as a theoretical base, the paper extends the product usage satisfaction-loyalty intentions linkage that can appear as a dynamic spiral during subsequent periods. Second, considering the temporal effects of the proposed relationships, the paper identifies the role of perceived risk that reveals how product usage satisfaction mediates the link between two types of perceived risk and loyalty intentions. Third, the paper emphasizes the importance of moderating effects when considering smartphone usage with a particular brand.
Purpose - The purpose of this paper is to introduce a network perspective to the study of collective consumption. The authors examine the characteristics of heterogeneous consumption collectives formed around a Finnish footwear brand. The case is both theoretically and practically relevant. It differs from previous research by featuring consumer grassroot activities, face-to-face interaction and strong pre-existing social relationships. Design/methodology/approach - Qualitative case study research was conducted with different methods of data generation including interviews, participant observation and cultural materials such as newspaper articles and photos. Findings - A new concept of collective consumption network is introduced. Five kinds of consumption collectives are identified, including place focussed, brand focussed, activity focussed, idea focussed and social relations focussed consumption collectives. The strength of ties as well as the role of the brand varies within the collectives. Practical implications - Suppliers should find an appropriate network position, where they can enable and support shared value creation. Developing skills to identify and cultivate weak links as well as mobilize resources are important. Originality/value - The findings illustrate the heterogeneity and complexity of collective consumption. In particular, the paper discusses the way self-organizing and emergent consumption collectives and the supplier interact and integrate resources within the network.
Purpose – The purpose of this paper is to shed light upon how retailers view alternative payment forms and to what extent they are willing to risk offending their customers by imposing payment restrictions. Design/methodology/approach – This exploratory study consists of three consecutive parts: first, 100 situations of paying for goods or services; second, interviews with 25 of these 100 retailers; and third, observations at a meeting between retailers and bank representatives on various aspects of card and cash payments. Findings – Retailers are unwilling to risk offending their customers and do not normally undertake any actions to affect the customers’ choice of payment form, except for proactively or reactively excluding the use of certain expensive credit cards, and card payments for small amounts. The retailers only take the risk of causing customer dissatisfaction when they feel that the sacrifice for not doing so is too costly, and in these cases the salespersons act very late in the purchase process. Other aspects than payment costs (such as safety, time and environment) seem to have little impact on individual retailers’ actions at the payment stage. Research limitations/implications – The present study focuses solely on the retailers’ point of view on the payment stage, implying a need for additional research on customers’ and bank representatives’ views on the same matter. Practical implications – Retailers try to nurture their customer relationships also when they are proactive or reactive, i.e. by pointing to the high cost of a particular payment form and/or asking customers to help with small change. Sending signals that invite customers to assist may not only be a way to affect how customers pay, but also foster relationship development. Social implications – It seems that environmental costs have not filtered down to the firm level, at least not in an observable way. Any further move towards a “cashless society” has to emanate from other sources. Originality/value – No previous study has focused on the way selling companies approach their customers at the payment stage in terms of proactive, reactive and inactive behaviour.
Purpose – The purpose of this paper is to explore the relationships between switching barriers and bank customers’ loyalty in the UAE, and their variation according to customers’ emotional stability. Design/methodology/approach – Data were collected from 413 bank customers through a self-administered questionnaire. The conceptual model and hypotheses were tested using a structural equation modeling method. Findings – Social benefits, confidence benefits, and switching cost affected the banks’ customers’ loyalty directly and in a positive manner. This study's findings confirm that switching barriers are more important in triggering the loyalty of less emotionally stable customers in comparison with highly emotionally stable customers. Practical implications – Banks could use these results to manage switching barriers and customer relations. Originality/value – This paper demonstrates how the emotional stability of customers interferes with customers’ switching behavior.
Purpose - The purpose of this paper is to examine the effects of offering customer decision authority on customer satisfaction in credence services, and the moderating effects of customer persuasion knowledge and service provider credibility. Design/methodology/approach - A video-based experiment is conducted to achieve high similarity to real service encounters. The video comprises three levels of customer authority while service provider credibility is manipulated. In a subsequent questionnaire, customer response and customer persuasion knowledge are measured. Findings - Results suggest that greater decision authority increases customer satisfaction. However, customer persuasion knowledge and provider credibility together were found to moderate these effects. Offering decision autonomy is most important when source credibility is low and persuasion knowledge is high. Research limitations/implications - The study setting is an initial healthcare encounter. Other service settings and service provider communication behaviors, such as empathy, responding to customer queries, and length of encounter are not considered in this study but should be further studied. Practical implications - The study confirms that offering decision authority to customers increases satisfaction only under certain circumstances. Customers are willing to relinquish authority to credible service providers who then direct customer decisions in order to maintain service quality. Offering decision autonomy to customers is suggested when provider credibility is low and customer persuasion knowledge is high. Originality/value - Analysis of credence service encounters is based on agency theory. Specifically, this study highlights the role of customer (principal) persuasion knowledge, which acts as a qualifier for the principal-agent problem because it alerts the customer to possible persuasion attempts by the service provider, whereas agent credibility eases customer suspicion.
Purpose– Despite the importance of the service design process, existing prototyping methods still have technical limitations, thus hampering the development of realistic service-experience simulations that can effectively reproduce service delivery situations and environments. In this study, a service-prototyping method based on 3D virtual reality (VR) technologies, the physical environment of a test bed, and related standard management procedures are described. In addition, a service-prototyping process for a servicescape is proposed based on a case study of an actual duty-free shop. The paper aims to discuss these issues.Design/methodology/approach– The study adopts a qualitative approach, using case studies to undertake a design and improvement plans for brand guidance structures for the brand observation convenience of customers in a duty-free shop.Findings– The findings of the study suggested environmental components and concept of 3D VR based test bed as an effective tool at the stage of service prototyping the core of new service development (NSD), and introduced practical methods for service prototyping in actual duty-free shop. The case study is significant due to the fact that it proved validity and practicality of the methods applied to service prototyping topic derivation and test process through target service analysis rather than optimal alternative selection.Practical implications– This study emphasizes the importance of prototyping during NSD and the value of the service prototyping test bed for practical use. It also proposes guidelines for the establishment and management of the test bed.Originality/value– In terms of service design research, this study also presented detailed operating procedures and methods through the new concept and in-depth case study of service prototyping using 3D VR technology.
Purpose – The purpose of this paper is to rigorously devise a new tool that helps analyze and improve NSD processes. Design/methodology/approach – An NSD maturity model (NSDMM) is theoretically developed through a combination of the maturity model concept and findings from NSD success studies. Findings – NSD success factors can be categorized into four management processes – strategy management, process formalization, knowledge management, and customer involvement. Maturity dimensions and levels are further devised for each process. It is hypothesized that a higher capability to handle these processes positively associates with higher NSD performance. Research limitations/implications – Studies on NSD success factors are often descriptive rather than prescriptive. This research identified four management processes which are important to focus on when implementing NSD projects. It is among the first to apply the maturity model in the service industry. That said, this research needs to be tested empirically. Practical implications – The proposed NSDMM enables companies to conduct evaluations of their NSD capabilities. By determining the desired maturity levels, companies can engage in continuous improvement so as to calibrate the NSD process. Originality/value – By integrating the concept of the maturity model and the NSD success studies, NSDMM serves not only as a diagnostic model to assess current NSD practices, but also as a guideline for continuous NSD process improvement.
Purpose– The purpose of this paper is to develop and test an integrated-process model/an index model by incorporating the antecedents and consequences of service quality in a higher education context.Design/methodology/approach– This research employed both qualitative and quantitative research methods. The data from three focus groups, conducted at an Australian University, generated key themes and their interrelationships. The theoretical model was then tested using the structural equation modelling (SEM) technique on a sample of 528 University students.Findings– The findings show that information (or marketing communications) and past experience are the antecedents of perceived service quality (PSQ). PSQ is a second order construct and has three dimensions: academic, administrative and facilities. The consequences of PSQ include trust, satisfaction, university-brand (UniBrand) performance and behavioural intentions. Overall, the results suggest a good validity of the model, and the nine path coefficients are found statistically significant.Originality/value– The model explains how service quality is formed, and how PSQ affects UniBrand and positive behavioural intentions overtime. This paper develops and validates three new constructs including information, past experience and UniBrand performance. In addition, it improves and validates other constructs including service quality, satisfaction, trust and behavioural intention. The paper also advances service quality literature and validates five hypothesised relationships between constructs that are relatively new in the service quality literature. Finally, this study validates a comprehensive three-tiered “integrated-process” model/an index model that includes antecedents, dimensions and consequences of service quality taking a University as a case. Universities aiming for a sustainable presence in a competitive global market and intending to enhance brand performance and attract and retain students are encouraged to consider this model and its implications.
Purpose – The purpose of this paper is to help senior center managers and service researchers understand why some patrons experience health benefits, primarily fatigue relief, through senior center day services participation. Design/methodology/approach – The authors conduct two separate studies at a senior center. The first study represents a grounded theory that offers an original, basic social process regarding mental restoration in senior centers. The second study draws on Attention Restoration Theory (ART) and employs survey methodology. Findings – Senior center patrons who perceive a center's restorative stimuli experience health benefits such as relief from four types of fatigue, enhanced quality of life, and improved physical and mental well-being. Research limitations/implications – The paper shows that senior centers may be relatively inexpensive, non-medical services that can help patrons relieve fatigue symptoms, which are often treated with pharmaceutical medication and medical visits. A limitation is the small sample size, which restricts generalizability. Practical implications – The results show that senior center managers may promote patron health by fostering service designs and programs that allow members to temporarily escape from everyday life and interact in an ever-changing environment that fosters a sense of belonging. Social implications – Senior center day services help patrons relieve fatigue, and its symptoms, in an affordable, non-medical, and non-pharmaceutical manner. Originality/value – The paper clarifies the role of senior centers in patrons’ lives by drawing on ART. Senior centers that can offer patrons restorative environments are likely to play a significant role in patrons’ physical, social, and mental well-being.
Purpose– The purpose of this paper is to show how store positive affective tone predicts store performance (i.e. sales achievement) through creativity, and how store negative affective tone enhances the relationship between positive affective tone and creativity.Design/methodology/approach– A sample of 94 stores of a Brazilian retail chain is used to test the model. Store supervisors reported (October 2011) the store's affective tone and creativity relative to the last six months. Three periods are considered for measuring performance: the last six months (May to October 2011), the preceding four months (January to April 2011), and the subsequent semester (November 2011 to April 2012).Findings– The main findings are: positive affective tone predicts the stores’ performance through the mediating role of creativity, even after controlling the effects of preceding stores’ performance; negative affective tone makes the relationship between positive affective tone and creativity stronger.Originality/value– The paper empirically validates theory suggesting that creativity may be a source of retail stores’ competitive advantage, and shows that fostering positive affective tone may be a pathway to promote creativity. The paper also suggests that negative affective tone is not necessarily a “problem”; rather, it can be used to enhance the favorable impact of positive affective tone upon creativity. These are important contributions for the retailing literature, considering that creativity (mainly at the team and organizational level) in that field is understudied. It is also an important contribution to the literature on the services sector, in which research on creativity is scarce.
Purpose – While the literature attends to how customer retention strategies develop relationship quality (e.g. trust), it does not account for the potential mediator (s) in this relationship. The purpose of this paper is to examine the mediating role of brand relationship quality (BRQ) in the relationship between relational bonds and brand loyalty in retail service contexts. Design/methodology/approach – A total of 524 valid questionnaires from respondents aged between 15 and 24 are analyzed using structural equation modeling. Findings – First, BRQ significantly mediates the relationship between relational bonds and brand loyalty. Second, structural bonds are the only driver of attitudinal attachment; social and structural bonds lead to a sense of community. Third, attitudinal attachment is the main influence on both behavioral and attitudinal loyalty. Research limitations/implications – First, a focus on a single market segment, i.e. 15-24 year olds. Second the dimensions used to measure relational bonds and BRQ might not be applicable to other contexts. Third, does not consider potentially important moderator(s). Fourth, does not distinguish between store and product brands. Originality/value – This study makes the following contributions to the literature: First, demonstrates the importance of BRQ as a mediator in the relationship between relational bonds and brand loyalty. Second, elucidates the role of BRQ in establishing brand loyalty in three theoretical frameworks applied to retail service contexts. Third, suggests a more comprehensive view of brand loyalty involving both behavioral and attitudinal dimensions. Fourth, proposes the managerial implications of this work for the customer retention strategies of retail service firms.
