Effect of benefits and risks on customer's psychological ownership in the service industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
In-Tae Lee ◽  
Jinyong Choi ◽  
Sangyoo Kim
Keyword(s):  
Customer Satisfaction ◽  
Perceived Risk ◽  
Structural Equation ◽  
Service Industry ◽  
Psychological Ownership ◽  
Equation Modeling ◽  
Perceived Benefits ◽  
Content Type ◽  
Customer Trust ◽  
Hedonic Benefits

PurposeThe authors investigate the antecedents of psychological ownership from the customers' perspective by applying employee psychological ownership (EPO) to human resource management.Design/methodology/approachThe authors conducted questionnaires on utilitarian benefits, hedonic benefits, perceived risk, customer satisfaction, customer trust and customers' psychological ownership (CPO) on 205 people. They verified their hypotheses using structural equation modeling analysis.FindingsThe authors found that customer trust positively influences CPO, but customer satisfaction does not. Instead, customer satisfaction indirectly affects CPO through the mediating effects of customer trust. They also found that utilitarian and hedonic benefits positively influence customer satisfaction and confidence, but perceived risk negatively influences it.Research limitations/implicationsThis study contributes to the service marketing literature by empirically confirming that customers have psychological ownership, such as employees, and by incorporating benefits, risk, trust and CPO into a comprehensive framework.Practical implicationsMarketers should formulate service strategies that strengthen customers' perceptions of utilitarian and hedonic benefits and avoid customers' perceived risk, which is expected to exert a significant CPO-enhancing effect.Originality/valueIn the service context, customers are perceived as partial employees. The authors empirically explored the role of perceived benefits and risks in enhancing CPO via customer satisfaction and trust by applying EPO concepts. Strengthening perceived benefits and avoiding perceived risk were verified as critical drivers of CPO in the service context. The results of this study confirm that customer trust is required for customers to feel CPO.

Exploring customer loyalty following service recovery: a replication study in the Ghanaian hotel industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Oppong Appiagyei Ampong ◽  
Aidatu Abubakari ◽  
Majeed Mohammed ◽  
Esther Theresa Appaw-Agbola ◽  
John Agyekum Addae ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Industry ◽  
Service Recovery ◽  
Interactional Justice ◽  
Recovery Process ◽  
Equation Modeling ◽  
Content Type ◽  
Perceived Justice

PurposeThe study sought to assess the nexus between components of perceived justice and satisfaction, trust and loyalty with service recovery.Design/methodology/approachSurvey data were gathered from a sample of 300 clients from 8 midscale hotels in Ghana. Partial least squares structural equation modeling was used to test the hypothesized relationships.FindingsPerceived distributive justice has no effect on customer satisfaction with service recovery. Interactional justice had the greatest effect on customer satisfaction with service recovery. No significant relationship was found between procedural justice and trust. Also, trust had a significant effect on loyalty post-service recovery.Research limitations/implicationsEmpirical data were taken from one service industry; thus, it is reflective of only that service industry, generalizations should be mindful of our context bounded results.Practical implicationsThe study offers suggestions for managers to leverage the dimensions of perceived justice in order to build trust and loyalty post-service failure. Hotels should treat customers with fairness and respect at every point of contact during the service recovery process. Reward based compensation should be offered to customers to build trust.Originality/valueThe study is among a few to assess service recovery and its link with loyalty from a developing economy context. The study revealed that perceptions of justice with service recovery influences customer loyalty and satisfaction post-service recovery and extend the understanding of service recovery in the Ghanaian hotel sector.

Contrasting the drivers of customer loyalty; financing and depositor customer, single and dual customer, in Indonesian Islamic bank

2019 ◽  
Vol 11 (4) ◽  
pp. 933-959 ◽  
Author(s):  
Tika Kartika ◽  
Achmad Firdaus ◽  
Mukhamad Najib
Keyword(s):  
Customer Satisfaction ◽  
Marketing Strategy ◽  
Corporate Culture ◽  
Significant Relationship ◽  
Structural Equation ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Customer Trust

Purpose This study aims to investigate the drivers of loyalty in Indonesian Islamic banks, especially group of depositor vs financing customer and single vs dual customer. Design/methodology/approach The objectives of this study were the seven major commercial Indonesian Islamic banks using the purposive sampling technique. In total, 105 questionnaires were processed, consisting of questions regarding depositors, financing, single and dual customer. Structural equation modeling using partial least squares were the analysis methods used to test the hypothesis, while in-depth interviews were conducted with Islamic bank managers to validate the findings. Findings Image has a significant relationship with customer satisfaction, as well as trust. Similarly, customer satisfaction has a significant relationship with trust. Trust has a significant relationship with loyalty. For a financing customer, the image is very influential on customer trust. For a depositor customer, customer satisfaction is very influential on customer trust. For single customer, customer satisfaction has a stronger influence on the image, compared to dual customer. Practical implications Islamic banks need to maintain good image and service quality to create strong, reliable and long-term relationships with customers, more specifically, in terms of improvement and product innovation. A bank focuses on the micro or macro segment, as well as financing. Financing products should be referred to customers’ needs. Bank reputation can be done by strengthening branding and corporate culture in marketing strategy. Shariah compliance has the highest loading factor to trust customers. Indonesian Islamic banks need to maintain customer trust by sticking to Islamic principles and continuing to ensure that its products and services are in accordance with Islamic principles. In Indonesian Islamic banks, it is very important to keep the legal aspects in all of products and services. Deposit products and services of Islamic banks should be in line with the rules of the financial services authority and Bank of Indonesia culture. Bank efforts to strengthen reputation can be done by strengthening branding and corporate culture in marketing strategy, while increasing the attractiveness of the products by way of research and development (R&D) must endeavor to make products and services attractive in terms of both product characteristics and price. Furthermore, it is necessary to support a good marketing strategy to market their products. Social implications Research can be used more widely in determining public policy, by strengthening the marketing strategy and public education. Islamic banks can work together with local religious departments to maximize marketing strategies to educate and convince people to be active economically under Islamic sharia guidance. Islamic banks need to maintain customer trust by sticking to the principles of sharia and continuing to ensure that products and services conform to sharia principles. Islamic bank management can strengthen customer trust by having a good risk management system, so that customers feel secure with Islamic bank transactions. In addition, sharia banks as companies must demonstrate social responsibility by distributing ZIS managed from customers and implementing CSR as a form of awareness of the surrounding community. Originality/value The study revealed the factors that lead to loyalty on the financing, depositor and the single and dual customers. The study found that improvement and innovation, strategic and sustainability are new indicators used to build images of Islamic banks.

scholarly journals Security perception in the adoption of mobile payment and the moderating effect of gender

2019 ◽  
Vol 3 (3) ◽  
pp. 179-190 ◽  
Author(s):  
Md. Alamgir Hossain
Keyword(s):  
Customer Satisfaction ◽  
Perceived Risk ◽  
Structural Equation ◽  
Negative Impact ◽  
Payment System ◽  
Equation Modeling ◽  
Mobile Payment ◽  
Content Type ◽  
Perceived Trust ◽  
Trust Factors

Purpose The mobile payment system has changed payment patterns and has the potential to improve people’s quality of life and increase the bank’s efficiency. In return, the risks and trust factors inevitably led to increased challenges and become a major concern in the adoption of mobile payment service. Yet, little is known about how risk and trust factors can affect the adoption of mobile payment. Hence, this paper aims to come into contact to solve these issues in the context. Design/methodology/approach A comprehensive research model that reflects the customer satisfaction and loyalty to the adoption of mobile payment services is developed and empirically tested using exploratory and confirmatory factor analysis and structural equation modeling. Findings Findings reveal that the perceived risk has a significant negative impact on perceived trust and customer satisfaction. Perceived trust is the most important variable in building customer satisfaction, and customer satisfaction is the reasonable predictor of customer loyalty. In addition, gender differences moderate the adoption of the mobile payment service. Originality/value The results of the study hold several implications for scholars in the field of technology adoption on financial transactions and offer valuable managerial insights to design their mobile payment adoption strategies to pursue greater acceptance and diffusion of this new payment system.

Investigating service innovation, bank reputation and customer trust: evidence from Indian retail banking

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abhijeet Biswas ◽  
Deepak Jaiswal ◽  
Rishi Kant
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Banking Industry ◽  
Service Innovation ◽  
Retail Banking ◽  
Equation Modeling ◽  
Mediating Effects ◽  
Content Type ◽  
The One ◽  
Customer Trust

Purpose Global proliferation had a noteworthy impact on the Indian retail banking industry and mushrooming banks have entailed to emphasize on customer satisfaction (CS) quotient to remain competitive. This study aims to illuminate determinants of CS and customer trust (CT) and their denouement in Indian retail banking. Design/methodology/approach The top six Indian private sector banks were selected hinged on market capitalization. A total of 460 responses from retail bank customers were gathered using a structured questionnaire. Direct and indirect relationships were analyzed with mediation and moderation by using structural equation modeling. Findings The study identifies determinants of CS and CT. The results manifest that perceived service innovation (PSI) and bank reputation (BR) considerably aggrandize CS and CT. Furthermore, CS strikingly magnifies customer loyalty (CL). The study also posits that CT partially mediates between the nexus of PSI and BR on the one side and CS on the other. Moreover, perceived risk moderates the association between CS and loyalty. Research limitations/implications The study demonstrates indispensable drivers of CS, CT and CL which may encourage bank professionals to hold on to their customers and enhance profitability. Originality/value Here is a dearth of literature on PSI and BR in the Indian banking industry. Thus, the study supplements literature by assimilating these constructs through a compendious conceptual model. The study is distinct as it evaluates mediating effects of CT in unfurling complexities of relationships among the underlying constructs.

Halal company identity and halal restaurant loyalty: the role of customer satisfaction, customer trust and customer-company identification

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Mursid ◽  
Cedric Hsi-Jui Wu
Keyword(s):  
Customer Satisfaction ◽  
Social Identity Theory ◽  
Convergent Validity ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Confirmatory Factor ◽  
Company Identification ◽  
Customer Trust

Purpose This study aims to examine the effect of halal company identity includes halal identity similarity, halal identity distinctiveness and halal identity prestige on customer satisfaction and customer trust. Furthermore, it verifies the influence of customer satisfaction and customer trust on customer-company identification. Finally, it explores the effect of customer-company identification on halal restaurant loyalty. Design/methodology/approach This study selected a sample of halal restaurants in the area of Semarang City, Indonesia, using a purposive sampling method with a total of 520 respondents. The data analysis uses confirmatory factor analysis to identify discriminant and convergent validity and then structural equation modeling is used to validate the hypotheses. Findings The result showed that all aspects of halal company identity, namely, halal identity similarity, halal identity distinctiveness and halal identity prestige, significantly affect customer satisfaction. Halal identity similarity and halal identity distinctiveness insignificantly affect customer trust; however, halal identity prestige successfully affects customer trust. Both customer satisfaction and customer trust positively impact customer-company identification and, in turn, customer-company identification impacts halal restaurant loyalty. Originality/value This study contributes to the theory of halal tourism based on social identity theory and the theory of relationship quality in achieving customer loyalty of halal restaurants.

Examination of customer-centric measures among different types of customers in the context of major Canadian ski resort

2018 ◽  
Vol 30 (2) ◽  
pp. 438-459
Author(s):  
Matti J. Haverila ◽  
Kai Christian Haverila
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
A Priori ◽  
Equation Modeling ◽  
Marketing Practice ◽  
Content Type ◽  
Ski Resort ◽  
Different Types ◽  
Managerial Implications ◽  
Satisfaction Model

Purpose Customer-centric measures such as customer satisfaction and repurchase intent are important indicators of performance. The purpose of this paper is to examine what is the strength and significance of the path coefficients in a customer satisfaction model consisting of various customer-centric measures for different types of ski resort customer (i.e. day, weekend and ski holiday visitors as well as season pass holders) in a ski resort in Canada. Design/methodology/approach The results were analyzed using the partial least squares structural equation modeling approach for the four different types ski resort visitors. Findings There appeared to differences in the strength and significance in the customer satisfaction model relationships for the four types of ski resort visitors indicating that the a priori managerial classification of the ski resort visitors is warranted. Originality/value The research pinpoints differences in the strength and significance in the relationships between customer-centric measures for four different types ski resort visitors, i.e. day, weekend and ski holiday visitors as well as season pass holders, which have significant managerial implications for the marketing practice of the ski resort.

From managing customers to joint venturing with customers: co-creating service value in the digital age

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christine Falkenreck ◽  
Ralf Wagner
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Business Models ◽  
Joint Venture ◽  
Digital Age ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Data Set ◽  
Content Type

Purpose Until today, scholars claim that the phenomenon of “co-creation” of value in an “interacted” economy and in the context of positive actor-to-actor relationships has not been adequately explored. This study aims to first to identify and separate the accessible values of internet of things (IoT)-based business models for business-to-business (B2B) and business-to-government (B2G) customer groups. It quantifies the drivers to successfully implement disruptive business models. Design/methodology/approach Data were gathered from 292 customers in Western Europe. The conceptual framework was tested using partial least square structural equation modeling. Findings Managing disruptions in the digital age is closely related to the fact that the existing trust in buyer-seller relationships is not enough to accept IoT projects. A company’s digitalization capabilities, satisfaction with the existing relationship and trust in the IoT credibility of the manufacturer drives the perceived value of IoT-based business models in B2B settings. Contrastingly, in B2G settings, money is less important. Research limitations/implications Research refers to one business field, the data set is of European origin only. Findings indicate that the drivers to engage in IoT-related projects differ significantly between the customer groups and therefore require different marketing management strategies. Saving time today is more important to B2G buyers than saving money. Practical implications The disparate nature of B2B and B2G buyers indicates that market segmentation and targeted marketing must be considered before joint-venturing in IoT business models. To joint venture supply chain partners co-creating value in the context of IoT-related business models, relationship management should be focused with buyers on the same footing, as active players and co-developers of a personalized experience in digital service projects. Originality/value Diverging from established studies focusing on the relationship within a network of actors, this study defines disruptive business models and identifies its drivers in B2B and B2G relationships. This study proposes joint venturing with B2B and B2G customers to overcome the perceived risk of these IoT-related business models. Including customers in platforms and networks may lead to the co-creation of value in joint IoT projects.

“Actions speak louder than words”: an impact of service recovery antecedents on customer delight in quick-service restaurants

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Durgesh Agnihotri ◽  
Kushagra Kulshreshtha ◽  
Vikas Tripathi ◽  
Pallavi Chaturvedi
Keyword(s):  
Social Media ◽  
Customer Satisfaction ◽  
Structural Equation ◽  
Service Recovery ◽  
Equation Modeling ◽  
Role Clarity ◽  
Content Type ◽  
Customer Delight ◽  
Quick Service ◽  
The Impact

PurposeThe purpose of this study is to conceptualize and analyze a framework that provides greater understanding toward the impact of service recovery antecedents such as role clarity, customer service orientation, employee empowerment and employee relational behavior on customer satisfaction and customer delight in the context of quick-service restaurants (QSRs).Design/methodology/approachA self-administered questionnaire was distributed to 408 participants who had experienced service recovery efforts by leading QSRs on social media. The current paper draws upon the prevailing literature to test a series of research hypotheses through structural equation modeling.FindingsThe findings of the study have confirmed that antecedents of service recovery are good to describe customer satisfaction and customer delight in the setting of QSRs. Besides, the study provides an understanding on how monetary compensation moderates the relationship between customer delight and customer satisfaction.Practical implicationsThis study carries an understanding on how frontline employees must operate in a non-conventional and innovative way to resolve customers' issues and show commitment with truthfulness to provide excellent services to make customers feel delightful.Originality/valueThis is a unique study to understand the role of service recovery antecedents to describe customer satisfaction and customer delight in the social media environment. In addition, the results support the possibilities of implementing prompt service recovery efforts using social media.

Can salesperson guilt lead to more satisfied customers? Findings from India

2017 ◽  
Vol 32 (7) ◽  
pp. 951-961 ◽  
Author(s):  
Colin B. Gabler ◽  
Raj Agnihotri ◽  
Omar S. Itani
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Positive Outcome ◽  
Equation Modeling ◽  
Content Type ◽  
Prosocial Motivation ◽  
Outcome Feedback ◽  
Final Sample ◽  
Guilt Proneness ◽  
Relational Orientation

Purpose The purpose of this paper is to investigate guilt proneness as a prosocial salesperson trait and its impact on outcomes important to the firm, the customer as well as the salesperson. Specifically, the authors look at how this variable relates to job effort and the indirect effects on customer satisfaction. The corollary purpose is to uncover how managers influence these constructs through positive outcome feedback. Design/methodology/approach Prosocial motivation theory grounds the conceptual model which the authors test through survey implementation. The final sample consisted of 129 business-to-business (B2B) salespeople working across multiple industries in India. Latent moderated structural equation modeling was utilized to test the proposed model. Findings The results suggest that guilt proneness positively influences the likelihood that a salesperson adopts a relational orientation, which has a direct effect on individual effort and an indirect effect on customer satisfaction. Supervisors have the ability to amplify this effort through positive outcome feedback, but only when relational orientation is low. Their support had no effect on salespeople with a high relational orientation. Originality/value The study is unique in that it combines an overlooked prosocial trait with a B2B Indian dataset. We provide value for firms because our results show that guilt-prone salespeople put more effort into their job – ”something universally desirable among sales managers” – through the development of a relational orientation. The authors also give practical implications on how to support salespeople given their level of relational orientation.

Comparing the service experience of satisfied and non-satisfied customers in the context of wine tasting rooms using the SERVQUAL model

2019 ◽  
Vol 32 (2) ◽  
pp. 301-324
Author(s):  
Matti Haverila ◽  
Kai Haverila ◽  
Mehak Arora
Keyword(s):  
Structural Equation Modeling ◽  
Customer Satisfaction ◽  
Structural Equation ◽  
Design Methodology ◽  
Equation Modeling ◽  
Value For Money ◽  
Service Experience ◽  
Content Type ◽  
Survey Results ◽  
Repurchase Intent

Purpose The purpose of this study is to compare satisfied and non-satisfied customers in the context of wine tasting rooms using the SERVQUAL model and to examine the relationships in the model in terms of service experience to better understand customer needs. Design/methodology/approach The data used in this study were derived from a survey conducted among wineries in British Columbia, Canada. Analysis of survey results using the partial least squares structural equation modeling was undertaken. Sample size was 402. Findings The findings show that the SERVQUAL constructs that had the most impact on customer satisfaction and dissatisfaction were tangibility and assurance. Somewhat surprisingly, the perceived value for money construct was not significantly related to customer satisfaction but was significantly related to repurchase intent. Furthermore, all SERVQUAL constructs, except the reliability construct, were significantly related to customer satisfaction. Originality/value This study provides an overview of how wineries can improve their services to increase the number of satisfied customers.

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