Determinants of banking consumers’ engagement in post service failure positive word-of-mouth

2019 ◽  
Vol 37 (2) ◽  
pp. 621-645 ◽  
Author(s):  
Ahasan Harun ◽  
Md Rokonuzzaman ◽  
Gayle Prybutok ◽  
Victor R. Prybutok

PurposeThe purpose of this paper is to develop and examine a theoretical framework that evaluates the effects of banking consumers’ justice perception on their post-complaint mindsets. It also aims to help business strategists to customize service failure management activities to achieve a competitive advantage.Design/methodology/approachTo examine the proposed framework using partial least square structural equation modeling, the authors collected data through a survey. The authors also evaluated the proposed framework through multi-group analysis and importance-performance map analysis (IPMA).FindingsResults show that recovery disconfirmation mediates the relationship between banking consumers’ perception of justice and recovery satisfaction. Moreover, after a service failure, brand equity and loyalty mediate the relationship between recovery satisfaction and positive word-of-mouth behavior. IPMA analysis at the construct level shows that fostering the perception of recovery satisfaction is crucial for creating a positive post-failure impression in the mind of the banking consumer.Practical implicationsFor banking practitioners, the findings of this research provide a strategic blueprint for managing service failure by developing relationships with consumers, thus creating an opportunity to gain competitive advantage.Originality/valueAnchored in the theoretical framework of justice theory (Adams, 1963), expectation disconfirmation theory (Oliver, 1977) and social exchange theory (Kelley and Thibaut, 1978), the research adds to the literature by providing a critical evaluation of how to influence banking consumers’ post-complaint behavior from a more systematic perspective.

2019 ◽  
Vol 11 (1) ◽  
pp. 91-108
Author(s):  
Rosemary Matikiti ◽  
Mercy Mpinganjira ◽  
Mornay Roberts-Lombard

Purpose The purpose of this paper is to examine the precursors and outcomes of service recovery satisfaction and customer commitment among airline business customers. Design/methodology/approach Data were collected from airline travellers in South Africa using a structured questionnaire. Structural equation modelling was used to analyse the proposed hypotheses. Findings The results revealed that recovery expectations and perceived equity exert significant influence on levels of recovery satisfaction, which in turn influence overall satisfaction, trust and commitment. The study also revealed that trust and overall satisfaction are antecedents of customer commitment and that customer commitment has a significant positive relationship with positive word of mouth. It was also established that the quality of past service performance moderates the relationship between recovery satisfaction and commitment. Practical implications Airlines are advised to stimulate customer trust in the service delivery process through transparency in the procedures by which they resolve service failures and to remain committed to their service recovery promises to customers. It is also proposed that airlines should secure increased positive word of mouth through offering satisfactory service recovery. Originality/value Very little research in the South African context exists which focusses on the influence of customers satisfaction and commitment in the airline industry. This paper helps in establishing the antecedents of customer commitment after service failure in the airline industry.


2020 ◽  
Vol 12 (1) ◽  
pp. 63-78
Author(s):  
Meenakshi Handa ◽  
Shruti Gupta

Purpose With the rising concern for the planet and people dimensions of the triple-bottom-line, an increasing number of firms are using cause-related marketing (CRM) to create a win-win situation for all stakeholders. With growing internet and social media access the Indian consumer is being invited to participate in such campaigns through digital platforms. The purpose of the present study is to examine consumer perceptions about select digital CRM campaigns in terms of perceived fit between the brand and the cause being promoted and the extent of participation effort required by the campaign and further to investigate the relationship between these two variables and consumers’ intentions to participate in the campaign, engage in positive word-of-mouth about it and their brand purchase intentions. Design/methodology/approach Six online CRM campaigns in the consumer products space were taken up for study. Primary data was collected through a structured questionnaire in an online mode, which provided an advertisement snapshot and a brief description of each CRM campaign. Items to measure variables under examination were adapted from the extant literature. Three versions of the questionnaire were created, with each version involving two of the six campaigns. Thus, each respondent was responding to items pertaining to two campaigns only. A total of 242 responses were collected, using non-probability sampling. Findings The study indicates overall positive responses to the digital CRM campaigns included in the study. It finds that for the online CRM campaigns taken up for examination, respondents perceive a high extent of brand-cause fit. A fit between the cause being promoted and the brand’s sphere of activity is a factor that needs to be considered for its impact on consumer willingness to participate in the campaign and intention to engage in positive word-of-mouth about it. The study does not indicate a significant relationship between participation effort for online campaigns and consumer behavioural intentions. Consumer participation intentions and word-of-mouth intentions are found to be positively related to intentions to purchase the brand associated with the campaign. Practical implications In their efforts to design effective CRM campaigns, marketers should use creativity in looking for a common thread, which ties their business or brand with the cause being promoted. Consumers tend to perceive this congruence between the cause and the brand and this impacts their behavioural responses. It is possible that the fact that consumers are not required to make a purchase but are being invited to support a cause by performing a non-transaction-based activity, may also underlie their positive response to this genre of CRM activities. The study provides an understanding of factors that contribute to the effectiveness of non-purchase-based online CRM campaigns in garnering consumer engagement with the campaign and the brand. Originality/value The results provide important insights regarding non-transaction based digital CRM campaigns and the relationship between brand-cause fit, perceived participation effort and targeted changes in consumers’ behavioural intentions. Online CRM campaigns involving consumer participation in forms other than brand purchase are an emerging area of effort towards customer engagement and thus warrant further investigation.


2016 ◽  
Vol 25 (6) ◽  
pp. 527-537 ◽  
Author(s):  
Heikki Karjaluoto ◽  
Juha Munnukka ◽  
Katrine Kiuru

Purpose This study aims to test and extend Carroll and Ahuvia’s (2006) model on the antecedents and outcomes of brand love by examining the moderating effects of experience and price on the relationship between brand love and offline word of mouth (WOM) and between brand love and electronic WOM (eWOM). Design/methodology/approach An online survey was conducted on Facebook, which generated 342 valid responses. The data were analyzed using partial least squares-structural equation modeling. Findings The results mainly support the model by confirming that the self-expressiveness of the brand and trust are positively associated with brand love. No association between hedonic product type and brand love was found. The study’s findings also suggest positive associations between brand love and both types of WOM. Experience and price were found to strengthen the relationship between brand love and offline WOM but not the relationship between brand love and eWOM. Originality/value This study contributes to the literature by introducing and testing an extended model of brand love. It tests two moderating effects on the relationship between brand love and WOM.


2020 ◽  
Vol 27 (6) ◽  
pp. 1951-1980
Author(s):  
Sonia Mathew ◽  
Ajay Jose ◽  
Rejikumar G ◽  
Dony Peter Chacko

PurposeThe study focuses on the core issue faced by bankers on how to retain existing customers who have encountered an e-service failure and who are skeptical about the justice received through the service recovery process. It further endeavors to create an internal bench-marking model for assessing e-service recovery satisfaction.Design/methodology/approachBy the experimental study, the authors confirm a measurement model using structural equation modeling for examining the impact of perceived service recovery quality antecedents on e-service recovery satisfaction moderated by perceived justice. In total, responses from 399 e-banking customers, who had experienced a e-service failure, were recorded using a 5-point Likert scale with a structured questionnaire.FindingsThe perceived e-service recovery quality antecedents identified were perceived information quality, digital commitment, perceived employee performance and perceived service orientation of organization. The empirical results revealed that “perceived information quality” was the most significant predictor of e-service recovery satisfaction. Perceived justice moderates the relation between perceived service recovery quality and e-service recovery satisfaction.Research limitations/implicationsThe research does not contemplate the e-service recovery satisfaction of customers who have undergone multiple service failures.Practical implicationsThe conclusions of the investigation suggest that the four antecedents of perceived e-service recovery quality model are suitable instruments for creating benchmarks for e-service recovery satisfaction for banks, and that perceived justice moderates the relationship between e-service recovery quality and e-service recovery satisfaction. Therefore, policymakers in banks can use this model to assess the e-service recovery quality, and they ought to enhance the perceived justice feel of the customers who have experienced a service failure.Originality/valueThere remains scarcity of empirical research focusing on perceived information quality and digital commitment as antecedents of perceived e-service recovery quality and its effect on e-service recovery satisfaction in the banking context. Furthermore, similar studies within the banking sector have rarely considered perceived justice as a moderator variable. Hence, this paper attempts to accomplish the research gap by empirically testing the e-service recovery satisfaction level of a large sample of the population toward four antecedents of perceived e-service recovery quality rendered by banks and create a benchmark model to ascertain e-service recovery satisfaction.


2017 ◽  
Vol 28 (4) ◽  
pp. 437-463 ◽  
Author(s):  
Jaime Ortiz ◽  
Tao-Sheng Chiu ◽  
Chih Wen-Hai ◽  
Che-Wei Hsu

Purpose The research framework of this study is based on tri-component attitude model (cognition-affect-conation) which explores consumers’ positive or negative emotions, as well as various types of thoughts and actions, triggered by their perceived justice in the context of service failure. This study aims to probe the possible mediating and moderating effects caused by the process where consumers form their thoughts and actions. Design/methodology/approach This study conducts a survey to consumers after restaurant dining. This study collects data from 262 respondents and analyzes the data with the structural equation modeling. Findings The results indicate that perceived justice has significant effect on empathy, anger, positive word-of-mouth, repurchase intention and revenge. Empathy has a significant and positive effect on positive word-of-mouth. Anger has significant and positive effects on revenge and avoidance. Empathy is a mediator between perceived justice and positive word-of-mouth. Blame attribution and service failure severity are the moderators in the relationship between perceived justice and empathy/anger. Research limitations/implications Consumers might have experienced the scenarios described in the questionnaire and their responses might be based on recall of their previous dining experiences in other restaurants, thereby resulting in a time lapse problem and affecting the conclusions of this study. Practical implications It is not adequate to gain consumers’ choices just demonstrate favorable customer perceived justice and empathy in today’s industrial highly competitiveness because blame attribution and perception of service failure severity result in different positive and negative emotions and behavioral intentions. Therefore, food and beverage industry must have a various recovery approaches to recover service failure and create a more appealing relationship with consumers. Originality/value This study investigates the relationships among perceived justice, emotions and behavioral intentions which are seldom discussed in the past studies. In addition, this study investigates the mediating effect of empathy in the relationship between perceived justice and positive word-of-mouth. The results of this study indicate that blame attribution and service failure severity are the moderators between perceived justice and emotions (empathy/anger). The mediator of empathy and the moderators of blame attribution and service failure severity can enhance the research gap in the context of service recovery for the tri-component attitude model.


PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0259420
Author(s):  
Shih-Tse Wang ◽  
Yao-Chien Tang

On the basis of the cognitive–affective–behavioral model, this study investigated the effects of narrative transportation in movies on audience emotion and positive word-of-mouth (PWOM). To the best of the authors’ knowledge, this is the first study to explore the effects of the multidimensionality of narrative transportation on the multidimensionality of emotion. In this study, narrative transportation was divided into dimensions of empathy, immersion, and belief revision, and emotion was divided into pleasure and arousal. To explore the relationship between narrative transportation, emotions, and PWOM, the participants, comprising individuals with movie watching experience, completed a questionnaire on the movie that had left the deepest impression on them. The responses were analyzed through structural equation modeling. Empathy, immersion, and belief revision were significantly and positively associated with pleasure and arousal, which positively correlated with PWOM. The relationship between empathy or immersion and PWOM was partially mediated by pleasure and arousal, whereas pleasure and arousal fully mediated the association between belief revision and PWOM. Practical suggestions for filmmakers were derived from the present findings.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lova Rajaobelina ◽  
Sandrine Prom Tep ◽  
Manon Arcand ◽  
Line Ricard

Purpose This study aims to examine the relationships between brand attachment, mobile service quality (MSQ), and positive word-of-mouth (WOM) for mobile banking applications (m-banking apps). Design/methodology/approach An online survey was conducted among 759 Canadian consumers who had used m-banking apps in the previous six months. To test the research hypotheses, a causal model using structural equation modeling was developed. Findings The results reveal that, in the m-banking context, brand attachment is associated with three MSQ dimensions – value-added features, security/privacy and interactivity – and positive WOM, with the usability dimension replacing interactivity in this case. Brand attachment is also associated with positive WOM. Practical implications To promote WOM, mobile banking managers should foster brand attachment and improve MSQ, mainly in terms of value-added features. Originality/value This is the first study to examine the relationships between brand attachment, mobile service quality and WOM in the context of m-banking apps. It also highlights the prominent role of value-added features available on m-banking apps to persuade customers.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chukwunonso Oraedu

PurposeThis paper explores the reasoning surrounding relationship value and quality, and further provides a blueprint on how positive word-of-mouth behaviour can be promoted through different routes.Design/methodology/approachSurvey strategy was employed with focus on quantitatively developed questionnaires. Informants were recruited through mall intercept. All diagnostic tests, path analyses and, by implication, research hypotheses were conducted using the SEM-PLS technique.FindingsAll the hypothesized relationships were supported. Relationship value directly relates to trust, satisfaction and word-of-mouth behaviour. Value was also indirectly related to word-of-mouth behaviour through the relationship quality construct, but trust stood-out as a better mediator. Trust and satisfaction also came out as antecedents of positive word-of-mouth behaviour.Research limitations/implicationThe relationship between relationship value and the relationship quality construct remains largely under-researched in literatures. This paper serves as a springboard for future research projects to extend understanding on how both constructs interact especially in a Business-to-Consumer (B2C) level. In addition, the paper offers a comprehensive insight on the behaviour of the relationship quality construct when it is tested as a mediator in a causal–effect model.Practical implicationsThis study holds that by engineering superior value, a telecom provider is better positioned to build a sound relationship quality network and stimulate positive word-of-mouth through different routes.Originality/valueGiven the dearth of research on this area, this paper represents the first attempt to map out relationship value as an antecedent of relationship quality and word-of-mouth behaviour on a B2C level, and simultaneously explore the direct and indirect behaviour of both constructs in promoting word-of-mouth behaviour in a non-Western setting.


2016 ◽  
Vol 8 (2) ◽  
pp. 197-222 ◽  
Author(s):  
Ali Gohary ◽  
Hamid Alizadeh ◽  
Kambiz Heidarzadeh Hanzaee

Purpose – Suggestion systems have always been used as the means of continuous development and co-creating values among the employees of organizations. On the other hand, the co-creation has been introduced as a solution to co-create values between companies and customers. Since a simultaneous study on setting up suggestion systems and co-creation among employees and customers have been ignored so far, the purpose of this paper, focussing on the combination of two strategies of suggestion systems (generally more effective among the employees of organizations) and co-creation (studied so far merely the scope of customers), is to evaluate variables leading to intention to use, improvement in understanding the concept of justice, and positive word-of-mouth. Design/methodology/approach – Two between-subjects experiments were carried out to explore the interactional role of co-creation, reward, and time in efficiency of suggestion systems. The first study which was carried out among customers analyzed the effect of setting up suggestion systems along with co-creation on the amount of their intention to use this system in the future and positive word-of-mouth. The second study discussed the effect of setting up suggestion systems along with co-creation on the level of understanding organizational justice and commitment. Findings – The results indicate that the effectiveness of co-creation and tangible factors, such as offered reward, on improving the evaluation of suggestion system. In the other word, when firm’s encourage customers to participate in value co-creation program in suggestion system, they perceive more justice and intend to participate more in such program in future. Originality/value – Most of the previous studies carried out on co-creation considered its effectiveness on occasions when a service failure occurs to consumers and the service provider urgently needs service recovery, but this paper aimed to provide a collaborative perspective toward co-creation through suggestion system that puts emphasis on service experience, innovation, and intention to future participation in such programs.


2018 ◽  
Vol 36 (7) ◽  
pp. 1347-1366 ◽  
Author(s):  
Estelle van Tonder ◽  
Daniël J. Petzer ◽  
Naomi van Vuuren ◽  
Leon T. De Beer

Purpose The purpose of this paper is to explore the proposed relationships between perceived usefulness (a dimension of perceived value), the relationship quality factors (competence trust and continuous commitment) and positive word-of-mouth intentions in an electronic banking setting. Design/methodology/approach A survey was conducted among 511 electronic banking customers. Findings Continuous commitment was found to mediate the relationships between perceived usefulness and competence trust with positive word-of-mouth intention, respectively. Research limitations/implications The results indicate the role of perceived value and relationship quality in contributing to positive word-of-mouth intention. Practical implications The findings could also guide banking institutions in managing their existing electronic banking customers more appropriately and to encourage them to engage in word-of-mouth behaviour that will convince other potential users of the benefits of the service. Originality/value Little is known on a mediated model noting the connection between perceived value, the relationship quality factors competence trust and continuous commitment and positive word-of-mouth intention. The findings provide more insight into the matter and accordingly contribute to the developing body of knowledge on perceived value, relationship quality and behavioural intention and their importance to the stream of research on positive word of mouth.


Sign in / Sign up

Export Citation Format

Share Document