The contradictory effects of customer participation breadth and depth on customer-perceived value

2019 ◽  
Vol 34 (8) ◽  
pp. 1736-1748 ◽  
Author(s):  
Xinchun Wang ◽  
Xiaoyu Yu

Purpose The purpose of this study is to investigate whether two different participation strategies (i.e. deep participation and broad participation) in a supplier’s product development process will result in different levels of customer-perceived value. In addition, this paper examines the moderating effects of customer risk-aversion and technology turbulence on the relationship between customer participation depth/breadth and customer-perceived value. Design/methodology/approach A theory-based model is developed and tested using data collected from 196 business-to-business firms. A multiple-regression approach was used to test the hypotheses. Findings Drawing on the transaction cost theory, the results reveal that while deep participation is likely to result in increased customer-perceived value, broad participation may hurt the relationship performance by reducing customer-perceived value. Moreover, the findings suggest that these effects are contingent on at least two contextual factors: how risk-averse the customer is and how turbulent the technological environment is. Originality/value This study is among the first to disaggregate the customer participation process into two different strategies, namely, deep participation and broad participation. It also extends the current literature by providing more insights about the dynamics involved in the customer participation process.

2020 ◽  
Vol 32 (6) ◽  
pp. 1525-1540
Author(s):  
Andriani Kusumawati ◽  
Karisma Sri Rahayu

PurposeTo test the effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty to the visitors of natural nuanced outdoor cafés in the hilly areas of Joyo Agung, Malang.Design/methodology/approachThis study uses four variables, namely experience quality, customer perceived value, customer satisfaction, and customer loyalty. The population used in this research was all customers or visitors who buy and enjoy the products and services provided by the natural outdoor cafés in Malang. This study used structural equation modeling (SEM) as inferential statistical technique.Findings1) Quality experience has a significant effect on customer perceived value, customer satisfaction, and customer loyalty; 2) customer perceived value has a significant effect on customer satisfaction and customer loyalty; and 3) customer satisfaction has a significant effect on customer loyalty.Originality/valueBased on the results of previous research and the phenomenon that has been described previously, the research gaps found in this study are: (1) the relationship between experience quality and customers’ perceived values. (2) There are differences in the relationship between experience quality and customer satisfaction found in the research, which examines the effect of experience quality on customer loyalty. (3) Experience quality and customer loyalty variables still differ in the research concerning the effect of experience quality on customer loyalty. (4) The influence of customer satisfaction and customer loyalty is still different in the research results regarding the effect of customer satisfaction on customer loyalty.


2016 ◽  
Vol 39 (4) ◽  
pp. 449-467 ◽  
Author(s):  
Ying-Pin Yeh

Purpose To enhance their competitive advantage, firms are increasingly regarding customer-perceived value as a vital factor in advancing the level of service performance. This paper aims to explore how supermarket retailers select and implement market orientation (MO) and service innovation strategies to enhance customer-perceived value based on their investment. Design/methodology/approach A review of the related literature indicated that studies have rarely explored the meanings and outcomes of MO and service innovation. Therefore, this paper examined the roles of MO and service innovation, evaluating how these factors affected relationship quality and customer-perceived value in a supermarket context. Customer advocacy and customer participation were evaluated as the mediating variables, and six hypotheses were formulated. The data were collected by conducting a questionnaire survey of the customers from five of the largest Taiwanese supermarket retailers. A structural equation model was used to test the hypotheses based on the respondent sample data. Findings The results indicated that customer participation and relationship quality are positively related to customer-perceived value. Customer advocacy is positively related to customer participation and relationship quality. MO and service innovation are positively related to customer advocacy. Research Limitations/implications The high explanatory power of the results of the deduced model in this research help explain the MO and service innovation of supermarket retailers toward customers. However, the collection of data related to other retailers requires consumers in other countries to test the robustness of this theoretical model. The results of analyses conducted on other industries and in other countries may differ. Practical Implications This paper investigated how the MO and service innovation capabilities of supermarket retailers contributed to their customer advocacy to achieve superior customer participation, customer relationship quality and customer-perceived value. Originality/value This paper investigates the effect of MO and service innovation on relationship quality and perceived value, and regards customer advocacy and customer participation as mediators.


2015 ◽  
Vol 33 (4) ◽  
pp. 442-456 ◽  
Author(s):  
Hashim Zameer ◽  
Anam Tara ◽  
Uzma Kausar ◽  
Aisha Mohsin

Purpose – The purpose of this paper is to explore the impact of services quality, customer satisfaction and corporate image on customer perceived value in the banking sector of Pakistan. Design/methodology/approach – A model is developed to show the relationship between dependent and independent variables taken from the existing literature. The data are collected from 200 respondents taken from the five major cities of Pakistan using structured questionnaire. Correlation and regression are applied to estimate the relationship between variables and find out the extent to which the independent variables have impact on the dependent variable. Findings – Results show that there is a positive relation between the service quality, customer satisfaction and corporate image. It is also analyzed by the results that service quality and customer satisfaction have high impact on the customer perceived value where corporate image also effect the customer perceived value. Originality/value – This paper identified the impact of service quality, customer satisfaction and corporate image on the customer perceived value that helps the services sector especially banks how they can improve the customer perceived value through improving their service quality, customer satisfaction and corporate image.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Malin Sundström ◽  
Klas Håkan Alm ◽  
Niklas Larsson ◽  
Oskar Dahlin

Purpose This paper aims to identify content strategies on social media that influence engagement and to analyze those operations to describe important features for co-creation and trust. Design/methodology/approach This paper addresses the question of how social media content can influence engagement by using a medium-sized Swedish company for an empirical case study. This empirical study is based on a participatory action research methodology. By using the company account on LinkedIn, the authors experimented with relational content to understand the effects on customer-perceived value and trust. Findings Results reveal that action-oriented messages had a more significant impact on engagement than product-oriented messages and value-based messages. Originality/value This paper builds on the existing literature in two ways: drawing upon business-to-business relationships and perceived value and using recent advances in the use of social networking sites to understand the value of co-creation through a participatory culture.


2014 ◽  
Vol 26 (1) ◽  
pp. 114-146 ◽  
Author(s):  
Michael Daniel Clemes ◽  
Xin Shu ◽  
Christopher Gan

Purpose – Global mobile communication is one of the most dynamic and important service markets. Several researchers suggest using a theoretical approach to develop a much deeper insight into key marketing constructs such as service quality, customer perceived value, customer satisfaction, perceived switching costs, corporate image, and customer loyalty is of vital importance to the mobile communications market. This study aims to develop and test a comprehensive hierarchical model of these six important constructs. The model also incorporates the retailing function of a major mobile communication provider. Design/methodology/approach – The research sample of 516 was drawn from customers of one of the largest mobile communications service providers in China. The data were analysed using exploratory factor analysis, confirmatory factor analysis and structural equation modelling. Findings – The results of the study support using a hierarchical and multidimensional approach for conceptualising and measuring customers' perceptions of service quality in the mobile communications market. In addition, the findings illustrate that service quality is an important determinant of customer perceived value, customer satisfaction, corporate image, and perceived switching costs. Customer perceived value is also an antecedent of customer satisfaction. Corporate image, customer satisfaction, and perceived switching costs are three key drivers of customer loyalty. However, the findings also indicate that corporate image is not an important determinant of customer satisfaction and that customer perceived value is not a key driver of customer loyalty. Originality/value – This is the first paper that has developed and tested a comprehensive hierarchical model of the mobile communications market.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xun Zhang ◽  
Biao Xu ◽  
Jun Wu

Purpose This study aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese business-to-business (B2B) context. Design/methodology/approach Renqing in China has played an important role in business relationships and has been receiving increased attention in both practice and theory. However, little is known about whether it can influence purchase intentions in a rational B2B condition. This research aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese B2B context. Based on a survey of 1,010 industry buyers from 468 Chinese downstream buyer companies, the empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of long-term orientation (LTO) for increasing purchase intentions. In addition, this study also finds that product involvement (PI) has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. The results highlight several implications for B2B companies that sell products to Chinese enterprises. Findings The empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of LTO for increasing purchase intentions. In addition, this study also finds that PI has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. Originality/value First of all, by answering the research question, this study shows that renqing has a positive effect on purchase intentions in Chinese B2B context. Second, this study elucidates the influence mechanism of renqing on purchase intention and identifies the mediating effect of LTO and the moderating effect of PI.


2018 ◽  
Vol 33 (1) ◽  
pp. 53-71 ◽  
Author(s):  
Duleep Delpechitre ◽  
Lisa Beeler

Purpose The purpose of this paper is to investigate how salesperson’s emotional intelligence (EI) influences salesperson behaviors (i.e. emotional labor strategies) and the influence these behavioral strategies have on customer’s outcomes. Design/methodology/approach The study develops a conceptual model using past literature and tests hypotheses using a salesperson-prospective customer dyadic sample. To participate in the study, 224 salespeople and their potential customers were recruited from three different companies. Findings Results reveal the importance of conceptualizing the dimensionality of a salesperson’s EI ability, as different dimensions impact customer outcomes differently. Additionally, the importance of salesperson’s authentic emotional labor strategies is highlighted. Practical implications EI is a foundation for successful selling in a business-to-business environment, but it is not a silver bullet. Sales managers and recruiters should use assessment tools to evaluate sales recruit’s EI, but it is also critical to train salespeople to engage in deep acting, creating authentic emotions in the buyer-seller relationship. Originality/value Using a dyadic sample, this study suggests that the dimensions of EI and emotional labor strategies influence customer’s perception of salesperson’s trustworthiness and propensity to continue the relationship with the salesperson differently. Specifically, not all dimensions of salesperson’s EI is found to be positive, and only salesperson’s authentic (deep) emotional strategies are found to influence customer outcomes positively.


2021 ◽  
Vol 8 (11) ◽  
pp. 246-258
Author(s):  
Dewi Kartika ◽  
Amrin Fauzi ◽  
Arlina Nurbaity Lubis

The rapid development of information and communication technology is currently having an impact on changes in various fields, one of which is changes in people's lifestyles, including consumption in society. The development of information and communication technology has resulted in easier access for people in the world to access the internet and use it to buying and selling transactions online via the internet. The report Global Web Index notes that Indonesia has a high level of users e-commerce highest in the world and as many as 96% of internet users looking for a product or service to make purchases online. This has resulted in the development of e-commerce in Indonesia and throughout the world which is increasing as a consequence of which the competition is getting harder service providers are e-commerce required to provide the best service in order to increase customer satisfaction and trust so that customers will be loyal to using these services. This can be achieved by paying attention to customer value and corrective actions in an effort to restore service to customers. The purpose of this study was to analyze the effect of customer perceived value and e-service recovery on e-loyalty with e-satisfaction and e-trust as intervening variables. This study uses a quantitative approach by distributing questionnaires to ecommerce Shopee Indonesia customers in Medan City with a total sample of 328 respondents. The sampling technique in this study used non-probability sampling. Data analysis was carried out through SEM-PLS using the SmartPLS program. The results of this study indicate that customer perceived value has a significant effect on e-satisfaction and also e-loyalty. However, customer perceived value has no significant effect on e-trust. The variable e-service recovery directly has a significant effect on e-satisfaction, e-trust, and e-loyalty. E-satisfaction and e-trust cannot mediate the relationship between customer perceived value and e-loyalty, but they are able to mediate the relationship between e-service recovery and e-loyalty. Keywords: Customer perceived value, E-Service Recovery, E-Satisfaction, ETrust, E-Loyalty.


2018 ◽  
Vol 30 (4) ◽  
pp. 2112-2131 ◽  
Author(s):  
Minglong Li ◽  
Cathy H.C. Hsu

Purpose This paper aims to investigate the influence of customer participation in services on the innovative behaviors of employees. Although previous studies have acknowledged the importance of customers in service innovation and investigated how customer participation in product development teams affect innovation, the effect of mandatory customer participation in services on the employee innovative behavior has not been examined. In addition to addressing such gap, this study proposed the mediating role of interpersonal trust in the relationship between customer participation and employee innovative behavior and then tested the hypotheses in a restaurant context. Design/methodology/approach A total of 514 valid questionnaires were collected from frontline employees or entry-level managers in 25 well-known restaurants (including 14 hotels and 11 freestanding restaurants) in Beijing, China. The relationships among customer participation, interpersonal trust and employee innovative behavior were examined using structural models analyzed in AMOS 20.0. Findings The structural equation modeling results indicate that customers’ information and emotional participation in services significantly influence the innovative behavior of employees, whereas behavioral participation does not. In addition, a high level of interpersonal trust between customers and employees may increase employee innovative behaviors. Moreover, unlike cognitive trust, affective trust mediates the relationship between customer information or emotional participation and employee innovative behavior. Practical implications Findings indicate that service firms can encourage customers to participate actively in service co-creation; their participation in terms of information is encouraged to foster employee innovative behaviors by training employees and establishing an appropriate climate for information exchange. Moreover, service firms must pay attention to the emotions of customers during the service processes. Furthermore, the affective trust between customers and employees is significant to service firms, which need to take measures for employees to manage their relationships with customers well. Originality/value Based on the concepts of service marketing and organizational behavior, this study contributes to the research on customer–employee co-production and employee innovative behavior from an interdisciplinary perspective. The study reveals the influencing mechanism of customer participation on employee innovative behavior and contributes to the research on customer–employee interpersonal trust. Previous studies emphasized the importance of trust among work group members in innovation, while this study supports the association between customer–employee interpersonal trust and employee innovative behaviors.


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