The influence of economic crises on network behavior

2017 ◽  
Vol 32 (3) ◽  
pp. 445-456 ◽  
Author(s):  
Tibor Mandják ◽  
Ágnes Wimmer ◽  
François Durrieu
Keyword(s):  
Customer Orientation ◽  
Point Of View ◽  
Customer Relationships ◽  
Network Behavior ◽  
Supplier Relationships ◽  
Content Type ◽  
Modeling Methodology ◽  
Key Factor ◽  
Valuable Customer ◽  
Relational Outcomes

Purpose Following industrial network theory, this paper aims to address network behavior from a focal company’s perspective. Special attention is paid to examining the effect of perceptions of the economic crisis on network behavior. Design/methodology/approach The study is built on a quantitative analysis of an empirical database of 300 companies based on a survey completed in 2013 in Hungary. A focal company network behavior model was developed and applied to investigate the link between variables (valuable customer relationships, valuable supplier relationships, relationship strategy and relational outcomes) and the effect of managers’ perceptions about the intensity of the crisis. To obtain a deeper understanding of the effect of the crisis, structural modeling methodology was applied during data analysis. Findings How crises are perceived has a moderating influence on companies’ network behavior. In a context in which a crisis is strongly perceived, valuable customer relationships are considered more important than valuable supplier relationships; relationship strategy becomes more intensive; and performance is increasingly focused on operations and less on innovation. The main difference in network behavior is found with the management of the supply side. A different level of attention is paid to supplier relationships in a high crisis-perception context than when a crisis is perceived as being less critical. Research limitations/implications Results emphasize the importance of perceptions as a key factor in managerial attitudes, behavior and, ultimately, decision-making. This finding merits more attention from both researchers of business relationships and networks. Practical implications From a managerial point of view, the results emphasize the existence of potentially new opportunities in network management. The reinforcement of attention to the customer during a period of crisis implies the importance of the customer orientation, but also suggests that firms may have unexploited opportunities and more potential resources on the supplier side. Originality/value The paper combines an analysis of network behavior and perceptions of crisis, helping to explain managerial decisions and attitudes. Analysis was undertaken from a focal firms’ perspective and differences were investigated in attitudes concerning both supplier- and customer-side relations. How crises are perceived is a moderating variable of network behavior.

The emergence of the customer relationship portfolio of a new venture: a networking process

2019 ◽  
Vol 34 (5) ◽  
pp. 1066-1078 ◽  
Author(s):  
Antonella La Rocca ◽  
Andrea Perna ◽  
Andrea Sabatini ◽  
Enrico Baraldi
Keyword(s):  
Single Case ◽  
New Ventures ◽  
Cumulative Effect ◽  
Customer Relationships ◽  
Customer Relationship ◽  
New Venture ◽  
Supplier Relationships ◽  
Content Type ◽  
Early Relationships ◽  
Network Capability

Purpose While several studies have focused on the initial phases of new ventures and their first customer and supplier relationships, we have a limited understanding of how the new venture’s portfolio of customer relationships emerges. This paper aims to explore the emergence of the customer relationship portfolio of a new venture and to investigate the effects of early relationships on subsequent ones. Design/methodology/approach Methodologically, the authors rely on a longitudinal single case study of a new venture which develops, implements and sells customized cost-management software. The study is exploratory and based on 24 in-depth interviews. Findings The findings show that the development of a customer portfolio depends on the cumulative effect of heterogeneous elements and network connections. These include the initial link between the new venture and the first customer and a subsequent series of interconnections that develop with the emerging network capability of the new venture. Originality/value As one of the few studies that explore the emergence of new ventures’ customer relationship portfolio, this study demonstrates the value of applying a relational/network approach for studying relationship portfolio dynamics.

Relationship versus customer experience quality as determinants of relationship quality and relational outcomes for Kuwaiti retail banks

2019 ◽  
Vol 37 (5) ◽  
pp. 1234-1252 ◽  
Author(s):  
Adel A.A. Al-Wugayan
Keyword(s):  
Service Management ◽  
Customer Experience ◽  
Customer Relationships ◽  
Annual Reports ◽  
Actual Behavior ◽  
Validity And Reliability ◽  
Cross Sectional ◽  
Content Type ◽  
Relational Outcomes ◽  
Retail Banks

Purpose The purpose of this paper is to investigate the extent to which customer experience and relationship marketing (RM), as two widely used service management approaches, can effectively determine satisfaction and commitment as two relational quality constructs, and their impact on loyalty and word-of-mouth (WoM) as relational outcomes for retail bank services in Kuwait. This country is chosen as an exemplar of an Arabian Peninsula culture with a predominantly Islamic heritage and a capital-surplus economy. Design/methodology/approach The relational benefits scale and customer experience quality were used as independent measures to collect data using multiple methods (interview, paper and pencil, online) from 1,013 customers of local and international banks. Standard translation procedures, CFA procedures and parallel analysis were employed to examine the dimensionality of all scales. SEM procedures were applied for each approach to assess its impact on the four indigenous dependent constructs using a multitude of fit indices, examination of validity and reliability measures for all constructs as well as structural paths. Findings Results show the factor structure of both scales differed from their original conceptualization, with fewer items forming each latent factor when applied in Kuwait. The explanatory and predictive power of the EXQ model performed slightly better than RBS, although both explained substantial variance on dependent measures, confirming their relevance despite the lack of noticeable correlation between most factors contained in both scales. Research limitations/implications This study underscores the importance of establishing the validity of measures prior to their cross-cultural application, with particular focus on the content validity of scale items to measure the intended construct properly. It also shows how two approaches can complement each other rather than compete to effectively manage bank services. As is the case with all cross-sectional research paradigms, longitudinal analysis linking expressed loyalty/WoM with actual behavior can better assess tested relationships than the current research. Practical implications Retail banks’ marketing strategy should simultaneously address customer relationships and customer experience to reduce attrition and enhance customer life-time value. Originality/value Effects of service experience and RM are examined in a Middle-Eastern market, where internationalization of banks has created strong competition, leading customers to view bank services as less differentiated. Caution and examination of service quality measures are needed before using them as metrics in annual reports and performance reviews.

Banking system trust, bank trust, and bank loyalty

2017 ◽  
Vol 35 (1) ◽  
pp. 97-111 ◽  
Author(s):  
Pauline W.J. van Esterik-Plasmeijer ◽  
W. Fred van Raaij
Keyword(s):  
Customer Orientation ◽  
Strong Predictor ◽  
Banking System ◽  
Value Congruence ◽  
Structural Equations ◽  
Customer Relationships ◽  
Content Type ◽  
Trust System ◽  
Managerial Implications ◽  
Practical Implications

Purpose The purpose of this paper is to test a model of banking system trust as an antecedent of bank trust and bank loyalty. Six determinants of trust and loyalty are included: competence, stability, integrity, customer orientation, transparency, and value congruence. The study provides insights which determinants are crucial for explaining bank trust and bank loyalty, and thus for rebuilding trust and loyalty. Design/methodology/approach Survey among 1,079 respondents of 18 years and older in The Netherlands on person trust, system trust, bank trust, and their scores on determinants of trust and loyalty. Structural equations modeling (AMOS) has been performed to provide insights into the relationships between concepts such as person trust, system trust, bank trust, and bank loyalty. The importance of determinants to explain bank trust and bank loyalty has been assessed as well. Findings Integrity is the most important determinant of bank trust. Transparency, customer orientation, and competence are also significant. Trust is a strong predictor of loyalty. Determinants explaining bank loyalty are: competence, stability, transparency, and value congruence. System trust is also a determinant of bank trust. The meaning of these results is discussed in the paper, as well as the managerial implications of these findings. Research limitations/implications Data were collected in May 2014 with a large sample, when the financial crisis came to an end. Distrust still remained as a consequence of the crisis. Banks are now rebuilding trust and loyalty. This research provides indications which determinants of trust and loyalty are important in this process and should be focused upon. A longitudinal study how trust and loyalty are developing would give insights and feedback on managerial actions. Practical implications Results provide insights into the causes and reasons of (dis)trust. From this study, banks get insights with a priority matrix which determinants are below par but important for specific banks and should be focused on and improved at the short term. Social implications Trust in banks and other financial institutions is crucial for the functioning of the banking system and for society at large. Restoring trust is a matter of fundamental changes of the bank-customer relationships, not only by communication but by sincere behavior (integrity) and benevolence in the customer interest. Originality/value The authors are not aware of research using all six determinants (competence, stability, integrity, customer orientation, transparency, and value congruence) to explain and predict bank trust and bank loyalty, and their implications for trust and loyalty in banks.

The role of translators and interpreters in cascading crises and disasters

2019 ◽  
Vol 29 (2) ◽  
pp. 144-156
Author(s):  
David E. Alexander ◽  
Gianluca Pescaroli
Keyword(s):  
Emergency Preparedness ◽  
Point Of View ◽  
Qualitative Description ◽  
Economic Point ◽  
Content Type ◽  
Information Strategies ◽  
History Analysis ◽  
Key Factor ◽  
Emergency Preparedness And Response

Purpose The purpose of this paper is to explain the significance of cascading crises for translators and interpreters, and how their work may be affected by such events. It provides a theoretical basis for analysis and field practice. Design/methodology/approach The authors define cascades and explain how they influence the development of preparedness, mitigation and response. The authors identify key drivers of cascading crises and discuss how they challenge conventional approaches to emergency management. The authors discuss ways in which use of language could be a key factor in crisis escalation. The authors define priorities and operational challenges of cascading crises for translators and interpreters. In terms of methodology, this paper develops a conceptual framework that can be used for future enquiry and case history analysis. Findings The authors provide a qualitative description and synthesis of the key instructions to be used in the field. The authors offer a short list of key questions that can be referred to by linguists and scholars. The authors identify situations in which translation and interpretation are important ingredients in the success of emergency preparedness and response efforts. These include multilingual populations, migrant crises, international humanitarian deployment and emergency communication during infrastructure failures. Research limitations/implications This work has academic value for the process of understanding cascades and practical relevance in terms of how to deal with them. Practical implications Translators and interpreters need to understand cascading crises in order to be prepared for the challenges that such events will present. Social implications Society has become more complex and interconnected, with non-linear cascading escalation of secondary emergencies. Emergency planners and responders need to address this in new ways. Effective communication and information strategies are essential to the mitigation of cascading disaster risk. Originality/value The study of cascading crises from a socio-economic point of view is relatively new, but it is important because society is increasingly dependent on networks that can propagate failure of information supply.

LRFMP model for customer segmentation in the grocery retail industry: a case study

2017 ◽  
Vol 35 (4) ◽  
pp. 544-559 ◽  
Author(s):  
Serhat Peker ◽  
Altan Kocyigit ◽  
P. Erhan Eren
Keyword(s):  
Real Life ◽  
Customer Segmentation ◽  
Marketing Strategies ◽  
Point Of View ◽  
Customer Relationships ◽  
Retail Industry ◽  
Content Type ◽  
Rfm Model ◽  
Customer Profiles ◽  
Loyal Customers

Purpose The purpose of this paper is to propose a new RFM model called length, recency, frequency, monetary and periodicity (LRFMP) for classifying customers in the grocery retail industry; and to identify different customer segments in this industry based on the proposed model. Design/methodology/approach This study combines the LRFMP model and clustering for customer segmentation. Real-life data from a grocery chain operating in Turkey is used. Three cluster validation indices are used for optimizing the number of groups of customers and K-means algorithm is employed to cluster customers. First, attributes of the LRFMP model are extracted for each customer, and then based on LRFMP model features, customers are segmented into different customer groups. Finally, identified customer segments are profiled based on LRFMP characteristics and for each customer profile, unique CRM and marketing strategies are recommended. Findings The results show that there are five different customer groups and based on LRFMP characteristics, they are profiled as: “high-contribution loyal customers,” “low-contribution loyal customers,” “uncertain customers,” “high-spending lost customers” and “low-spending lost customers.” Practical implications This research may provide researchers and practitioners with a systematic guideline for effectively identifying different customer profiles based on the LRFMP model, give grocery companies useful insights about different customer profiles, and assist decision makers in developing effective customer relationships and unique marketing strategies, and further allocating resources efficiently. Originality/value This study contributes to prior literature by proposing a new RFM model, called LRFMP for the customer segmentation and providing useful insights about behaviors of different customer types in the Turkish grocery industry. It is also precious from the point of view that it is one of the first attempts in the literature which investigates the customer segmentation in the grocery retail industry.

Investigating sales approaches and gender in customer relationships

2014 ◽  
Vol 29 (1) ◽  
pp. 11-23 ◽  
Author(s):  
John Andy Wood ◽  
Julie Johnson ◽  
James S. Boles ◽  
Hiram Barksdale
Keyword(s):  
Structural Equation ◽  
Equation Model ◽  
Customer Relationships ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Proposed Model ◽  
Relational Outcomes ◽  
And Gender ◽  
The Impact

Purpose – The purpose of this research is an examination of three different types of sales approaches (product-, solution- and provocation-based) on relational outcomes. The type of sales approach influences buyer's assessments about the trustworthiness of the salesperson and the conflict with the salesperson. These outcomes of the sales approach affect the customer's economic and non-economic satisfaction. Design/methodology/approach – Using cross-sectional survey data from a sample of 840 organizational buyers, a structural equation model measures the path coefficients of the proposed model and tests the differences in the magnitude based on gender. Findings – The results indicate that sales approaches will differentially influence assessments of trustworthiness and conflict. The magnitude of the influence of the sales approach on outcomes is different between genders. Originality/value – To the best of the authors' knowledge, this is the first empirical study to examine the impact of sales approaches on both genders of organizational buyers.

scholarly journals Don’t you (forget about me)

2020 ◽  
Vol 54 (4) ◽  
pp. 761-790
Author(s):  
Ce (Jacky) Mo ◽  
Ting Yu ◽  
Ko de Ruyter
Keyword(s):  
Empirical Studies ◽  
Distribution Channel ◽  
Marketing Channel ◽  
Negative Consequences ◽  
Channel Networks ◽  
Supplier Relationships ◽  
Content Type ◽  
Relational Outcomes ◽  
New Research ◽  
The Impact

Purpose To advance research on channel relationship management, this study aims to test for the impacts of a channel member’s perception of exclusion from a supplier’s distribution channel networks (i.e. out-of-the-channel-loop perceptions [OCLP]) on supplier–channel partner relationships. The authors also systematically develop and empirically validate a scale to measure OCLP. Design/methodology/approach This paper reports two empirical studies. The first develops a new scale for OCLP, following established approaches. The second tests the hypotheses. Survey data from a sample of channel firms operating in four industries were subjected to partial least squares modelling in the test of the hypothesized main and moderating effects. Findings The authors developed the new scale, including eight items, that capture OCLP from both social and economic perspectives. The results also show that OCLP has negative impacts on channel members’ psychological and behavioural outcomes (satisfaction, information sharing, positive word of mouth), after controlling for the effect of perceived unfairness. Channel partner perceived peer support emerges as a boundary condition of the impact; perceived informational support attenuates, whereas emotional support amplifies, the impact of OCLP. Research limitations/implications This study suggests new research opportunities for explaining business-to-business marketing relationships using newly conceptualized OCLP. Practical implications This study highlights that suppliers must recognize the potential for negative consequences of OCLP and manage these perceptions to minimize the negative implications. For suppliers, this study also offers several tools for managing OCLP. Originality/value This study introduces ostracism concepts to marketing channel literature to study a potential detriment to channel relationships. The proposed scale captures channel partners’ sense of exclusion from supplier relationships. It provides initial insights into the direct impacts on channel relational outcomes and associated boundary conditions.

scholarly journals Transaction convenience in the payment stage: the retailers’ perspective

2014 ◽  
Vol 24 (5) ◽  
pp. 434-454 ◽  
Author(s):  
Heléne Lundberg ◽  
Peter Öhman ◽  
Ulrika Sjödin
Keyword(s):  
Point Of View ◽  
Customer Relationships ◽  
Firm Level ◽  
Content Type ◽  
Customer Dissatisfaction ◽  
Purchase Process ◽  
Small Change ◽  
The Sacrifice ◽  
Practical Implications ◽  
Shed Light

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.

The role of reciprocity and reputation in service relationships with arts organisations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Giulio Toscani ◽  
Gerard Prendergast
Keyword(s):  
Grounded Theory ◽  
Design Methodology ◽  
Point Of View ◽  
Mutual Benefit ◽  
Content Type ◽  
Service Relationships ◽  
Key Factor ◽  
The Relationship ◽  
Practical Implications

Purpose In an arts organisation context, this paper aims to further the understanding of service relationships by developing a framework explaining how sponsored arts organisations could better manage their relationships with sponsors to facilitate mutual benefit and relationship persistence. Design/methodology/approach Grounded theory methodology was applied to sponsorship of arts organisations through interviews with the managers of arts organisations worldwide who had been involved in seeking and managing sponsorship relationships. Findings Reciprocity was found to be the key factor in successful sponsorship relationships, but emotional reference to reputation was also important. Together they link uncertainty in the complex sponsorship environment with an arts organisation’s artistic ambitions. Practical implications This study extends the understanding of service relationships by shedding light on the sponsorship relationship from the sponsored organisation’s point of view and in particular highlighting the role of reciprocity in managing the relationship with their sponsor. Originality/value Understanding the moderating roles of reciprocity and reputation in sponsorship relationships helps to explain key facets of such relationships which can partially negate sponsor benefits and threaten a sponsorship’s continuation.

Boosting customer orientation through coaching: a Canadian study

2014 ◽  
Vol 32 (1) ◽  
pp. 60-81 ◽  
Author(s):  
Claudio Pousa ◽  
Anne Mathieu
Keyword(s):  
Structural Equation ◽  
Banking Sector ◽  
Customer Orientation ◽  
Customer Relationships ◽  
Mediating Effect ◽  
Managerial Behavior ◽  
Cross Sectional ◽  
Content Type ◽  
Business Outcomes ◽  
And Performance

Purpose – The purpose of this paper is to investigate to what extent bank manager's coaching, a managerial relationship behavior based on mutual trust, openness and quality of exchanges, affects front-line employee's performance through the mediating effect of salesperson's customer orientation. Design/methodology/approach – The paper conducted a non-experimental, cross-sectional study; a Canadian bank agreed to participate in the study and 122 financial advisors with sales responsibilities answered a web-based survey; data were analyzed using structural equation modelling. Findings – The paper found support for the hypotheses that managerial coaching behavior can help bank employees develop their customer orientation and increase their performance, as well as reduce opportunistic behavior (sales orientation). The paper found that the direct link between coaching and performance, plus the mediating effect of sales orientation and customer orientation (SOCO) can potentially explain a significant variation in employee's performance (r2=0.23). The paper also found that the hypothesized model provided better explanations of the phenomenon when compared with two rival models, one considering SOCO as a full mediator between coaching and performance, and the other one considering only the effect of coaching on performance. Originality/value – In the banking sector, practitioners and scholars are paying increased attention to the role of trust and relationship behaviors in the development of market orientation and customer relationships. The paper identified a key relationship behavior (customer orientation) and tests its impact as a mediator between a relationship managerial behavior (coaching) and business outcomes (performance) in an international banking setting (Canada).

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