Online service failure: how consumers from emerging countries react and complain

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simoni F. Rohden ◽  
Celso Augusto de Matos
Keyword(s):  
Structural Equation ◽  
Switching Costs ◽  
Service Failure ◽  
Cultural Orientation ◽  
Emerging Countries ◽  
Cultural Dimensions ◽  
Third Party ◽  
Equation Modeling ◽  
Content Type ◽  
Service Failures

Purpose E-commerce has experienced huge growth in emerging countries, but analysis of service failure/recovery for online retailers has been limited in this context. Hence, this study aims to investigate customers’ reactions to service failures in e-commerce and the influence of cultural dimensions on complaint intentions. Design/methodology/approach A survey was conducted with 553 customers from Brazil, India and China. A model was proposed and tested using structural equation modeling. Findings Results indicate that satisfaction with service recovery (SSR) increases repurchase intentions and reduces third-party complaints and negative word-of-mouth. This study also shows that the reactions of consumers to service failures in online situations are influenced by their cultural orientation (i.e. individualism, uncertainty avoidance and power distance) and contingent factors (i.e. relationship level, switching costs and the severity of the failure). Originality/value This study shows that the extent to which consumers from emerging countries complain after a service failure in online purchases will depend on their cultural orientation, previous experiences with the retailer, switching costs and the severity of the failure.

Identifying brand touchpoints to increase switching costs in the banking industry

2019 ◽  
Vol 38 (3) ◽  
pp. 718-736 ◽  
Author(s):  
Abdullah Sultan
Keyword(s):  
Factor Analysis ◽  
Structural Equation ◽  
Switching Costs ◽  
Service Providers ◽  
Banking Industry ◽  
Service Failure ◽  
Customer Experience ◽  
Equation Modeling ◽  
Exploratory Research ◽  
Content Type

Purpose The purpose of this paper is to study the effect of staged customer experiences on customer switching costs in the banking industry. Design/methodology/approach Brand touchpoints in the banking industry are identified by exploratory research using focus group sessions with bank customers and staff and refined by exploratory factor analysis using an independent sample of bank customers to form the staged customer experience construct. The proposed research model is then validated by confirmatory factor analysis with an independent sample using structural equation modeling. Findings Customer experience in the banking industry consists of four related but distinct stages (i.e. pre-touch, in-touch, post-touch and service failure). The first three stages have direct and indirect effects on switching costs that are partially mediated by relationship quality. Research limitations/implications Customer experience is an industry-specific construct with complicated effects on switching costs. Thus, the staged customer experience construct should be examined in different industries and applications to understand its implications. Practical implications Bank customers demand experiences that achieve desirable results in everyday situations and switch to other service providers easily if this demand is not met. Banks should focus on brand touchpoints that are both important to customers and increase switching costs to keep customers from defecting. Originality/value This research expands upon findings in the customer experience literature by exploring factors that link staged customer experiences with switching costs in the banking industry. In addition, a paradox is identified in the staged customer experience model that requires managers’ attention in order to design an effective customer experience strategy.

The effect of CSR on consumer behavioral responses after service failure and recovery

2016 ◽  
Vol 28 (5) ◽  
pp. 583-599 ◽  
Author(s):  
Mobin Fatma ◽  
Imran Khan ◽  
Zillur Rahman
Keyword(s):  
Structural Equation ◽  
Service Failure ◽  
Recovery Process ◽  
Equation Modeling ◽  
Content Type ◽  
Service Failures ◽  
Service Failure And Recovery ◽  
Recovery Satisfaction ◽  
One Year ◽  
Corporate Social

Purpose This paper aims to examine the interconnection between the consumer perceived corporate social responsibility (CSR) and its effect on the post-recovery satisfaction and loyalty after service failures. Design/methodology/approach An intercept survey has been conducted during June to August, 2015, in the Delhi NCR area of India. The respondent to the survey includes the hotel customers who have experienced the service failure in the previous one year. The convenience sampling method has been used with the structured questionnaire. To test the proposed model, structural equation modeling is applied. Findings The finding of the present study provides the empirical evidence of the existence of a relationship between perceived CSR and customer post-recovery satisfaction and loyalty influenced by trust. Research limitations/implications The present study has suffered from the recall biases in the survey data. Although the responses were gathered from respondents on the basis of their actual service recovery experience in the preceding year, recall bias may have influenced the responses. The present study highlights a salient role of CSR initiatives, wherein managers can understand the influence of perceived in CSR and analyze the service recover encounters and ensure that recovery process improves the customer perception of CSR. Originality/value This study reinforces the significance of consumer perceived CSR and its effect on post-recovery satisfaction and loyalty after service failures.

The country context in Triple-A supply chains: an advanced PLS–SEM research study in emerging vs developed countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José A.D. Machuca ◽  
Juan A. Marin-Garcia ◽  
Rafaela Alfalla-Luque
Keyword(s):  
Structural Equation ◽  
Research Study ◽  
Theory Development ◽  
Developed Countries ◽  
Emerging Countries ◽  
Equation Modeling ◽  
Synergy Effect ◽  
Content Type ◽  
Manufacturing Plants ◽  
Potential Synergy

PurposeThis paper analyzes whether the Triple-A supply chain (SC)–competitive advantage (CA) relationship is influenced by the country context and considers the case of emerging vs developed countries. Any differences in the importance of the three Triple-A SC dimensions (agility, adaptability and alignment) and a potential synergy effect among them when pursuing CA are also analyzed.Design/methodology/approachPartial least squares structural equation modeling (PLS-SEM) method is applied to an international multiple informant sample of 304 manufacturing plants in nine developed and five emerging countries.FindingsA significant positive relationship is found between the Triple-A SC and CA in the full sample and in the two separate samples of emerging and developed countries, which is more intense in the emerging countries. For the same samples, it is also concluded that (1) there are no significant differences in the importance of SC adaptability (SC-Ad), SC agility (SC-Ag) and SC alignment (SC-Al) as levers in the Triple-A SC–CA relationship and (2) a synergy effect among the Triple-A SC dimensions when pursuing CA is not supported.Research limitations/implicationsThe present study brings new evidence to the previous research on Triple-A SC and its relationship with CA in different country contexts. For managers, this work (1) shows that Triple A should be considered in the design of global SCs irrespective of the country context and (2) offers a first approach for determining the Triple-A SC levers that must be taken into consideration when pursuing a CA.Originality/valueThis paper contributes to Triple-A SC theory development. It is the first research study that analyzes the effect of the country context on the Triple-A SC–CA relationship and the importance of each of the Triple-A SC dimensions and their possible synergy effect when pursuing CA using a multiinformant international sample taken from different country contexts.

Brand equity, satisfaction, and switching costs

2015 ◽  
Vol 33 (2) ◽  
pp. 164-178 ◽  
Author(s):  
Galina Biedenbach ◽  
Maria Bengtsson ◽  
Agneta Marell
Keyword(s):  
Conceptual Model ◽  
Brand Equity ◽  
Structural Equation ◽  
Switching Costs ◽  
Professional Services ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
Four Dimensions ◽  
Marketing Managers

Purpose – The purpose of this paper is to investigate the effects of satisfaction and switching costs on the development of brand equity in the business-to-business (B2B) setting. The study considers the hierarchical effects between brand awareness, brand associations, perceived quality, and brand loyalty. Furthermore, the conceptual model examines the direct effect of switching costs on satisfaction. Design/methodology/approach – Structural equation modeling was used to analyze 632 responses from the CEOs and CFOs of organizations buying auditing and business consultancy services from one of the Big Four auditing companies. Findings – The findings demonstrate the significant impact of satisfaction and switching costs on brand equity in the B2B setting. Furthermore, the findings show the positive effect of switching costs on satisfaction. Research limitations/implications – The study is conducted in the professional services context. Future research can examine whether the observed effects can be found in other B2B settings and considering various B2B services and industrial goods. Practical implications – The study contributes to marketing managers’ understanding of how marketing actions aimed to increase satisfaction can affect brand equity. Marketing managers are provided with insights and evidence on how switching costs can impact satisfaction and brand equity. Originality/value – The study tests a unique conceptual model focussing on the causal relationships between four dimensions of brand equity, satisfaction and switching costs. The findings provide a strong foundation for further investigation of links between the key marketing concepts: brand equity, satisfaction, and switching costs.

scholarly journals The relationships among service failure, service recovery, customer satisfaction and trust at international hospitals: A Case in Vietnam

2021 ◽  
Vol 9 (4) ◽  
pp. 887-896 ◽  
Author(s):  
Quoc Nghi Nguyen ◽  
Van Tung Huynh ◽  
Van Nam Mai
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Service Failure ◽  
Service Recovery ◽  
Interactional Justice ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Hospital System ◽  
Service Failures ◽  
And Behavior

The objective of this study is to demonstrate the relationships among the severity of service failure, service recovery, customer satisfaction and loyalty towards the Vietnamese international hospital system. The research data were collected from 303 customers who have used services and experienced service failures at international hospitals. Applying Structural Equation Modeling, the study pointed out that service failure includes three dimensions, which are system failure, request failure, and behavior failure. Meanwhile, service recovery is made up of three dimensions which are distributive justice, procedural justice, and interactional justice. The severity of service failure positively affects service recovery and service recovery puts a powerful impact on customer satisfaction, thereby increasing their trust in international hospitals in Vietnam.

Examining relationships among cultural factors and expectations of CSR

2019 ◽  
Vol 23 (4) ◽  
pp. 427-443
Author(s):  
Minsoo Kim ◽  
Candace White ◽  
Chansouk Kim
Keyword(s):  
Cultural Values ◽  
Structural Equation ◽  
Statistical Tests ◽  
Cultural Factors ◽  
Cultural Dimensions ◽  
Equation Modeling ◽  
Content Type ◽  
Different Types ◽  
The Relationship

Purpose Studies have explored expectations of corporate social responsibility (CSR) among cultures, but findings are mixed. A more nuanced view of cultural dimensions rather than using Hofstede’s aggregate country scores can offer a stronger empirical foundation for studying the effects of culture. Based on two cultural dimensions and Carroll’s four-dimensional model of CSR, the purpose of this paper is to test the relationship between individualistic/collectivistic values and individuals’ expectations of different types of responsibilities (economic, legal, ethical and philanthropic), the relationship between long-term values and individuals’ expectations of different types of responsibilities and the degree of skepticism about CSR related to these values. Design/methodology/approach This study surveyed panel participants in two countries, South Korea (collectivistic and long term) and the USA (individualistic and short term), chosen because they are at extreme ends of the cultural values continuum. Multi-dimensional aspects of the cultural variables were tested in the samples rather than using national scores as proxy variables for culture. Data were quantitative and various statistical tests including structural equation modeling were used for analysis. Findings The findings show that horizontal collectivism and the planning dimension of long-term orientation are positively associated with CSR expectations, whereas the tradition dimension of long-term orientation is negatively associated with CSR expectations. In addition, vertical individualism is positively associated with skepticism toward CSR activities. Research limitations/implications The differences in types of individual-collectivism (horizontal and vertical) as well as the different aspects of long-term orientation had an effect on the results, pointing to the importance of exploring the nuances of the dimensions as well as the importance of testing them within the sample rather than using aggregated national scores. Originality/value Previous studies that used a proxy variable for culture assumed that collectivistic cultures have higher expectations for CSR. While empirically supporting the assumption of the relationship between cultural factors and CSR expectations at the individual level, the study found that people who view themselves as autonomous within a group but accept inequality within the group (vertical individualism) are more likely to be skeptical of CSR activities and suggests that skepticism about CSR may be more closely related to individual viewpoints or to particular contexts or particular corporations rather than to cultural factors, which has implications for international corporate communication.

scholarly journals Relational resources and performance of Chinese third-party logistics providers

2017 ◽  
Vol 47 (9) ◽  
pp. 864-883 ◽  
Author(s):  
Yongyi Shou ◽  
Jinan Shao ◽  
Anlan Chen
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Third Party ◽  
Superior Performance ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Innovation Capability ◽  
Content Type ◽  
The Third Party Logistics ◽  
Relational Resources

Purpose Drawing upon the theory of the resource-based view, the purpose of this paper is to examine the relationships among relational resources, innovation capability and firm performance in the third-party logistics (3PL) industry. Design/methodology/approach Based on data collected from 203 3PL providers in China, this study adopts the approach of structural equation modeling to examine the hypothesized relationships among relational resources, innovation capability and firm performance. Findings The results of this research confirm that relational resources have a positive effect on firm performance. However, the effect is not direct, but realized through the mediation of innovation capability. This study indicates that relational resources are important for 3PL providers to achieve superior performance, and innovation capability plays a mediating role between relational resources and firm performance. Originality/value The main contributions of this paper to the literature are twofold. First, it extends the extant research by highlighting the mediating mechanism of innovation capability in relational resources’ influence on firm performance. Second, it advances the existing perspectives on 3PL firms in the Chinese context and this sheds light on logistics research on emerging markets.

Individual cultural orientation as a determinant of psychological contract fulfilment

2019 ◽  
Vol 42 (12) ◽  
pp. 1315-1332
Author(s):  
Bramhani Rao ◽  
Sambashiva Rao Kunja
Keyword(s):  
Psychological Contract ◽  
Structural Equation ◽  
Cultural Orientation ◽  
Theoretical Implication ◽  
Psychological Contracts ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
Individual Level

Purpose The purpose of this paper is to explore the role of individualism-collectivism (IC) in determining psychological contract fulfillment (PCF) at individual level, thus attempting to establish that cultural orientation of each individual may differentially predict the fulfillment of his/her psychological contract. Design/methodology/approach Structural equation modeling was conducted on the cross-sectional data collected from 465 IT professionals working at different multi-national software companies. Findings Model fit between the dimensions of IC and PCF was found to be good, indicating a significantly positive relationship between within-culture cultural orientation of an individual and his/her perception of PCF. The analyses revealed that collectivist beliefs, values and norms have a significant relationship with the perception of delivery, fairness and trust toward PCF. The relationship between collectivist values and fairness of the deal was found to be insignificant. Research limitations/implications A major theoretical implication of the study is its contribution to evidence that people with collectivist orientation have a relatively positive perception toward the fulfillment of a psychological contract between them and the employer. It also clarifies why employees working in the same work environment tend to develop unique psychological contracts owing to their tendency to orient toward a particular cultural state of mind in the form of beliefs, values and norms guiding their day-to-day work-life. Originality/value The study is a valuable addition to the current literature in two ways. First, it contributes to the area of personality by examining the individual cultural orientation as an individual difference predictor of PCF. This helps in understanding the role of differences in emotions, cognition and behavior among individuals in predicting the fulfillment of hidden expectations of employees. In the domain of psychological contract, it contributes to evidence that explains why employees in same job conditions and employment relationships experience breach or fulfillment owing to their difference in cultural orientation.

Effects of network externalities on user loyalty to online B2B platforms: an empirical study

2019 ◽  
Vol 33 (2) ◽  
pp. 309-334
Author(s):  
Yonghua Cen ◽  
Li Li
Keyword(s):  
User Satisfaction ◽  
Structural Equation ◽  
Switching Costs ◽  
Service Providers ◽  
Network Externalities ◽  
Perceived Value ◽  
Network Size ◽  
Network Externality ◽  
Equation Modeling ◽  
Content Type

Purpose Given a product or service, the number of its installed user base has a significant positive effect on the existing users’ loyalty and new users’ conversion. This effect is conceptualized as network externalities in economics. Network externalities are supposed to be particularly striking in nowadays online business-to-business (B2B) platforms, but yet the mystery behind their effects on user loyalty to online B2B platforms remains to be delicately unraveled. The purpose of this paper is to discover the factors driving users’ loyalty, especially buyers’ loyalty, to online B2B platforms, by highlighting the impacts of network externalities on loyalty and other mediating factors. Design/methodology/approach A conceptual model of buyer loyalty under network externalities is elaborated. The reliability and validity of the instruments of the latent model constructs are assessed by confirmatory factor analysis, and the hypothesized causal relationships among the constructs are tested by structural equation modeling, on 710 valid buyer samples collected from a famous online B2B platform in China. Findings The analysis demonstrates that: perceived value, user satisfaction and switching costs are the major predictors of buyer loyalty to online B2B platforms characterized by network externalities; network externalities positively account for buyer loyalty by contributing to perceived value, user satisfaction and switching costs; and direct network externality (measured by perceived network size and perceived external prestige) has a significant effect on indirect network externality (measured by perceived compatibility and perceived complementarity). Originality/value The findings allow the authors to conclude meaningful managerial implications for online B2B service providers to build up loyal user bases through improving users’ perceptions of network externalities, switching costs and value.

Impact of external integration capabilities of third-party logistics providers on their financial performance

2016 ◽  
Vol 27 (2) ◽  
pp. 263-283 ◽  
Author(s):  
Chiung-Lin Liu ◽  
Pei-Yu Lai
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Logistics Industry ◽  
Content Type ◽  
Comprehensive Plans

Purpose – Outsourcing by corporations is increasing the demand for complex services (such as customization) from third-party logistics providers (3PLs). Effective integration between 3PLs and their customers, known as the external integration of 3PLs, not only allows 3PLs to respond rapidly to shippers’ needs but also to increase customer satisfaction and the effective allocation of resources while increasing operational efficiency (such as by proposing comprehensive plans for future logistics services to meet shippers’ demands). The purpose of this paper is to investigate the causal relationships among the external integration capabilities, cost advantages, and the financial performance of 3PLs. Design/methodology/approach – A survey of 3PLs in Taiwan and China was performed. The research model was tested using a structural equation modeling technique along with the partial least square (PLS-SEM/PLS) approach. Findings – The results herein demonstrated a positive relationship between 3PLs’ external integration capabilities and resource efficiency. The results also suggested that cost competitiveness positively affected the financial performance of 3PLs. Although the external integration capabilities of 3PLs were not found to directly affect their financial performance, the results in this study indicated that external integration capabilities enable a firm to improve financial performance by capturing cost advantages. Originality/value – This study provides useful information about the effects of external integration capabilities on the financial performance of 3PLs in a bi-regional context. The sample in this study was drawn from the 3PL industry in Taiwan and China, enabling a comparative analysis of these two countries of similar cultural backgrounds but different degrees of development of their logistics industry and different related demands.

Sign in / Sign up

Export Citation Format

Share Document