Value cocreation at its peak: the asymmetric relationship between coproduction and loyalty

2016 ◽  
Vol 27 (4) ◽  
pp. 563-590 ◽  
Author(s):  
Nicola E. Stokburger-Sauer ◽  
Ursula Scholl-Grissemann ◽  
Karin Teichmann ◽  
Martin Wetzels

Purpose – Coproduction, as one component of cocreation of value, offers many benefits to customers and management, but also requires customers to invest a considerable amount of effort and time. The purpose of this paper is to investigate the coproduction paradox of benefits and costs. Design/methodology/approach – One experimental study and two cross-sectional field studies across three service industries test the nonlinear relationship between level of coproduction and customer loyalty. Findings – Results show not only the optimum level but also the negative effects of increasing levels of coproduction on customer loyalty and, in turn, monetary expenditures. The negative effect can be partially offset by perceived process enjoyment (PE), such that consumers who enjoy the process exhibit increased loyalty after the optimum coproduction point. Customer self-efficacy (SE), however, further strengthens the inverted u-shaped relationship. Research limitations/implications – Further research should try to replicate the findings in more complex and less hedonic service settings (e.g. financial investments) because both PE and SE might be even more powerful here. Practical implications – Service managers need to determine the optimal degree to which customers want to engage in the creation of services and avoid overburdening them. Management should further explore opportunities to elicit feelings of fun and enjoyment through coproduction. Originality/value – Research usually highlights the potential benefits of coproduction for customers and companies and suggests a positive linear relationship between coproduction and success outcomes. This article instead shows that after an optimum level, the marginal benefits of coproduction for customer loyalty turn negative.

2021 ◽  
Vol 18 ◽  
pp. 147997312110296
Author(s):  
Geertje M de Boer ◽  
Laura Houweling ◽  
Rudi W Hendriks ◽  
Jan H Vercoulen ◽  
Gerdien A Tramper-Stranders ◽  
...  

Population studies showed a decrease in psychological wellbeing during the COVID-19 pandemic. Asthma is associated with a negative effect on anxiety and depression, which might worsen during the COVID-19 lockdown. The aim of the study was to compare fear, anxiety and depression between asthma patients and patients wit hout asthma pre-COVID-19 and during COVID-19 pandemic. This study compares fear, anxiety and depression in asthma patients and controls between pre-COVID-19 and during COVID-19 lockdown with a cross-sectional online survey. Participants were invited to fill out several questionnaires pertaining to fear, anxiety, depression, asthma control and quality of life. Asthma patients (N = 37) displayed, during the course of the pandemic, a clinically relevant increase in anxiety (3.32 ± 2.95 vs. 6.68 ± 3.78; p < 0.001) and depression (1.30 ± 1.15 vs. 3.65 ± 3.31; p < 0.001), according to the hospital anxiety and depression levels (HADS) compared to pre-COVID-19 assessment. This was not seen in controls. Also, asthma patients displayed more anxiety about acquiring COVID-19 disease compared to controls ((5.11 ± 1.99 vs. 3.50 ± 2.79), p = 0.006). Patients with asthma experienced an increase in anxiety and depression levels and were more afraid of acquiring COVID-19 disease compared to controls. Also, patients with asthma were more likely to avoid healthcare facilities due to fear of acquiring COVID-19 disease compared to controls. Therefore, we advise health care workers to address these possible negative effects on mental health by phone or e-consults.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Obay A. Al-Maraira ◽  
Sami Z. Shennaq

Purpose This study aims to determine depression, anxiety and stress levels of health-care students during coronavirus (COVID-19) pandemic according to various socio-demographic variables. Design/methodology/approach This cross-sectional study was conducted with 933 students. Data were collected with an information form on COVID- 19 and an electronic self-report questionnaire based on depression, anxiety and stress scale. Findings Findings revealed that 58% of the students experienced moderate-to-extremely severe depression, 39.8% experienced moderate-to-extremely severe anxiety and 38% experienced moderate-to-extremely severe stress. Practical implications Educational administrators can help reduce long-term negative effects on students’ education and mental health by enabling online guidance, psychological counseling and webinars for students. Originality/value This paper is original and adds to existing knowledge that health-care students’ depression, anxiety and stress levels were affected because of many factors that are not yet fully understood. Therefore, psychological counseling is recommended to reduce the long-term negative effects on the mental health of university students.


2017 ◽  
Vol 35 (7) ◽  
pp. 842-857 ◽  
Author(s):  
Achchuthan Sivapalan ◽  
Charles Jebarajakirthy

Purpose Enhancing retailing service quality (RSQ) serves as a basic strategy for gaining competitive advantage in the retailing industry and enables retailers to make a loyal customer base. The purpose of this paper is to propose and empirically investigate a comprehensive mechanism for enhancing customer loyalty to retail stores via service quality practices. This study suggests information on retailers can be the antecedent of the RSQ and its dimensions, thereby proposing a comprehensive mechanism for enhancing customer loyalty to retailers. Design/methodology/approach The data were collected using questionnaire surveys from 2,375 customers of three main supermarkets in Sri Lanka. After testing the measurement model, two structural models were run to test hypotheses. Findings The findings showed that the RSQ positively influenced customer loyalty. From all the RSQ dimensions, the store’s physical aspects, personal interaction and policy had a significant influence on customer loyalty. The findings also demonstrated that information on retailers contributes to enhancing a customer’s favorable evaluation of the supermarket’s physical aspects, personal interaction and retailing policy. Research limitations/implications This study was conducted with supermarket customers in one country using the cross-sectional data. Hence, the model should be replicated among retail customers in other countries with the longitudinal data. Practical implications Practically, this study recommends to retailers which dimensions of service quality they need to focus to enhance customer loyalty to their business. The study furthermore recommends certain dimensions that need to be emphasized while retailers design their promotional and communication programs. Originality/value Information on retailers has been suggested as an antecedent for enhancing supermarkets’ service quality practices. Thus, this study proposes a comprehensive mechanism for enhancing customer loyalty to retailers via service quality practices.


2017 ◽  
Vol 26 (7) ◽  
pp. 750-758
Author(s):  
Devon DelVecchio ◽  
Timothy B. Heath ◽  
Max Chauvin

Purpose Multi-unit discounts (MUDs, e.g. “3 for $4”) typically increase sales relative to other discounting frames. This study demonstrates the value of MUDs by showing that positive multi-unit price/quantity signals are potent enough to match and even exceed the sales produced by larger discounts on single items. However, there is reason to believe that MUDs can produce neutral effects in some cases (e.g. among consumers interested in only single-unit purchases) and even negative effects in others. In addition, the study considers whether MUDs can, in some cases, reduce purchase quantities by signaling smaller-than-otherwise-planned purchase amounts and/or lower-quality products. Design/methodology/approach The effectiveness of MUDs is tested in both the field and lab. Study 1 models purchase quantities stemming from 2,374 purchases of discounted items at a mass retailer. Purchased products ranged in type from pantry items to apparel and electronics, and ranged in price from 44¢ to $99.99. There were 1,530 single-unit discounts, 596 two-unit discounts and 248 discounts, involving three or more units. Study 2 consists of a laboratory experiment that overcomes the shortcomings of Study 1 by accounting for non-purchasers, controlling for product classes and testing whether smaller MUDs can lead to lower purchase quantities for larger-purchase-quantity products. Findings The results of both the field study and the laboratory experiment indicate that MUDs’ monetary cue (savings) and purchase-quantity cue (volume) increase purchase quantities. Generally, purchase quantities increased monotonically with the number of units offered in the discount. In fact, the quantity cue is so effective that it can increase sales enough as to substitute for larger discounts. However, in some instances, MUDs can decrease intended purchase quantities. The negative effect of MUDs is the most pronounced for larger unit deals, offering deeper discounts on perishable goods. Originality/value This research is the first to demonstrate that the power of the signals provided by MUDs may be so positive as to lead them to be more effective than discounts of substantially larger value but also so negative as to render them less effective than single-units discounts. This negative outcome poses a threat beyond those typically associated with discounts, in that rather than consumers simply discounting a discount, in which case the discount remains positive even if their impact at the margin wanes, the MUD frame may actually reduce sales.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jan Klostermann ◽  
Chris Hydock ◽  
Reinhold Decker

Purpose In recent years, brands have increasingly engaged in corporate political advocacy (CPA; also termed brand activism or corporate sociopolitical activity) by taking positions on polarizing sociopolitical issues. Recent experimental research suggests that consumers respond to CPA based on its alignment with their own values, and that it typically induces an overall negative response. This study aims to provide additional insights by exploring consumer brand perceptions following CPA. Design/methodology/approach An event study of 106 CPA events and weekly consumer brand perception data was conducted. A regression model was used to investigate the moderating effects of CPA effort, concurrence and the strength of the online protests evoked by the CPA. Findings The results show that CPA had a negative effect on consumers’ brand perceptions and that the effect was stronger for customers relative to non-customers. The negative effect was attenuated by CPA concurrence and amplified by effort. Additionally, online protests were driven by the CPA effort and had a strong negative effect on brand perception. Online protests were stronger in the past, and, in turn, the negative effects of CPA on brand perceptions have slightly weakened in recent years. Originality/value This study contributes to the existing literature by highlighting the role of online protests following CPA and distinguishing consumer and customer responses. This study also provides converging evidence of the moderating effects of effort and concurrence identified in previous studies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bahadur Ali Soomro

Purpose At present, nearly the whole globe is facing a severe threat of COVID-19. This study aims to examine the COVID-19 complications and entrepreneurial intention among the entrepreneurs of Pakistan. Design/methodology/approach The study used a deductive approach. An online survey is conducted to collect cross-sectional data from entrepreneurs of Pakistan. Convenience sampling is applied to target the respondents. In total, 278 usable answers proceed for final analysis. The structural equation model (SEM) is used to infer the results. Findings The findings of the study highlight a significant negative effect of fear of COVID-19 (FO19), perceived susceptibility (PSU) and perceived severity (PSE) on entrepreneurial intention (EI) among the entrepreneurs. Practical implications The study would provide the guidelines for policymakers and planners to combat the barriers of fear, PSU and PSE during a pandemic. The findings of the second wave of COVID-19 may provide a warning to the government to take preventive measures to face the severe effect of the pandemic. Finally, the outcomes of the study may enrich the depth of COVID-19 literature globally. Originality/value This study is the first study highlighting factors such as fear, PSU and PSE toward EI in COVID-19 second wave.


2019 ◽  
Vol 11 (5) ◽  
pp. 1175-1200
Author(s):  
Mohsin Abdur Rehman ◽  
Ismah Osman ◽  
Khurram Aziz ◽  
Hannah Koh ◽  
Muhammad Awais

Purpose Marketing investigations on the concomitant variables of both service quality and relationship marketing are very scarce. Hence, the purpose of this study is to examine the customers’ perception of the Takaful (Islamic insurance) in relation to service quality and relationship marketing. More importantly, the examination of the impact of both service quality and relationship marketing on corporate image is further established. Accordingly, corporate reputation and customer loyalty were further evaluated, along with these respective interactions. Design/methodology/approach A self-administered survey was conducted from 350 Malaysian customers of Takaful products and services. The purposive sampling was used to collect data from the existing customers of Takaful service operators in the Klang Valley, an area in Malaysia. The questionnaire was constructed through measures of PAKSERV for service quality, as well as other measures related to relationship marketing and other constructs in this study. Structured equation modeling was used in the analysis of data. Findings The current study is the first one of its kind to examine perceptions of customers of relationship marketing and service quality as predictors of corporate image, which drives corporate reputation and ultimate customer loyalty from the perspective of the Takaful industry in Malaysia. Service quality dimensions (tangibility, reliability and personalization) and relationship marketing dimensions (Islamic ethical behavior and structural bond) positively influence corporate image of the Takaful organizations. Moreover, customer loyalty can be predicted, mainly through corporate reputation as well as corporate image. Research limitations/implications The present study is focused on the existing Malaysian Takaful customers as the population frame. Accordingly, future research studies may evaluate the same model, but perhaps in another different cultural context where the Takaful industry can grow and expand in other countries, including Saudi Arabia, Sudan and Pakistan. More importantly, the same variables may be verified to different service industries in future studies, especially those constructs related to relationship marketing because many products and services at present can be attained without face-to-face interactions through online transactions without having brick and mortar businesses. Practical implications It is important for Takaful service operators to focus on connecting the social and financial bonds to ensure the fulfilment of customers’ needs. They also need to improve the qualities related to tangibility, reliability and personalization to be able to increase their market share, especially in this present highly competitive market. Indeed, Takaful generally provides financial protection and risk management; nevertheless, the religious and ethical values need to be embraced in totality unlike conventional insurance, which has the element of gambling, uncertainty and the imposition of interest. Hence, this study aims to assist the Takaful operators toward achieving corporate reputation and apparently customer loyalty for them to remain relevant in this industry. Originality/value The model used in this study is based on the cultural context of Malaysia from the perspective of the Takaful industry. It attempts to explain customer loyalty through the incorporation of service quality and relationship marketing dimensions, where it is associated with the elements of the values of Islamic ethics especially in business transactions. More importantly, these dimensions were put together to identify its impact on corporate image, corporate reputation, and ultimately, customer loyalty, thus illustrating a distinct set of outcomes of the present study.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulhadi Aliyara Haruna ◽  
Abu Sufian Abu Bakar

Purpose This paper aims to examine the impact of interest rate liberalization on economic growth and the relevance of corruption in the five selected sub-Saharan African countries. Design/methodology/approach The study used the modified version of Driscoll and Kraay’s model by Hoechle, which solved the effects of cross-sectional dependence and heteroscedasticity. Findings The findings reveal a positive impact of the index on economic growth, and it was found that foreign direct investment (FDI) and credit to private sector by banks (CPSB) all stimulate economic growth. The interaction terms of corruption with FDI and CPSB indicate negative effects that show how corruption erodes the benefits of liberalization. Finally, the paper recommends the pursuit of appropriate policies with the sole aim of eradicating corruption and providing a conducive environment for business. Originality/value The paper developed a composite domestic financial liberalization index to capture the timing and essential dimensions of the reform process. The study investigates the effect of interest rate liberalization on economic growth and the relevance of corruption. Most of the recent and past studies only examined the impact of interest rate reforms on growth without investigating the relevance of corruption.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haejoo Han ◽  
Jisu Yi ◽  
Sunghee Jun ◽  
Sungsook Ahn

PurposeIn the context of influencer marketing, this study examines the effects of explicit advertising disclosure on consumers' inference regarding influencers' sincere recommendation intent, and its consequences for consumers' purchase intentions.Design/methodology/approachIn Study 1, participants were randomly assigned to the conditions of explicit advertising disclosure (e.g. #AD, #Sponsored) and subtle advertising disclosure (e.g. #ThankYou), and indicated their inference regarding influencers' recommendation motives and their own purchase intentions. One-way ANOVA analysis reveals the effect of advertising disclosure on consumers' purchase intentions and the PROCESS model indicates the mediating role of consumers' inferences regarding influencers' sincere recommendation intent. In Study 2, we implemented a 2 (explicit vs. subtle advertising disclosure) × 2 (moderate vs. large size of followers) between-subjects design, using a two-way ANOVA analysis. We analyzed the moderated mediation effect via the PROCESS model.FindingsConsumers are less inclined to purchase products when influencers express explicit advertising disclosures, compared to when the advertising disclosures are subtle (Study 1). These negative effects of advertising disclosure can be caused by consumers' inferences regarding influencers' sincere recommendation intent in terms of posting content (Studies 1 and 2). Additionally, the negative effect is particularly prominent when an influencer has a large (vs. moderate) number of followers (Study 2).Originality/valueBy examining (1) the effects of explicit advertising disclosure on consumers' inference regarding influencers' persuasion motives and (2) the role of the influencer's number of followers, this research provides both theoretical and practical insights for understanding how best to implement influencer marketing.


2015 ◽  
Vol 27 (5) ◽  
pp. 503-518 ◽  
Author(s):  
Changiz Valmohammadi ◽  
Mohsen Kalantari

Purpose – The purpose of this paper is threefold, first to investigate if ISO 9001 certified companies in an Iranian province (Kermanshah) perform better than non-certified ISO 9001. Second, what is the main motivation of the manufacturing companies of Kermanshah province on obtaining ISO 9001 certification, i.e., internal or external motivations. And finally, if ISO 9001 certified companies with high scores of internal motivations, show better levels of performance in comparison with certified companies obtaining low scores of internal motivations. Design/methodology/approach – A survey questionnaire was distributed to the 350 companies with ISO 9000 certification, and a total of 287 usable responses were returned. Using a structural equation model, this study empirically examines the relationship between ISO 9000 implementation and firm performance, and the moderating role of firm motivation on organizational performance. Findings – The results demonstrate that ISO 9001 certified companies show better organizational performance than non-certified ISO 9001 companies and internal motivations play more important role on obtaining ISO 9001 certificate than external motivations. Also ISO 9001 certified companies with high scores of internal motivations show better levels of performance than those ISO 9001 certified companies with low scores of internal motivations. Research limitations/implications – The sample is restricted to only a single region and manufacturing, so it would be strongly recommended that data be gathered from various parts of Iran including both manufacturing and service industries. As in this study the data gathered were cross-sectional, it is recommended in order to gain deeper understanding of the cause-and-effect relationship among the variables data to be gathered longitudinally. Originality/value – This study represents a first attempt to construct a conceptual framework that integrates the motivations behind implementing ISO 9000 certification, and ISO 9000 performance in the context of Iran and gives a particular focus on the Iran manufacturing companies.


Sign in / Sign up

Export Citation Format

Share Document