Use it or lose it: point expiration and status demotion

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hyunju Shin ◽  
Riza Casidy

Purpose In managing hierarchical loyalty programs (HLP), firms often use a reward point expiration and status demotion policy to reduce financial liability and to encourage repeat purchases. This study aims to examine how point expiration and status demotion policies affect customer patronage, the role of extension strategies in mitigating the negative effects of these policies on customers and the moderating role of status endowment in the effect of point expiration on customers patronage following status demotion experience. Design/methodology/approach Three experiments were conducted using the hotel industry as the context. The hypothesized relationships were tested using ANOVA and a serial moderated mediation analysis using SPSS PROCESS Macro. Findings Customers subjected to reward point expiration exhibited a higher level of anger and perceived severity of the problem than those subjected to status demotion in HLP. Consequently, when customers experienced both point expiration and status demotion, the point extension strategy rather than the status extension strategy was found to be a more effective remedy for reducing perceived unfairness, although there was no change in the level of patronage reduction between the two extension strategies. Importantly, the effect of point expiration on patronage reduction was stronger among endowed-status customers than earned-status customers, serially driven by heightened feelings of embarrassment and perceived unfairness. Originality/value The study adds to the existing literature on HLP by comparing the effects of point expiration and status demotion on customer patronage with practical insights for HLP managers.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imran Shafique ◽  
Ahmad Qammar ◽  
Masood Nawaz Kalyar ◽  
Bashir Ahmad ◽  
Anila Mushtaq

Purpose The aim of this study is to examine the influence of workplace ostracism on deviant behaviour and testified the mediating roles of organisational identification, burnout and organisation-based self-esteem (OBSE) by using a parallel mediation model. Then, the moderating role of ingratiation in the interrelation between ostracism, the mediators and deviant behaviour is examined. Design/methodology/approach A survey questionnaire was used to collect data from nurses working in public sector hospitals in Pakistan. Nursing context is appropriate for the study because this occupation involves a greater extent of social interaction among peer nurses, doctors and administration in the provision of health services. A total of 417 nurses provided complete responses, and the study hypotheses were tested using the partial least squares structural equation modeling (PLS-SEM). Findings The study findings show that ostracism is positively related to deviant behaviour of nurses, indicating that workplace ostracism is an important predictor of deviant behaviour. Ostracised nurses experienced higher job burnouts and low OBSE as well as organisational identification. Results also show that ostracism promotes deviant behaviour by reducing OBSE and organisational identification. Moreover, results provide evidence that high ingratiation overcomes the detrimental effects of ostracism on both deviant behaviour and mediators. Originality/value The present study integrates the literature on ostracism and its attitudinal and behavioural outcomes and submits that ostracism negatively affects the attitudes of victims which in turn results in negative behavioural outcomes (i.e. deviant behaviour). This study also suggests ingratiation as a tactic to control the negative effects of ostracism.


2020 ◽  
Vol 34 (7) ◽  
pp. 955-966
Author(s):  
Hana Medler-Liraz

Purpose Although studies have emphasized the need to explore the negative consequences of customer incivility, scant attention has been paid to positive factors that can mitigate its negative effects on employees’ service performance. The purpose of this study is to extend research on customer incivility and its association with rapport and tipping through the prism of conservation of resources theory. It also examines the role of agreeableness as a personal resource in coping with instances of incivility. Design/methodology/approach A total of 502 Israeli restaurant servers took part in this study. Findings Agreeableness significantly moderated the relationship between customer incivility and rapport: agreeable hospitality employees who served customers manifesting low/medium incivility reported better rapport than disagreeable hospitality employees. However, this effect was not significant for high incivility. Further, agreeable hospitality employees who served customers with low/medium incivility reported higher tips than disagreeable hospitality employees. Surprisingly, the findings also suggested that when employees served customers exhibiting high incivility, the tips were lower for servers high on agreeableness than for servers low on agreeableness. Originality/value This study broadens the frontiers of research on customer incivility and provides insights into the critical financial and emotional costs hospitality employees and service organizations incur when encountering incivility. The findings also contribute to the scant research on the potential moderators that may enable employees to handle customer interactions more constructively in the case of incivility within the hospitality industry. Agreeableness appeared to alleviate the negative effects of customer incivility on rapport and tipping but only seemed to be an effective resource up to a certain level of customer incivility.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naeem Akhtar ◽  
Xianglan Chen ◽  
Umar Iqbal Siddiqi ◽  
Guojun Zeng ◽  
Tahir Islam

PurposeTo address critical research gaps in the extant literature, the present study develops a model that links language constraints in hotel attributes—core and facilitating––with consumers' offendedness (CO) and examines the consequent behavioral intentions of an offended consumer. For this purpose, it investigates (1) the role of language constraints in core and facilitating attributes in shaping CO, (2) how CO relates to adverse behavioral outcomes and (3) the moderating role of attribution of service failure (ASF) between language constraints and CO.Design/methodology/approachThe present research used convenience sampling and collected data from 398 inbound tourists in Beijing through a survey questionnaire. The study performs measurement and structural evaluation by employing Amos Graphics 24.0 and moderation analysis through IBM SPSS 25.0.FindingsThe study examines language constraints in China's hospitality context, which restricts its generalizability. However, it serves as a better approach to examine the tourists who visit other Western hotels in China and unveils the factors contributing to CO.Research limitations/implicationsThe study examines language constraints in Chinese hotels, which restrict its generalizability. It serves as a better approach to examine the tourists who visit other Western hotels in China and unveils the factors contributing to CO.Originality/valueFew studies validate communication barriers in service encounters in hotel services and apprehend related outcomes. The present study takes a unique initiative in the context of China and examines the role of language constraints in core and facilitating hotel attributes in service encounters at Chinese hotels. This study informs the Chinese hotel industry and international destination firms to understand the language constraints in service encounters to further their strategies to overcome threats and tap potential opportunities.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aisha Sarwar ◽  
Lakhi Muhammad

Purpose The purpose of this paper is to investigate the factors that can hinder employee performance. Thereof, this study also investigates the mediating role of perceived incivility and the moderating role of psychological capital (PsyCap) to address “why” and “when” employee performance is undermined. Design/methodology/approach Data from 485 employees of hotel industry were gathered in two-time intervals (T1 and T2) by conducting a survey. The time interval gap between Time 1 and Time 2 was 15 days. The data of the respondents were analyzed by using Smart PLS3. Findings The results revealed that injustice perceptions led to perceived incivility, while organizational dehumanization and perceived incivility decreased employee performance. Perceived incivility mediated the relationship between interactional injustice and employee performance. Moreover, PsyCap played the moderating role in curbing the effect of stressor. Practical implications This study offers hotel managers a valuable insight to formulate effective strategies that can enhance performance and PsyCap amongst their employees, aside from minimizing stressors within the context of hotel industry. Originality/value This research contributes to literature by focusing on factors that can undermine employee performance. The study outcomes have essential implications for students, researchers and practitioners. The valuable insights facilitate researchers to focus on factors that lead to deterioration of employee performance, instead of investigating the often-sought employee performance increment factors. This study aids fresh research endeavor by establishing a new avenue for investigation. Hotel managers may find this study insightful to minimize adverse stressors that could deteriorate employee performance.


2017 ◽  
Vol 29 (7) ◽  
pp. 1814-1833 ◽  
Author(s):  
Seonjeong (Ally) Lee ◽  
Haemoon Oh ◽  
Cathy H.C. Hsu

Purpose Building upon previous research on country-of-origin. This study aims to investigate whether the effects of country-of-origin extend to the hotel industry, based on associative network and signaling theories. Design/methodology/approach Based on a self-administered survey with tourists in China, this paper investigates antecedents and outcomes of hotel brand image and the moderating role of a hotel’s brand origin. Findings Results reveal country, city and industry images positively influence hotel brand image. Hotel brand image then influences price perception, quality perception and overall satisfaction. Practical implications Country-of-operation image remains a relevant, powerful predictor of brand image; thus, hotels need to carefully manage country-of-operation image. Originality/value This paper incorporates and establishes the role of country-of-operation image on hotel brand image.


2019 ◽  
Vol 54 (1) ◽  
pp. 26-48 ◽  
Author(s):  
Amin Nazifi ◽  
Dahlia El-Manstrly ◽  
Katja Gelbrich

Purpose This study aims to examine the effects of organizational tactics (e.g. explanation and monetary compensation) on customers’ reactions to service termination. The mediating role of anger and the moderating role of termination strategy on the effectiveness of organizational tactics are examined to enhance the understanding of customers’ reactions to service termination. Design/methodology/approach Three experimental studies are conducted with different contexts (telecom and banking) and samples (students and consumers). Findings Study 1 results show that explanation and high monetary compensation reduce negative word-of-mouth and enhance corporate image and anger mediates these effects. Study 2a results show that high monetary compensation becomes ineffective when firms use a soft termination approach. Study 2b results show that an explanation is equally effective in soft and hard termination approaches. Importantly, unlike high monetary compensation, the explanation can fully eliminate the negative consequences of service termination. Practical implications Managers can mitigate negative customers’ reactions to service termination by offering a truthful explanation. Further, they should provide high monetary compensation only if they do not help dismissed customers find an alternative provider. Originality/value This paper contributes to the service termination literature by shedding more light on the effectiveness of different organizational tactics following different termination strategies. The findings challenge existing wisdom on the overrated role of monetary compensation showing that in service termination, the explanation is the most effective remedy. Further, unlike justice, anger better explains customers’ reactions to service termination.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah Kovoor-Misra ◽  
Shanthi Gopalakrishnan ◽  
Haisu Zhang

PurposeOrganizational identification could play an important role during crises if it contributes to individuals' perceptions of control. This study examines this relationship and unpacks some of its complexities by investigating the mediating role of job satisfaction and citizenship behaviors that have previously been examined as outcomes of organizational identification in noncrisis contexts. The authors also investigate the moderating role of the perceived severity of the crisis on the relationships between organizational identification and job satisfaction and citizenship behaviors. There is limited empirical research on these relationships in a crisis context, and studying them is important for understanding the role of identification in diverse contexts and for crisis management research and practice.Design/methodology/approachUsing the survey method, quantitative data were collected from 354 individuals from a nonprofit organization that filed for Chapter 11 bankruptcy. This was supplemented with qualitative data from respondents' comments in the survey.FindingsUsing process analysis, the authors find the following: (1) job satisfaction fully mediates the relationship between organizational identification and perceived control; (2) the perceived severity of the crisis moderates the relationship between organizational identification and job satisfaction; (3) citizenship behavior is associated with organizational identification but is not a significant mediator in the relationship between organizational identification and perceived control and (4) the perceived severity of the crisis is not a significant moderator of the relationship between organizational identification and citizenship behaviors.Research limitations/implicationsThis study’s model can be further tested in public and private organizations that are experiencing bankruptcies to examine the robustness of our findings. Also, due to the cross-sectional design of this study, the findings need to be tested in a longitudinal study to examine if they persist over time during the recovery and growth phases of a crisis.Practical implicationsLeaders can rely on individuals who identify with their organizations during a crisis, such as bankruptcies because they experience job satisfaction and a sense of control. Additionally, these individuals also demonstrate citizenship behaviors in these challenging situations.Originality/valueThis study is one of the first to empirically examine the association between organizational identification and perceived control, the mediating role of job satisfaction and citizenship behaviors and the moderating role of perceived severity in the context of an organizational crisis. An additional strength of this study is that it provides empirical evidence from individuals in an actual crisis rather than from laboratory studies.


2019 ◽  
Vol 15 (4) ◽  
pp. 406-424 ◽  
Author(s):  
Maryam Kriese ◽  
Joshua Yindenaba Abor ◽  
Elikplimi Agbloyor

Purpose The purpose of this paper is to examine the moderating role of financial consumer protection (FCP) in the access–development nexus. Design/methodology/approach The study is based on cross-country data on 102 countries surveyed in the World Bank Global Survey on FCP and Financial Literacy (2013). The White heteroscedasticity adjusted regressions and Two-stage least squares regressions (2SLS) are used for the estimation. Findings Interactions between FCP regulations that foster fair treatment, disclosure, dispute resolution and recourse and financial access have positive net effects on economic development. However, there is no sufficient evidence to suggest that interactions between financial access and enforcement and compliance monitoring regulations have a significant effect on economic development. Practical implications First, policy makers should continue with efforts aimed at instituting FCP regimes as part of strategies aimed at broadening access to financial services for enhanced economic development. Second, instituting FCP regimes per se may not be enough. Policy makers need to consider possible intervening factors such as the provision of adequate resources and supervisory authority, for compliance monitoring and enforcement to achieve the expected positive effect on economic development. Originality/value This study extends evidence in the law–finance–growth literature by providing empirical evidence on the effect of legal institution specific to the protection of retail financial consumers on the access–development nexus using a nouvel data set, the World Bank Global survey on FCP and Financial Literacy (2013).


2017 ◽  
Vol 31 (7/8) ◽  
pp. 730-745 ◽  
Author(s):  
Jorge Cegarra-Sanchez ◽  
Juan-Gabriel Cegarra-Navarro ◽  
Anthony Wensley ◽  
Jose Diaz Manzano

Purpose Knowledge acquired from sources of unverified information such as gossip, partial truths or lies, in this paper it is termed as “counter-knowledge.” The purpose of this paper is to explore this topic through an exploration of the links between a Hospital-in-the-Home Units (HHUs) learning process (LP), counter-knowledge, and the utilization of communication technologies. The following two questions are addressed: Does the reduction of counter-knowledge result in the utilization of communication technologies? Does the development of counter-knowledge hinder the LP? Design/methodology/approach This paper examines the relevance of communication technologies to the exploration and exploitation of knowledge for 252 patients of a (HHU) within a Spanish regional hospital. The data collected was analyzed using the PLS-Graph. Findings To HHU managers, this study offers a set of guidelines to assist in their gaining an understanding of the role of counter-knowledge in organizational LPs and the potential contribution of communication technologies. Our findings support the proposition that the negative effects of counter-knowledge can be mitigated by using communication technologies. Originality/value It is argued in this paper that counter-knowledge may play a variety of different roles in the implementation of LPs. Specifically, the assignment of communication technologies to homecare units has given them the means to filter counter-knowledge and prevent users from any possible problems caused by such counter-knowledge.


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