It’s just not fair: exploring the effects of firm customization on unfairness perceptions, trust and loyalty

2014 ◽  
Vol 28 (6) ◽  
pp. 484-497 ◽  
Author(s):  
Bang Nguyen ◽  
Philipp “Phil” Klaus ◽  
Lyndon Simkin

Purpose – The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer loyalty intentions, and (b) investigate the moderating effects of trust in these relationships. The study explores how customizing offers to match customers’ individual needs and how treating customers differentially provoke unfairness perceptions among those not being considered most important. While the literature discusses unfairness perceptions of pricing, promotion, and service, less is known about unfairness in customization practices. Design/methodology/approach – Using a survey approach, 443 completed questionnaires we collected. Following validation of our item measures, a hierarchical linear regression analysis was conducted to test the conceptual model and hypothesized linkages between our constructs. Findings – The results demonstrate that customers’ negative perceptions of customization increase their unfairness perceptions. Unfairness perceptions drastically reduce customer loyalty intentions with trust acting as a significant moderator. Trust increases loyalty intentions even when unfairness perceptions are present. Our findings provide a foundation for understanding how firms may improve their perceived fairness. This increase in perceived fairness creates positive attributions, reduces negative customer experience perceptions and increases loyalty intentions. Originality/value – Key contribution is the development and validation of a conceptual model explaining the linkages between firm customization and unfairness perceptions, firm customization and customer loyalty intentions and the moderating role of trust between these relationships. This study extends the understanding of how customization practices impact unfairness perceptions and, subsequently, influence consumers’ perceptions, intentions and behavior.

2018 ◽  
Vol 46 (3) ◽  
pp. 304-322 ◽  
Author(s):  
Marco Ieva ◽  
Cristina Ziliani

Purpose The purpose of this paper is to identify the patterns of customer exposure to touchpoints by segmenting consumers based on the frequency of their exposure, and to understand the relationship of patterns of exposure with customer loyalty intentions (relationship commitment, self-disclosure and positive word-of-mouth) and demographic characteristics. Design/methodology/approach An online survey of almost 4,000 customers was employed in a supermarket retail setting. Customers were segmented based on their frequency of recalled exposure to multiple touchpoints, by means of a latent class cluster analysis, while considering the role of demographic characteristics. Afterwards, loyalty intentions variables were regressed on the resulting customer segments. Findings Based on the touchpoint exposure, six customer segments emerge. The main differences across segments relate to the intensity of frequency of exposure and the types of touchpoints customers have been exposed to. Sex, age, shopping role and geographic area of residence are related to segment membership. The identified patterns of exposure explain relationship commitment, self-disclosure and positive word-of-mouth: clusters displaying higher exposure to touchpoints display higher loyalty intentions than clusters displaying lower exposure. Practical implications The study offers actionable implications for brands and retailers on how to manage touchpoints for implementing omnichannel strategies. Originality/value As far as the authors know, this study is the first to identify exposure to multiple touchpoints and understand the role of demographics as far as touchpoint exposure is concerned. It also provides interesting findings on the relationship of different combinations of touchpoints with customer loyalty.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Heini Ikävalko ◽  
Roosa Kohvakka

Purpose This paper aims to examine the moderating effect of employees’ work orientation and gender on their feelings toward pay, that is, the relationship between perceived fairness of a pay system and pay level satisfaction. The perceived fairness of pay system is investigated with two pay system procedures, namely, job evaluation and performance evaluation, both determining the level of base pay. Design/methodology/approach Survey data were collected from three public sector organizations in Finland (N = 526). Linear regression analysis was used to investigate the relationship between pay satisfaction, pay system fairness, work orientation and gender. Findings The results show that employees’ work orientation significantly and negatively relates to pay satisfaction. The interaction analyses suggest significant gender differences in the relationship between work orientation and pay satisfaction, as work orientation is negatively associated with pay satisfaction for women. They also show that work orientation and job evaluation fairness have a positive, joint effect on pay satisfaction. Practical implications This study has implications for the implementation of fair pay practices in organizations. The role of work orientation in the relationship between job evaluation fairness and pay satisfaction highlights the importance of pay system fairness especially among work-oriented employees. Special attention should be paid on work-oriented women: With equal perception of pay system fairness, work-oriented women feel unsatisfied with their pay. Originality/value This paper is the first study to highlight the role of work orientation and gender in reactions related to pay.


2017 ◽  
Vol 29 (2) ◽  
pp. 239-264 ◽  
Author(s):  
Zohaib Razzaq ◽  
Salman Yousaf ◽  
Zhao Hong

Purpose The purpose of this paper is to investigate the significant contribution of emotions along with other conventional loyalty drivers on the loyalty intentions. Design/methodology/approach The influence of three conventional loyalty drivers, i.e., value equity, brand equity, relationship equity on loyalty intentions was investigated by further exploring the moderating effects of negative and positive emotions. A sample of 834 Pakistani consumers in the supermarkets and banking industries was studied employing store-intercept survey design. Findings Consumer behavior is driven by emotions in both the supermarkets and banking context. Thus, in order to better predict customer loyalty intentions, the emotional component is crucial and should be included along with other cognitive components. Practical implications Since customers’ emotional responses throughout service delivery are strongly linked to loyalty, therefore supermarkets and bank service managers need to make sure that the customers experience with their services as pleasurable as possible and for this purpose, customer service employees need to be trained in order to better understand the customers’ emotional responses during the course of service delivery process. Originality/value The present study complements the existing literature regarding the role of emotions in service settings and offers a new point of view for the linkage among emotions, customer equity drivers and customer loyalty intentions.


2018 ◽  
Vol 35 (3) ◽  
pp. 300-316 ◽  
Author(s):  
Debora Bettiga ◽  
Lucio Lamberti

Purpose This study aims to explore the role of positive and negative anticipated emotions on adoption and continued usage of consumer products. The components of value eliciting anticipated emotions are investigated as well. Design/methodology/approach The conceptual model proposed is tested in two empirical studies, one focussing on functional and hedonic products and one on incremental and radical product innovations. Data are collected through online surveys on consumers and are analysed using structural equation modelling. Findings Results confirm the ability of anticipated emotions to influence product decision-making process. Moreover, anticipated emotions mediate the influence of value perceptions on product attitude. Findings show that these relationships vary greatly between initial adoption and further usage of the product. Practical implications Findings from this study may help marketers in the development of the right brand strategies and communication campaigns, aimed at building emotional connections with the consumer which prompt product adoption and usage. Originality/value Anticipated emotions, the predictions about the emotional consequences of a behaviour, have been acknowledged as strong drivers of consumer choices. Despite that, the role of anticipated emotions in product decision-making has not been explored yet. The present research, by means of a novel conceptual model, uncovers the role of anticipated emotions in both product adoption and continued usage decisions and depicts the components of value arousing such anticipated emotions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Asim Faheem ◽  
Ishfaq Ahmed ◽  
Insya Ain ◽  
Zanaira Iqbal

Purpose The ethical issues arising at work demand the role of both leader and employees, but how both the levels are linked in determining the ethical responses is an area that has not gained due attention in the past. Against this backdrop, this study aims to address the influence of a leader’s authenticity and ethical voice on ethical culture and the role ethicality of followers. Design/methodology/approach Survey design has been used, and a questionnaire is used to elicit the responses. In total, 381 filled questionnaires were used for data analysis. Findings The findings of this study highlight the role of authentic leadership in predicting the role ethicality of followers both directly and through the mediation of ethical culture. Furthermore, a leader’s ethical voice strengthens the authentic leadership and outcome relationships (with ethical culture and followers’ role ethicality). The moderated-mediation mechanism has proved as the leaders’ voice foster the indirect mechanism. Originality/value There is a dearth of literature that has focused on leadership traits (authenticity) and behavior (ethical voice) in predicting the followers’ outcomes (perceptions – ethical culture and behaviors – role ethicality). The moderated-mediation mechanism has been unattended in the past.


2019 ◽  
Vol 22 (1) ◽  
pp. 41-58 ◽  
Author(s):  
Betül Sönmez ◽  
Aytolan Yıldırım

PurposeThe purpose of this paper is to test the mediating role of autonomy in the effect of a pro-innovation organizational climate and supervisor supportiveness (SS) on the innovative behavior (IB) of nurses.Design/methodology/approachThe sample of this cross-sectional, correlational study consisted of 332 nurses, who were selected, on the basis of the convenience sampling method, from among the nurses working at two public university hospitals in Istanbul. The data of the study were collected between February and May of 2015. Descriptive analysis and linear regression analysis were used for data analysis, and the bootstrapping method was applied to test the significance of the mediating role.FindingsThe model used for examining the mediating role of autonomy was found to be statistically significant, as it explained 36 percent of the variance of IB. When the significance of the mediating role was tested, its effect on both innovation climate and SS was observed to be significant.Originality/valueThe obtained results indicated that a pro-innovation organizational climate and SS functioned as premises for autonomy. In turn, the rise in autonomy level that served to innovative climate and SS increased the IB of the nurses through boosting their autonomy level. From these results, it can be argued that nurses with a high level of professional autonomy can create innovative outputs and provide added value through the IB they practice in providing patient care and general health services.


2015 ◽  
Vol 25 (6) ◽  
pp. 744-776 ◽  
Author(s):  
Apostolos Giovanis ◽  
Pinelopi Athanasopoulou ◽  
Evangelos Tsoukatos

Purpose – The purpose of this paper is to extend the well-established nomological network of service quality-relationship quality-customer loyalty by introducing service fairness – a distinct service evaluation concept. Specifically, the study aims to investigate the impact of service fairness on relationship quality as a complementary to service quality driver, and the direct and indirect effect of service fairness on customer loyalty in the presence of service quality and relationship quality in a no failure/recovery effort service context. Design/methodology/approach – A telephone survey of a random sample of 408 customers of auto repair and maintenance services was implemented using a structured questionnaire with established scales. Data were analyzed with partial least squares path methodology, a structural equation modeling methodology. Findings – Interactional fairness is the most important formative determinant of customers’ overall fairness perception, followed by procedural and distributive fairness. Relationship quality measured as a higher order construct, made of satisfaction; trust; affective and calculative commitment, is the main determinant of customer loyalty. Also, it partially mediates, along with service quality, the relationship between service fairness and customer loyalty and fully mediates the effect of service quality on customer loyalty. Finally, service fairness has the highest overall effect on customer loyalty. Research limitations/implications – The sample is industry-specific and this may affect generalizability of findings. Also, the cross-sectional design adopted does not reflect temporal changes. Practical implications – Interactional fairness is of utmost importance to customers of the investigated industry. So, customers should be fairly treated at every point of contact. Also, service quality is heavily affected by service fairness. Thus, fair service leads to high-perceived service quality. Third, service quality affects customer loyalty only through relationship quality. Only when service quality is coupled by long-term quality relationships, signs of customer loyalty appear. Finally, service fairness influences customer loyalty mainly through service and relationship quality and has the highest overall effect on customer loyalty. So, fairly treating customers is crucial for developing long-term relationships that lead to customer loyalty. Originality/value – The role of service fairness in the service quality-relationship quality-customer loyalty chain is investigated and using a higher order construct for relationship quality.


2019 ◽  
Vol 31 (1) ◽  
pp. 474-495 ◽  
Author(s):  
Heesup Han ◽  
Kiattipoom Kiatkawsin ◽  
Wansoo Kim

PurposeThe purpose of this paper is to examine the intricate associations among the performance of ambient atmospherics, emotional experiences, overall image and guest satisfaction and test the influence of these relationships on loyalty intentions by considering the moderating impact of continuance commitment in the upscale hotel context.Design/methodology/approachA field survey was conducted to collect the data. A quantitative approach was used for data analysis. Structural equation modeling and a test for metric invariance were used to identify the impact of study variables.FindingsThe results of this paper indicated that the hypothesized relationships were in general significant, that the proposed theoretical framework satisfactorily predicted guests’ intentions to be loyal and that the role of satisfaction among study constructs was prominent. Findings from the test for metric invariance also showed that continuance commitment significantly affected the associations among emotional experiences, satisfaction and loyalty intentions. Moreover, emotional experiences, overall hotel image and guest satisfaction were found to play a significant mediating role in generating loyalty intentions.Practical implicationsThe findings of this paper inform hotel practitioners of the clear role of atmospherics, emotional experiences, image, satisfaction and continuous commitment in building loyalty. In addition, these findings can help hotel practitioners and researchers invent thorough and strategic methods for loyalty enhancement.Originality/valueThe existing hotel literature has provided a limited view regarding the impact of these research variables. The present paper filled this research gap through the successfully development of a robust framework for hotel guest loyalty.


2018 ◽  
Vol 30 (5) ◽  
pp. 444-457 ◽  
Author(s):  
Marco Ieva ◽  
Cristina Ziliani

Purpose The explosion in the number of touchpoints is putting pressure on companies to design omnichannel customer experiences aimed at achieving long-term customer loyalty. The purpose of this paper is to examine the relative importance of 24 touchpoints in contributing to customer loyalty intentions. Design/methodology/approach Data were collected by means of a survey on almost 6,000 subjects belonging to the Nielsen consumer panel. Two ordinary least squares regression models with clustered standard errors estimate the relationship between touchpoint exposure – measured in terms of reach, frequency and positivity – and customer loyalty intentions in the mobile service sector. Findings Reach has a significant relationship with customer loyalty intentions as far as eight touchpoints are concerned. Positivity, when controlling for frequency of exposure, is related to customer loyalty intentions as far as nine touchpoints are concerned. Practical implications Results provide guidance for mobile service providers on customer experience management strategies and specifically on touchpoint prioritization, adaptation, monitoring and design. Originality/value This study addresses two relevant research gaps. First, most studies focus on single or a few touchpoints without considering the variety of touchpoints within the customer journey (Lemon and Verhoef, 2016). Second, no studies focus on the relative contribution of touchpoints to customer loyalty intentions (Homburg et al., 2017).


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pavleen Soni

PurposeIn an era of burgeoning activity in online retail in India, the role of web-store design is paramount. Web-store design elements such as website functionality, brand assortment and product quality are expected to generate customer loyalty.Design/methodology/approachUsing data collected from 553 students from two universities in north India, the present study investigates the indirect effect of web-store dimensions (through website functionality, brand assortment and product quality) on online store loyalty via an enjoyment state (flow) and customer satisfaction. Serial mediation has been analysed through PROCESS macro developed by Hayes version 3.0. In addition to this, the moderating role of gender and purchase frequency has also been investigated.FindingsThe present study renders support to serial mediation between website functionality, flow, customer satisfaction and loyalty. However, the path between brand assortment and loyalty is more strongly mediated by customer satisfaction only. Males experience less flow as compared to females while handling brand assortment on websites. The three-way interaction between brand assortment, gender and purchase frequency is also statistically significant.Originality/valueThe study examines the manner in which online retailers can choose to build customer loyalty when they try to build retail image using web store functionality and /or product/brand assortments. The study offers insights to retailers about how and when to focus on hedonism versus customer satisfaction or both of them in conjunction to enhance customer loyalty. This study is important as it investigates the relationships in Indian scenario witnessing a high rate of growth in online retail which can tremendously affect these relationships.


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