Under-promising and over-delivering: pleasing the customer or strategic blunder?

2017 ◽  
Vol 31 (7) ◽  
pp. 720-732 ◽  
Author(s):  
Omer Topaloglu ◽  
David E. Fleming

Purpose The paper aims to provide a theoretical and empirical examination of the relationship between service expectation management, expectation inducing agent and customer satisfaction. Design/methodology/approach Based on the disconfirmation paradigm in services and the promise-keeping premise in psychology, the hypotheses are developed and empirically tested using three experiments that manipulated expectations, expectation inducing agent and service outcome. Findings The findings provide reconciliation to the previous studies in services and show that effectiveness of expectation management strategy depends on the individual expectation thresholds and the expectation inducing agent. If customers patronize a firm expecting more, then over-delivering on the service promise results in a significant benefit. However, for those customers whose mental expectation threshold is exceeded, keeping promises is as effective as exceeding promises. Practical implications The practical implication of this paper is that services managers should be cognizant of the mental expectation threshold of customers and be wise in utilizing the under-promise, over-deliver strategy. Originality/value Using a threshold approach, this paper introduces a new perspective to service practitioners who are trying to manage expectations in a highly variable business environment. It also benefits service researchers who are trying to enhance the understanding of service expectation management.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Miguel Oliveira ◽  
Teresa Proença ◽  
Marisa R. Ferreira

Purpose Rather recently, corporate volunteering (CV) has become a relevant topic of academic research. Nonetheless, there is still uncertainty about several aspects of the relationship between volunteerism and the corporate realm and research on the relationship between CV and employer attractiveness is scarce. This study aims to attempt to fill this gap by studying the influence that the perceived importance attributed by prospective applicants to the opportunity of engaging in CV programs may have on employer attractiveness while also pondering the existence of an indirect relationship between CV and employer attractiveness mediated by the individual cognition of corporate morality (CM). Design/methodology/approach To fulfill the objectives of this research, and test its hypothesized model, the authors opted to use a quantitative methodology via survey by questionnaire of Portuguese students who are close to entering the job-seeking process or are currently involved in it, either passively and actively. Data on 238 Portuguese students was collected mainly through social media channels such as LinkedIn and Facebook and was analyzed with the IBM SPSS Statistics 25 software and the IBM SPSS AMOS extension, using a structural equation model to test the hypotheses and obtain insight into the relationships between the variables. Findings A theoretical model was elaborated based on the literature reviewed and was used to validate the existence of a positive direct relationship between CV and employer attractiveness, CV and CM and between CM and employer attractiveness. Finally, it was observed that CV could prompt an indirect effect on the socioethical perception of employer attractiveness, mainly due to the mediating mechanism of the individual cognition of CM. Research limitations/implications This study has some limitations that should be acknowledged and considered in future studies, namely, the diversity of the sample, as it was essentially formed by students enrolled in the University of Porto and studying mainly in the areas of social sciences, trade and law. It is also worth noting that a global analysis of the employer attractiveness attributes was not considered, focusing instead on the social and ethical spectrum of employer attractiveness. Nonetheless, it is important to keep in mind that different individuals prioritize distinct attractiveness attributes. Practical implications Through the present study, it was understood that CV programs constitute a desired and pertinent tool that should be adopted by firms (employers) to establish a strong position in the job market. These findings are particularly useful for the area of human resources management, which is in charge of finding the most adequate applicants in the job market. Furthermore, for the variable of CM, the authors noticed that there is a theoretical lack of measurement instruments. Consequently, the measure advanced in this study represents an important theoretical and methodologic contribution to the literature. Social implications CV is a concept that is yet maturing within the Portuguese business environment. As such, this study delivers useful insights regarding Portuguese applicants’ growing interest around CV, their concerns about the social, ethical and humanitarian attributes of firms and their beliefs regarding the morality of firms’ social policies and actions. Hence, it allowed us to comprehend that by developing a structured CV program, an employer may be able to enhance other essential concepts for Portuguese prospective applicants, respectively, employer attractiveness and CM. Originality/value This study corroborates the premise that corporate community involvement activities, namely, CV, hold a positive effect in terms of perceived employer attractiveness. Moreover, it is consistent with the idea that CV programs foment a feeling of intimacy between individuals and firms, consequently creating a perception of morality as part of the firms’ intrinsic traits. Finally, it corroborates and extends for the case of prospective applicants the conclusion that individuals may be relatively more concerned with the motives behind firms’ corporate social responsibility practices than with the content of such practices.


2017 ◽  
Vol 27 (4) ◽  
pp. 854-876 ◽  
Author(s):  
Max Sim ◽  
Carolin Plewa

Purpose Customer engagement is of critical interest to both academics and practitioners. Extant literature focusses primarily on customer engagement with a single focal object, usually brands; this study takes another view to consider customer engagement with multiple focal objects (service provider and context). In addition to testing the relationship of the individual dimensions of engagement with the service provider and engagement with the context, this research elaborates on their drivers, with a particular focus on distinct engagement platforms. The paper aims to discuss these issues. Design/methodology/approach A survey captures customer engagement with a service provider and a context in a higher education setting, with 251 responses collected across first- and third-year marketing courses in an Australian, mid-sized university. Findings Engagement with the service provider can drive engagement with the context. In turn, engagement with the service provider can be stimulated through the use of engagement platforms that enable customer-to-service provider interactions. The results show limited effects of customer-to-customer engagement platforms on engagement with the context though. The results are consistent across gender and student grade levels; some differences arise between international and domestic students. Originality/value This unique study broadens understanding of customer engagement with various focal objects and also details the flow of effects, from engagement with a service provider to engagement with the context. This research builds on conceptual discussions of engagement platforms and empirically examines their ability to facilitate affective, cognitive and behavioural engagement.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Elo ◽  
Leo-Paul Dana

Purpose The purpose of this paper is to explore how entrepreneurship traditions evolve in diaspora. Design/methodology/approach A qualitative multiple case study examining the role of diaspora embeddedness, extended family, ethno-religious-, cultural- and social ties and relevant structures shaping diaspora entrepreneurship. Findings The authors found that social ties and diaspora embeddedness create dynamism fostering entrepreneurial identity as a part of the Bukharian culture, and as a preferred career option in the context of Bukharian Jews in diaspora. Diasporic family businesses are products of culture and tradition that migrate to new locations with families and communities, not as disconnected business entities. Research limitations/implications The ways in which families nurture a highly entrepreneurial culture that transfers across generations and contexts are context-specific and not per se generalizable to other diasporas. Practical implications Diasporans often continue their traditions and become again entrepreneurs after their settlement, or they may generate hybrid, circular solutions that allow them to employ their competences in the new contexts or connecting various contexts. This calls for transnational entrepreneurship-policymaking. Social implications Time changes diasporas. A long-term commitment to the business environment evolves and reduces the mobility of the individual diasporan; typically the children of these migrants become more integrated and develop divergent career paths. Hence, their plans are not necessarily including family entrepreneurship creating a challenge for continuation of the original culture of entrepreneurship. Originality/value Despite a notable tradition in Jewish studies, there is limited research on Jewish entrepreneurial diaspora and its contemporary entrepreneurial identity and tradition. Furthermore, the population of Bukharian Jews is an unknown and under-explored highly entrepreneurial group that may offer instrumental views to larger diasporic audiences being concerned about maintaining notions of ethnic heritage and identity.


2016 ◽  
Vol 43 (12) ◽  
pp. 1178-1193
Author(s):  
Tony Burns

Purpose The purpose of this paper is to examine the relationship between Amartya Sen’s notion of adaptation and his views on identity politics by focussing on the issue of slavery and, more specifically, on the example of the happy or contented slave. Design/methodology/approach The paper is text based. The methodological approach adopted is that of conceptual analysis, as is typical for work of this kind. Findings The paper concludes that the example of the happy or contented slave is indeed a fruitful one for those interested in exploring the relationship between Sen’s views on “the adaptation problem” and his views on identity politics, especially in relation to the subjection of women. Here Sen’s debt to the ideas of Mary Wollstonecraft and John Stuart Mill is particularly important. Research limitations/implications One implication of the argument of the paper is that there is a need to consider more carefully the differences that exist between the views of Wollstonecraft and Mill, so far as the example of the happy or contented slave is concerned. Practical implications One practical implication of the paper is that, hopefully, it establishes the continued relevance of the ideas of thinkers such as Wollstonecraft and Mill today, not least because of the influence that they have had on theoreticians such as Amartya Sen. Social implications The paper addresses issues which are of considerable social and political significance, especially for women in underdeveloped societies today. Originality/value The example of the happy or contented slave has not received much discussion in the literature on Sen, although Sen himself has suggested that the distinction between happiness and contentment is an important one, which does merit further discussion.


2021 ◽  
Vol 19 (5) ◽  
pp. 681-700
Author(s):  
Mohammad Almaleki ◽  
Mahdi Salehi ◽  
Mahdi Moradi

Purpose This study aims to investigate the impact of managerial narcissism and overconfidence on financial statements’ comparability. In other words, this paper seeks to answer the question of whether the personality characteristics of managers may affect the level of financial statements’ quality of commercial entities or not. Design/methodology/approach The research hypotheses are tested using a sample of 896 observations taken from the Tehran Stock Exchange and 245 observations from the Iraqi Stock Exchange during 2012 and 2018 using the multiple regression model based on the combined data technique. Findings The findings show that managerial narcissism is positively and significantly associated with Iran’s financial statement comparability. In contrast, Iraqi data articulate a negative association between these two variables. This paper finds that Chief Executive Officer overconfidence and financial statements’ comparability are negatively related in both countries. Following the market variation, the different findings suggest that institutional settings such as the general managerial style, adopting international accounting standards (now IFRS) leading to the extent of auditing market globally in Iraq and suffering from international sanctions in Iran, the governing business environment may play an allocative role in preparing financial statements. Originality/value The present research is the first research conducted in two emerging markets (Iran and Iraq) examining the relationship between managers’ narcissism and overconfidence and financial statements’ comparability. Therefore, the present research in this area can significantly contribute to the development of science and knowledge.


2019 ◽  
Vol 23 (1) ◽  
pp. 41-62 ◽  
Author(s):  
Valentina Ndou ◽  
Giovanni Schiuma ◽  
Giuseppina Passiante

PurposeThe creative process through which the territorial resources, knowledge and culture are used, exploited and configured to match needs and to achieve congruence with the changing business environment has become a crucial process for competitiveness. This is even more relevant for economies of developing countries which are continuously struggling to reap the benefits of globalisation, as well as to grasp the new opportunities for competitiveness. As such, this paper aims to try to concentrate on the dynamic perspectives of the creative economy of countries by distinguishing between the potentialities and performance. The paper tackles the influence that creativity capacities might have on performance of countries.Design/methodology/approachThe methodology consists in identifying creative economy indicators from a diverse data set of the World Economic Forum and distinguish them between potential and performance indicators.FindingsData reveal as good progress and emphasis is being devoted to increasing the level of creativity; however, the Balkan countries still holdup in their capacity to boost innovation.Practical implicationsThe paper provide a new focus of research on creativity measurement that is significant for understanding what creative capacities territories possess and the ability to make proficient use for growth and innovation.Originality/valueThis paper proposes a new operational framework for measuring and interpreting the creative economy indicators by identifying not only indicators that gauge the potentialities of a country, but also indicators that are linked with the performance dimension, as well as the relationship amongst them.


2019 ◽  
Vol 11 (1) ◽  
pp. 16-33 ◽  
Author(s):  
Magdy A. Khalaf ◽  
Mohamed Yehia El Mokadem

Purpose This paper aims to empirically investigate the triadic relationship between internal integration, internal flexibility and external flexibility. Design/methodology/approach This research hypothesized the mediation effect of internal flexibility on the relationship between internal integration and external flexibility. Survey data were collected and analyzed using simple and mediation regression analysis to test the study hypotheses. Findings The research finding reveals that machine, labor and material handling flexibilities; being as internal flexibility dimensions mediate the relationship between internal integration and volume and mix flexibilities; being as external flexibility dimensions. The results provided insufficient evidence on the mediating effect of routing flexibility on the relationship between internal integration and both volume and mix flexibilities. Research limitations/implications This research presents a new perspective for research studies to understand the factors that affect manufacturing flexibility. However, the nature of the surveyed sample and using of a single informant might limit the generalizability of the research findings. Practical implications This study provides useful insights for firms wishing to enhance their competitiveness through improving their flexibility. The companies should be aware of the importance of developing a suitable platform for coordinating inter-departmental activities to enhance its internal competencies, which, in turn, improve its customer-facing capabilities and boosts its competitiveness. Originality/value This paper contributes to knowledge by proposing and empirically testing the mediating effect of internal flexibility on the relationship between internal integration and external flexibility.


2017 ◽  
Vol 38 (7) ◽  
pp. 986-1003 ◽  
Author(s):  
Badrinarayan Shankar Pawar

Purpose The purpose of this paper is to carry out an empirical examination to assess the nature of effects an employee’s individual spirituality and organizational spirituality have on the employee’s experience of meaning in work and community at work facets of workplace spirituality. Design/methodology/approach This paper specifies and examines, using a cross-sectional survey research design, the empirical support for two alternative models – a direct effects model and a moderating effect model – of the likely influences of an employee’s individual spirituality and organizational spirituality on the meaning and community facets of workplace spirituality. Findings The findings indicate considerable support for the direct effects model but no support for the moderating effect model. Within the direct effects model, organizational spirituality had much stronger association than employees’ individual spirituality with the workplace spirituality facets of meaning and community. Research limitations/implications This study may encourage future research to examine other antecedents of workplace spirituality, and the moderators and mediators of the relationship between organizational spirituality and workplace spirituality. Practical implications It suggests to the practitioners that for enhancing employee experiences of workplace spirituality, organizational spirituality implementation is a more effective way than developing employees’ individual spirituality. Social implications The study indicates that employees’ spiritual needs of meaning and community at work can be better fulfilled through organizational spirituality implementation than through individual spirituality development. Originality/value This is an original empirical examination and its value partly comes from its research implications and practice implications.


2018 ◽  
Vol 33 (1) ◽  
pp. 53-71 ◽  
Author(s):  
Duleep Delpechitre ◽  
Lisa Beeler

Purpose The purpose of this paper is to investigate how salesperson’s emotional intelligence (EI) influences salesperson behaviors (i.e. emotional labor strategies) and the influence these behavioral strategies have on customer’s outcomes. Design/methodology/approach The study develops a conceptual model using past literature and tests hypotheses using a salesperson-prospective customer dyadic sample. To participate in the study, 224 salespeople and their potential customers were recruited from three different companies. Findings Results reveal the importance of conceptualizing the dimensionality of a salesperson’s EI ability, as different dimensions impact customer outcomes differently. Additionally, the importance of salesperson’s authentic emotional labor strategies is highlighted. Practical implications EI is a foundation for successful selling in a business-to-business environment, but it is not a silver bullet. Sales managers and recruiters should use assessment tools to evaluate sales recruit’s EI, but it is also critical to train salespeople to engage in deep acting, creating authentic emotions in the buyer-seller relationship. Originality/value Using a dyadic sample, this study suggests that the dimensions of EI and emotional labor strategies influence customer’s perception of salesperson’s trustworthiness and propensity to continue the relationship with the salesperson differently. Specifically, not all dimensions of salesperson’s EI is found to be positive, and only salesperson’s authentic (deep) emotional strategies are found to influence customer outcomes positively.


2019 ◽  
Vol 10 (1) ◽  
pp. 134-154 ◽  
Author(s):  
Yousef Mohamed Endara ◽  
Asbi B. Ali ◽  
Mohd Shukri Ab Yajid

PurposeConsidering the importance of current Libyan business environment, this paper aims to understand the influence of culture on perceived service quality that leads to customer satisfaction in the Libyan banking industry. In addition, it would be interesting to explore which type of banks, e.g. public or private banks, moderate the relationship between perceived service quality and customer satisfaction.Design/methodology/approachThe data were collected from the customers who are receiving services from the top three private and top three public banks in the cities of Tripoli and Misurata, Libya. About 329 samples were obtained and Smart PLS was used for the statistical analysis.FindingsThe results show that perceived service quality is strongly predicted by collectivism, masculinity and uncertainty avoidance. Perceived service quality also leads to customer satisfaction among the Libyan banking customers. Further, public bank is more concerned on customer satisfaction compared to private banks.Practical implicationThe research has greater implication for the Middle-Eastern bank managers who are pursuing possibilities of newer business strategies.OriginalityThe study provides an interesting viewpoint of the banking service in Libya, especially in the economic uncertainty post-war and political instability. Its focus on culture as a strong influence to the delivery of service quality in such context is admirable especially in relation with the embedded Islamic culture.


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