Impact of employee job satisfaction and commitment on customer perceived value

Purpose The purpose of this paper is to analyse the impact of employee job satisfaction and affective commitment as perceived by customers on customer perceived value, more specifically its benefits dimensions. Design/methodology/approach A total of 652 panellists from a large Canadian polling firm self-administer a web-based questionnaire. To measure customer perceived value, a formative index is used which contributes to topical literature through a unique methodology. Hypotheses are tested using a structural equation model. Findings An analysis of the direct, indirect and total effects confirms the unique positive impact of employee job satisfaction and affective commitment, as perceived by customers, on the emotional, social, relationship and epistemic benefits, as well as on the formative index of customer perceived value. Practical implications Customer perceptions of employee attitudes (job satisfaction and affective commitment) represent a unique opportunity for banks to differentiate their value proposition in a hypercompetitive market. Originality/value This study is the first to consider customer perceptions of employee job satisfaction and affective commitment in relation to a formative index of customer perceived value and its related benefits dimensions.

Conceptualising a formative model for online review helpfulness: Proposal

Online product reviews (reviews) play an important role in the consumer's purchase decision, which affects sales and assists business firms in improving quality (by receiving feedback). The number of reviews available, even for a product that has mediocre popularity, can reach a few hundred or a thousand. In order to get the most informative review to the customers first, from the plethora of reviews available online, online retailers came up with the 'helpfulness voting' feature. This became a major hit and now almost all websites, as well as academics, search for the most helpful review, according to the number of consumer votes that a review has received. Previous research has acknowledged the importance of 'review helpfulness'. Review helpfulness has been conceptualised and evaluated by researchers, as well as websites, according to their requirements. In this study, we have tried to inspect the evaluation of the review helpfulness construct in the extant literature and have proposed a conceptual framework of a formative index as the measurement instrument of review helpfulness.

Evaluation of brand relationship quality using formative index: a novel measurement approach

Purpose This paper aims to develop a parsimonious and robust formative index for evaluating and measuring the brand relationship quality of automobile brands. Design/methodology/approach Survey questionnaires were used to collect empirical data from 395 car owners, out of which 362 samples were included in the final analysis. Partial least squares technique was used for index construction. Findings The empirical findings exhibit that the automobile brand relationship quality (ABRQ) index based on the final set of six indicators effectively captures the conceptual domain of brand relationship quality. In addition, the external validity check affirms positive and significant influence of ABRQ index toward enhancing customer loyalty. Practical implications ABRQ index can assist the brand managers and academicians for benchmarking and market strategy formulation while contributing to the limited literature on brand relationship quality. Also, this index having six-indicators can considerably reduce the time and effort of respondents for filling the questionnaires, in turn, improving response rates. Originality/value This study represents a novel attempt to formulate a brand relationship quality index using formative measurement indicators, and as per the authors’ knowledge, has not been attempted by prior researchers in this domain.

The CURE scale: a multidimensional measure of service recovery strategy

Purpose – This paper aims to address the gaps in service recovery strategy assessment. An effective service recovery strategy that prevents customer defection after a service failure is a powerful managerial instrument. The literature to date does not present a comprehensive assessment of service recovery strategy. It also lacks a clear picture of the service recovery actions at managers’ disposal in case of failure and the effectiveness of individual strategies on customer outcomes. Design/methodology/approach – Based on service recovery theory, this paper proposes a formative index of service recovery strategy and empirically validates this measure using partial least-squares path modelling with survey data from 437 complainants in the telecommunications industry in Egypt. Findings – The CURE scale (CUstomer REcovery scale) presents evidence of reliability as well as convergent, discriminant and nomological validity. Findings also reveal that problem-solving, speed of response, effort, facilitation and apology are the actions that have an impact on the customer’s satisfaction with service recovery. Practical implications – This new formative index is of potential value in investigating links between strategy and customer evaluations of service by helping managers identify which actions contribute most to changes in the overall service recovery strategy as well as satisfaction with service recovery. Ultimately, the CURE scale facilitates the long-term planning of effective complaint management. Originality/value – This is the first study in the service marketing literature to propose a comprehensive assessment of service recovery strategy and clearly identify the service recovery actions that contribute most to changes in the overall service recovery strategy.