Mixed emotions and credence service use: insights from at-risk gamblers

Purpose This paper aims to explore the power of appeals based on fear mixed with challenge co-designed with vulnerable consumers in motivating the use of credence services. Design/methodology/approach A qualitative phase (Study 1), comprising focus groups of self-identified at-risk gamblers, revealed a series of conceptual themes for advertising stimuli that were then tested empirically (Study 2) on the likelihood to use credence services in a gambling context. Individual characteristics such as tolerance of ambiguity were also tested for their potential moderating influence. Findings In comparison to appeals based on single emotions, fear mixed with the challenge has a significantly stronger impact on intentions to use credence services in at-risk gamblers. Findings confirm the indirect positive impact of fear mixed with the challenge via sequential mediators of involvement with advertising and attitude towards credence service advertising. The moderating role of tolerance of ambiguity on credence service use intentions was confirmed. Originality/value The potential of a fear mixed with challenge appeal to motivate vulnerable consumers to seek credence services has not been investigated to date. The findings contribute to both the transformative service research and advertising literature streams by providing valuable insights into promotional campaigns aimed at vulnerable consumers such as at-risk gamblers.

Influence of perceived quality on customer satisfaction in different stages of services

Purpose In response to the call for research on customer experience across the customer journey, this study aims to analyze and compare the effects of perceived quality on customer satisfaction among the different stages of search, experience and credence services. Design/methodology/approach This paper constructs a formation model of customer satisfaction based on service stages. Data on perceived quality and customer satisfaction in different stages of search, experience and credence services was collected through experiments and practical survey and the model was empirically tested through multiple linear regression. Findings The results show that perceived quality in the preparation and departure stages of search and credence services has a greater influence on customer satisfaction than in the delivery stage. While compared to the preparation stage, the perceived quality in the delivery and departure stages of experience service has a greater influence on customer satisfaction. Practical implications This research will help service firms optimize the allocation of service resources according to the importance of different service stages within the three indicated service types, promoting customer satisfaction. Originality/value This is the first study of its kind to compare the effects of perceived quality on customer satisfaction among the stages of search, experience and credence services.

Change in Consumer Decision based on Customer Satisfaction in Credence Services: Implication for Service Provider

Purpose: The aim of this research paper is to study the measure the consumer decision on consumer satisfaction in credence services, in terms of the extent of the service provided by service provider and the information sources used. Design/methodology/approach: A structured questionnaire is used to collect consumers information and a survey was undertaken with patient or relative of these patients (n =201) to examining their practices for a range of credence services. Findings: Results suggest that higher the consumer offerings increase the consumer satisfaction. However, the consumer persuasion knowledge & provider credibility together forming an offering of decision autonomy leads most important source of credibility. Research Limitation/implications: The result of this study is based on lucknow, Delhi & NCR area and other previous studies also have suggested other ways to major the satisfaction. It would be useful more strongly whether basic amenities & Initial treatment in hospitals have a significant role on satisfaction. Originality/Value: The study shows the ways that the information search around basic amenities & Initial treatment in hospitals of credence services have a wide range parameter to increase the service provider credibility. The study result is unique in this area of research and utilizes the importance of credence service for considering the service provider in next set of selections.

Service Design and Enterprise Risk Management for Knowledge-Based Services

Services make most of the value in developed economies. In knowledge-based (credence) services, during each transaction, clients look for transmission of value through advice, information, knowledge, or counselling. Providers and clients interact during the service profusion; the human nature of these transactions makes errors inevitable. This chapter intends to guide managers step-by-step in providing better services and managing risks effectively. Each phase includes the presentation of a hands-on managerial tool. To design or improve a service, blueprint can help to visualize and fine-tuning its value chain. Riskoprint allows capturing the complexity of service risks, their sources, and severity. Finally, feed-forward controls contribute to preventing and recovering from service failures.

The Impact of the Internet on Experience Services and the Cost of Information: An Updated Conceptual Model of Innovation vs. Imitation and Firm Performance in Services.

The extant service innovation literature suggests the high cost of an information search, when evaluating a new service provider, creates switching costs that hold customers hostage, allowing first-movers to recoup their investments and sustain an advantage. We utilize Transaction Cost Economics as a theoretical foundation to expand the service innovation literature by examining the Internet’s impact on the cost of information. We propose that as a result of the Internet, experience services offered by service firms have largely become search services, with lower levels of information asymmetry. We also suggest that the Internet has had little impact on information costs related to firms that offer largely credence services. These services will continue to exhibit higher levels of information asymmetry. Finally, we present a moderated model of innovation vs. imitation strategies that suggests that firms offering search services will increase firm performance through imitation, while credence firms will increase firm performance through innovation strategies. The extant service innovation literature suggests the high cost of an information search, when evaluating a new service provider, creates switching costs that hold customers hostage, allowing first-movers to recoup their investments and sustain an advantage. We utilize Transaction Cost Economics as a theoretical foundation to expand the service innovation literature by examining the Internet’s impact on the cost of information. We propose that as a result of the Internet, experience services offered by service firms have largely become search services, with lower levels of information asymmetry. We also suggest that the Internet has had little impact on information costs related to firms that offer largely credence services. These services will continue to exhibit higher levels of information asymmetry. Finally, we present a moderated model of innovation vs. imitation strategies that suggests that firms offering search services will increase firm performance through imitation, while credence firms will increase firm performance through innovation strategies.

Relative importance of country of service delivery, country of person and country of brand in hybrid service evaluation: a conjoint analysis approach

Purpose This paper aims to examine the relative importance of country of brand (COB), country of service delivery (COSD) and country of person (COP) in consumer evaluation of hybrid services. Design/methodology/approach Using data (N = 1,071) from Australia, Indonesia and Singapore, a conjoint analysis experimental design explored empirically the importance of country of origin (COO) effects in three service contexts: search, experience and credence. Findings The analysis reveals that the relative importance of COP was the highest for credence services, while COB was the strongest for experience services. Practical implications For firms operating offshore, companies must understand that the COO construct is multi-dimensional for services, as it is for tangible products and not limited only to COB as traditionally thought. At least two other distinct dimensions – COSD and COP – can play significant roles as predictors of service quality expectations. Companies must consider the implications of service type, according to the search-experience-credence continuum to inform staffing decisions and managing customer expectations. Originality/value This research contributes to the literature by extending the understanding of country image effects in the context of hybrid service provisions, particularly in the view of customer expectations of services with multiple country-of-origins. Although there have been several studies examining the effects of COO on services evaluation, no empirical study has examined the effects of multiple COOs simultaneously from the perspective of location where the service is delivered (COSD) and individuals who deliver the service (COP), in addition to the effect of COB origin.

The Differential Effects of Online Peer Review and Expert Review on Service Evaluations

The present research investigates the differential effects of online peer review and expert review on consumers’ evaluations of experience and credence services. We propose that these effects are mediated by consumers’ confidence in their service evaluation and moderated by information convergence. We conduct three studies to test our hypotheses. Study 1 shows that consumers evaluate experience (vs. credence) services more favorably when exposed to peer review (vs. expert review). Across the three studies, we show that the interaction effects between information source and service type on service evaluation are mediated by consumer confidence. Importantly, we identify the moderating role of information convergence on these effects (Studies 2 and 3). Convergent positive reviews substantiate the interaction effects between information source and service type on service evaluation. Interestingly, when consumers see mixed information from either similar or different sources, negative expert review has greater influence than negative peer review in lowering consumer confidence and their evaluations of both experience and credence services. These findings contribute to the literature on information processing in the services domain and also have significant practical implications on managing consumer expectations of third-party information.

A trial engagement? Innovative free and other service trials

Purpose This paper aims to discover how consumers process an innovative set of systematically varied service trial offers and how this affects their learning and interaction as precursors to customer engagement. Design/methodology/approach The research uses experiments that manipulate pricing, type of service and delivery method. A repeated-measures design was used with a sample of 396 participants. Findings Free (as opposed to cost or full price) service trials were more likely to be accepted, with perceived truthfulness of the trial offer and perceived obligation mediating the relationship. Credence service trials generate higher levels of perceived obligation than experience service trial offers, while personal services are more likely to lead to trial adoption. Research limitations/implications The research can be extended to well-recognized brands and further mixed service contexts. Practical implications Trial offers of new services are best targeted at buyers who are in the likely buyer group. The trial offer may accelerate time to purchase and relieve perceived risks. The trials of credence services need further signals of quality in the trial itself for consumers to adopt the full service. With personal service trials, skeptical consumers need assurance as to what will happen after the trial experience. Free trials may actually devalue a service, threatening engagement. Originality/value Uniquely, service trial offers are systematically manipulated using experience versus credence and personal versus impersonal trials to determine their effect on acceptance of the trial offer and the full service. Additionally, the study compares free, cost price and full price trial offers.