Services and Their New Realities

Companies providing services operate in a dynamic business environments. They require understanding and appreciating the new service realities. They should devise and implement appropriate strategies to sustain the competition. The objective of the study is to analyze the strategies. New service realities include shifting customer relationships, customer empowerment, and customer co-creation. The study aims at a conceptual analysis of the literature. Service companies require satisfying both customers and employees to remain competitive. Companies should aim to prevent service failures from occurring, rectify service failures once they have occurred to the satisfaction of customers, involve employees at each stage, and ensure that employee enthusiasm and motivation are high. Findings of the study suggest that proper understanding of the new service realities will allow companies to develop strategies, implement the strategies, and execute the strategies effectively. All such initiatives provide a direction for service companies to excel, delight their customers, and build long-term customer relationships.

Governance of profit and loss sharing financing in achieving socio-economic justice

Purpose This study aims to explore the governance practices of profit and loss sharing (PLS) financing in connection to the socio-economic development objective of the Islamic financial institutions (IFIs). Design/methodology/approach The study context included IFIs from Yogyakarta, Indonesia. A two-stage research methodology was used. In the first stage, top ten IFIs – three Islamic commercial banks, three Islamic rural banks and four Islamic micro finance institutions – were considered for in-depth interviews. Formal interview protocol was followed to record and transcribe interviews. In the second stage, a questionnaire survey considered 26 IFIs. Unit of measurement was individuals working at the mid and top level from the selected organisations. Findings The governance process of providing and managing PLS financing involves several critical factors, such as the financing duration, instalment timing, contract approval and cost, basis of sharing, risk management, customer empowerment and Sharīʿah compliance. Contrary to the existing belief, the authors found that PLS financing is primarily available for shorter period of time (three years) and it is unavailable for start-ups. Also, newer IFIs rely less on PLS financing than the older IFIs. In addition to worrying about the higher risk of return, IFIs considered government regulation on PLS to be tighter in terms of provision and rescheduling. Research limitations/implications This study is limited to investigating IFIs in Yogyakarta, Indonesia. This limitation is covered by taking samples from three types of IFIs. Practical implications For IFI practitioners, these findings are expected to improve their confidence in undertaking more progressive efforts in adopting governance policies that contribute to greater socio-economic justice. Social implications If the governance good practices are implemented by all IFIs, a higher degree of social welfare and customer awareness can be achieved. Originality/value Across all types of IFIs, this study’s results confirm that PLS is less preferred for long-term and start-up financing. These findings should be the ingredients to push research on PLS further, as these findings grossly violate the theory. Fulfilling these gaps could strengthen the nexus between PLS and socio-economic justice.

New Trends and Tools for Customer Relationship

Digital transformation is leading companies to change their business and adjust the strategies to the new market reality – an era of constant customer connectivity focus on transforming the customer value and the use of digital technologies for greater customer interaction and collaboration. This is putting the customer first in many organizations' strategies to leverage the customer journey and experience with brands. Digital transformation is the combined effect of the main digital innovations responsible for changing structures, practices, and values within companies. In terms of customer, it means changing the way business interaction occur during the customer journey. The digital era faces a tremendous growth of customer empowerment, so companies need to structure news ways to be innovative in terms of customer support, anytime, anywhere, and with the proper device – text, video, instant messages, and unexpected ways. The authors strongly recommend any company or organization to bring the customer experience to the early stages of the implementation of a new tool.

Perceived value of ride-hailing providers

Despite providing service and consumption are two sides of the same coin of value co-creation in the gig economy, value as an outcome was only investigated from the customer point of view, not from the provider. This study aims to explore the impact of algorithmic management, customer dysfunctional behavior and perceived injustice on Uber and Careem drivers perceived value in Egypt. Qualitative interviews and content analysis were employed. Thematic analysis will be used for identifying, analyzing, and reporting patterns within data. Our findings define how drivers’ perceived value is negatively influenced by algorithmic management, customer dysfunctional behavior, and perceived injustice. In order to increase drivers’ perceived value, ride-hailing companies should not only put consideration on how to improve the control of algorithmic management and customer empowerment but also have to revise their policies and decisions to provide positive value to their drivers.

Pengaruh Bank Sampah Terhadap Pemberdayaan Ibu Rumah Tangga (Studi Kasus di Bank Sampah Kurabu Kota Padang Panjang)

Waste Bank is a waste management based recycling management program that is driven by the active role and participation of members or customers. The community group with the status of Housewives are considered to have more potential resources for activities in the Waste Bank, while customer empowerment is the main indicator of the success of the program. The city of Padang Panjang still has a high final waste disposal ratio despite having a Waste Bank. The research objective is to analyze several variables so that they can influence the empowerment of Housewives. The number of respondents was 74 people taken by purposive sampling from the Kurabu Waste Bank in the city of Padang Panjang. The results of the analysis by the SEM-PLS method showed that there was a significant influence on education about the knowledge of resource utilization and the growth of an attitude of caring for the environment towards empowering customers who were housewives. Bank Sampah merupakan program manajemen pengelolaan persampahan berbasis daur ulang yang digerakkan oleh peran dan partisipasi aktif anggota atau nasabahnya. Kelompok masyarakat berstatus Ibu Rumah Tangga (IRT) dinilai memiliki potensi sumber daya yang lebih untuk berkegiatan di Bank Sampah, sedangkan pemberdayaan nasabah menjadi indikator utama keberhasilan program tersebut. Kota Padang Panjang masih mempunyai rasio beban buangan akhir sampah yang cukup tinggi meskipun telah memiliki Bank Sampah. Tujuan penelitian untuk menganalisis beberapa variabel sehingga dapat mempengaruhi pemberdayaan Ibu Rumah Tangga. Jumlah responden sebanyak 74 orang diambil dengan purposive sampling dari Bank Sampah Kurabu di Kota Padang Panjang. Hasil analisis dengan metode SEM-PLS menunjukkan terdapat pengaruh signifikan dari edukasi tentang pengetahuan pemanfaatan sumber daya dan penumbuhan sikap peduli lingkungan terhadap pemberdayaan nasabah yang berstatus Ibu Rumah Tangga.

Customer participation and well-being: the roles of service experience, customer empowerment and social support

PurposeThis research aims to contribute to the transformative service research (TSR) literature by examining how customer participation in the service process influences their service experience and eudaimonic well-being, as moderated by customer empowerment and social support.Design/methodology/approachIn the contexts of wedding (n = 623) and tourism services (n = 520), two surveys were conducted to test the hypotheses using mediation and moderation analyses.FindingsCustomer participation had a positive effect on their well-being, as mediated by service experience. These effects were moderated by customer empowerment and social support. Specifically, customer empowerment negatively moderated the relationship between customer participation and their service experience for both services. In addition, the moderating effect of social support on the relationship between customer participation and service experience was positive for the wedding service but negative for the tourism service.Practical implicationsThe findings imply that firms should encourage customer participation to enhance their service experience and well-being. In addition, the firm could judiciously empower customers by adapting to the level of customer participation. Furthermore, depending on the complexity of the service required to produce the expected service outcomes, the firm may encourage the customers to engage their social network for support.Originality/valueThis research uses the service ecosystem perspective to examine the roles of the customer, the firm and the customer's social network in shaping their service experience and well-being for two common and important mental stimulus services, enriching the authors’ understanding on the role mental stimulus services play in enhancing consumers' eudaimonic well-being.

The Influence of Customer Relationship Management (CRM) Indicators on Customer Loyalty of Sharia Based Banking System

Objective – The purpose of this research is to determine whether CRM (Customer Relationship Management) indicators, namely complaint resolution, customer orientation, customer empowerment and customer knowledge affect the loyalty of sharia bank customers in North Sumatra. Methodology/Technique – The sample of this study is 120 Islamic banking customers in North Sumatra, namely customers at PT. BNI Syariah Tbk, PT. Bank Syariah Mandiri Tbk and PT. BRI Syariah Tbk. The analytical method used is multiple linear regression analysis. Findings – The results of this study are as partial complaint resolution, customer orientation, customer empowerment and customer knowledge variables have a significant effect on customer loyalty in Islamic Banking in North Sumatra and the hypothesis is accepted. The better CRM that is owned and implemented by Islamic Banking in North Sumatra will have an effect on increasing customer loyalty. Simultaneously complaint resolution, customer orientation, customer empowerment and customer knowledge variables significantly influence customer loyalty in Islamic Banking in North Sumatra and the hypothesis is accepted. Type of Paper: Empirical Keywords: Customer Relationship Management, customer loyalty. Reference to this paper should be made as follows: Lubis, A; Dalimunthe, R; Absah Y; Fawzeea, B.K. 2020. The Influence of Customer Relationship Management (CRM) Indicators on Customer Loyalty of Sharia Based Banking System. J. Mgt. Mkt. Review 5(1) 84 – 92 https://doi.org/10.35609/jmmr.2020.5.1(8) JEL Classification: M31, G21, M10