Emerald | Journal of Services Marketing | Table of Contents

A segmentation of adolescent online users and shoppers

Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - The purpose of this study is to identify key motivations for adolescents using and shopping on the Internet, and to segment the sample based on these motivations.Design/methodology/approach - This research occurs in two phases; a qualitative phase involving interviews with adolescents aged 12-15 and parents of adolescents in this age group. Then, a quantitative phase using a survey (n= 360) to measure the motivations and other key profiling variables identified in the qualitative phase and the literature review.Findings - The research identifies five basic motivations and two shopping motivations influencing adolescent online usage and shopping. Next, a cluster analysis is conducted using the motivations developed and is used to identify segments of adolescent Internet users and shoppers, which are subsequently described. Research limitations/implications - The sample of adolescents was taken from a town in the southeast United States. Caution should be taken when generalizing to adolescents outside this region. Practical implications - This research identifies for Internet marketers the different types of adolescent Internet users and shoppers. It also recognizes key motivations that marketers should consider when targeting adolescents.Originality/value - This research is the first to identify important segments of adolescents based on their motivations for online usage and shopping, and builds on a limited stream of research relative to adolescents and Internet shopping.

Does a surprise strategy need words? : the effect of explanations for a surprise strategy on customer delight and expectations

literatinetwork@emeraldinsight.com (Min Gyung Kim, Anna S. Mattila) — Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - Delighting customers by pleasant surprises is a common strategy yet the potential downside of such a strategy (i.e., raising customer expectations) has received scant attention. The purpose of this study is to examine the role of explanations as a solution to control customers’ expectations following a surprise-delight event.Design/methodology/approach - Hypotheses were tested with a 2(surprise) X 2(explanation) between-subjects experimental design in two different service contexts (utilitarian and hedonic). University staff and faculty members served as the participant pool.Findings - The results indicate that providing an explanation 1) helps to avoid raising customer expectations to unsustainable levels and 2) enhances customer delight.Research limitations/implications - Using hypothetical scenarios, single test for each context, and having the participants with high educational and income levels are identified as limitations in this study.Practical implications - This study demonstrates that providing appropriate explanations can reduce escalating expectations for future consumption episodes and thus help service firms to effectively delight their customers.Originality/value - This study is the first empirical study to test the use of explanation as a possible solution for problems associated with surprise strategies, therefore extending the relevant literature.

A practical perspective on the classification of service innovations

Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - This paper aims to link academic classifications of service innovation with practical activities by firms to detail the essence of service innovation.Design/methodology/approach - This research employs both qualitative and quantitative analyses. The qualitative study features interviews with senior managers from 590 companies, covering nine industries in Taiwan, to gather practitioners’ perspectives on service innovation. A content analysis details specific forms of service innovation. The quantitative study provides a homogeneity test and two-sample proportions test to examine differences in service innovation perspectives/activities across organizational characteristics.Findings - The interview data link three types of service innovations to 11 associated elements and 25 labels, derived from 659 potential service innovation incidents (550 new service concepts, 82 new service processes, and 27 new service business models). This study also shows that elements of service innovations vary by company size, service innovation experience, and industry life cycle.Practical implications - The three types of service innovations enable businesses to benchmark and modify their current service innovation activities. Service managers can use the results of this study to develop their own service innovation strategies and concrete action plans.Originality/value - This pioneering study links the viewpoints of academics with practical service innovation activities and empirically shows that service innovation is dissimilar, depending on various organization characteristics.

REVISITING INTERNAL MARKET ORIENTATION: A NOTE

Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - This note seeks to further our understanding of the domain of the IMO construct in a developing country, as suggested by Lings and Greenley (2005). We build on their proposed construct and provide empirical evidence of its impact in the context of the Indian banking industry. Design/methodology/approach - The behavioral dimensions of the construct are confirmed in a manner consistent with established market orientation (external) construct. The note validates scale pertaining to the wants and needs of bank employees for effective intelligence generation and dissemination as well as for effective response implementation. Findings - We find a positive significant relationship between internal market orientation and staff attitude and perceived customer satisfaction. Further, the impact of staff attitude on employee job satisfaction is also significant.Research limitations/implications - Internal Market Orientation, with the passage of time, may not be as prevalent and exhaustive as it is now because the nature of marketing environment is extremely dynamic. So, there is a need to make changes as time evolves so that this scale remains focused with high level of reliability and validity. Practical implications - To generate internal market intelligence, bank management should not only rely on internal customer surveys, but also the intelligence obtained through a variety of formal and informal means, such as meetings and discussion with internal customers; analysis of sales reports and worldwide customer databases; and formal market research, such as employees’ attitude surveys and sales response in test market.Originality/value - The present research would be of immense use to the managers’ world over for identifying key requirements of internal customers, which need to be evaluated consistently from time to time, for different strategic actions.

Investigating the impact of resource capabilities on customer loyalty: A structural equation approach for the UK hotels using online ratings

literatinetwork@emeraldinsight.com (USHA RAMANATHAN, Ramakrishnan Ramanathan) — Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - In this paper, we examine the impact of resource capabilities on customer loyalty of the UK hotels. Understanding this impact will help organisations to improve customer satisfaction in order to obtain improved customer loyalty. Design/methodology/approach - We use a relatively innovative data source, namely online ratings. We measure resource capabilities of a firm using customer ratings in terms of various operational criteria. Similarly, customer loyalty is measured using guests’ ratings on their intention to use the same service (stay again in the same hotel) and their intention to recommend the service to friends. We employ structural equation modelling to test research hypotheses. Findings - Our results indicate that there is a significant positive influence of resource capabilities on customer loyalty. We further find that the significant influence of resource capabilities on customer loyalty does not differ across hotels with various star ratings. Research limitations/implications - We looked at the online guest ratings available in a particular website, but it is only one of the many websites offering online hotel reservations, and not all customers that made hotel reservation using this e-booking facility will be inclined to leave feedback after their stay in the hotel. This limitation can be partially overcome by pooling similar data from a number of online hotel booking sites.Practical implications - The most important managerial implication is that good resource capabilities of firms translate well into customer loyalty. Thus, managers should ensure good performance in terms of various hotel attributes – cleanliness, quality of room, facilities, and customer service, and also ensure that customers perceive good value for their money while staying in the hotel.Originality/value - We applied structural modelling framework to verify the resource capability – performance link in the context of hotels. We used a relatively novel data source – online guest ratings of hotels – to understand the relationships between resource capabilities and customer loyalty.

Design of contracts between knowledge-intensive service firms in comparative property right settings

literatinetwork@emeraldinsight.com (Stephen Rosenbaum) — Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - This article explores how knowledge-intensive service firms design inter-firm contracts to govern the exchange of highly intangible and inseparable knowledge under varying degrees of property right protection. Design/methodology/approach - Multiple case study of management consulting firms domiciled in Serbia and Albania Findings - Firms domiciled in relatively weak property right settings prefer more informal contracts, whereas those in settings of superior property right protection favour greater formality as a means of encouraging the creation and sharing of knowledge, whilst concurrently mitigating the threat of opportunism. Research limitations/implications - This article contributes new knowledge with regard to the design of inter-firm contracts to govern the sharing of highly intangible and inseparable knowledge. In terms of theory, it employs a transaction cost economics approach in which inter-firm contracts are decomposed into five requisite provisions, which are then related to the degree of formality. Practical implications - Knowledge-intensive service firm managers should assess the degree of property right protection when considering the degree of formality of inter-firm contracts. Originality/value - The study constitutes the first attempt to empirically examine how knowledge-intensive service firms craft contracts in different property right settings. With the burgeoning number of cross-border collaborative partnerships between such firms, it offers important insights into the choice of governance mechanism in different property right protection settings.