Executive summary of “Responses to other similar customers in a service setting – analyzing the moderating role of perceived performance risk”

Citation

(2014), "Executive summary of “Responses to other similar customers in a service setting – analyzing the moderating role of perceived performance risk”", Journal of Services Marketing, Vol. 28 No. 2. https://doi.org/10.1108/JSM-02-2014-0070

Executive summary of “Responses to other similar customers in a service setting – analyzing the moderating role of perceived performance risk”

Article Type: Executive summary and implications for managers and executives From: Journal of Services Marketing, Volume 28, Issue 2

This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present.

“Shall we go to that new café on the corner?” is a question which might get an enthusiastic and affirmative answer from the person being asked. On the other hand, he or she may say “Oh no, it’s full of young people and the music’s too loud. Let’s go somewhere else.” Equally, there are eateries where young people might not choose to go because they are “full of old people”, are “too quiet” and they would not feel comfortable there.

Then there are the shops where fashion-conscious teens and twenty-somethings with ripped jeans and trendy T-shirts form both the clientele and the store assistants and which a more mature customer might consider was not “for them”. They would feel more at home in a store with somewhat older customers and staff, and somewhere where the younger people might choose to avoid.

These attitudes have not been ignored by the marketing folk over the years and it is confidently assumed that it is not just the personnel and servicescape which influence the customer but also the interaction with – or just mere presence of – other customers who might be few or many. The concept of “other customers” (in itself a multidimensional construct consisting of number, age, gender, attire, public behavior and appearance, among others) is a useful thing for people selling stuff to know as it appears that individuals are not only more attracted to others who share similar attitudes, but are also more influenced by them.

From a firm’s point-of-view it is very important to attract the “right” customers and similarity effects within a service context have been found to have an important influence on customers’ attitudes and actions. For example, it is argued that people are more likely to relate to someone who wears the same type of clothes, or someone with whom they discover something else in common such as a shared birth date or birth place.

People’s perceptions of the service encounter they are likely to experience are important. The expectation of adverse consequences and the perception of uncertain outcomes are defined as “perceived risk” and the level of perceived risk is seen as a crucial factor in consumer behavior. As perceived risk increases, consumers engage in different types of risk-reduction activities, such as information seeking or altering purchase goals.

In “Responses to other similar customers in a service setting – analyzing the moderating role of perceived performance risk” Anna Dorothea Brack and Professor Martin Benkenstein find that positive emotions significantly strengthen the relationship between similarity and the willingness to interact with the other customers present. Defining similarity as the extent to which an individual (i.e. the customer) feels that he or she is similar to other customers in the service environment, they reveal that similarity is an important dimension in the customer-to-customer-relationship. They were able to show positive similarity effects in relation to the people’s willingness to interact with the customers present, joining and recommending a service provider, and their evaluation of the service provider. A mediating effect of positive emotions (joy and interest) on the link between similarity and willingness to interact with the customers present was shown.

Service managers should carefully consider the effects of similarity in a customer-to-customer-relationship and are advised to engage in wide-ranging analyses of their target group. Previous researchers have suggested that service firms should not be afraid to establish, communicate and enforce codes of conduct for customers. Policies to regulate dress, for example, may avoid dissatisfaction. A sensitive and clear position in the marketplace will also self-select compatible customers.

As customers show a greater willingness to interact with other similar customers present, consideration should also be given to grouping these customers together in a service location. Interaction between customers leads to bonds between similar others, and greater loyalty may serve to keep customers from trying other service providers. Positive word-of-mouth because of interaction and similarity may boost business by attracting new customers.

As risk increases, customers take many facets into consideration and behave rather cautiously. Therefore a wide range of factors which influence customers must be controlled. Environmental factors, such as ambient, design and social factors should be considered. As risk decreases, customers seem to be much easier to influence and lead by cues, thus effort should be spent on taking advantage of this. Consequently, the effect of similarity may be used as one cue in order to positively influence the social factor of a service setting and help customers to orientate themselves within the setting.

In short, service firms should take into account that similarity to other customers has positive effects and for that reason they should be aware of their customer profile. Risk should be reduced and cues that customers rely on, such as similarity, should be managed.

To read the full article enter 10.1108/JSM-05-2012-0089 into your search engine.

(A précis of the article “Responses to other similar customers in a service setting – analyzing the moderating role of perceived performance risk”. Supplied by Marketing Consultants for Emerald.)