Bodo Lang

Switching barriers in consumer markets: an investigation of the financial services industry

Much research looks at why customers switch service organizations but there has been less focus on why customers do not switch service organizations, even though they have seriously considered doing so. In light of this, we present an analysis of the literature and develop a list of potential switching barriers. These switching barriers are then empirically tested within two financial services industries. Results from over 400 consumers enable us to ascertain not only the importance of each switching barrier but also to develop a more parsimonious understanding of these barriers, through factor analysis. The results reveal similar patterns in the two industries in respect to switching barriers. The first of the four factors contains reasons related to apathy, the second factor contains negative reasons for customers staying with their current service provider, the third factor relates to relationship variables and the final factor relates to service recovery. Results clearly indicate that the first two factors are far more important than the latter two in terms of why customers stay even when they seriously considered leaving.

Relationship quality, on‐line banking and the information technology gap

In a world of escalating competitiveness, information technology (IT), such as online banking, and relationship marketing are becoming increasingly important to marketers. This paper investigates the impact of IT in a relationship marketing context. In particular it focuses on how customers use a combination of IT channels to interact with their financial service provider and how this interaction affects the relationship quality between the customer and the financial service provider. This study provides empirical evidence that indicates that those customers who do not exhibit an “IT gap” have more positive perceptions of their relationship with their financial service provider. These findings suggest that firms that fail to provide channels that their customers seek and value will find it more difficult to forge strong relationships with their customers – a critical condition for success in many of today’s industries.

CONCLUSION EXPLICITNESS IN ADVERTISING: The Moderating Role of Need for Cognition (NFC) and Argument Quality (AQ) on Persuasion

Previous research into the use of explicit and implicit conclusions in advertising has yet to demonstrate consistent effects for both brand attitudes and purchase intentions. While research has examined the role of involvement, this study contributes by examining the trait called need for cognition (NFC), which addresses a persons propensity to engage in effortful thinking. In addition, this study introduces argument quality (AQ) as another potential moderator of conclusion explicitness effects. In a 2 × 2 experiment of 261 subjects, conclusion explicitness (explicit conclusion, implicit conclusion) and AQ (strong, weak) are manipulated, with NFC (high NFC, low NFC) as a third measured variable. Results indicate more favorable evaluations for implicit conclusions over explicit conclusions for high-NFC individuals. Further, implicit conclusions result in more favorable brand attitudes and purchase intentions when linked with strong AQ for high-NFC individuals. The findings confirm that conclusion explicitness does not differentially affect the evaluations of low-NFC subjects. Results suggest that NFC may represent an important moderating variable for future conclusion explicitness research.

Modeling utilitarian‐hedonic dual mediation (UHDM) in the purchase and use of games

Purpose – It is assumed that consumers consume games to experience hedonic and utilitarian value. However, there is no conceptual model or empirical evidence that supports this hypothesis in the game context or clarifies whether these consumption values have dual mediated or individual effects. Therefore, the purpose of this research is to model the relationship between hedonic and utilitarian consumption and game purchase and usage.Design/methodology/approach – This research question is answered through two studies. In Study One, qualitative interviews with 18 gamers were implemented to explore the relationship between hedonic and utilitarian consumption and, game purchase and usage behaviour. In Study Two, we surveyed 493 consumers and conducted confirmatory factor analysis and structural equation modelling across four game types to model this relationship.Findings – The paper concludes that hedonic rather than utilitarian consumption positively impacts purchase and usage. Support was also found for the...

Positive and negative consequences of a relationship manager strategy: New Zealand banks and their small business customers

Abstract This study analyses the impact of a relationship strategy in a business-to-business context. Specifically, we examine the influence of a relationship manager on the quality of the relationship between small businesses and their main provider of banking services. Importantly, we compare the overall relationship quality between those businesses that are assigned a relationship manager to those who are not. Results from 879 small business customers reveal that when a relationship manager performs well many benefits accrue—compared to those firms without a relationship manager. When a relationship manager performs inadequately, however, difficulties arise indicating that it is not the existence of the relationship manager that makes a difference but the execution of the strategy. The paper concludes by analysing two banks that are part of the study, one that has implemented their relationship manager strategy successfully and one that has encountered problems. This case analysis leads to recommendations regarding the execution of a relationship manager strategy.

How word of mouth communication varies across service encounters

Purpose – Word‐of‐mouth (WOM) communication, satisfaction and service quality are inextricably linked. However, despite much research, the shape of the satisfaction‐WOM relationship is not known. At present, three relationships are supported. This paper aims to develop and test a model of how the satisfaction‐WOM relationship varies depending on the type of service encounter, thus reconciling past conflicting findings.Design/methodology/approach – A number of service quality indicators are manipulated and a fully factorial 2×3 experiment is conducted to test the hypotheses on 281 respondents.Findings – All four hypotheses are supported; in certain types of service encounters high levels of satisfaction lead to greater WOM activity than low levels of satisfaction (positivity bias) and this relationship is reversed in a second type of service encounter (negativity bias).Research limitations/implications – This research shows that relationships between constructs are highly context dependent and can change d...

Modeling game usage, purchase behavior and ease of use

Abstract Existing theory posits that ease of use is a fundamental driver in marketing related technology, such as computer games, of usage and purchase by users. However, there is no empirical evidence to support this proposition. Therefore, this research models the relationship between the user’s game purchase and usage behavior and ease of use. In, 2009, 493 users in New Zealand responded face-to-face to complete a structured questionnaire. The analysis tested the conceptual model with confirmatory factors analysis (CFA) and structural equation modeling (SEM). The modeling tested game usage and purchase across four competing model types: (1) the original model (all games) and alternative models: (2) Sports/Simulation/Driving, (3) Role Playing Game (RPG)/Massively Multiplayer Online Role-Playing Game (MMORPG)/Strategy and (4) Action/Adventure/Fighting. We investigated the impact of ease of use on game usage and purchase behavior, both individually and simultaneously. In our confirmatory factor analysis and structural equation modeling, all of our models had adequate model fit with the exception of the original model. Our path coefficients indicate that ease of use of a game does not impact usage and/or purchase behavior. Research implications are discussed.

Dissecting Word-of-Mouth's Effectiveness and How to Use It as a Proconsumer Tool

Companies are increasingly relying on alternative promotional activities, such as word-of-mouth communication (WOM), to reach their target markets. From a consumer protection perspective this may be troubling, as consumers may not always be aware of what is commercially motivated WOM and what is not. Based on a synthesis of the literature, this article develops the first practitioner-friendly model, which explains WOMs effectiveness as an information source for consumers and why it is a powerful tool for nonprofit organizations and government agencies. Then nine recommendations are developed to help nonprofit organizations and government agencies use WOM more effectively as a proconsumer tool. This is the first article to conceptualize proconsumer WOM rather than naturally occurring WOM or commercial WOM and to specifically focus on WOM to protect and educate consumers. The study paves the way to an untapped research area; that of proconsumer WOM by nonprofit organizations and government agencies.