Christian Homburg

Applications of structural equation modeling in marketing and consumer research: A review

Abstract This paper reviews prior applications of structural equation modeling in four major marketing journals (the Journal of Marketing, Journal of Marketing Research, International Journal of Research in Marketing, and the Journal of Consumer Research) between 1977 and 1994. After documenting and characterizing the number of applications over time, we discuss important methodological issues related to structural equation modeling and assess the quality of previous applications in terms of three aspects: issues related to the initial specification of theoretical models of interest; issues related to data screening prior to model estimation and testing; and issues related to the estimation and testing of theoretical models on empirical data. On the basis of our findings, we identify problem areas and suggest avenues for improvement.

A Multiple-Layer Model of Market-Oriented Organizational Culture: Measurement Issues and Performance Outcomes

Previous research addressing market orientation from a cultural perspective typically has used behavioral measures of this construct. Drawing on literature in the fields of organizational theory and marketing, the authors develop a multilayer model of market-oriented organizational culture. They draw an explicit distinction among values that support market orientation, norms for market orientation, artifacts indicating high and low market orientation, and market-oriented behaviors. On the basis of qualitative research and a subsequent survey, the authors develop scales for measuring the different layers of market-oriented culture and analyze relationships among the different components of market-oriented culture. Findings indicate that artifacts play a crucial role in determining behavior within organizations. Results also indicate that a market-oriented culture influences financial performance indirectly through market performance and that this relationship is stronger in highly dynamic markets.

Personal characteristics as moderators of the relationship between customer satisfaction and loyalty—an empirical analysis

Previous empirical research on the relationship between customer satisfaction and loyalty has largely neglected the issue of moderator variables. In a consumer-durables context the authors analyze the moderating effect of selected personal characteristics on the satisfaction–loyalty link. The empirical findings, which are based on multiple-group causal analysis, show that the strength of the relationship between customer satisfaction and loyalty is strongly influenced by characteristics of the customer. Specifically, variety seeking, age, and income are found to be important moderators of the satisfaction–loyalty relationship.

Buyer-Supplier Relationships and Customer Firm Costs

Academic literature and business practice are directing increased attention to the importance of creating value in buyer–supplier relationships. One method for creating value is to reduce costs in commercial exchange. The authors develop a model that explains how supplier behaviors and the management of suppliers affect a customer firms direct product, acquisition, and operations costs. The model proposes that these costs mediate the relationship between buyer–supplier relationship behaviors and the customer firms intentions to expand future purchases from the supplier. The model is tested on data collected from almost 500 buying organizations in the United States and Germany. The results indicate that increased communication frequency, different forms of supplier accommodation, product quality, and the geographic closeness of the suppliers facilities to the customers buying location lower customer firm costs. In addition, customer firms intend to increase purchases from suppliers that provide value by lowering each of these costs.

Do Satisfied Customers Really Pay More? A Study of the Relationship Between Customer Satisfaction and Willingness to Pay

Two experimental studies (a lab experiment and a study involving a real usage experience over time) reveal the existence of a strong, positive impact of customer satisfaction on willingness to pay, and they provide support for a nonlinear, functional structure based on disappointment theory (i.e., an inverse S-shaped form). In addition, the second study examines dynamic aspects of the relationship and provides evidence for the stronger impact of cumulative satisfaction rather than of transaction-specific satisfaction on willingness to pay.

Does Customer Interaction Enhance New Product Success

Abstract Recent years have witnessed a resurgence of academic and practitioner interest in new product development and in the way companies interact with their customers. While there has been considerable scientific progress in both research areas, very limited attention has been given to customer interaction in the new product development process as a means to increase new product success. This article reports on research assessing the performance impact of (1) the intensity of customer interaction in different stages of the new product development process and (2) the characteristics of the involved customers. The research is based on field interviews as well as statistical analyses of a sample in the machinery industry. Results indicate that customer interaction during certain stages (but not others) of the new product development process has a positive impact on new product success. The characteristics of the involved customers have a significant effect on new product success as well. As an example, collaborating with financially attractive customers or customers exhibiting lead user characteristics increases new product success.

How Organizational Complaint Handling Drives Customer Loyalty: An Analysis of the Mechanistic and the Organic Approach

This article addresses how an organizations complaint management affects customer justice evaluations and, in turn, customer satisfaction and loyalty. In delineating an organizations complaint management, the authors draw a distinction between two fundamental approaches, the mechanistic approach (based on establishing guidelines) and the organic approach (based on creating a favorable internal environment). The empirical analysis is based on a dyadic data set that contains managerial assessments of companies’ complaint management and complaining customers’ assessments with respect to perceived justice, satisfaction, and loyalty. Findings indicate that though both the mechanistic and the organic approach significantly influence complaining customers’ assessments, the mechanistic approach has a stronger total impact. Moreover, the study provides evidence of a primarily complementary relationship between the two approaches. Another key facet of the study is related to the moderating influences of the type of business (business-to-business versus business-to-consumer) and type of industry (service versus manufacturing). The results show that the beneficial effects of the mechanistic approach are stronger in business-to-consumer settings than in business-to-business ones and for service firms than for manufacturing firms.

Marketing's influence within the firm

Although there is increased interest in marketings changing role within the firm, there is little empirical research that measures the influence of marketing or links marketings role to situation...

Service Orientation of a Retailer’s Business Strategy: Dimensions, Antecedents, and Performance Outcomes

Augmenting products with services is a major way retailers have of gaining differentiation in todays competitive market. Despite its importance, this topic has received relatively little research attention. Unlike previous research, this study adopts a more comprehensive perspective on retail services by examining three important research gaps related to a service-oriented business strategy: First, the authors elaborate on the dimensions of a service-oriented business strategy and introduce a new measure of this strategy. Second, the authors examine the antecedents of a service-oriented business strategy. In practice, there appears to be considerable variability in terms of the extent to which retailers demonstrate a service orientation, but there is a major gap in the understanding of what factors influence this orientation. Third, the authors investigate the neglected link between a service-oriented business strategy and performance outcomes. To examine these three important areas, the authors conducted an empirical study of clothing and furniture retailers in both the United States and Germany. This study provides evidence for the proposed conceptualization of a service-oriented business strategy. The authors also find that the investigated antecedents account for some variance of a service-oriented business strategy, which in turn positively affects company performance in the market and thereby profitability. Furthermore, the authors discuss several important research issues as well as managerial implications and future research avenues.

A Configurational Perspective on Key Account Management

Most firms struggle with the challenge of managing their key customer accounts. There is a significant gap between the importance of this organizational design problem in practice and the research attention paid to it. Sound academic research on key account management (KAM) is limited and fragmented. Drawing on research on KAM and team selling, the authors develop an integrative conceptualization of KAM and define key constructs in four areas: (1) activities, (2) actors, (3) resources, and (4) approach formalization. Adopting a configurational perspective to organizational research, the authors then use numerical taxonomy to empirically identify eight prototypical KAM approaches on the basis of a cross-industry, cross-national study. The results show significant performance differences among the approaches. Overall, the article builds a bridge between marketing organization research and relationship marketing research.