David K. Tse

Models of Consumer Satisfaction Formation: An Extension

The authors extend consumer satisfaction literature by theoretically and empirically (1) examining the effect of perceived performance using a model first proposed by Churchill and Surprenant, (2) ...

The effects of strategic orientations on technology- and market-based breakthrough innovations

Does market orientation impede breakthrough innovation? To date, researchers have presented opposing arguments with respect to this important issue. To address this controversy, the authors conceptualize and empirically test a model that links different types of strategic orientations and market forces, through organizational learning, to breakthrough innovations and firm performance. The results show that a market orientation facilitates innovations that use advanced technology and offer greater benefits to mainstream customers (i.e., technology-based innovations) but inhibits innovations that target emerging market segments (i.e., market-based innovations). A technology orientation is beneficial to technology-based innovations but has no impact on market-based innovations, and an entrepreneurial orientation facilitates both types of breakthroughs. Different market forces (demand uncertainty, technology turbulence, and competitive intensity) exert significant influence on technology- and market-based innovations, and these two types of innovations affect firm performance differently. The results have significant implications for firm strategies to facilitate product innovations and achieve competitive advantages.

What to tell consumers in waits of different lengths: An integrative model of service evaluation

The authors conduct an experimental study to examine the impact of two types of waiting information—waiting-duration information and queuing information—on consumers’ reactions to waits of differen...

Strengthening Customer Loyalty Through Intimacy and Passion: Roles of Customer–Firm Affection and Customer–Staff Relationships in Services

This study extends the existing satisfaction–trust–loyalty paradigm to investigate how customers’ affectionate ties with firms (customer–firm affection)—in particular, the components of intimacy and passion—affect customer loyalty in services. In a bilevel model, the authors consider customer–staff and customer–firm interactions in parallel. Through a netnography study and survey research in two service contexts, they confirm (1) the salience of intimacy and passion as two underrecognized components of customer–firm affection that influence customer loyalty, (2) the complementary and mediating role of customer–firm affection in strengthening customer loyalty, (3) significant affect transfers from the customer–staff to the customer–firm level, and (4) the dilemma that emerges when customer–staff relationships are too close. The findings provide several implications for researchers and managers regarding how intimacy and passion can enrich customer service interactions and how to manage customer–staff relationships properly.

Advertising, propaganda, and value change in economic development: The new cultural revolution in China and attitudes toward advertising

Abstract Chinas adoption of advertising in its pursuit of modernization is traced. How Chinese consumers currently react to advertising, yesterdays villain, is documented. Chinese consumers were very positive about advertising and its consequences but disliked some aspects of current ads from Chinese firms and perceive them to be inferior to those of foreign firms. In particular, they rated Chinese ads low in aesthetics and honesty. On the other hand, the consumers were very positive and optimistic about advertisings economic and social consequences. These results suggest that China is in the midst of another cultural revolution, an eager adoption of consumption materialism.

Small details that make big differences : A radical approach to consumption experience as a firm's differentiating strategy

This is the authors’ accepted and refereed manuscript to the article. Publishers version is available at emeraldinsight.com

The impact of FDI on the productivity of domestic firms: the case of China

This paper expands existing international business literature by examining the impact of FDI on domestic firms. It investigates how FDI affects the productivity of domestic firms in China. The results show that FDI may exert a different impact on firms at the regional level than it does on firms at the industrial level. Domestic firms in regions that attract more FDI or have a longer history of FDI tend to have higher productivity, while domestic firms in industries that have more FDI or have a longer history of FDI tend to have lower productivity. Based on these findings, implications for local governments and foreign investors are discussed.

Organizational Design and Management Norms: A Comparative Study of Managers' Perceptions in the People's Republic of China, Hong Kong, and Canada

This study surveys 155 executivesfrom the Peoples Republic of China (PRC), Hong Kong, and Canada to investigate whether norms for organizational design and management are subject to a process of globalization. The survey consisted of structured questionnaires using two different sets of Likert-like importance rating scales. One set of scales examined organizational design norms. The other setfocused on the desired attributes of a good manager The balance of the evidence from this study supports the hypothesis of globalization. However, the study also indicates that some norms of organizational design that reflect basic cultural values are resistant to change and convergence. Furthermore, the study indicates that regulatory and political differences may be reflected in local adaptation of organizational and management design norms.

Interpersonal trust and platform credibility in a Chinese multibrand online community

Online communities offer attractive opportunities and challenges to advertisers. Using a revised source credibility framework, this study proposes that interpersonal trust and platform credibility are core to consumer search and consumption behaviors that allow advertisers to harvest value from online communities. We postulate that (1) quality Web features, and user instrumental and relational need fulfillment are antecedents of interpersonal trust and platform credibility; (2) interpersonal trust is distinct from, and an important driver of, platform credibility; and (3) both constructs drive a users online community usage and brand variety seeking behavior. An online survey of 899 consumers in China supports these propositions and offers both research and managerial implications for this new media platform.

Market Share Performance of Foreign and Domestic Brands in China

In this study, the authors examine market share performance of foreign and domestic brands in China. Drawing on the resource-based view and brand management literature, they investigate the impacts of three sets of factors: brands’ competitive advantages, external market environments, and the length of brand existence. The authors also examine the different influences of these factors on foreign versus domestic brands. The empirical testing is based on a survey of senior executives of 408 brands in 52 product categories in China. This study offers new findings on what drives the market share performance in transition economies.