Dwayne D. Gremler

Relational benefits in services industries: The customer's perspective

This research examines the benefits customers receive as a result of engaging in long-term relational exchanges with service firms. Findings from two studies indicate that consumer relational benefits can be categorized into three distinct benefit types: confidence, social, and special treatment benefits. Confidence benefits are received more and rated as more important than the other relational benefits by consumers, followed by social and special treatment benefits, respectively. Responses segmented by type of service business show a consistent pattern with respect to customer rankings of benefit importance. Management implications for relational strategies and future research implications of the findings are discussed.

The loyalty ripple effect

The influence of loyal customers can reach far beyond their proximate impact on the company. This impact is analogous to the ripple caused by a pebble tossed into a still pond. In this article we introduce the loyalty ripple effect construct and define it as the influence, both direct and indirect, customers have on a firm through (1) generating interest in the firm by encouraging new customer patronage or (2) other actions or behaviours that create value for the organization. That is, in addition to their revenue stream, we suggest loyal customers may engage in several behaviours, including word‐of‐mouth communication, that add value to or reduce costs for the firm. In our discussion, we provide some examples to illustrate our point and conduct an exploratory study related to arguably the most salient ripple generator, word‐of‐mouth communication. The paper concludes with managerial implications and provides some suggestions for future research.

The Internal Service Encounter

An internal customer′s (i.e. employee′s) satisfaction with a service firm can be significantly influenced by service encounters experienced with internal service providers. For example, a loan officer′s satisfaction with the bank he/she works for may well be influenced by internal services provided by the data processing group. Introduces the concept of the “internal service encounter” and presents the results of an initial study of internal service encounter satisfaction. The empirical study builds on previous research in using the critical incident methodology to examine internal services in a large US bank. Indicates that internal customers are similar to external customers in that, with a few interesting differences, the same types of events and behaviours distinguish satisfactory and dissatisfactory incidents in both internal and external encounters. Implications for managers and suggestions for future research are also presented.

Experiential Learning Exercises in Services Marketing Courses

Business schools are often accused of focusing too much on quantitative and technical skills and spending too little time on interpersonal and communication skills. Experiential learning assignments provide an effective vehicle for addressing these concerns and are particularly well suited for services marketing courses. The objective of this article is to present a portfolio of experiential learning exercises that can be used in services marketing courses to facilitate the integration of course concepts, teamwork and team building, communication and listening skills, and critical thinking and problem solving.

Guaranteeing Student Satisfaction: An Exercise in Treating Students as Customers

Service guarantees, formal promises made to customers about the service they will receive, are rarely offered in university classes. In this article, the authors report on their experience in guaranteeing the satisfaction of undergraduate students with the instructor’s performance. The rationale for, success of, and lessons learned from this pedagogical exercise are reviewed. In addition, detailed feedback from students gained through focus group interviews and a written student assignment regarding the guarantee is examined. General advice related to the guarantee is offered for instructors interested in guaranteeing their own performance.

Why Customers Build Relationships with Companies - and Why not

Although relationship marketing has received much attention in recent years, most of the literature focuses on benefits the firm receives from developing relationships with customers. A comprehensive model explicitly considering both the benefits and barriers of such relationships from the customer’s perspective has not been proposed. To address this gap in the literature, this chapter develops an integrative theory of customers’ motivations to participate in relationships with companies. In particular, the authors review the existing literature on customers’ relational motivations for participating in business exchanges and subsequently present an integrative model of both benefits and barriers to such relationships from a customer perspective. They then report the results of a study examining a portion of the relational benefit side of the model. Finally, implications for the management of relationships with customers are discussed.

The internal service encounter

An internal customer′s (i.e. employee′s) satisfaction with a service firm can be significantly influenced by service encounters experienced with internal service providers. For example, a loan officer′s satisfaction with the bank he/she works for may well be influenced by internal services provided by the data‐processing group. Introduces the concept of the “internal service encounter” and presents the results of an initial study of internal service encounter satisfaction. The empirical study builds on previous research in using the critical incident methodology to examine internal services in a large US bank. Indicates that internal customers are similar to external customers in that, with a few interesting differences, the same types of events and behaviours distinguish satisfactory and dissatisfactory incidents in both internal and external encounters. Also presents implications for managers and suggestions for future research.