Jochen Wirtz

Congruency of scent and music as a driver of in-store evaluations and behavior

Abstract Retailers have long understood the importance of store environment in enhancing the shopping experience, and past research has examined the main effects of many pleasant ambient stimuli such as music and scent. To further our theoretical understanding, we extend the notion of Gestalt to consumers’ perceptions of retail environments and demonstrated that consumers perceive Servicescapes holistically. Specifically, we suggest that the arousing quality of ambient stimuli is one dimension along which holistic evaluations occur, and that pleasant ambient stimuli are perceived more positively when their arousing qualities match rather than mismatch. We manipulated scent and music in a 3 (no music, pleasant low arousal and high arousal music) by 3 (no scent, pleasant low and high arousal scents) factorial design in a field setting. Our findings show that when ambient scent and music are congruent with each other in terms of their arousing qualities, consumers rate the environment significantly more positive, exhibit higher levels of approach and impulse buying behaviors, and experience enhanced satisfaction than when these environmental cues were at odds with each other.

Consumer Satisfaction with Services: Integrating the Environment Perspective in Services Marketing into the Traditional Disconfirmation Paradigm

Abstract Russell’s model of affect, with its two dimensions of pleasure and arousal, has been used increasingly to model the experiential nature of services. The outcome variable used in this stream of research is still the original approach/avoidance response behavior as developed by environmental psychologists. This is in contrast to much of the research in consumer behavior, which uses satisfaction to evaluate consumption experiences. In this study, a conceptual model is proposed that integrates the research on the environmental perspective of service experiences with the standard satisfaction model. An experiment was conducted to test a part of this model. It was found that, as hypothesized, confirmation/disconfirmation has a direct and positive effect on pleasure, and both, in turn, have direct and positive effects on satisfaction. The hypothesized role of arousal could not be confirmed.

The effects of incentives, deal proneness, satisfaction and tie strength on word‐of‐mouth behaviour

Although more than 30 years of research has established the power of word‐of‐mouth (WOM), little work has focused on how it could be managed more effectively. This study examines how incentives would work to actively encourage WOM, and how incentives would potentially interact with other variables that have been shown to drive WOM. In particular, a 3 × 3 × 2 experiment was conducted to examine the impact of incentives, tie‐strength, and satisfaction on WOM behavior. Consumer deal proneness was investigated using a quasi‐experimental design. Suggests from the findings that satisfaction does not necessarily increase the likelihood of WOM being generated. Shows incentives to be an effective catalyst to increase the likelihood of WOM being generated by satisfied consumers and tie strength to be an important variable in explaining WOM behavior. Suggests from the findings that deal prone consumers generate more WOM, independent of incentives. The findings have important implications, and suggest that satisfied customers are a necessary but not sufficient condition for getting positive WOM, and that incentives may be an effective way to get satisfied customers to recommend a firm. Furthermore, incentive programs targeted at strong ties are likely to be more effective than those targeted at weak ties, provided customers are genuinely happy with the service provided.

The Moderating Role of Target-Arousal on the Impact of Affect on Satisfaction—An Examination in the Context of Service Experiences

Abstract Recently, an increasing number of studies have focused on the emotional role of satisfaction in the consumption of services. In this study, a new moderating variable called “target-arousal level” was introduced to advance our understanding of the role of pleasure and arousal in the satisfaction evaluation process. The results from our experimental study indicate that the traditional pleasure-arousal interaction effect (e.g., Mehrabian and Russell, 1974 ) might be limited to high target arousal situations. Optimal arousal theories (e.g., Berlyne, 1960 ), on the other hand, might offer a fruitful framework for the satisfaction-arousal link in low target arousal environments.

Managing brands and customer engagement in online brand communities

Purpose – Given the dramatic technology‐led changes that continue to take place in the marketplace, researchers and practitioners alike are keen to understand the emergence and implications of online brand communities (OBCs). The purpose of this paper is to explore OBCs from both consumer and company perspectives.Design/methodology/approach – The study provides a synthesis of the extant OBC literature to further our understanding of OBCs, and also puts forth future priorities for OBC research.Findings – A conceptual framework is provided that extends our understanding of OBCs and consumer engagement. Four key OBC dimensions (brand orientation, internet‐use, funding and governance) are identified and three antecedents (brand‐related, social and functional) are proposed of consumer‐OBC engagement.Originality/value – This study is the first to explore key dimensions of OBCs, and the differing but related perspectives of the consumers and organizations involved.

Has Revenue Management become Acceptable? Findings from an International Study on the Perceived Fairness of Rate Fences

Demand-based pricing is underused in many service industries, because customers are believed to perceive such pricing as unfair. Fencing can be highly effective in improving the perceived fairness of demand-based pricing. In this study, five fences were explored in a restaurant context across three countries (Singapore, Sweden, and the United States). Demand-based pricing in the form of coupons (two for the price of one), time-of-day pricing, and lunch/dinner pricing were perceived as fair. Weekday/ weekend pricing was seen as neutral to slightly unfair. Table location pricing was seen as somewhat unfair with potential negative consumer reactions to this practice. Furthermore, framing demand-based pricing as discounts improved perceived fairness. The findings were largely consistent for the three countries. Specifically, framing demand-based pricing as discounts or gains showed no country-specific effect.

The role of preconsumption affect in postpurchase evaluation of services

The primary objective of this article is to examine the impact of preconsumption affect on consumers’ postpurchase evaluations. More specifically, we wanted to investigate how the two basic dimensions of affect — pleasure and arousal — contribute to customer evaluations of different types of services. To test our hypotheses, four service settings reflecting the quadrants in Russell’s Circumplex Model of Affect were chosen. Data were collected at two points of time: at the preprocess stage and immediately after the core service delivery. The results of this study suggest that pleasure and arousal, the two dimensions of emotional responses to the preprocess service environment, may interact in determining postpurchase evaluations. The interaction effect was observed for global satisfaction judgments and for repeat purchase behavior, thus suggesting that the combined effects of arousal and pleasure need to be considered in the design of preconsumption service settings. 2000 John Wiley & Sons, Inc.

The Moderating Role of Familiarity in Fairness Perceptions of Revenue Management Pricing

Perceived fairness of revenue management (RM) pricing is a serious concern, as RM uses different prices for fundamentally the same service. The authors examine the effects of familiarity with an RM pricing practice, framing of prices, and fencing condition (i.e., whether a respondent was advantaged or disadvantaged by an RM price) on fairness perceptions. The authors conduct two experiments and find that familiarity moderated the effects of framing and fencing condition on consumers’ fairness perceptions. Specifically, framing and fencing condition had strong effects on perceived fairness when respondents were less familiar with a pricing practice. However, when familiarity was high, neither the framing nor fencing condition effect was significant. Our findings suggest that familiarity may be a boundary condition for prospect theory.

How Effective Are Loyalty Reward Programs in Driving Share of Wallet

This study, set in a credit card context, examines the impact of loyalty programs on share of wallet and explores the moderating role of attitudinal loyalty on this relationship. The authors are particularly interested in two characteristics of reward programs: their perceived attractiveness and perceived switching costs between loyalty programs. Their findings suggest that perceived switching costs are highly effective in driving share of wallet at low rather than high levels of attitudinal loyalty, and only when combined with an attractive reward program. The attractiveness of a reward program, on the other hand, has a positive impact on share of wallet regardless of the level of psychological attachment to the company. These findings are particularly important for service providers in markets characterized by undifferentiated product offerings and low perceived switching costs between service providers.

Customers behaving badly: a state of the art review, research agenda and implications for practitioners

Purpose – The purpose of this paper is to highlight important issues in the study of dysfunctional customer behavior and to provide a research agenda to inspire, guide, and enthuse. Through a critical evaluation of existing research, the aim is to highlight key issues and to present potentially worthy avenues for future study. Design/methodology/approach – In reviewing recent and past advances in the study of customers behaving badly, an overview of existing research into customers behaving badly and addressing issues of terminology and definition is provided. Thereafter, three perspectives that provide the most opportunity and insight in studying the darker side of service dynamics are outlined. This leads to a review of some of the research design and methodological problems and issues that are faced when rigorously studying these issues. Subsequently, the paper devotes a section to the provocative idea that while dysfunctional customer behavior has many negative influences on customers, employees, and service firms, there are actually some positive functions of customers behaving badly. Findings – A research agenda is provided that is believed to identify and discuss a range of projects that comprises not only insightful theoretical contributions but is also practically relevant. Originality/value – The paper identifies a range of issues about which managers should be aware and proactively manage.