Laszlo Sajtos

Impact of Service Failure: The Protective Layer of Customer Relationships:

Although there has been considerable research about service failure in the last 15 years, scholars have only recently started to examine its impact on relational constructs. This study proposes a holistic model that jointly investigates the role of company image and trust in response to service failures and their impact on the customer value-loyalty process across routine and service failure scenarios. Using survey data of a sample of 552 airline customers, the empirical results find evidence of a relational protective layer for the firm. This layer protects the customer value-loyalty process from the negative impact of service failure by exerting a halo effect on customer value and loyalty, which is concurrently magnified by this negative impact. Further analysis also indicates the diverse roles of company image and company trust in service failures, which reveals the coexistence of the buffering and magnifying effects. The findings underline that company image is the most versatile asset of the firm, and it can serve as an indicator of how service failures will affect the company. Company trust, as opposed to its passive role in routine situations, acts like a safety net in service failures by enhancing the customer’s value perception.

A new perspective on market dynamics: Market plasticity and the stability-fluidity dialectics

Several researchers have pointed out that if marketing is to develop as a discipline and contribute to solving complex business and societal challenges, it should question the neoclassical view of markets and develop its own theory of markets. Efforts in this direction indicate an emerging view of markets as dynamic, subjective, and subject to multiple change efforts. However, the neoclassical view of objective, detached, and deterministic market still influences the dominant models used to describe market change. We argue that in order to better understand market dynamics, both academics and practitioners need new concepts and constructs that go beyond existing linear process and development stage models. We seek to contribute to improved understanding of markets by studying a special characteristic of markets that enables market dynamics. Borrowing a term used by Alderson (1957: 277), we propose that markets are characterized by plasticity, that is, a “potentiality for being remolded and responding in a different way thereafter.” Even though the plasticity concept was introduced into the marketing literature nearly 60 years ago, the plastic character of markets remains underresearched. This article investigates the meaning and manifestations of market plasticity, drawing analogies from the physical, natural, and social sciences. We define market plasticity as the market’s capacity to take and retain form and propose that the dialectic between market stability and market fluidity lies at the heart of market change.

Measuring Consumer Interactivity in Response to Campaigns Coupling Mobile and Television Media.

ABSTRACT Consumers are increasingly using the mobile channel to be interactive with television programming and advertisements. To understand this emerging phenomena, we develop a model (the LOOP), conceptualizing the consumers interactivity when using their mobile phone to interact with television content. This model proposes new thinking regarding the role of the mobile channel in the consumers experience of the interactive television content. We define the consumers interactivity in terms of four characteristics: synchronicity, two-way dialogue, contingency, and user control. Based upon these characteristics, we use New Zealand and U.S. interactive television content related campaign data to develop five measures of campaign response effectiveness—Potential Audience Dialogue (PAD), Active Audience Dialogue (AAD), Interactive Audience Dialogue (IAD), Contingent Audience Loyalty (CAL), and Contingent Audience Wearout (CAW) We found similar response patterns across the tested New Zealand and U.S. campaigns, with more significant relationships emerging from interactive consumers who are loyal across campaigns.

Image, brand relationships and customer value

Purpose – While service brands are conceptualised as being both the company’s presented brand and the customer’s relationship experience, most research to date has supported the central role of the latter over the former in creating customer value and developing loyalty. Studies supporting the central role of relationship experience have relied on classification schemes that have been developed around the role of employees. In contrast, the purpose of this paper is to propose and test the effect of two new moderators, namely advertising spending- and labour-intensity (LI), in predicting the impact of company image and employee trust. Design/methodology/approach – Four contexts (banking, internet provider, insurance and hairdressing) were selected based on their advertising spending- and LI, and a multi-group structural equation modelling technique was employed to test for differences between contexts. Findings – Company image and employee trust were found to have a significant impact on customer value and...

The service dominant logic:an MC21 project view

Vargo and Lusch propose a very exciting framework that aims in expanding the boundaries of the marketing discipline by moving away from the existing exchange paradigm towards a Service Dominant (S-D) logic. This new S-D logic has the potential to strengthen the theoretical grounds of marketing by establishing links to other disciplines. This commentary attempts to discuss some aspects of the foundational premises of the S-D logic from the perspective of the MC21 group with special emphases on innovation, value creation, and resource allocation.

Activating multiple roles of customer-firm relationships in service failures

Purpose Scholars have proposed that the negative effects of service failures can be countered by developing and maintaining high quality customer-company relationships or by providing excellent service recovery to customers. While both strategies have been proposed as ways to overcome the negative effects of service failures, there are only a limited number of studies that have examined their joint effects. The purpose of this paper is to fill this gap by investigating the impact of these two strategies jointly on rumination (brooding and reflection), anger and customer forgiveness (revenge, avoidance and benevolence). Design/methodology/approach The experimental design used in this study is an adaptation of Mattila’s (2001) research design, which manipulated both the level of service recovery and relationship. A total of 677 respondents were assigned randomly to one of the six experimental conditions. Multi-group structural equation modeling was employed to estimate the proposed model across three relational conditions. Findings This study suggests that the buffering effects are directly triggered by the impact of relationships, whereas, the magnifying effects are primarily related to the customer’s cognitive processes. This study reveals multiple forms of concurrent buffering and magnifying effects in service failures. Originality/value The findings of the study led to a classification system of the various forms of buffering and magnifying effects of relationships in the event of service failures. The four active roles of relationships are identified as damage control, benefit catalyst, benefit attenuator and damage catalyst. This proposed typology breaks new ground for theorizing about relationship utilization in negative incidents.

Boundary objects for institutional work across service ecosystems

Institutional arrangements for collaborative purposes have gained increasing attention within research on service ecosystems. For collaborations to be effective, actors need to undertake institutional work that will result in new institutional arrangements. When institutional work takes place across service ecosystems, actors may be confronted with non-harmonious or conflicting institutional arrangements, which need to be reconciled by translating the incompatible views of diverse ecosystems. Therefore, the purpose of this paper is to introduce the concept of boundary objects as a means of facilitating institutional work across ecosystems, and present their mechanism in undertaking institutional work.,Longitudinal qualitative interviews were conducted with three key actors (funding agency, service provider and clinicians) in providing home-based support services (HBSS). The data were analyzed by undertaking a thematic analysis of the transcripts, which helped to identify the actors’ views on the nature of HBSS and its impact as a boundary object within the implementation of the case-mix system, and thus to empirically illustrate the theoretical assumptions.,The data assisted in the creation of a conceptualization that maps out the process of boundary objects facilitating (disrupting and creating) institutional work. This study supports that boundary objects disrupt boundaries between actors’ ecosystems, which was a sufficient condition to dismantle institutional support for the practices of individual fields. Furthermore, the object has changed the type and extent of interaction between actors in an ecosystem to allow these actors to redefine their identity and role in the new institutional arrangement.,This work has developed a novel conceptualization for a boundary object-led translation process in facilitating institutional work. To the researchers’ knowledge, this is the first study to explore the processes and mechanisms of boundary objects in facilitating institutional work across ecosystems.