Min-Hsin Huang

Re‐examining the effect of service recovery: the moderating role of brand equity

Purpose – The purpose of this study is to investigate the role of brand equity in handling service failure and examine the effects of brand equity on service recovery.Design/methodology/approach – A conceptual framework is proposed which includes that satisfaction, as a mediator, accounts for the relationship between service recovery attributes (distributive, procedural, and interactional justice) and post‐recovery behavior (repatronage intentions and word‐of‐mouth behavior). More importantly, brand equity is used to serve as the moderator in the hypothesized research model. Structural equation modeling techniques are applied to data collected from a field study in Taiwan to test the framework.Findings – Results from the current field study found that strong brand equity provides an overall advantage over weak brands in increasing service recovery satisfaction and behavior intentions (repatronage intentions and word‐of‐mouth behavior).Research limitations/implications – The data used in this study were co...

Determinants of price elasticities for private labels and national brands of cheese

An Almost Ideal Demand System model is developed and used to estimate price elasticities for US cheese sold at retail. Growing consumption of cheese coupled with fierce competition between private labels and national brands serves as motivating factors for this study. Per capita consumption of cheese grew by 75% during 1980–2004 and private labels captured a rising share of this growth. Private labels today account for 35% of market share; national brands, for the remaining 65%. Kraft accounts for 45% of national brands, but price increases for Kraft brands led to a sizeable price gap between its brands and private labels. This gap helped to stimulate growth of private labels. Marketing managers seek to capitalize on both growing cheese sales and price gaps for brands. Relevant information for marketing managers is consumer sensitivity to price changes. This study uses 69 weeks of scanner data, with consumers segmented by income levels to derive price elasticities for both lower-and higher-income consumers. Results show lower-income consumers to be more price sensitive. If large price gaps are maintained, the results suggest continued growth of private labels. Yet, meta-analyses for this study suggest that Kraft could lower the price gap and regain market share.

Consumer Knowledge and Risk Perceptions of Avian Influenza

This study examined consumer risk perceptions and knowledge of avian influenza and its linkage to behavioral changes in chicken consumption. A consumer survey was administered in 3 metropolitan areas in Taiwan in 2007. Multivariate analyses were utilized in this study to analyze data. Findings in this study indicated that respondents who were more knowledgeable of avian influenza with relatively high levels of risk perceptions would be likely to stay away from birds and the crowd. Respondents with relatively low levels of avian influenza knowledge were likely to prefer not eating chicken at all under a possible threat of avian influenza outbreaks. Respondents with low risk perception levels would be more likely to maintain usual chicken consumption than those with high risk perception levels if outbreaks of avian influenza occurred. Contributions of this study are to provide new insights into knowledge and risk perceptions of avian influenza and to reveal behavioral changes in chicken consumption in an area that a pandemic situation like avian influenza has not occurred but under a possible threat. Findings in this study would be beneficial to government administration and industry managers in designing effective information communication for educational purposes to ease possible effect on the industry as well as the consumer market if outbreaks had occurred in Taiwan.

Strategies to enhance consumers’ identification with a service firm

Purpose Enhancing consumer-company identification (CCI) is a useful means by which to build deeper, more committed relationships with consumers. The purpose of this paper is to examine how consumers’ perceptions about the company (service quality and corporate social responsibility) and construal of the self (independent self-construal and interdependent self-construal) affect their identification with a service firm. This study also investigates how consumers’ involvement with the service firm moderates the relationships between CCI and four specific drivers. Design/methodology/approach A conceptual model is developed and empirically tested through two field-based studies (restaurant services and financial services) and one follow-up laboratory experiment. Findings The results of this research show that service quality, corporate social responsibility and interdependent self-construal positively affect CCI and that independent self-construal has a negative effect on CCI. In particular, the greater the involvement of the consumer with the service firm, the more positive the effects of service quality and corporate social responsibility are on CCI. Practical implications This research provides new insight into services marketing management by suggesting that service firms can enhance CCI and, consequently, consumer loyalty by adopting different strategies for specific consumer segments. Originality/value This is the first empirical study to simultaneously incorporate both company characteristics and consumer personal factors into a framework, and provide an integrative understanding of what factors determine consumers’ identification with a service firm.

A longitudinal comparison of customer satisfaction and customer-company identification in a service context

Purpose Customer satisfaction (CS) and customer-company identification (CCI) are two important relational constructs and play a complementary role in the service-profit chain. Drawing from the theory of relationship dynamics, the purpose of this paper is to define CS velocity and CCI velocity as the rate and direction of change in CS and CCI, respectively. A comparison of the relative effects of CCI velocity and CS velocity on customer loyalty is done through a latent growth curve modeling approach. Design/methodology/approach A conceptual model is developed and empirically tested based on four waves of a longitudinal survey of 213 restaurant customers. Findings The results show that both CCI velocity and CS velocity have positive effects on customer loyalty. More importantly, the effects of CCI velocity on customer loyalty over time are stronger than those of CS velocity. The moderation analysis further shows that the higher the frequency of visits to the service firm, the stronger the effects of relationship velocity on customer loyalty. Practical implications The results provide new insights for service marketing managers by suggesting that, to benefit the long-term effectiveness of relationship investments, service firms should shift the priority from increasing CS to engendering CCI. Originality/value This paper contributes to the theory of relationship dynamics by conceptualizing new constructs of CS velocity and CCI velocity and by empirically comparing their relative effects on customer loyalty over time.