Paul G. Patterson

Modelling the relationship between perceived value, satisfaction and repurchase intentions in a business‐to‐business, services context: an empirical examination

Examines the relationship between four key post‐purchase constructs: perceived performance, satisfaction, perceived value, and repurchase intentions, in a causal path framework in an empirical study of business‐to‐business professional services. Attempts to disaggregate performance into its component multiple dimensions, and assess the individual impact of each on post‐purchase evaluation processes. Shows that the effect of perceived value on repurchase intentions is completely mediated through satisfaction. Confirms six performance dimensions, each having a significant impact on both value and satisfaction and adds new insight to our understanding of the respective roles of perceived value, satisfaction and post‐purchase intentions.

Modeling the Determinants of Customer Satisfaction for Business-to-Business Professional Services

This research empirically examines for the first time the determinants of customer satisfaction or dissatisfaction (CS/D) in the context of business professional services. The simultaneous effect of key CS/D constructs (expectations, performance, and disconfirmation) and several variables—fairness (equity), purchase situation (novelty, importance, and complexity)—and individual-level variables (decision uncertainty and stakeholding) are examined in a causal path framework. Data were obtained from a two-stage longitudinal survey of client organizations. The results indicated substantial support for the hypothesized model. The effect of purchase situation and individual-level variables (via their indirect affects) rivals that of disconfirmation and expectations in explaining CS/D. Performance was found to affect CS/D directly but not as powerfully as disconfirmation.

Switching costs, alternative attractiveness and experience as moderators of relationship commitment in professional, consumer services

To date, empirical and conceptual models of relationship marketing have focused almost exclusively on a range of direct antecedents and mediator variables to explain variations in a dependent variable – usually relationship commitment. No attempt has been made to examine under what conditions these various antecedents have a stronger/weaker impact on relationship commitment. This paper extends the relationship marketing literature by testing a contingency model to assess the impact of trust and service satisfaction on relationship commitment under conditions of varying switching costs, alternative attractiveness and experience‐based norms, in the context of a professional consumer service. Employing a sample of 201 clients of financial planning services, we test 11 hypotheses formulated on the basis of a review of the services and relationship marketing literature, and a series of qualitative interviews with clients. The results clearly indicate that the impact of trust and satisfaction vary according to contingency conditions of switching costs, attractiveness of alternatives and client experience.

The impact of communication effectiveness and service quality on relationship commitment in consumer, professional services

Most previous research in the domain of relationship marketing has focused on the antecedents of loyalty and commitment in industrial markets, distribution channels or consumer goods. This study, however, models the antecedents of clients’ relationship commitment in the context of a professional service, high in credence qualities (where customers have difficulty in confidently evaluating service quality, even purchase and consumption) ‐ i.e. personal financial planning services. The impact of four key explanatory variables (communication effectiveness, technical quality, functional quality and trust) are examined. The results support the hypothesized model and show communication effectiveness to be a key driver of all antecedent variables, and the single most powerful determinant of relationship commitment.

A cross-cultural study of switching barriers and propensity to stay with service providers

Abstract This study examines the important and often underestimated role that switching barriers play in the propensity to stay with service providers. Three service types (with different structural characteristics) were studied across two diverse cultures—Australia (Western, individualistic culture) and Thailand (Eastern, collectivist culture). Six potential switching barriers are examined: search costs; loss of social bonds; setup costs; functional risk; attractiveness of alternatives; and loss of special treatment benefits. The results from a series of multiple regression analyses show switching costs capture a substantial amount of the explained variance in the dependent variable, propensity to stay with a focal service provider. Furthermore we demonstrate using interaction terms that these switching costs appear to be universal across west–east cultures. However, significant variations were found across industries. Next, using a hierarchical regression procedure, we add a satisfaction variable into each model. The incremental gain in R2 is significant in each industry. Nonetheless the significant impact of switching barriers gives rise to the identification of a new type of service loyalty, which we term “captive loyalty.”

Service Recovery and Fairness Perceptions in Collectivist and Individualist Contexts

As in other social exchanges, cultural norms and values are likely to influence customers’ perceptions of fairness and satisfaction with the service recovery process. This study contrasts the impact of two recovery attributes (compensation and explanation) on customers’ postrecovery perceptions in a cross-cultural context (East-Asia versus United States). The results from this experimental study indicate that compensation seems to drive customers’ fairness perceptions, in particular with American consumers. Offering an explanation for the failure had a positive impact on customer perceptions regardless of the customer’s cultural orientation. Finally, the study’s findings show that perceived fairness is directly linked to postrecovery satisfaction.

Relationship benefits in service industries: a replication in a Southeast Asian context

Because service encounters and service relationships are first and foremost social encounters, norms and expectations related to such encounters are likely to vary from culture to culture, but especially between high context Eastern, collectivist and low context, Western individualistic cultures. The purpose of this study was, in part, to replicate and then extend the work of Gwinner et al. in the USA, but this time in a Southeast Asian context. Gwinner et al.’s work examined the benefits customers perceive they receive from engaging in long‐term relationships with a variety of service‐providers. The current sample comprised 155 respondents in Bangkok, Thailand who each completed a series of questionnaires concerning their relational behavior with service suppliers. The results support the earlier study showing relational benefits can be categorized into three distinct benefit types. However, compared with the past research results in a Western context (USA), the results indicate some clearly discernible variations. It is apparent that we should not rely wholly on empirical research emanating from Western cultures, but also develop reliable models of how various marketing phenomena work in the rapidly expanding Asian economies.

Modeling relationship strength across service types in an Eastern culture

This study examines for the first time, antecedents of relationship commitment in service industries in an Eastern cultural context. The study investigates the reasons for customers engaging in long‐term relational exchanges with service firms, as well as the impact of attractive alternatives and switching costs on such relationships. The sample comprised respondents in Bangkok, Thailand, who each completed a series of five questionnaires over a period of two weeks pertaining to their relational behaviour (technical service performance, social bonds and communication) with five predesignated service types. The results indicate that collectivist cultural norms impact the nature of relationships, and that antecedent variables have significantly different impacts across service types. Furthermore, switching costs were identified, which act as powerful inducements to stay in a service relationship. Management implications for relational strategies and future research implications of the findings are discussed.

Criteria used to select management consultants

Abstract A survey of 253 organizations provided data on 17 choice criteria used in the final selection of a variety of management consultancy services. There were relatively few differences in the importance of these choice criteria across the different types of consulting assignment, clients type of industry, and frequency of purchase. Reputation of the consultants and their experience in the clients industry were the two most important choice criteria.

Internationalization of services: the service exporting decision

Services represent the fastest growing portion of the world economy, yet they are still vastly under‐represented in the export packages of most countries. Services present unique challenges that make exporting potentially more difficult and riskier than for goods industries, yet they also offer huge untapped potential with very little research done in this area. This study develops hypotheses regarding the exporting decisions of services companies using qualitative interviews and the exporting literature. These are then tested through a survey of nearly 700 consulting engineering firms. Nearly 90 per cent of the exporting firms in the sample are happy with the performance of their exporting programs, yet nearly three‐quarters of the firms are not exporting. Overcoming limitations in know‐how and resources, developing positive attitudes about exporting, recognizing foreign opportunities and fostering management commitment to exporting are found to be the most important determinants of exporting behavior for professional services firms.