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Hazée, S., Y. Van Vaerenbergh and V. Armirotto (2017): Co-creating service recovery after service failure: The role of brand equity, Journal of Business Research, 74(), pp.101-109

Co-creating service recovery with customers has recently appeared as a new perspective in service research. Prior research demonstrates the effectiveness of co-created recovery strategies in driving customer outcomes, and outlines when co-creating a service recovery is recommended. This paper complements prior research not only by demonstrating the mediating role of outcome favorability in the relationship between co-created service recovery and customer outcomes, but also by showing whether organizations with different levels of brand equity benefit equally from co-creating service recovery with their customers. The results of two experiments show that co-creating a service recovery makes customers believe they received the most favorable solution for the service failure, which in turn influences satisfaction with service recovery and repurchase intentions. In addition, co-creating a service recovery is recommended for organizations with low levels of brand equity, but not for organizations with high levels of brand equity.

Link: http://dx.doi.org/10.1016/j.jbusres.2017.01.014 [Google]

 

Krishen, A. S., R. L. Raschke, A. G. Close and P. Kachroo (2017): A power-responsibility equilibrium framework for fairness: Understanding consumers’ implicit privacy concerns for location-based services, Journal of Business Research, 73(), pp.20-29

Location-based services rely on geospatial technologies that involve data that offer information of a prosocial nature – such as a nearby highway closure. The objective of this mixed method research is to examine consumers’ concerns about privacy and fairness that pertain to these services. The basis for this research is the theory on the power-responsibility equilibrium. Study 1 qualitatively examines 332 comments; Study 2 uses a quantitative structural equation model with a sample of 291 non-students. Our findings indicate that fairness perceptions of privacy-related policies are enhanced when a consumer has a higher internal locus of control, higher attitude toward the communication, and lower level of privacy concern.

Link: http://dx.doi.org/10.1016/j.jbusres.2016.12.002 [Google]

 

Madhavaram, S. and S. D. Hunt (2017): Customizing business-to-business (B2B) professional services: The role of intellectual capital and internal social capital, Journal of Business Research, 74(), pp.38-46

Business-to-business (B2B) professional service firms often develop highly customized offerings for their customers. Customizing B2B professional services is a knowledge intensive process that requires the coordinated efforts of individuals with specialized knowledge and skills. Drawing on customization and social capital theory, we develop and test an intellectual capital (IC) model of customizing B2B professional services that rests on two foundational premises. First, three different forms IC, that is, employees’ knowledge of customers, employees’ technical knowledge and abilities, and organizational creativity, make firms more effective at customizing B2B professional services. Second, internal social capital (ISC) is a precursor to the intellectual capital that enables firms to effectively produce customized B2B professional services. Analyses of data from key informants of 161 marketing research firms support our theses.

Link: http://dx.doi.org/10.1016/j.jbusres.2017.01.007 [Google]

 

Milanova, V. and P. Maas (2017): Sharing intangibles: Uncovering individual motives for engagement in a sharing service setting, Journal of Business Research, 75(), pp.159-171

The sharing economy has shifted the way in which goods and services are consumed – from exclusive ownership toward collective usage with economic benefits. Current literature addresses consumer motives to participate in commercial sharing of goods and services with a physical manifestation. In contrast, this study shows the relevance of intangibility for sharing services and empirically examines consumers’ motives, perceptions, and experiences in the context of a new insurance model. A qualitative investigation reveals three main characteristics of intangible service sharing: financial benefits as a main motivator for participation, emerging weak social and symbolic values in a controlled environment, and a network of strangers as a crucial precondition for sharing. The work contributes to research on the sharing economy as well as to managerial considerations for the design of sharing services. In particular, managers need to balance between community development and the preservation of anonymity when promoting sharing services based on intangible elements.

Link: http://dx.doi.org/10.1016/j.jbusres.2017.02.002 [Google]

 

Stangl, B., M. Kastner and G. Prayag (2017): Pay-what-you-want for high-value priced services: Differences between potential, new, and repeat customers, Journal of Business Research, 74(), pp.168-174

This study contributes to the limited literature on the pricing method of pay-what-you-want (PWYW) in the context of a high-value service. The study evaluates the applicability and profitability of PWYW by comparing the minimum, maximum, and PWYW prices to traditional list prices of Europe’s biggest dance festival (ImPulsTanz). Results from an analysis of secondary data from ImPulsTanz reveal a pricing structure mainly demographic-based. Survey results show that PWYW prices differ between three customer groups (potential, new, and repeat). Comparing potential, new, and repeat customers, the latter is willing to pay the highest prices. Despite all customers indicating their willingness to pay for the service, PWYW prices are lower than traditional list prices. Findings also confirm the existence of three segments of customers with diverse price consciousness and quality, and value perceptions. Implications for the pricing and promotion of high-value services using PWYW are offered.

Link: http://dx.doi.org/10.1016/j.jbusres.2016.10.030 [Google]

 

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