Considered Service-specific journals were Journal of Service Research, Journal of Service Management, Journal of Services Marketing, Journal of Service Theory and Practice, Service Industries Journal, Cornell Hospitality Quarterly, and Service Science.
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Damayanti, M., N. Scott and L. Ruhanen (2018): Space for the informal tourism economy, Service Industries Journal, 38(43416), pp.772-788
In developing countries, many informal economy service providers obtain their livelihoods from tourism, and occupy and share public spaces to do so. As such, these actors must develop ‘rules in use’ that allow them to work alongside other providers, both formal and informal, in these shared spaces. These actors engage in coopetition, a mix of cooperation and competition, with each other. This paper provides a case study of informal sector service providers in Yogyakarta, Indonesia, to examine how these actors access resources and interact. Snowball sampling was adopted to identify actors and 47 in-depth interviews with pedicab drivers and street vendors were conducted and supplemented with naturalistic observation. Results indicate the public spaces occupied by the informal sector may be classified as common pool resources, collective goods, or semi-private goods. Further, the interaction among the actors in these public spaces is based on the types of, and capacity in, providing goods and services, and trust generated from the actors’ interactions. This research identified the formal and informal ‘rules in use’ that govern the behaviours of the actors related to the use of spaces. Suggestions for how informal economy actors can manage such spaces to enhance their livelihoods are provided.
Link: http://dx.doi.org/10.1080/02642069.2018.1480014 [Google]
Dube, G. (2018): The design and implementation of minibus taxi presumptive taxes, Service Industries Journal, 38(43416), pp.723-741
This paper assesses the design of Zimbabwe’s minibus taxi presumptive taxes that were first implemented in 2005 and evaluates them in terms of administrative effectiveness, equity and economic efficiency. The implications of these factors on tax compliance are also analysed. A mixed-methods approach was used where quantitative data were complemented by qualitative interviews with taxi operators and key informants from the country’s tax authority. The results suggest that presumptive taxes were poorly designed and administered with many operators going untaxed. The ‘informal taxes’ (bribes and ‘fees’) levied by corrupt officials, ‘committees’ and touts also resulted in taxes that did not promote equity or efficiency. Despite the numerous challenges identified, the article highlights key lessons for countries that are also trying to tax minibus taxis such as the importance of negotiating with taxi associations around taxation and the encouragement of quasi-voluntary compliance through the implementation of well-researched turnover-based presumptive taxes.
Link: http://dx.doi.org/10.1080/02642069.2018.1471138 [Google]
Ekici, T. and M. Besim (2018): Shadow price of working in the shadows: services industry evidence, Service Industries Journal, 38(43416), pp.708-722
In this paper, we use an exogenous policy variation in the labour market to determine the wage gap between formally and informally employed workers. For our purposes, ‘informal employment’ describes employees who are not officially registered with any social security scheme. We use self-reported employee registration status to identify such workers, but the choice of working unregistered is not exogenous. Nevertheless, through an amnesty that was extended to only some workers in the labour market, we reduce the endogeneity problem, enabling estimation of the wage gap between these two groups. Our two-stage least square estimates reveal that the hourly wage penalty of working in the shadows is as high as 59%, and the monthly salary penalty is around 66%. Moreover, the wage gap is higher (as high as 70%) for those working in the services sector, as unregistered workers in this sector tend to be low skilled and low educated, and the monitoring of this sector is more difficult. Our analysis contributes to the literature by using an instrumental variable to treat the endogeneity of workers’ registration status. In addition, it shows that people working informally in the services industry receive a higher average wage penalty than other informally employed workers.
Link: http://dx.doi.org/10.1080/02642069.2018.1467402 [Google]
Horodnic, A. V. and C. C. Williams (2018): Informal payments by patients for health services: prevalence and determinants, Service Industries Journal, 38(43416), pp.841-855
The aim of this paper is to explain the prevalence of informal payments in the health services sector in Southern Europe using the lens of institutional theory. To evaluate whether informal payments prevail due to formal institutional failures which lead to an asymmetry between the laws and regulations (formal institutions) and the unwritten rules (informal institutions), an analysis is undertaken of 2013 Eurobarometer survey data on the propensity to make informal payments by patients in Southern Europe. A strong association is found between the extent to which formal and informal institutions are unaligned, and the prevalence of informal payments, and such payments are found to be more likely when there is a lack of modernisation of governance coupled with a low range and reach of health services provision, lower health outcomes and systems focus on curative rather than preventative health services. The theoretical and policy implications are then explored.
Link: http://dx.doi.org/10.1080/02642069.2018.1450870 [Google]
Imamoğlu, H., S. Katircioğlu and C. Payaslioğlu (2018): Financial services spillover effects on informal economic activity: evidence from a panel of 20 European countries, Service Industries Journal, 38(43416), pp.669-687
This study aims to investigate the spillover effects of the financial services sector development on the size of informal economic activity in the case of the European Union (EU) countries. The results from panel data analysis show that there exists an inverted U-shaped relationship between financial services and informal economic activity in the EU; that is, at the initial levels of the financial development, the reaction of informal economic activity is positive while it becomes negative at the further stages of the financial development in the EU. Thus, this study finds that financial services sector is a major contributor to changes in the volume of informal economic activity in the EU countries.
Link: http://dx.doi.org/10.1080/02642069.2017.1423056 [Google]
Kahyalar, N., S. Fethi, S. Katircioglu and B. Ouattara (2018): Formal and informal sectors: is there any wage differential?, Service Industries Journal, 38(43416), pp.789-823
The main objective of this paper is to investigate if a wage difference exists between formal and informal sectors in the case of the Turkish labour market using a sample of wageworkers. To this end, we use data for 2004 and 2009 and a novel definition of the informal sector. On the methodological front, we adopt three alternative decomposition techniques, namely, the Oaxaca-Ransom [(1994). On discrimination and the decomposition of wage differentials. Journal of Econometrics, 61, 5-21] decomposition in the context of mean regression, the Machado and Mata [(2005). Counterfactual decomposition of changes in wage distributions using quantile regression. Journal of Applied Econometrics, 20(4), 445-465] decomposition in the quantile regression framework and the non-parametric decomposition method proposed by Nopo [(2008). Matching as a tool to decompose wage gap. The Review of Economics and Statistics, 90(2), 290-299]. The results reveal the existence of a wage gap between the two sectors. We found education and experience to be key determinants of earnings. The findings of this paper have implications for policies, which might be directed towards developing approaches with a focus on education and experience.
Link: http://dx.doi.org/10.1080/02642069.2018.1482877 [Google]
Karabchuk, T. and A. Zabirova (2018): Informal employment in service industries: estimations from nationally representative Labour Force Survey data of Russian Federation, Service Industries Journal, 38(43416), pp.742-771
As the largest post-Soviet transition economy with substantial labour immigration and a considerable informal-sector Russia serves as an interesting case to study informal employment in the service and non-service economic sectors. The study fills the gap of the lack of empirical papers grounded on the reliable massive individual data. This article discusses almost twenty years’ dynamics of informal employment rates within the service and non-service industries based on the nationally representative Labour Force Survey primary data, collected quarterly for 2010-2015 with a sample size of about 200 thousand respondents per quarter. The unexpected finding is that the rate of informal employment is higher in non-service economic activities. Informal workers in the service sector in Russia are typically male, not very young, without tertiary education, living in urban areas. The paper also provides a comparative regression analysis on the probability of being informally employed in the service and non-service sectors.
Link: http://dx.doi.org/10.1080/02642069.2018.1477131 [Google]
Kedir, A. M. and P. Rodgers (2018): Household survey evidence on domestic workers in Ethiopia, Service Industries Journal, 38(43416), pp.824-840
Whilst much scholarly attention of this nascent field of domestic service work focuses on protecting the rights and security of foreign/migrant domestic workers, the nature of domestic service work undertaken within national borders has escaped the attention of both researchers and public policy makers. Outlining the findings from a large household survey data in Ethiopia collected from seven major urban areas covering the period from 1994 to 2004, this paper departs from the usual focus on rights-based perspective and foreign migrant domestic service workers. Instead, the paper attempts to contribute to our understanding of the profile of domestic service providers, the significant drivers of participation in the provision of domestic services and the welfare of unpaid and paid domestic service workers in Ethiopia. In doing so, the paper contributes to the development of a greater evidence base, relevant for both researchers and public policy practitioners alike.
Link: http://dx.doi.org/10.1080/02642069.2018.1484111 [Google]
Kedir, A. M., C. Williams and L. Altinay (2018): Services industries and the informal economy: an introduction, Service Industries Journal, 38(43416), pp.645-649
The article talks about services industries and the informal economy. The topics addressed include 61.2 percent of the global workforce aged 15 and over are in the informal economy and that 47.2 percent of all employment in the service industries; role of informal economy plays in provision of services like health, transport, financial and tourism sectors, and the characteristics of informal sector provision along with motives of suppliers (supply-side).
Link: http://dx.doi.org/10.1080/02642069.2018.1486959 [Google]
Littlewood, D., P. Rodgers and J. Yang (2018): ‘The price is different depending on whether you want a receipt or not’: examining the purchasing of goods and services from the informal economy in South-East Europe, Service Industries Journal, 38(43416), pp.688-707
Research on the informal economy has largely focussed on supply-side issues, addressing questions like what motivates individuals to work in the informal economy and how can governments tackle this phenomenon. To date, much less attention has been given to demand-side aspects, examining issues around who purchases goods and services from the informal economy, why, and to what extent there are variations according to demographic, socio-economic and geographic dimensions. This paper addresses this imbalance by examining the purchasing of goods and services from the informal economy in South-East Europe. Firstly, this paper identifies the prevalence of such informal purchasing in South-East Europe as well as who undertakes such purchasing. Next, it examines the relative significance of cost factors, social factors and failures in the formal economy, in motivating such purchasing. Finally, it explores variability in the significance of these motivators based on individual-level factors, within and across three South-East European countries.
Link: http://dx.doi.org/10.1080/02642069.2018.1444032 [Google]
Venter de Villiers, M., A. Visnenza and N. Phiri (2018): Importance of location and product assortment on flea market loyalty, Service Industries Journal, 38(43416), pp.650-668
Recent trends in consumerism have highlighted the proliferation of the global flea market economy, which contributes significantly to the growing informal sector. Although a number of studies have explored the present topic within different contexts, few studies have addressed the factors that contribute to flea market loyalty among Millennial consumers. The purpose of the present paper is therefore to investigate the influence of market location and product assortment on market loyalty and the inter-construct relationships of market experience and purchase intention. By means of a quantitative study, 280 self-administered questionnaires were distributed amongst Millennial consumers. The data analysis was done using Structural Equation Modelling (SEM) in SPSS 23 and AMOS 23. The results indicated that all seven proposed hypotheses were significant. In other words, market location, product assortment and market experience positively influence consumer’s purchase intention and market loyalty. This paper is of paramount importance to brands and retailers who wish to expand their distribution network to the informal market economy, also known as the flea market economy. Marketers should realize the importance of the market’s location and the product assortment when investing in the flea market economy. The results of this paper contribute to literature in the informal market economy, which is rapidly expanding.
Link: http://dx.doi.org/10.1080/02642069.2017.1410541 [Google]
Williams, C. C. and I. A. Horodnic (2018): Extent and distribution of unregistered employment in the service industries in Europe, Service Industries Journal, 38(43416), pp.856-874
Although a voluminous literature exists on the prevalence of the informal economy, few studies evaluate unregistered employment and none its prevalence and distribution across the service industries. This paper fills that gap. Reporting a 2015 European Working Conditions Survey based on 43,850 face-to-face interviews, the finding is that 7% (1 in 14) of service industry employees have no written contract of employment across the 35 European countries surveyed, although this varies from 34% in Cyprus to 1% in Sweden. A logistic regression analysis at the European level reveals significant associations between the propensity to work with no contract and various individual-, household- and firm-related characteristics, with unregistered employment more prevalent among women, younger people, those with fewer years in education, migrants, those living in households unable to make ends meet, those working in smaller businesses, and the hospitality and household service sectors. The theoretical and policy implications are then discussed.
Link: http://dx.doi.org/10.1080/02642069.2018.1481209 [Google]
Windebank, J. and A. Martinez-Perez (2018): Gender divisions of domestic labour and paid domestic services, Service Industries Journal, 38(43416), pp.875-895
This article investigates the relationship between the sharing of domestic tasks in dual-earner mixed-sex couples and the use of paid domestic services. Using results from a small-scale survey of the domestic outsourcing practices of employees of a large service-sector organisation in the UK, we find that in households: full-time working by women and presence of younger children is positively associated with the use of paid domestic services; there is no association between the gender division of traditionally female domestic tasks carried out within the couple and use of paid services; but in contrast, greater male involvement in traditionally male and traditionally gender-neutral tasks is positively associating with using paid domestic services. These findings tentatively suggest that a new arrangement may be emerging in which some couples address a heavy workload and a desire for a less traditional division of domestic labour by men participating more in close-ended domestic tasks and outsourcing the more time-consuming tasks traditionally undertaken by women to paid-service providers.
Link: http://dx.doi.org/10.1080/02642069.2018.1484110 [Google]
Alvarez-Oh, H.-J., H. Balasubramanian, E. Koker and A. Muriel (2018): Stochastic Appointment Scheduling in a Team Primary Care Practice with Two Flexible Nurses and Two Dedicated Providers, Service Science, 10(3), pp.241-260
Waiting is common in appointment-based outpatient care: patients experience delays before seeing a nurse and then in the examination room before seeing the doctor. Given that service times are uncertain, the challenge for outpatient practices is to control the spacing between successive appointments to minimize waiting time while ensuring the doctor is not idle for too long. Whereas scheduling in single-doctor practices is well studied, team practice, in which one of two nurses can flexibly see the patient before the patient consults with one of two assigned doctors, is not. Optimal scheduling in a team practice is far more challenging from a computational viewpoint because the order in which patient appointments are scheduled need not be the order in which they see their doctors (i.e., patients may be allowed to crossover). In this article the authors propose a model that can solve realistic instances of this problem optimally. On the basis of analyses, the results show that (1) empty slots (which function as slack to alleviate waiting) alternate in the two doctors? schedules and do not occur simultaneously, and (2) allowing nurse flexibility and patient crossovers produces greater benefits when service time variation is high.
Link: http://dx.doi.org/10.1287/serv.2018.0219 [Google]
Batun, S., A. J. Schaefer, A. Bhandari and M. S. Roberts (2018): Optimal Liver Acceptance for Risk-Sensitive Patients, Service Science, 10(3), pp.320-333
To be eligible for a cadaveric liver transplant in the United States, a patient must join a waiting list maintained by UNOS, which allocates livers using a complex priority system. When a liver offer is made, each patient must decide whether to accept the offer. Although a vast majority of patients are known to be risk-sensitive when making health-related decisions, earlier work on organ-acceptance decisions assumes that patients are risk-neutral and maximize life expectancy. We extend previous research by including patient risk preferences in modeling patient decision making. They illustrate that for a given health state (or liver quality), the best decision is to accept an offer if liver quality (or health state) is higher (or worse) than a certain threshold level and that these threshold levels depend on the risk preferences of the patient. Numerical studies reveal that assuming risk neutrality may lead to substantial losses in expected utility, particularly when a sicker patient receives a lower-quality liver offer. The insight for decision makers: Because of patient risk preferences, a life expectancy-maximizing liver-acceptance policy is not necessarily the best policy; it may actually cause significant losses in expected utility.
Link: http://dx.doi.org/10.1287/serv.2018.0215 [Google]
Eagen, B. K., T. C. Y. Chan and M. W. Carter (2018): Women’s College Hospital Uses Operations Research to Create an Ambulatory Clinic Schedule, Service Science, 10(3), pp.230-240
Notes. Women?s College Hospital (WCH) in Toronto, Canada offers roughly 300 outpatient clinics every week. In this article, the authors describe a project started in April 2011 with WCH to design a new schedule for their clinics to accommodate a move to a new hospital building, which was completed in May 2013. They developed an integer programming model to optimize the assignment of clinics to timeslots and locations, based on the desire to minimize changes from the historical schedule. In cooperation with senior leadership of WCH, the authors tested multiple scenarios that explored changes to space utilization policies at WCH and ultimately generated a new clinic schedule, which WCH implemented in May 2013. In this paper the authors highlight the value the work has created for WCH and present lessons learned in development of the model and through collaboration with the WCH team.
Link: http://dx.doi.org/10.1287/serv.2018.0221 [Google]
Erdogan, S. A., T. L. Krupski and J. M. Lobo (2018): Optimization of Telemedicine Appointments in Rural Areas, Service Science, 10(3), pp.261-276
What is the optimal number of patients to schedule for a telemedicine clinic, and when should they be scheduled to arrive? Telemedicine services are increasingly being used to provide medical care to patients in rural areas; thus, it is important to determine the best way to schedule patients given factors such as length of the clinic day, time needed to sanitize procedure equipment, and patients missing their appointments. The authors provide scheduling insights for a telemedicine clinic that provides procedures for bladder cancer surveillance in rural Virginia. They find that between five and seven patients should be scheduled for this clinic depending on whether the clinic would rather minimize provider overtime (five patients) or see as many patients as possible without excessive overtime (seven patients). When minimizing provider overtime, it is recommended to schedule patients close together at the beginning of the day and after lunch, because some patients may not come to their appointments. The findings from this work have informed scheduling practices at the telemedicine clinic in rural Virginia. The insight for management is that optimal appointment scheduling has the potential to reduce provider downtime between patients and efficiently allow more patients to benefit from specialty care via telemedicine.
Link: http://dx.doi.org/10.1287/serv.2018.0222 [Google]
Gul, S. (2018): A Stochastic Programming Approach for Appointment Scheduling Under Limited Availability of Surgery Turnover Teams, Service Science, 10(3), pp.277-288
The number and availability of turnover teams may significantly affect the performance of a surgery schedule. We propose a two-stage stochastic integer programming formulation for setting the patient appointment times for surgeries under limited availability of turnover teams. We assume that a surgery schedule has already been created, and study how the schedule may be refined. We consider the durations of surgical operation and turnover to be random variables. The objective is to minimize the competing criteria of expected patient waiting time and operating room idle time. We discuss an implementation of a heuristic to generate near-optimal surgery schedules. We conduct numerical experiments using data from a large hospital. We compare the heuristic with a well-known and practical procedure used in earlier studies for setting patient appointment times for surgeries. Finally, we evaluate the impact of the number of turnover teams into the surgery schedules with respect to performance criteria of interest.
Link: http://dx.doi.org/10.1287/serv.2018.0214 [Google]
Hicklin, K., J. S. Ivy, F. C. Payton, M. Viswanathan and E. Myers (2018): Exploring the Value of Waiting During Labor, Service Science, 10(3), pp.334-353
Of the nearly four million births that occur each year in the United States, almost one in three is a cesarean delivery. Despite the increasing C-section rate over the years, there is no evidence that the increase has caused a decrease in neonatal or maternal mortality or morbidity. Bayesian decision analysis is used to model the decision between classifying a patient as ?failure-to-progress,? which is cause for a C-section, using current information (prior probability) or information gathered (posterior probability) as labor continues. The Bayesian decision models determine the conditions under which it is appropriate to gather additional information (i.e., take an observation) before deciding to end labor and perform a C-section based on the decision maker?s belief about successful labor. During an observation period, the decision maker learns more about the patient and her medical state and the likelihood of a successful vaginal delivery is updated. This study determines the conditional value of information (conditional on the decision maker?s prior belief) and determines the conditions under which information has positive value. This model can be used to facilitate shared decision making for labor and delivery through communicating beliefs, risk perceptions, and the associated actions.The online appendix is available at https://doi.org/10.1287/serv.2018.0205.
Link: http://dx.doi.org/10.1287/serv.2018.0205 [Google]
Lee, J., R.-H. Kwon, H. W. Kim, S.-H. Kang, K.-J. Kim and C.-H. Jun (2018): A Data-Driven Procedure of Providing a Health Promotion Program for Hypertension Prevention, Service Science, 10(3), pp.289-301
How can service providers efficiently and effectively implement a health promotion program to prevent hypertension? In this article, the authors propose a two-step procedure based on data analytics using (1) a prediction model to identify people who are at risk for developing hypertension and (2) four methods to create an index that represents the importance of specific intervention programs for eliminating risk factors for individuals. The authors use the national sample cohort database of South Korea to offer a case study of the implementation of the proposed procedure. The constructed prediction model using logistic regression has adequate accuracy, and the proposed index has results similar to those of a doctor. The insight for hypertension prevention program implementation: This two-step procedure, which relies on automatic modeling based on data, can provide informative and personalized results based on individual health records.
Link: http://dx.doi.org/10.1287/serv.2018.0220 [Google]
Rojas-Cordova, A. C. and N. Hosseinichimeh (2018): Trial Termination and Drug Misclassification in Sequential Adaptive Clinical Trials, Service Science, 10(3), pp.354-377
Sequential adaptive clinical trials allow for early termination of drug testing at interim analysis points if the evidence suggests that the candidate drug or therapy is effective (stopping for benefit) or that the drug will not demonstrate to be better than existing therapies (stopping for futility). Early stopping allows the trial sponsor to mitigate investment risks on ineffective drugs and to shorten the development timeline of effective drugs, thus reducing costs and expediting patients? access to these new therapies. However, this new flexibility may translate into a higher risk of deriving incorrect conclusions from the trial in the form of false positives or false negatives. The authors examine the causes and implications of wrongly terminating the development of an effective drug, which may lead to unrecoverable expenses and unfulfilled patient needs. The authors find that the risk of deriving incorrect conclusions from the trial increases with the number of interim analyses performed throughout its course. The insight for management: Contrary to the literature?s focus on false positives, false negatives can be more likely; thus, whenever the drug?s characteristics and the targeted disease permit, aggressive trial designs should be chosen over conservative ones to detect small but beneficial treatment differences.
Link: http://dx.doi.org/10.1287/serv.2018.0217 [Google]
Schoenfelder, J. and C. Pfefferlen (2018): Decision Support for the Physician Scheduling Process at a German Hospital, Service Science, 10(3), pp.215-229
The process of manually constructing monthly working schedules for physicians in medium-sized and large departments at hospitals is a very time-consuming and error-prone task. The scheduler, typically a senior physician, is an expensive resource and oftentimes almost irreplaceable because of his acquired expertise in the scheduling process. We develop a mathematical model that formalizes every rule and regulation necessary to generate lawful schedules in the anesthesiology department of a 626-bed hospital in Berlin, Germany. We embed our detailed and complex mixed-integer programming formulation, which generates schedules superior to the ones currently in use, in an Excel environment to ensure ease of use, maximum flexibility with respect to changing all relevant inputs, and a visual output representation for practitioners. The presented approach reduces the workload for the scheduler dramatically, thereby increasing his availability for medical services. Our generated schedules outperform manually created schedules by significantly reducing the number of rule and regulation violations, while also improving key performance measures such as assigned overtime, granted employee-preferred shifts, and fairness considerations. Our approach also highlights important aspects in modeling the physician scheduling problem for practical implementation that have been widely ignored in the existing literature.
Link: http://dx.doi.org/10.1287/serv.2017.0192 [Google]
Zhang, H., C. Wernz and D. R. Hughes (2018): A Stochastic Game Analysis of Incentives and Behavioral Barriers in Chronic Disease Management, Service Science, 10(3), pp.302-319
Chronic diseases can be prevented or mitigated by changing the behavior of patients and physicians. Incentives are one of the mechanisms to motivate such change. We present a two-player, multiperiod stochastic game model in which patients and primary care physicians jointly decide on chronic disease management activities. The model accounts for the decisions of patients regarding primary care engagement and lifestyle, as well as physicians? choice of effort spent in clinical encounters. We capture the behavioral aspects of patients? decisions by incorporating the health belief model. The physician-patient interaction is modeled as a general-sum stochastic game with switching control structure. A nonlinear programming (NLP) approach is used to find the agents? optimal strategies. Using data on coronary heart disease, we provide a numerical example that quantifies how behavioral barriers and incentives affect patients? and physicians? decisions. Our results provide insights for health policy makers on how to design incentive mechanisms that contribute to more effective chronic disease management.
Link: http://dx.doi.org/10.1287/serv.2018.0211 [Google]
Chang, S., S. A. Way and D. H. K. Cheng (2018): The Elicitation of Frontline, Customer-Contact, Hotel Employee Innovative Behavior: Illuminating the Central Roles of Readiness for Change and Absorptive Capacity, Cornell Hospitality Quarterly, 59(3), pp.228-238
Although service innovations have been recognized to be important for the long-term strategic success of hospitality firms, to date, the elicitation of innovative behavior has received little attention in the extant hospitality research literature. In the current study, we used a matched set of responses from 294 frontline, customer-contact, hotel employees and their direct supervisors to address this lack. Consistent with extant human resource management (HRM) studies that have advocated the agent-centered perspective, this study’s results illuminate a causal chain through which employee self-reported (Time 1, Source 1) perceived high-investment human resource practices (HIHRP) augments individual frontline, customer-contact, hotel employee supervisor-rated (Time 2, Source 2) innovative behavior. This study contributes to the extant hospitality and HRM research literatures by elucidating individual hotel employee self-reported perceived HIHRP as a key proximal determinant and individual hotel employee supervisor-rated innovative behavior as a key proximal consequence of two positive organizationally relevant individual-level psychological outcomes: that is, frontline, customer-contact, hotel employee self-reported readiness for change and absorptive capacity. Findings, implications, and limitations as well as avenues for future research are discussed.
Link: http://dx.doi.org/10.1177/1938965517734940 [Google]
Hall, T. (2018): Restaurant Tipping and Discrimination: Exploring the Implications of Automatic Gratuities, Cornell Hospitality Quarterly, 59(3), pp.296-303
Scholars have documented evidence of racial disparities in dining service quality and hypothesize that restaurant servers avoid or neglect minority patrons based on widespread perceptions that Black patrons tip less than their White counterparts. However, the precise causal mechanisms behind this discrimination remain unclear. If tipping expectations drive these racial disparities in service quality, automatic gratuities should mitigate discrimination. This survey experiment (N = 349) randomly assigns servers to scenario-based surveys featuring either Black or White patrons and either discretionary or automatic gratuities to consider whether differences in four indicators of service quality persist when automatic gratuities hold tipping behavior constant across races. Survey respondents expected tips from Black parties that were about 11.3% lower than expected tips from White parties of eight (p = .008). I find no significant differences in how respondents say they would treat their dining parties by race and gratuity type with one exception. Respondents to scenarios featuring voluntary tipping were more likely to say they would submit the order for their party of eight last when that party was White as opposed to Black. Meanwhile, there was no statistically significant difference for this service indicator by party race under automatic gratuities. The automatic gratuities reduced a disparity in service in an unexpected manner by inclining respondents to deprioritize the order for the Black party. Overall, future research that more robustly measures service quality is warranted to assess the role of automatic gratuities in mitigating discrimination in restaurant service.
Link: http://dx.doi.org/10.1177/1938965517734939 [Google]
Kim, M. G., H. Yang and A. S. Mattila (2018): The Impact of Customer Loyalty and Restaurant Sanitation Grades on Revisit Intention and the Importance of Narrative Information: The Case of New York Restaurant Sanitation Grading System, Cornell Hospitality Quarterly, 59(3), pp.275-284
New York City launched a restaurant sanitation letter grade system in 2010. We evaluate the impact of customer loyalty on restaurant revisit intentions after exposure to a sanitation grade alone, and after exposure to a sanitation grade plus narrative information about sanitation violations (e.g., presence of rats). We use a 2 (loyalty: high or low) × 4 (sanitation grade: A, B, C, or pending) between-subjects full factorial design to test the hypotheses using data from 547 participants recruited from Amazon MTurk who reside in the New York City area. Our study yields three findings. First, loyal customers exhibit higher intentions to revisit restaurants than non-loyal customers, regardless of sanitation letter grades. Second, the difference in revisit intentions between loyal and non-loyal customers is higher when sanitation grades are poorer. Finally, loyal customers are less sensitive to narrative information about sanitation violations.
Link: http://dx.doi.org/10.1177/1938965517744075 [Google]
Martínez-Pérez, Á. and M.-M. Beauchesne (2018): Overcoming the Dark Side of Closed Networks in Cultural Tourism Clusters: The Importance of Diverse Networks, Cornell Hospitality Quarterly, 59(3), pp.239-256
Despite the recognized importance of tourism as an engine of economic growth in developed countries, research on the antecedents of innovation in this sector has been sparse, especially in the context of tourism clusters. Scholars have suggested that social capital is a key determinant of firm innovation in the context of tourism clusters, but empirical evidence has been lacking. The aim of this article is to empirically study the interplay between social capital and innovation in the context of tourism clusters at firm level. More specifically, we analyzed the effects of closed networks and diverse networks on firm innovation using a sample of 215 hospitality and tourism firms located in the World Heritage Cities of Spain. Results showed an inverted-U-shaped relationship between closed networks and firm innovation. Consistent with existing literature, these findings suggest that whereas a certain degree of strength and density helps to promote innovation, a critical point may exist beyond which innovation stabilizes or deteriorates when the information of the network becomes too redundant. In addition, we found that diverse networks positively moderated the relationship between closed networks and firm innovation. In other words, structural holes appear to mitigate the negative effects arising from excess strength and density and encourage the development of innovations beyond what a firm relying solely on closed networks could achieve. In practice, these results suggest firms in tourism clusters should not exclusively focus on typical closed networks but also create connections with diverse agents to maximize their potential for innovation.
Link: http://dx.doi.org/10.1177/1938965517734938 [Google]
Norvell, T., P. Kumar and S. Contractor (2018): Assessing the Customer-Based Impact of Up-Selling Versus Down-Selling, Cornell Hospitality Quarterly, 59(3), pp.215-227
This article evaluates customers’ postpurchase attitudinal and behavioral responses to two suggestive selling strategies employed in retail establishments: up-selling and down-selling. Our findings are based on a field study conducted among 2,381 customers from a large, national casual dining chain. We then followed up with 352 customers 1 month later to determine the impact of the suggestive selling strategy on future visitation. We find that while up-selling did improve short-term revenues, it had an adverse effect on customers’ attitudinal responses which resulted in a reduction in future brand patronage. Conversely, down-selling did not compromise short-term revenues as is commonly thought, and also led to a superior attitudinal response and increased brand patronage. We demonstrate that the effect of the suggestive selling strategy on satisfaction and brand loyalty is chain mediated through value and quality. Finally, our findings suggest that, under certain circumstances, employing a down-selling strategy may lead to superior long-term revenues.
Link: http://dx.doi.org/10.1177/1938965518762836 [Google]
Shin Legendre, T., R. Warnick and M. Baker (2018): The Support of Local Underdogs: System Justification Theory Perspectives, Cornell Hospitality Quarterly, 59(3), pp.201-214
Despite the copious anecdotal evidence available, research only recently examines the multidimensional dynamics associated with underdog brands and their essential, complex place in the business world. This research seeks to better conceptualize, operationalize, and refine the theories and constructs surrounding underdogs. The study conducts two 2 × 2 × 2 quasi-experimental between-subjects design studies to fulfill these objectives. Study 1 is designed to confirm that brand localness needs to be separated from underdog concepts as both brand cues distinctively prompt customers’ purchase activism depending on their political orientations. Study 2 extends the system justification theory by replicating Study 1 using a different context and refining control variables to better understand other potential explanations of customer behavior toward underdog/localness brand cues. The results indicate that brand positioning status and brand localness both have main effects on intent to purchase and willingness to pay a price premium. Furthermore, results find political orientation is an important moderator in determining whether customers purchase underdog brands.
Link: http://dx.doi.org/10.1177/1938965517748773 [Google]
Simons, T., J. McLean Parks and E. C. Tomlinson (2018): The Benefits of Walking Your Talk: Aggregate Effects of Behavioral Integrity on Guest Satisfaction, Turnover, and Hotel Profitability, Cornell Hospitality Quarterly, 59(3), pp.257-274
Extending theory on behavioral integrity to department and business unit levels of analysis, we examined a chain of relationships culminating in operational and financial performance measures. Specifically, we analyzed survey data from 6,800 workers from 76 same-branded US hotels and integrated it with operational and financial data. Latent variables structural equation modeling and path analyses showed strong associations between manager behavioral integrity and worker turnover, customer satisfaction, and hotel profitability. In fact, behavioral integrity accounted for 13% of the variance in profitability across hotels. This relationship was partially mediated by trust in managers, affective commitment, and discretionary service behavior.
Link: http://dx.doi.org/10.1177/1938965517735908 [Google]
Tang, C. F. and E. C. Tan (2018): Tourism-Led Growth Hypothesis: A New Global Evidence, Cornell Hospitality Quarterly, 59(3), pp.304-311
The primary aim of this study is to determine whether the tourism-led growth hypothesis is globally valid by accounting for countries’ income levels and their institutional qualities, against a panel dataset of 167 countries. The institutional qualities referred to are political stability and corruption control. We employ the dynamic panel generalized method of moments (GMM) approach to examine the relationship. It can be inferred from the exercise that tourism positively contributes to economic growth but the effect varies across countries at different levels of income and institutional qualities. Therefore, the effect of tourism on economic growth is contingent on levels of income and institutional qualities of the host tourism countries. Policy initiatives that aim to promote and strengthen institutional qualities should be undertaken for a country to enjoy the beneficial impact of tourism on economic growth and development.
Link: http://dx.doi.org/10.1177/1938965517735743 [Google]
Tracey, J. B. (2018): Moving the Impact Dial, Cornell Hospitality Quarterly, 59(3), pp.200-200
The article discusses the author’s views on the journal “Cornell Hospitality Quarterly.” Topics discussed include the aim and scope of the journal to publish articles that provide timely and actionable knowledge for improving hospitality management practice and advancing hospitality research; why the journal support a pluralist approach to periodical publishing and a pluralist model of impact for leadership.
Link: http://dx.doi.org/10.1177/1938965518784676 [Google]
Xu, S., L. R. Martinez, H. Van Hoof, M. Estrella Duran, G. Maldonado Perez and J. Gavilanes (2018): Emotional Exhaustion Among Hotel Employees: The Interactive Effects of Affective Dispositions and Positive Work Reflection, Cornell Hospitality Quarterly, 59(3), pp.285-295
Hospitality employees inevitably face emotional exhaustion when performing their jobs. The purpose of this study was to investigate dispositional antecedents of hospitality employees’ emotional exhaustion, including self-instability, pessimism, and affect variability, and how employees’ affect variability mediates the relations between self-instability and pessimism and emotional exhaustion. In addition, we explored the moderating role of positive work reflection on the relation between affect variability and emotional exhaustion. A total of 224 frontline employees in 18 four- and five-star hotels in Ecuador responded to surveys about their emotions and work lives. The findings suggest that (a) emotional exhaustion was influenced by affect variability, (b) affect variability mediated the relations between self-instability and pessimism and emotional exhaustion, and (c) the relation between affect variability and emotional exhaustion was weakened by positive work reflection. The results highlight the importance of potential low-cost and easily trainable interventions that could help in attenuating the negative effects of highly variable emotions and the resulting exhaustion that are prevalent in the hospitality industry. This research is among the first to examine the dispositional antecedents of emotional exhaustion, and the first to highlight the role of positive work reflection as a moderating variable that can buffer the negative effect of affect variability on emotional exhaustion.
Link: http://dx.doi.org/10.1177/1938965517748774 [Google]
Drengner, J., S. Jahn and P. Furchheim (2018): Flow revisited: process conceptualization and a novel application to service contexts, Journal of Service Management, 29(4), pp.703-734
Purpose Flow is an important yet under-utilized concept to examine extraordinary experiences in service encounters. An extensive review of extant literature revealed several conceptual concerns that have contributed to a blurred understanding of flow. The purpose of this paper is to develop a conceptualization of flow that is complete yet parsimonious.Design/methodology/approach The paper includes a survey (Study 1, N=202) that covers gaming and online services and a field study (Study 2, N=448) covering a festival context. Structural equation modeling and regression-based mediation analysis are used to analyze the data.Findings Flow can meaningfully be conceptualized as the process from engrossment to enjoyment. Engrossment comprises loss of self-consciousness, transformation of time, concentration on the task at hand, and action-awareness merging. In service encounters with high achievement content (e.g. gaming or sports), challenge-skill balance, clear goals, unambiguous and immediate feedback, and sense of control serve as antecedents of engrossment. Yet flow also appears in service contexts without achievement content (i.e. where consumers have less control over the outcomes of their performance, such as when listening to music). Across service contexts, the enjoyment and engrossment (directly or indirectly) impact service loyalty.Practical implications In terms of improving loyalty or training outcomes service providers should have a clear interest in providing the utmost potential for creating flow experiences during the service encounter. Hedonic offers that allow engrossing in the activity seem particularly effective in this regard.Originality/value This paper offers a clear theoretical and empirical distinction of formerly treated facets of flow. It further contributes to extant literature by providing a revised conceptualization that regards flow as the process from engrossment to enjoyment. The revised conceptualization is void of unnecessary dimensions and can be applied and compared across various research contexts, including hedonic, nonachievement services. Moreover, the paper indicates that research streams on flow and immersion might be linked more closely.
Link: http://dx.doi.org/10.1108/JOSM-12-2016-0318 [Google]
Fehrer, J. A., H. Woratschek and R. J. Brodie (2018): A systemic logic for platform business models, Journal of Service Management, 29(4), pp.546-568
Purpose The purpose of this paper is to introduce a new business model logic, highlighting value processes in and properties of platform business models to inform business model thinking from a systemic and dynamic perspective. It challenges the idea of firms managing, influencing and controlling entire activity systems.Design/methodology/approach The study traces the evolution of different approaches to business models and assesses theories that explain value cocreation and systemic value capture to develop a new business model logic.Findings Business model thinking has evolved away from Porter’s value chain to a new logic based on open networks and platforms. This study develops a framework for understanding platform business models from a systemic perspective. Derived from service-dominant logic, this new business model logic responds to phenomena in contemporary business environments characterized by increasing connectivity and sociality among actors.Research limitations/implications The framework, developed from an extensive body of business model literature, has yet to be subjected to empirical investigation. Future research may involve the exploration of business model design processes and business model innovation from a systemic perspective.Practical implications Managers who aim to design their business models based on the logic of platform businesses require an understanding of their organization’s collaboration potential, technological interfaces and potential to leverage network relationships. This research guides start-ups and incumbents to evaluate their platform potential.Originality/value This study systematically emancipates the business model logic from a firm-centered, inside-out perspective, focuses on network relationships beyond the customer–firm dyad, explains value processes beyond organizational borders and rethinks value capture from a systemic perspective.
Link: http://dx.doi.org/10.1108/JOSM-02-2017-0036 [Google]
Leinsle, P., D. Totzek and J. H. Schumann (2018): How price fairness and fit affect customer tariff evaluations, Journal of Service Management, 29(4), pp.735-764
Purpose Promotional cues related to notions of fair prices or pricing designed to fit consumers’ needs are prevalent for many service offers. The purpose of this paper is to investigate how both customers’ price fairness and idiosyncratic fit perceptions shape their tariff evaluations.Design/methodology/approach Two experimental studies involving different tariff types and service contexts test the complex interplay of customers’ perceived price fairness and idiosyncratic fit with customer and context characteristics on their tariff evaluations.Findings Customers judge tariffs drawing on both the perceived price fairness and idiosyncratic fit, driven by the perceived price level of the tariff and the perceived pricing transparency of the firm. Customers’ service usage and consumption goals moderate these effects: heavy users and hedonic consumers indicate lower price sensitivity while focusing more on their transparency perception. The role of perceived price fairness and idiosyncratic fit for tariff choice depends on the tariff/service context; idiosyncratic fit is important when it is incidental (e.g. flat rates) rather than intentional (i.e. customized tariffs) and when customers lack the expertise or confidence to evaluate price fairness such as in the case of relatively new services.Originality/value Prior studies focused on either price fairness or idiosyncratic fit and thus cannot fully explain the complex interplay between both in the context of tariff choice. This paper explicates the conditions that affect the relative importance of both concepts and under which incidental offers are better received than premeditated ones.
Link: http://dx.doi.org/10.1108/JOSM-10-2017-0270 [Google]
Mele, C., S. Nenonen, J. Pels, K. Storbacka, A. Nariswari and V. Kaartemo (2018): Shaping service ecosystems: exploring the dark side of agency, Journal of Service Management, 29(4), pp.521-545
Purpose The extant service ecosystem literature rarely addresses the dark side of actors’ agency, which hinders further development of the service-dominant (S-D) logic, particularly with regard to understanding service ecosystem dynamics. Therefore, the purpose of this paper is to delineate the dark-side facets of actors’ agency that adversely affect actor-to-actor relationships and resource integration, in the context of shaping service ecosystems.Design/methodology/approach With abductive reasoning, this study seeks to reorient results from prior literature in accordance with empirical findings. The empirical data pertain to 21 firms in Finland, New Zealand, Singapore and Sweden, representing various industries, sizes, international reach, technologies, ownership forms and histories.Findings The dark side of agency emerges as an actor’s deliberate attempts to influence a service ecosystem to achieve self-interested benefits, despite understanding that these actions inhibit other actors from providing service and can be detrimental to other actors and the ecosystem. The findings also reveal three facets of the dark side: conflict, ambiguity and opportunism. The process of shaping service ecosystems is prone to systematic conflict, ambiguous and opportunistic behaviours occurring between the focal actors’ ecosystem and other ecosystems vying for the same set of resources.Research limitations/implications This study advances the S-D logic by addressing the crucial role of agency in a dialectical relationship with institutions and structures. Service-for-service exchanges can take place in asymmetric, ambiguous, opportunistic situations driven by self-interested motives.Practical implications Processes aimed at shaping service ecosystems can demonstrate the dark sides of actors’ agency, related to conflict, ambiguity or opportunism. Managers interested in shaping strategies should be prepared for this outcome.Social implications A service ecosystem perspective requires policy makers and regulators to reconsider their role in shaping processes. No “invisible hand” guides markets to equilibrium, so they should be more proactive in shaping ecosystems, rather than merely fixing market failures.Originality/value This research offers the first S-D logic-based investigation into the dark side of actors’ agency in shaping service ecosystems.
Link: http://dx.doi.org/10.1108/JOSM-02-2017-0026 [Google]
Nenonen, S., J. Gummerus and A. Sklyar (2018): Game-changers: dynamic capabilities’ influence on service ecosystems, Journal of Service Management, 29(4), pp.569-592
Purpose Service-dominant logic acknowledges that actors can influence how service ecosystems evolve through institutional work, but empirical research is only nascent. This paper advances understanding of ecosystem change by proposing that dynamic capabilities are a special type of operant resources enabling actors to conduct institutional work. Consequently, the purpose of this paper is to explore which dynamic capabilities are associated with proactively influencing service ecosystems.Design/methodology/approach Drawing on service-dominant logic, institutional work and dynamic capabilities, this exploratory study assumes an actor-centric perspective and proposes a conceptual model with a hierarchy of dynamic capabilities as the antecedents for successfully influencing service ecosystems. The research model was tested with survey data using partial least squares structural equation modeling.Findings Among the dynamic capabilities studied, “visioning” and “influencing explicit institutions” directly affect “success in influencing service ecosystems,” whereas “timing” does so indirectly through “influencing explicit institutions.” The other dynamic capabilities studied have no significant effect on “success in influencing service ecosystems.” “Success in influencing service ecosystems” positively affects the “increased service ecosystem size and efficiency.”Practical implications In addition to reactively positioning and competing at the marketplace, firms can choose to proactively influence their service ecosystems’ size and efficiency. Firms aiming to influence service ecosystems should particularly develop dynamic capabilities related to visioning, timing and influencing explicit institutions.Originality/value This research is the first service-dominant logic investigation of the linkage between the actors’ dynamic capabilities and their ability to influence service ecosystems.
Link: http://dx.doi.org/10.1108/JOSM-02-2017-0025 [Google]
Oertzen, A.-S., G. Odekerken-Schröder, S. A. Brax and B. Mager (2018): Co-creating services—conceptual clarification, forms and outcomes, Journal of Service Management, 29(4), pp.641-679
Purpose The purpose of this paper is to assess, clarify and consolidate the terminology around the co-creation of services, establish its forms and identify its outcomes, to resolve the conceptual pluralism in service co-creation literature.Design/methodology/approach A focused literature review screened the articles published in five major service research journals to determine relevant contributions on the concept of co-creation of services. Then, a thematic analysis identifies the forms, themes and outcomes of co-creating services in the set of 80 qualifying articles.Findings The study reduces conceptual pluralism by establishing different forms of co-creating services and developing an explicit definition of co-creation in services. The authors develop an integrative framework that recognizes involvement, engagement and participation as prerequisites for co-creation. Relating to the different phases of the service process, the specific co-creation forms of co-ideation, co-valuation, co-design, co-testing and co-launching are classified as regenerative co-creation, while the specific co-creation forms of co-production and co-consumption are recognized as operative co-creation. Both beneficial and counterproductive outcomes of co-creation are identified and arranged into a typology.Research limitations/implications The integrative framework illustrates that service providers and customers are involved, engaged and participate in co-creating services, which manifests in specific forms of co-creation; they attain beneficial and counterproductive outcomes (personal, social, hedonic, cognitive, economic and pragmatic); and are influenced by a contextual multi-actor network.Practical implications Co-creation in services is actionable; the typology of outcomes suggests service managers ways to motivate customers and employees to participate in co-creating services.Originality/value This paper defines and establishes the conceptual forms of co-creating services and the identified outcomes, and develops an integrative framework of co-creation in services.
Link: http://dx.doi.org/10.1108/JOSM-03-2017-0067 [Google]
Pop, O. M., S. Leroi-Werelds, N. Roijakkers and T. W. Andreassen (2018): Institutional types and institutional change in healthcare ecosystems, Journal of Service Management, 29(4), pp.593-614
Purpose The purpose of this paper is to propose a typology of institutions enabling or constraining customer centricity and value co-creation in service ecosystems; illustrate the various types of institutions with examples from healthcare; and provide case study evidence on how pharmaceutical companies react to and induce institutional change.Design/methodology/approach First, a typology of institutions enabling or constraining customer centricity and value co-creation is proposed and illustrated with examples from healthcare. Next, to clarify how companies deal with these institutions by reacting to or inducing institutional change, two case companies from the pharmaceutical industry are described.Findings The research identifies and illustrates nine types of institutions (culture, structure, processes, metrics, language, practices, IP, legislation and general beliefs) grouped by three levels of analysis (micro, meso and macro). Furthermore, the findings of the two case studies indicate that companies react to, but also proactively induce, institutional change.Research limitations/implications The investigation is limited to two case studies.Practical implications Organizations need to understand the micro-, meso- and macro-level institutions of their service ecosystem; react to institutional changes imposed by other actors; and proactively change institutions by breaking, making or maintaining them.Social implications Pharmaceutical companies can improve patient well-being by inducing institutional change.Originality/value This research develops a mid-range theory of service ecosystem institutions by developing a typology. This typology is empirically examined in a healthcare context.
Link: http://dx.doi.org/10.1108/JOSM-02-2017-0041 [Google]
Sajtos, L., M. Kleinaltenkamp and J. Harrison (2018): Boundary objects for institutional work across service ecosystems, Journal of Service Management, 29(4), pp.615-640
Purpose 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.Design/methodology/approach 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.Findings 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.Originality/value 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.
Link: http://dx.doi.org/10.1108/JOSM-01-2017-0011 [Google]
Walsh, G., M. Schaarschmidt and S. Ivens (2018): Assessing the effects of multichannel service provider corporate reputation on customer new product adoption and RFM value, Journal of Service Management, 29(4), pp.680-702
Purpose Service providers leverage their corporate reputation management efforts to increase revenues by shaping customer attitudes and behaviours, yet the effects on customer innovation adoption and customer value remain unclear. In an extended conceptualisation of customer-based corporate reputation (CBR), the purpose of this paper is to propose that customer perceived risk, perceived value, and service separation are contingencies of the relationship between CBR and two key customer outcomes: customer new product adoption proneness (CPA) and recency-frequency-monetary (RFM) value.Design/methodology/approach Using a predictive survey approach, 1,001 service customers assess the online or offline operations of six multichannel retailers. The hypothesised model is tested using structural equation modelling and multigroup analysis.Findings The analysis reveals significant linkages of CBR with perceived risk and perceived value, as well as between perceived risk and perceived value and from perceived value to CPA and RFM value. These linkages vary in strength across unseparated (offline) and separated (online) services.Research limitations/implications This study uses cross-sectional data to contribute to literature that relates CBR to relevant customer outcomes by considering CPA and RFM value and investigating contingent factors. It provides conceptual and empirical evidence that price appropriateness represents a new CBR dimension.Practical implications The results reveal that CBR reduces customers’ perceived risk and positively affects their perceived value, which drives CPA and RFM value. Multichannel retailers can create rewarding customer relationships by building and nurturing good reputations.Originality/value This study is the first to link CBR with customer product adoption proneness and value, two important customer measures. It proposes and tests an extended conceptualisation of CBR.
Link: http://dx.doi.org/10.1108/JOSM-08-2017-0211 [Google]
Castaldi, C. and M. S. Giarratana (2018): Diversification, Branding, and Performance of Professional Service Firms, Journal of Service Research, 21(3), pp.353-364
This article analyzes the effects of diversification and brand breadth on firm performance for professional service firms (PSFs). The research aim is two-fold. First, we test whether moving into products may put at risk the core resources that sustain PSFs’ competitive advantage. Second, we study which branding strategies best match their diversification attempts. Broad (narrow) brands characterize a branding strategy with scarce (plentiful) associations to specific product characteristics. We analyzed trademark portfolios of 47 U.S.-based management consulting firms in the 2000 to 2009 time period. Panel regression results suggest that (1) PSFs always benefit from diversification when they remain pure- service providers; (2) performance is positively related to a strategy of specialized narrow brands.
Link: http://dx.doi.org/10.1177/1094670518755315 [Google]
Helkkula, A., C. Kowalkowski and B. Tronvoll (2018): Archetypes of Service Innovation: Implications for Value Cocreation, Journal of Service Research, 21(3), pp.284-301
Service innovation is a key source of competitive differentiation across firms and markets. Despite growing attention from practitioners and academics alike, systematic scholarly inquiry into service innovation’s diverse theoretical foundations has to date been limited. This article explores different approaches to service innovation and proposes a typology of four archetypes, each informed by a distinct theoretical perspective and by different underlying assumptions. Process-based and output-based archetypes focus on value-adding phases and output value, respectively. Experiential and systemic archetypes have attracted less attention but become central for firms seeking to cocreate phenomenologically determined value within the service ecosystem. The article also contributes to service innovation research and practice by bringing together the existing archetypes, which were previously treated separately. Juxtaposing these archetypes and emphasizing value and value cocreation, the article proposes an integrative view of how novel value cocreation can be enhanced in service innovations. Finally, we develop an agenda for future research, encouraging researchers and managers to plan service innovations systematically, deploying each archetype in value cocreation, and combining them within an integrative approach.
Link: http://dx.doi.org/10.1177/1094670517746776 [Google]
Hüttel, B. A., J. H. Schumann, M. Mende, M. L. Scott and C. J. Wagner (2018): How Consumers Assess Free E-Services: The Role of Benefit-Inflation and Cost-Deflation Effects, Journal of Service Research, 21(3), pp.267-283
Despite the ubiquity of free e-services (e.g., free music/video streaming services), little empirical research has examined how consumers assess such service offerings. This research reveals the crucial role of consumer-perceived nonmonetary costs (NMCs; e.g., related to advertising intrusiveness) to better explain the zero-price effect (ZPE). Four experiments show that free e-services elicit positive affect in consumers, which leads to two distinct effects that drive the ZPE: a benefit-inflation effect, such that consumers overemphasize the benefits of free e-services, and a cost-deflation effect, such that they also judge the corresponding NMCs as lower. Furthermore, the authors find that the social norm of reciprocity increases consumers’ acceptance of NMCs. This research provides managerial guidance on how to better market free service offerings. Companies that consider providing basic and premium offerings should include a free basic option, which increases consumers’ benefit perceptions, lowers their perceptions of NMCs, and consequently increases demand for this service option. Finally, the findings help managers model the trade-off between immediate additional revenue generated by the fees consumers pay for a premium option and the revenue stream that a free basic option generates (e.g., through higher advertising revenues).
Link: http://dx.doi.org/10.1177/1094670517746779 [Google]
Liu, S. Q., A. S. Mattila and L. E. Bolton (2018): Selling Painful Yet Pleasurable Service Offerings: An Examination of Hedonic Appeals, Journal of Service Research, 21(3), pp.336-352
People consume service experiences that combine pleasure and pain (e.g., roller-coaster rides and massage therapy)–but the question of how to market such experiences is not well understood. To address this gap, the present research investigates consumer response to such service offerings as a function of (i) hedonic framing that emphasizes pain versus pleasure, (ii) promotion versus prevention concerns either chronically or situationally salient to consumers, and (iii) the presence versus absence of a service guarantee. Consumers with a prevention (vs. promotion) focus react more favorably to hedonic framing that emphasizes pleasure, whereas consumers with a promotion (vs. prevention) focus react more positively to hedonic framing that emphasizes pain due to differences in processing discomfort. In addition, a service guarantee is shown to bolster the reactions of prevention-focused consumers but undermine the reactions of promotion-focused consumers to a pain-framed (but not pleasure- framed) service offering. Together, these findings provide guidelines to service providers regarding how to fine-tune marketing strategies when promoting painful yet pleasurable experiences. For example, advertising should align hedonic framing with the consumer’s situationally salient regulatory concerns.
Link: http://dx.doi.org/10.1177/1094670518770044 [Google]
Moser, S., J. H. Schumann, F. von Wangenheim, F. Uhrich and F. Frank (2018): The Effect of a Service Provider’s Competitive Market Position on Churn Among Flat-Rate Customers, Journal of Service Research, 21(3), pp.319-335
Flat-rate pricing, as opposed to charging customers for actual usage, dominates many service industries (e.g., telecommunications, health clubs, and music streaming), and customers often express a flat-rate bias and choose flat rates even if a pay-per-use tariff would be less expensive for them. However, evidence of the effect of this bias on churn is mixed. The competitive market position of a service provider may represent a relevant contingency factor related to this effect; building on attribution theory, the current study predicts that customers attribute their flat-rate bias differently, depending on service providers’ strategic positioning, which leads to varying churn behavior. A survival analysis of approximately 2 years’ transactional data gathered from 21,490 customers of a premium Internet service provider affirms that a flat-rate bias leads to churn in the premium segment. Two experimental studies show that customers of premium service providers attribute their flat- rate bias more externally and exhibit lower fairness perceptions but increased churn intentions compared to low-cost customers who make internal attributions and who thus have less negative perceptions and lower churn intentions. Therefore, premium service managers must proactively manage customers who exhibit flat-rate biases to prevent their negative reactions. Low-cost providers generally have less need for such action and can benefit from flat rates without risking increased churn, despite higher price sensitivity of their customers.
Link: http://dx.doi.org/10.1177/1094670517752458 [Google]
Pallas, F., L. E. Bolton and L. Lobschat (2018): Shifting the Blame: How Surcharge Pricing Influences Blame Attributions for a Service Price Increase, Journal of Service Research, 21(3), pp.302-318
The proliferation of surcharges in service pricing raises theoretical and pragmatic questions regarding their impact on consumers. This research investigates how surcharges influence consumer responses to a service price increase. We propose that various kinds of surcharge information act in concert to drive blame attributions for a price increase: Internal (vs. external) surcharges increase blame attributions and minimize the influence of other drivers captured in surcharge information such as temporal stability, surcharge benefit, and more than one kind of surcharge. In comparison to all-inclusive pricing, we find that (i) surcharge pricing is detrimental to service firms when surcharges cue internal locus of causality, regardless of the temporal stability or surcharge benefit, whereas (ii) surcharge pricing is beneficial when surcharges cue external locus of causality, particularly when the surcharges are permanent and high benefit; (iii) consumers are more sensitive to increases in the magnitude of internal (vs. external) surcharges; and (iv) in the case of mixed surcharges, internal surcharges are more prominent and minimize the buffering effect of adding external surcharges. Based on our findings, we make recommendations to managers on the optimal design of surcharge pricing to mitigate negative blame reactions when communicating service price increases to consumers.
Link: http://dx.doi.org/10.1177/1094670518755314 [Google]
Phyra, S., S. Keo Mony, T. S. Danaher and P. J. Danaher (2018): The Complementarity of Frontline Service Employee Creativity and Attention to Detail in Service Delivery, Journal of Service Research, 21(3), pp.365-378
To deliver superior customer service, frontline service employees (FSEs) need to be creative while also being attentive to detail. However, achieving the right balance between these behaviors is difficult; too much focus on one to the detriment of the other can diminish service performance. Using data from two independent studies of microservice and small service firms, we examine the interplay of employee creativity and attention to detail in driving service performance. The results reveal that at high levels of attention to detail, greater creativity will increase service performance and vice versa. In contrast, at low levels of attention to detail, increasing employee creativity enhances service performance up to a point, after which it declines, and vice versa. Thus, increasing creativity when attention to detail is low or enhancing attention to detail when creativity is low is likely to be harmful to firms. Our findings suggest that managers should empower FSEs to be ambidextrous–they need to engage in high levels of both creativity and attention-to-detail behaviors-to enhance service performance. Firms should invest in training to increase FSEs’ ability to engage in these behaviors simultaneously and create an environment that enhances their self-confidence to do so.
Link: http://dx.doi.org/10.1177/1094670517746778 [Google]
Bergel, M. and C. Brock (2018): The impact of switching costs on customer complaint behavior and service recovery evaluation, Journal of Service Theory and Practice, 28(4), pp.458-483
Purpose The purpose of this paper is to examine the impact of three different dimensions of switching costs on customer dissatisfaction response styles as well as on the evaluation of service recovery. Design/methodology/approach Study 1 is a scenario-based experiment and Study 2 uses a critical incident technique combined with survey-based measures of switching costs, dissatisfaction responses and perceived complaint handling. Findings The results of these studies highlight the need to consider the different effects of switching costs. Not only do different switching costs lead to varying customer dissatisfaction responses, they also have differential moderator effects on the interrelationships between customer-perceived recovery justice and service recovery satisfaction. Research limitations/implications Service failure severity was an influential control variable. Future studies should investigate how the type, context and severity of service failure influence customers? complaint behavior. Furthermore, participants had trouble differentiating between their relations toward their service provider in general and one particular employee. Hence, further research should explore the relationship between customers and frontline employees. Practical implications The authors encourage managers to take a closer look at the switching cost dimensions of their service industry. This may lead practitioners to promote differentiated strategies for complaint stimulation and complaint handling. Originality/value This is the first study to simultaneously explore all three dimensions of switching costs when examining their impact on customers? dissatisfaction response styles as well as the moderating effects in the recovery process. In doing so, this study reveals some hitherto uncovered effects.
Link: http://dx.doi.org/10.1108/JSTP-02-2017-0035 [Google]
Chong, Y. S. and P. K. Ahmed (2018): When service failure leads to sin: Exploring service transgression and customer forgiveness in a multi-faith context, Journal of Service Theory and Practice, 28(4), pp.410-433
Purpose The purpose of this paper is to examine the notion of ?service transgression? which violates customers? religious beliefs through observing certain dietary guidelines that shape their religious identity. While service transgression and customer forgiveness are predominantly examined using experimental procedures or questionnaire survey in existing studies, this study adopts an interpretive paradigm to explore the complexities and idiosyncratic narratives of individual perceptions. Design/methodology/approach Detailed narrative accounts of 15 participants consisting of five Muslims, five Buddhists and five Hindus; who are working adults residing in Malaysia were gathered via in-depth interviews. Critical incident technique was employed with interpretive approach being undertaken to uncover key themes that form the essence of experiences in service transgressions. Findings The responses from participants were mainly contingent to the individuals? interpretations of their religious expectations in the assessment of the incidents. Observations from the interview protocols reveal common themes in the consideration of whether one has indeed transgressed against the religious norms, the assignment of blame and responsibility and reparation of relationships. From the findings of this study, the authors developed a typology of conflict framing categories: ?damaged identity?, ?identity at risk? and ?identity preservation? by considering both dyadic and triadic service relationships in service failure incidents which involve a violation of customers? religious belief systems. Practical implications The outcome of this study seeks to inform service providers on the impact of service transgression of this nature upon consumers particularly in a multi-faith society. Additionally, this study provides insights into the implementation of service recovery strategies if and when such situation arises. Originality/value By undertaking a narrative enquiry, this study uncovers personal sense making in this phenomenon within the contextual frame of societal and historical norms. The outcome of this study provides insights to service providers on the impact of service transgression upon consumers particularly in a multi-faith context such as Malaysia. Additionally, this study discusses managerial implications associated with the implementation of service recovery strategies if and when such situation arises.
Link: http://dx.doi.org/10.1108/JSTP-02-2017-0024 [Google]
Dodds, S., S. Bulmer and A. Murphy (2018): Incorporating visual methods in longitudinal transformative service research, Journal of Service Theory and Practice, 28(4), pp.434-457
Purpose Consumer experiences of healthcare services are challenging for researchers to study because of the complex, intangible and temporal nature of service provision. The purpose of this paper is to introduce a novel longitudinal three-phase research protocol, which combines iterative interviewing with visual techniques. This approach is utilised to study consumer service experiences, dimensions of consumer value and consumer value co-creation in a transformational service setting: complementary and alternative medicine healthcare. Design/methodology/approach This research employed a three-phase qualitative longitudinal research protocol, which incorporated: an initial in-depth interview, implementation of the visual elicitation technique Zaltman Metaphor Elicitation Technique and a final interview to gain participant feedback on the analysis of data collected in the first two phases. Findings Four key benefits derived from using the three-phase protocol are reported: confirmation and elaboration of consumer value themes, emergence of underreported themes, evidence of transformation and refinement of themes, ensuring dependability of data and subsequent theory development. Originality/value The study provides evidence that a longitudinal multi-method approach using in-depth interviews and visual methods is a powerful tool that service researchers should consider, particularly for transformative service research settings with sensitive contexts, such as healthcare, and when studying difficult to articulate concepts, such as consumer value and value co-creation.
Link: http://dx.doi.org/10.1108/JSTP-02-2017-0022 [Google]
Kim, J., H.-R. Kim, R. Lacey and J. Suh (2018): How CSR impact meaning of work and dysfunctional customer behavior, Journal of Service Theory and Practice, 28(4), pp.507-523
Purpose The purpose of this paper is to investigate how frontline service employees? (FSEs) perceptions of corporate social responsibility (CSR) can enhance meaningful work perceptions as well as help alleviate FSEs? perceptions of verbal dysfunctional customer behavior. Design/methodology/approach The conceptual model is empirically examined through a survey of 306 FSEs of a large insurance company in South Korea and tested via structural equation modeling. Findings The results indicate that FSEs? perceptions of CSR are negatively related to their perceptions of verbal dysfunctional customer conduct, which in turn is shown to be directly linked to emotional exhaustion. FSEs? CSR perceptions strengthen their view that they are performing meaningful work (i.e. perceived task significance), which in turn strengthens their job satisfaction. Practical implications CSR has a preventive effect on workplace stress reduction, as FSE perceptions of CSR may help them cope with the emotional fatigue of dealing with dysfunctional customer behavior. CSR also provides a needs fulfillment effect, as FSEs? perceptions of CSR foster perceived task significance and helps reduce their emotional exhaustion from work. Originality/value This is the first study to examine the potential impact of CSR within the context of FSEs? boundary spanning emotional labor.
Link: http://dx.doi.org/10.1108/JSTP-01-2018-0018 [Google]
Scerri, M. and R. Agarwal (2018): Service enterprise productivity in action: measuring service productivity, Journal of Service Theory and Practice, 28(4), pp.524-551
Purpose The purpose of this paper is to measure service productivity using the Service Enterprise Productivity in Action (SEPIA) model. The research operationalises only one of the five stakeholder groups, the customer interface which incorporates service complexity (SC), customer interactions, customer channel, customer loyalty (CL) (new) as inputs, and CL (referred and repeat) and willingness to pay as output measures. Design/methodology/approach The research extends our understanding of existing service productivity models with the development of the SEPIA model. Data were collected from 14 organisations operating in the Australian travel and tourism industry, which was analysed using a data envelopment analysis input oriented variable return to scale method as applied to the SEPIA model customer interface. Findings Four key findings from the research include: customer choice and their ability to pay is a determinant of service productivity; service productivity is a two stage process when measured; SC is not categorical; and quality business systems do impact service productivity. Research limitations/implications A limitation of this research is that only one (customer) of the five key stakeholders, customer, employee, manager, supplier and shareholder, was operationalised in this research paper. Practical implications The operationalisation of the SEPIA customer interface using transactional data and measuring non-financial, intangible factors of productivity provide managers with insights on what services to offer, when to invest in or promote the use of technology and whether to spend marketing effort on customer acquisition or customer retention. Originality/value The SEPIA model positions service firms within a social and service value network and provides a range of customer measures that extend the current capital (K), labour (L), energy (E), materials (M) and service (S), KLEMS measure of productivity and can be used to show the impact customers have on service productivity.
Link: http://dx.doi.org/10.1108/JSTP-06-2017-0104 [Google]
Yang, Y. (2018): Is transparency a double-edged sword in citizen satisfaction with public service? Evidence from China’s public healthcare, Journal of Service Theory and Practice, 28(4), pp.484-506
Purpose The purpose of this paper is to explain the direct and moderating effects of perceived transparency on citizen satisfaction with public healthcare services. Design/methodology/approach This paper extends the classic framework of service quality, value and satisfaction by adding perceived transparency as an essential component, applies service-dominant logic to develop hypotheses regarding the effects of transparency and empirically tests the extended framework with secondary household survey data on China?s public healthcare. Findings The classic framework of service quality, value and satisfaction that originated from the private sector is robust in public service. Perceived transparency has a positive impact on perceived value and citizen satisfaction, but the positive effects of service quality and perceived value on citizen satisfaction were weakened with the increasing level of perceived transparency. Research limitations/implications Perceived transparency is a double-edged sword regarding citizen satisfaction: although transparency increases perceived value and satisfaction by enhancing citizens? service co-creation and inspiring citizen confidence, increased transparency raises citizens? expectations for service products, which subsequently dampens the positive effects of service quality and perceived value on citizen satisfaction. Practical implications In a context with higher transparency, local authorities must learn to manage citizen expectations that influence satisfaction, and increase the probability of satisfaction by avoiding too high citizen expectations. Originality/value This paper highlights the importance of transparency in enhancing public service co-creation, and contributes a novel perspective on the effects of transparency in the formation of citizen satisfaction, which may serve as the starting point for studying the role of transparency in public affairs.
Link: http://dx.doi.org/10.1108/JSTP-06-2017-0102 [Google]
Ang, T., R.-S. Liou and S. Wei (2018): Perceived cultural distance in intercultural service encounters: does customer participation matter?, Journal of Services Marketing, 32(5), pp.547-558
Purpose This paper aims to investigate if perceived cultural distance (PCD) negatively affects service quality and customer satisfaction through customers’ social judgements of the service providers’ warmth and competence in intercultural service encounters (ICSE), and if this negative effect can be mitigated through customer participation (CP).Design/methodology/approach A 2 × 2 between-subjects experimental design with an online consumer panel was conducted using a series of intercultural service encounter scenarios (in the weight loss service context) to manipulate CP (high vs low) and pictures of service providers to induce PCD (high vs low).Findings As hypothesized, in the context of ICSE, PCD negatively impacts customers’ social judgements of the service providers’ warmth and competence, which in turn influence service quality and customer satisfaction. However, the negative impact of PCD is alleviated when the level of CP is high.Research limitations/implications Using a single service context (weight loss services) may restrict the generalizability of findings. Future research may explore other service contexts.Practical implications To improve customers’ experience, managers in service firms with multicultural customers may create more engagement opportunities by designing the service delivery process in ways in which more CP and involvement is allowed.Originality/value This research is among the first to highlight the importance of consumers’ social judgements about culturally dissimilar service providers, which at baseline come with disadvantages but that can be altered through marketing actions (e.g. enhanced CP).
Link: http://dx.doi.org/10.1108/JSM-06-2017-0211 [Google]
Henderson, G. R., T. Rank-Christman, T. B. White, K. D. Grantham, A. L. Ostrom and J. G. Lynch (2018): Intercultural competence and customer facial recognition, Journal of Services Marketing, 32(5), pp.570-580
Purpose Intercultural competence has been found to be increasingly important. The purpose of this paper is to understand how intercultural competence impacts service providers? ability to recognition faces of both black and white consumers. Design/methodology/approach Two experiments were administered to understand how intercultural competence impacts recognition of black and white consumer faces. Findings The authors find that the more intercultural competence that respondents report with blacks, the better they are at distinguishing between black regular customers and black new shoppers in an experiment. The authors find no impact of intercultural competence on the ability of respondents to differentiate between white consumers. These findings hold for respondents in the USA and South Africa. Research limitations/implications One limitation of this research is that the studies were conducted in a controlled lab setting. Thus, one could imagine additional noise from a true consumer setting might increase the effects of these results. Another limitation is the focus on only black and white consumer faces. In this paper, the authors focused on these two races, specifically to keep the factorial design as simplified as possible. Originality/value The implications of this research are important given that the ability of employees? recognizing customer faces can affect customers? day-to-day interactions in the marketplace.
Link: http://dx.doi.org/10.1108/JSM-07-2017-0219 [Google]
Malik, A., L. V. Ngo and R. P. J. Kingshott (2018): Power, resource dependencies and capabilities in intercultural B2B relationships, Journal of Services Marketing, 32(5), pp.629-642
Purpose This exploratory study aims to analyse the influence of organisational resources and capabilities on relationship quality and firm performance in the context of high-technology offshore outsourcing service vendors.Design/methodology/approach Using a qualitative case study design, data from four offshore business process and information technology outsourcing firms were analysed.Findings Findings highlight that resource dependence, cultural orientation and the vendor’s resources and capabilities strengthen relationship quality and affect firm performance.Originality/value The distinctive contribution of this study lies in identifying key organisational mechanisms that improve relationship quality and firm performance, as well as help to understand the adverse effects of ethnocentricity and power faced by vendors and subsidiaries within diverse intercultural contexts. Study limitations and future research directions, along with implications for theory and practice, are also discussed.
Link: http://dx.doi.org/10.1108/JSM-01-2018-0006 [Google]
Mathies, C., J. Lee and A. Wong (2018): Service models and culture: impact on work behaviours, Journal of Services Marketing, 32(5), pp.616-628
Purpose Service employees’ cultural values play an integral part in the service encounter. The purpose of this study is to investigate whether frontline employees’ (FLEs) individual cultural values moderate the relationship between service models and work behaviours and whether these behaviours influence their psychological well-being.Design/methodology/approach Data were collected online from 341 US and Indian respondents who spent at least 40 per cent of their work time interacting with customers. Cultural values were measured as individual-level constructs. Partial least squares structural equation modelling was used to test hypotheses.Findings Individualism/collectivism significantly moderates the relationship between service models and work-related outcome, in particular organisational citizenship behaviour (OCB), while uncertainty avoidance does not. Collectivism strengthens the positive linkage between the win-win service model and OCB but weakens the association of OCB with the efficiency model. FLEs with the win-win model display more surface acting when they have low uncertainty avoidance and high power distance. Employee psychological well-being is then influenced negatively by surface acting, but positively by OCB.Research limitations/implications A more varied sample covering additional countries and a wider range of industries could provide additional insights.Practical implications The results of this study are particularly beneficial for service firms that require to satisfy customers by managing culturally diverse FLEs.Originality/value Extending the limited research on service models, this study examines the interplay of culture and service models and its impact on FLE work behaviours and the resultant well-being. The findings thus provide greater insights in how service employees’ cultural orientations influence their work behaviours and psychological well-being.
Link: http://dx.doi.org/10.1108/JSM-07-2017-0263 [Google]
Mishra, A., S. S. Maheswarappa and C. L. Colby (2018): Technology readiness of teenagers: a consumer socialization perspective, Journal of Services Marketing, 32(5), pp.592-604
Purpose The purpose of this study is to explore the role of culture-specific socialization factors such as antecedents to technology readiness index (TRI) scale to understand the adoption of cutting-edge technologies among teenagers. Design/methodology/approach The conceptual model was empirically tested using survey data from 381 teenagers. The data were analyzed using structural equation modeling. Findings Parent?child communication, peers, media and self-construal have varying influence on technology readiness of teenagers. The effects of parent?child interactions are mediated by self-construal, which reaffirms the importance of identity during adolescence. Research limitations/implications The culture-specific characteristics are critical antecedents to teenagers? TRI. Moreover, the TRI 2.0 scale needs minor refinement to address culturally diverse marketplace where people are less familiar with the technical terms used in developed countries and display low levels of technology awareness. Practical implications Marketers need to tailor their communication strategies to have a strong presence on digital media to engage with teenagers. Firms should utilize media for providing information and develop content that should resonate with teens and potentially enhances their online impression to increase the adoption of technology. Originality/value This is the first study to investigate the antecedents of technology readiness of teenagers in an emerging market. The study uses a multidisciplinary approach to examine culture-dependent factors using theories from marketing literature (consumer socialization theory) and developmental psychology (self-construal).
Link: http://dx.doi.org/10.1108/JSM-07-2017-0262 [Google]
Pezzuti, T., M. E. Pierce and J. M. Leonhardt (2018): Does language homophily affect migrant consumers’ service usage intentions?, Journal of Services Marketing, 32(5), pp.581-591
Purpose This paper investigates how language homophily between service providers and migrant consumers affects migrant consumers’ intentions to engage with financial and medical service providers.Design/methodology/approach Three empirical studies were conducted with migrant consumers living in Chile, England and the USA. Participants were presented information on service providers, and language homophily was manipulated between subjects. In the high (low) language homophily condition, service providers were described as having (not having) the ability to speak the native language of the migrant consumer.Findings Language homophily was found to increase migrant consumers’ expectation of control over a service encounter and, in turn, increase their intention to use a provider’s services. Collectivism was identified as a boundary condition. Among high collectivist consumers, language homophily did not affect service usage intentions; however, language homophily did positively affect service usage intentions among low collectivist consumers.Originality/value This work extends prior research on service provider language by finding a positive effect of language homophily on service usage intentions and by identifying mediating (i.e. expected control over the outcome of the service encounter) and moderating (i.e. collectivism) mechanisms for this effect.
Link: http://dx.doi.org/10.1108/JSM-07-2017-0252 [Google]
Sharma, P., J. Tam and Z. Wu (2018): Challenges and opportunities for services marketers in a culturally diverse global marketplace, Journal of Services Marketing, 32(5), pp.521-529
Purpose The purpose of this special issue is to extend the growing research on the challenges and opportunities facing services marketers in an increasingly culturally diverse global marketplace.Design/methodology/approach The nine papers included in this special issue use a variety of research methods (e.g. case study, experiments and surveys), participants (e.g. customers, employees and online panel members) and service settings (e.g. fast food, post office, weight loss, bank, home loan, personal fitness and offshore outsourcing).Findings All the nine papers highlight the importance of studying the unique perspectives of the customers and employees involved in intercultural interactions in diverse service settings in marketplaces and societies that are either already or have recently become multicultural.Research limitations/implications The findings from the nine papers have useful implications for future research on services marketing in multicultural markets, although these may not always be generalisable beyond the unique context of the studies reported in each of these papers.Practical implications All the nine papers also present some useful directions for services marketing managers in the multicultural markets, to help them understand and manage the expectations of their culturally diverse customers, as well as employees.Originality/value This special issue is unique because it is one of the first attempts to understand the unique challenges and opportunities for services marketers in the growing multicultural global marketplace, from a theoretical, as well as empirical, point of view.
Link: http://dx.doi.org/10.1108/JSM-05-2018-0150 [Google]
Sichtmann, C. and M. Micevski (2018): Attributions of service quality: immigrant customers’ perspective, Journal of Services Marketing, 32(5), pp.559-569
Purpose This study aims to investigate whether and how strongly cultural (mis)matches influence immigrant customers’ satisfaction, as well as if this relationship is mediated by cultural or service employee performance attributions. In addition, the authors test whether attributions differ depending on the service delivery outcome (success vs failure).Design/methodology/approach The 2 (origin of service employee: Austria or Turkey) × 2 (service delivery outcome: success or failure) scenario-based experiment includes 120 Turkish immigrant customers in Austria.Findings Contrary to previous research, the results indicate that in an immigrant customer context, cultural (mis)match does not influence customer satisfaction. The service delivery outcome is a boundary condition. With a positive service delivery outcome, immigrant customers attribute the results to the cultural background of the employee if it is the same as their own, but they attribute success to employees’ performance if they belong to the immigration destination culture. For negative service delivery outcomes, neither cultural nor performance attributions arise.Originality/value This study is the first to focus specifically on immigrant customer behavior in a high-involvement service context. The results challenge the predictions of social identity theory and the similarity-attraction paradigm and highlight that the immigrant context is unique. In this context, attributions play a key role in determining customer satisfaction.
Link: http://dx.doi.org/10.1108/JSM-06-2017-0212 [Google]
Summers, J., R. Hassan, D. Ong and M. Hossain (2018): Australian Muslim women and fitness choices – myths debunked, Journal of Services Marketing, 32(5), pp.605-615
Purpose The purpose of this paper was to better understand the underrepresentation of Muslim women living in Australia in physical activity and in group-fitness classes in particular. The authors contend that the Australian fitness industry has ignored the needs of this group through stereotypical islamophobic views focusing on religious dictates as the prime barrier for participation of this group. This study debunks this myth showing that motivations for exercise are complex and multi-faceted.Design/methodology/approach The authors conducted interviews and a focus group with 27 Muslim women living in Australia. Through this method, the authors explored the role of religiosity and national culture in attitudes towards participation in exercise, gym attendance and group fitness classes.Findings The authors confirmed that while religion impacted the form and place of exercise options, it did not impact the overall motivation to engage in exercise. This study found that group-fitness classes offered by gyms did not particularly appeal to this group of women, partially due to their religion (this form of exercise being too aggressive and immodest) and partially due to their ethnic background. Exercise options that were more social were favoured. The authors found that notions of femininity and culturally embedded expectations for the role of women were more powerful predictors of exercise engagement and choice of exercise type.Research limitations/implications This research is exploratory in nature and as such its findings are restricted to the small sample. To extend this study’s implications, a larger empirical study should be conducted and needs to also consider the intersection between national culture and religiosity on decision-making.Practical implications This study has practical implications for the fitness industry attempting to attractive new markets in a multi-cultural population. To attract Muslim women, gyms and fitness centres need to consider providing appropriate areas for women to exercise that allow them to maintain their modesty. To attract this segment, fitness products that are focused on a holistic approach to wellness and highlight opportunities for social interaction should be developed. Focusing on this group as a market segment needs to include a broader contextualisation of their lifestyles and individual situations and should not just focus on their religion.Social implications The requirements of the Muslim religion for women to adopt conservative dress and to avoid contact with men do hinder their ability and also their desire to exercise to maintain a healthy mind and body. Many of these women would like to exercise but find it difficult to find the right settings and form of exercise that suits their needs. Engaging in exercise with others is also an important way for these women to integrate into their communities and to assimilate with the national culture.Originality/value This research is original in that it is one of the first to explore attitudes of Muslim women towards exercise and group-fitness classes in Australia. In particular, it includes an examination of the impact of religiosity on motivations and attitudes towards fitness and is the first to consider the relationship between religion, ethnic background and notions of femininity in the context of fitness. The influence of religiosity is an area heavily impacted by cultural bias and stereotyping, and it is therefore important for a deeper understanding of this issue in the services domain.
Link: http://dx.doi.org/10.1108/JSM-07-2017-0261 [Google]
Zolfagharian, M., F. Hasan and P. Iyer (2018): Customer response to service encounter linguistics, Journal of Services Marketing, 32(5), pp.530-546
Purpose Focused on multicultural service encounters, this paper aims to argue that the interplay between customer language preference, employee choice and use of language affects perceived interaction quality, which in turn influences loyalty, customer brand identification and positive word-of-mouth.Design/methodology/approach Using Mexican Americans (Spanish) as the focal ethnic group (language), a 3 (contexts: Fast food-English; Post office-English; Post office-Spanish) × 4 (scenarios: customer language preference adhered to; adapted to; mixed; ignored) between-subject scenario-based experiment was conducted.Findings Customers perceive a higher, or at least equal, level of interaction quality when the employee choice of language adheres to their preference than when the employee switches to their preferred language after missing it initially. Both of these scenarios lead to significantly higher interaction quality compared to when the employee ignores customer language preference or combines elements from two languages throughout the interaction. The adverse effects of ignoring customer preferred language or mixing it with another language are accentuated among customers with low ethnic identification and those with low level of bilingualism. Prior findings regard the interplay among interaction quality, and the remainder of outcomes variables were also corroborated.Research limitations/implications The findings add to the literature that examines the dynamics of intercultural service encounters and draws attention to employee choice and use of language and its impact on a host of service outcomes, with interaction quality serving as a key mediator.Practical implications This study highlights the need for service firms to consider customer language preferences and train and empower employees to meet customer expectations. To the extent that the increasingly viable segments of minority customers remain underserved in most developed markets, this study provides insights into cultivating a profitable customer segment.Originality/value This study demonstrates the role of employee choice and use of language and its consequences.
Link: http://dx.doi.org/10.1108/JSM-06-2017-0209 [Google]
