Today we identify service articles published in Marketing, Management, Operations, Productions, Information Systems & Practioner-oriented Journals in the last month.
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Hansen, N., A.-K. Kupfer and T. Hennig-Thurau (2018): Brand crises in the digital age: The short- and long-term effects of social media firestorms on consumers and brands, International Journal of Research in Marketing, 35(4), pp.557-574
Social media firestorms imply the sudden occurrence of many, predominantly negative social media expressions against a brand. Do such firestorms leave a mark on consumers and their brand judgments—in the short term but also over time—to a degree that deserves managerial attention? What kind of firestorms have the strongest destructive potential? This manuscript treats firestorms as a digital form of brand crisis and proposes a conceptual framework to identify which firestorms harm short- and long-term brand perceptions and become part of consumers’ long-term memory. A unique data set combines secondary data about 78 real-life firestorms with daily brand perceptions obtained from the YouGov panel and survey data from 997 consumers. The results indicate that of all affected brands, 58% suffer from a decrease in short-term brand perceptions, and 40% suffer long-term negative effects, suggesting that social media firestorms can indeed harm businesses but also show that strong variations exist. Contingency analyses of the conceptual framework with regressions and generalized estimating equations indicate that social media firestorms are most impactful in terms of negative brand association changes and/or memory effects when they are initiated by a vivid trigger (e.g., video in the first firestorm tweet), linked to a product/service or social failure, characterized by a large volume of social media messages, and when they last longer. Graphical abstract Unlabelled Image Highlights • Social media firestorms as a digital kind of brand crisis are relevant phenomena. • Negative effects of firestorms can occur in both the short- and long-run. • Their consequences for brands and consumers vary strongly with contingencies. • Firestorms that spark many tweets and those caused by product failures are impactful. • Vivid triggers of social media firestorms relate to more negative effects.
Link: http://dx.doi.org/10.1016/j.ijresmar.2018.08.001 [Google]
Brannon, D. C. and A. Samper (2018): Maybe I Just Got (Un)lucky: One-on-One Conversations and the Malleability of Post-Consumption Product and Service Evaluations, Journal of Consumer Research, 45(4), pp.810-832
This research focuses on the persuasive impact of a common yet understudied form of word of mouth (WOM): one-on-one conversations in which consumers share and compare past experiences with a product or service. In contrast to prior work on WOM influence, we discover a “positivity effect” in these conversations, such that consumers who share a negative experience form more favorable overall judgments after speaking with someone who had a positive experience, but consumers who share a positive experience are unaffected by learning about another’s negative experience. This effect is mediated by consumers’ dismissal of their own negative experience as a temporary or one-off event in light of the other person’s contrasting positive experience, and is facilitated by positive consumer expectations of product and service performance. We also identify a key boundary condition whereby the positivity effect of one-on-one conversations is moderated by whether consumers have positive or negative expectations of product or service performance. When expectations are negative, the positivity effect is dampened and a negativity effect emerges.
Link: http://dx.doi.org/10.1093/jcr/ucy028 [Google]
Gupta, S., O. D. Palsule-Desai, C. Gnanasekaran and T. Ravilla (2018): Spillover Effects of Mission Activities on Revenues in Nonprofit Health Care: The Case of Aravind Eye Hospitals, India, Journal of Marketing Research (JMR), 55(6), pp.884-899
Nonprofit health care organizations in low- and middle-income countries often pursue a cross-subsidization business model wherein services are offered to poor patients for free through surpluses generated by serving some patients at market prices. This approach allows such organizations to fulfill their mission-oriented sand revenue-generation goals. Conventional wisdom holds that mission activities need financial subsidies from revenue-generating activities. The authors examine this dependence in the context of Aravind Eye Hospitals, which delivers eye care services in India. They measure whether the marketing activities (outreach camps) of Aravind that are targeted only to poor patients produce the spillover benefit of attracting paying patients to its hospitals. Using nine years of patient-level historical data, the authors find that camps increase the flow of paying patients. These effects are comparable to the camps acting as advertising for Aravind. Using model estimates, the authors compute the incremental revenue accruing to Aravind from a camp and find that it exceeds the incremental cost of a camp. The findings challenge conventional beliefs about the subsidies required by mission activities.
Link: http://dx.doi.org/10.1177/0022243718813347 [Google]
De Vries, J., D. Roy and R. De Koster (2018): Worth the wait? How restaurant waiting time influences customer behavior and revenue, Journal of Operations Management, 63(), pp.59-78
In many service industries, customers have to wait for service. When customers have a choice, this waiting may influence their service experience, sojourn time, and ultimately spending, reneging, and return behavior. Not much is known however, about the system-wide impact of waiting on customer behavior and resulting revenue. In this paper, we empirically investigate this by analyzing data obtained from 94,404 customers visiting a popular Indian restaurant during a 12 month period. The results show that a longer waiting time relates to reneging behavior, a longer time until a customer returns, and a shorter dining duration. To find out the impact of the consequences of waiting time, we use the empirical findings and data collected in a simulation experiment. This experiment shows that, without waiting, the total revenue generated by the restaurant would increase by nearly 15% compared to the current situation. Stimulating customers to reserve could enable restaurants to reap part of this benefit. Furthermore, the results of simulation experiments suggest that, within the boundaries of the current capacity, revenue could be increased by a maximum of 7.5% if more flexible rules were used to allocate customers to tables. Alternatively, by increasing the existing seating capacity by 20%, revenue could be boosted by 7.7% without the need to attract additional customers. Our findings extend the knowledge on the consequences of customer waiting, and enable service providers to better understand the financial and operational impact of waiting-related decisions in service settings.
Link: http://dx.doi.org/10.1016/j.jom.2018.05.001 [Google]
Berry, L. L., S. W. Davis, A. Godfrey Flynn, J. Landercasper and K. A. Deming (2019): Is it time to reconsider the term “cancer survivor”?, Journal of Psychosocial Oncology, (), pp.1-14
AbstractPurpose: To improve understanding of how people diagnosed with cancer perceive the term ?cancer survivor? and what influences those perceptions.Design: Patients? reactions to the term were surveyed quantitatively and qualitatively.Sample: Women who have primarily experienced breast cancer belonging to The Dr. Susan Love Research Foundation?s Army of Women.Methods: An online survey including fixed-alternative and open-ended questions.Conclusions: Using the blanket term ?survivor? to label a diverse group is problematic; although the term offers a positive identity for some, others reject it or find it offensive, at least for patients like those represented in this study. If cancer patients are going to be labeled, they should choose the one that is most empowering and reflective of their experience.Implications for Psychosocial Providers: Language used in providing care or describing patients is controllable. If evidence exists that a particular term has the potential to inflict psychological harm, why use the term?
Link: http://dx.doi.org/10.1080/07347332.2018.1522411 [Google]
Cao, L., X. Liu and W. Cao (2018): The Effects of Search-Related and Purchase-Related Mobile App Additions on Retailers’ Shareholder Wealth: The Roles of Firm Size, Product Category, and Customer Segment, Journal of Retailing, 94(4), pp.343-351
Mobile channel additions have been shown to increase consumer-brand relationships, brand satisfaction towards and overall purchasing from a retailer, but what is less apparent is whether shareholders are fully rewarded for retailers’ mobile channel additions. Results from an event study on 115 announcements relating to mobile app additions of publicly traded U.S. retail firms between 2009 and 2016 indicate that the stock market responds generally positively to mobile app additions, but specifically to the two mobile app addition types. Stock market responses to search-related and purchase-related app additions are moderated by firm size, product category, and target customer age. For announcements of search-related apps, the market responds more positively to product retailers than to service retailers, and to small firms than large ones. For announcements of purchase-related apps, the market responds less positively to firms that target younger customers than firms who do not especially target them.
Link: http://dx.doi.org/10.1016/j.jretai.2018.08.003 [Google]
Van Vaerenbergh, Y., S. Hazée and A. Costers (2018): Customer participation in service recovery: a meta-analysis, Marketing Letters, 29(4), pp.465-483
Research on customer participation in service recovery is surging, yet empirical examinations provide mixed results. A meta-analysis of 30 independent samples reported in 21 studies (N = 7872) shows that the effect sizes for the relationships between customer participation in service recovery and customer outcomes are rather weak. We also find that customer participation in service recovery has an indirect effect on satisfaction with service recovery via distributive justice and procedural justice, but not via interactional justice. Conversely, customer participation in service recovery has an indirect effect on overall satisfaction via distributive justice and interactional justice, but not via procedural justice. Finally, the effectiveness of customer participation in service recovery is stronger when customers participate in the outcome of the recovery and for customers with an Eastern cultural background, but weaker when additional compensation is offered and in online settings.
Link: http://dx.doi.org/10.1007/s11002-018-9470-9 [Google]
Desai, P. S., D. Purohit and B. Zhou (2018): Allowing Consumers to Bundle Themselves: The Profitability of Family Plans, Marketing Science, 37(6), pp.953-969
Telecommunications service is an important and growing market, with worldwide revenue exceeding $2.2 trillion in 2016. In the U.S. market, the total number of mobile wireless connections has grown from 279.6 million in 2008 to 396 million in 2016. All the firms in this market offer consumers an option of purchasing either an individual plan or a family plan. Whereas a menu of individual plans can be thought of as a means to segment the market, the theoretical challenge is to understand how a firm stands to benefit from adding family plans to its product mix. In this paper, we use a game-theoretic framework to explore the role of family plans. Interestingly, we find that even when a family plan does not draw in any new consumers, a firm can still benefit from offering these plans. This occurs primarily because a family plan enables the firm to price discriminate more effectively. In particular, because some consumers can bundle themselves and join a family plan, the firm is able to charge a higher price to single high-valuation consumers who are unable to be part of a family. Furthermore, the presence of a family plan can have a negative impact on the plan offered to single low-valuation consumers who now have to pay a higher overage price. We also show that not all family plans are profitable and that the profitability depends on the sizes of different types of families. The online appendices are available at https://doi.org/mksc.2018.1121.
Link: http://dx.doi.org/10.1287/mksc.2018.1121 [Google]
Kaartemo, V. and H. Känsäkoski (2018): Information and Knowledge Processes in Health Care Value Co-Creation and Co-Destruction, SAGE Open, 8(4), pp.2.1582440188e+15
The purpose of this article is to explore how information and knowledge processes (IKPs) influence co-creation and co-destruction of value in a health service system. A qualitative, single embedded case-approach is taken to develop theory through a systematic combining of theoretical framework, empirical fieldwork, and case analysis. Six theoretical propositions are set to describe the linkage between IKPs and value co-creation (and co-destruction). The article contributes to health marketing and transformative service research by linking organizational activities to the motivation and empowerment of patients and their families, by highlighting the importance of the role of knowledge integration in value co-creation, by introducing a shift toward systems thinking, by conceptualizing value as manifested as health behavior change, and by underlining that health care processes may have a negative (value co-destructing) influence on the well-being of actors.
Link: http://dx.doi.org/10.1177/2158244018820482 [Google]
Gonçalves, S. M., R. V. da Silva and N. Teixeira (2019): Individual actors and embeddedness in business-to-business interactions, Industrial Marketing Management, 76(), pp.181-191
Individual actors are hardly ever considered in business-to-business marketing literature. This paper uses Service-dominant Logic and Neo-institutional Theory as the bases for twelve case studies. These case studies provide a better understanding of how individuals who represent firms make sense of the social rules, norms, procedures, values, and beliefs of the network (i.e. institutional logics) where they are embedded and how the business interaction is shaped by those influences, through the individual behaviour. This paper makes two main contributions. First, we develop an empirical model of how individuals consider the institutional logics of the network in interactions with suppliers. Second, we present three patterns of individual behavior in interactions, different from what is often assumed by business-to-business researchers. Managerial contributions are also pointed out. Highlights • The paper intends to understand how individual actors in B2B are influenced by institutional logics where they are embedded. • The paper also intends to understand how business interactions are shaped by institutional logics. • The research illustrates individuals’ embeddedness in their ecosystems. • The research shows that individuals have a high degree of intentionality and their institutional logics play a central role in interactions. • Individuals are perfectly aware of all institutional logics in the ecosystem, regardless of its complexity. • Furthermore, individuals are capable of assessing the power relationships among institutional logics.
Link: http://dx.doi.org/10.1016/j.indmarman.2018.08.006 [Google]
Heirati, N., S. C. Henneberg, A. Richter and R. Harste (2019): Differential importance of social and economic determinants of relationship performance in professional services, Industrial Marketing Management, 76(), pp.23-35
Managing business relationships successfully is critical for many professional service firms (PSFs) in order to be able to address complex client needs. Furthermore, the project-based nature of PSFs’ work puts pressure on them to retain clients across project periods. Drawing on both net effect and configurational perspectives, this study provides a holistic understanding of the relative importance and of the interplay of social and economic determinants of business relationship performance in the context of dynamic relationships between PSFs and their clients. Using data from 297 business clients, the results reveal that, overall, social determinants are more important than economic determinants as drivers of the client’s willingness to cooperate with a PSF in future. The importance of social determinants increases further in later relationship lifetime phases. The configurational analysis also reveals several equifinal constellations of social and economic determinants across the lifetime phases to drive a client’s willingness to cooperate in future. Therefore, no single determinant by itself is sufficient for ensuring relationship performance. We advance the literature by showing that distinct constellations of social and economic determinants are required to achieve the desired outcome, and that these constellations change across business relationship lifetime phases. Highlights • For professional service firms (PSFs), maintaining relationships with their clients is of critical importance • Social determinants are more important in later relationship phases to drive the clients’ willingness to cooperate in future. • However, no single determinant by itself is sufficient for ensuring relationship performance • There are several constellations of determinants across the lifetime phases to drive a client’s willingness to cooperate
Link: http://dx.doi.org/10.1016/j.indmarman.2018.07.009 [Google]
Jha, S., M. S. Balaji, K. R. Ranjan and A. Sharma (2019): Effect of service-related resources on employee and customer outcomes in trade shows, Industrial Marketing Management, 76(), pp.48-59
Despite widespread recognition of trade shows as a vehicle to provide services to visitors by exhibitors, there is a paucity of research in this area of special interest. Drawing on the resource-based view, we develop a research framework to examine the effects of service-related resources on exhibitor’s personnel attitudes and visitor responses. We collected on-site data from 151 exhibitor’s personnel and 366 visitors during a trade show. These responses were matched at the exhibitor level to test the research framework. We found a positive effect of service leadership and service technology in developing a customer-oriented service strategy with satisfied employees. Additionally, we demonstrate that service leadership positively moderates the effect of service technology on customer orientation. In contrast, service leadership negatively moderates the effect of empowerment on customer orientation. This suggests that similar firm resources do not complement each other perhaps because they are substitutable. Finally, we show that service-related resources not only affect customer orientation but also influence job satisfaction of exhibitor personnel and visitors responses such as interaction quality, satisfaction, and word-of-mouth intentions. Highlights • Service leadership and service technology aid in developing a customer-oriented service ecosystem with satisfied employees. • Service leadership and technology interact to affect employees’ attitude. • Customer orientation and satisfaction of employees create value for the firm as it results in satisfied customers.
Link: http://dx.doi.org/10.1016/j.indmarman.2018.07.012 [Google]
Laczko, P., D. Hullova, A. Needham, A.-M. Rossiter and M. Battisti (2019): The role of a central actor in increasing platform stickiness and stakeholder profitability: Bridging the gap between value creation and value capture in the sharing economy, Industrial Marketing Management, 76(), pp.214-230
To survive and prosper, firms need to be able to capture the value they create. The role of the central actor in developing a viable multi-stakeholder platform resides in its ability to continuously manage synergies between the value it enables and creates, and the value it appropriates. However, capturing value is more difficult than its creation, which often results in a rather short lifespan of many platform-based businesses. Existing literature, however, neglects the role of the central actor in orchestrating value in these platforms, and mostly focuses on mechanisms through which diverse stakeholders gain financial benefits and appropriate value for themselves. With an aim to contribute to this research field, we draw upon stakeholder theory and a longitudinal case study of HeadBox, the first online B2B sharing economy-based platform that enables businesses to offer and hire inspiring off-site spaces and associated services in the United Kingdom. We put forward a Platform Stickiness – Stakeholder Profitability Framework that establishes the missing connection between value creation and value appropriation by the central actor in multi-stakeholder platforms. The framework integrates eight ‘value-driving’ mechanisms that impact the central actor’s ability to establish synergies between value creation and capture within a platform. Highlights • Synergies between value creation and value appropriation determine the long-term viability of a sharing economy platform. • A multi-stakeholder network is not a self-governed entity, but it is a process developed and managed by the central actor. • Through eight value-driving mechanisms, the central actor can simultaneously increase platform stickiness and profitability • We integrate value-driving mechanisms in the Platform Stickiness – Stakeholder Profitability Framework. • We provide empirical insights into the UK”s first-of-a-kind B2B sharing economy platform that disrupted the events industry.
Link: http://dx.doi.org/10.1016/j.indmarman.2018.08.010 [Google]
Salunke, S., J. Weerawardena and J. R. McColl-Kennedy (2019): The central role of knowledge integration capability in service innovation-based competitive strategy, Industrial Marketing Management, 76(), pp.144-156
This study examines how B2B service firms organize and manage knowledge in order to deliver new value adding solutions and in turn competitive advantage, addressing calls for research into this important, yet neglected area. Specifically, this study: (1) examines the role of the antecedents of knowledge integration capability (KIC) in service innovation-led competitive advantage in project-oriented B2B service firms; and (2) models and empirically tests the links between KIC and service innovation, and in turn sustainable competitive advantage (SCA). Findings from our research of Australian and US project-oriented firms support our central theorization that the new knowledge acquired through external and internal sources per se is not sufficient, but should be integrated with existing knowledge in order to deliver innovative service solutions addressing clients’ needs. Results from testing non-linear effects of new knowledge configurations on service innovation provide deeper insights into the suggested relationship. Our research contributes to calls for comprehensive frameworks of service innovation-led competitive advantage. We provide theoretical and managerial implications, and suggest areas for future research. Highlights • Proposes a comprehensive framework of service innovation-led competitive advantage. • Theorizes using the knowledge-based perspective and the dynamic capabilities view. • Service entrepreneurship drives the integration of internal and external knowledge. • Knowledge integration capability plays a key role in business service innovation.
Link: http://dx.doi.org/10.1016/j.indmarman.2018.07.004 [Google]
Spurrell, M., L. Araujo and N. Proudlove (2019): Capturing context: An exploration of service delivery networks in complex case management, Industrial Marketing Management, 76(), pp.1-11
The purpose of this paper is to explore how the participation practices of stakeholder networks inform an understanding of context functioning in complex service exchange settings. We adapt the concept of the service delivery network (SDN) as a suitable approach to investigate how context is made within collaborative healthcare projects. Case management reviews in a UK Learning Disability service are the focus of study as an area of significant practical interest, and as suitable exemplars of healthcare case management. Based on a template analysis, we describe the SDN related to stakeholder participation and co-participation at the intersection of patient, commissioner and clinician networks. We identify notable variations to SDN profiles and degrees of participation of the different stakeholder networks involved. Our findings suggest a fresh focus for researching complex service settings and for case management practice. We discuss the impact of this perspective for understanding and researching context functioning and developing service theory based on mid-range empirical studies. Highlights • We adapt the concept of service delivery network (SDN) to study context making in healthcare case management reviews • SDNs are formed at the intersection between patient, commissioner and clinician networks. • Different cases have different SDN profiles based on the quality of contribution of participating networks. • The quality of SDN profile could be an important factor for healthcare case management outcomes • We demonstrate a more intricate view of context making to be taken account of in further theory development and research
Link: http://dx.doi.org/10.1016/j.indmarman.2018.06.011 [Google]
Ayala, N. F., W. Gerstlberger and A. G. Frank (2019): Managing servitization in product companies: the moderating role of service suppliers, International Journal of Operations & Production Management, 39(1), pp.43-74
Purpose The purpose of this paper is to study service innovation in product companies (servitization) by considering the relationship (moderation) between product companies and service suppliers.Design/methodology/approach Using a relational view of the firm, the authors propose that there are three main business dimensions that product companies have to manage in servitization and that the support of service suppliers can moderate the effects of these dimensions on the benefits obtained from the product–service system (PSS) delivered. To test these hypotheses, the authors perform a cross-sectional quantitative survey in 104 Brazilian and Italian product companies.Findings The findings show that the three business dimensions are important for servitization while there is a trade-off decision regarding service suppliers’ support since suppliers act differently depending on the PSS orientation (product- or service-oriented).Research limitations/implications The work is limited to the analysis of what should change in a company during servitization and the impact of supplier’s support. Further research is needed to complement this study by analyzing the process and context of the organizational change.Practical implications The research contributes an understanding about how the benefits practitioners can obtain from servitization are strongly influenced by the support of service suppliers and how this influence depends on the PSS orientation of the product company.Originality/value This is one of the first quantitative studies to provide evidence of how service suppliers’ involvement affects different servitization business dimensions and the obtained benefits for both product- and service-oriented outputs.
Link: http://dx.doi.org/10.1108/IJOPM-08-2017-0484 [Google]
Glas, A. H., F. U. Henne and M. Essig (2018): Missing performance management and measurement aspects in performance-based contracting, International Journal of Operations & Production Management, 38(11), pp.2062-2095
Purpose Performance-based contracting (PBC) is a business model for the adaptive and innovative delivery of product-service systems. In PBC, the provider is paid according to the service performance with the aim of providing monetary incentives to safeguard possible outcomes as much as possible for the PBC customer. Performance measurement and its management are crucial for PBC success and, in particular, for the pay-for-performance link. However, the literature on PBC performance management is rather sparse, and there has been no systematic review on the topic. Thus, the purpose of this paper is to fill that gap and to present a comprehensive and systematic review of performance measurement and management in the PBC context.Design/methodology/approach The paper builds on a literature review based on a sample of 102 subject-relevant articles from academic journals. The content analysis follows a two-step procedure. First, the articles are coded following a process-based research framework. Second, the content of each process step is assessed in a qualitative text analysis.Findings The results show a surprising scarcity of papers that explicitly address performance management topics in the context of PBC. Only the topics of performance specification and performance indicators are broadly addressed, whereas in all of the other areas, e.g., strategic alignment, data capture and reporting, only limited specific findings could be found.Research limitations/implications The paper concludes that future research on performance management in PBC should expand its theoretical framework and empirical efforts in four specific proposed directions.Originality/value The paper provides an up-to-date review that is focused on performance management and measurement in the emerging context of PBC.
Link: http://dx.doi.org/10.1108/IJOPM-09-2016-0571 [Google]
Kreye, M. E. (2019): Does a more complex service offering increase uncertainty in operations?, International Journal of Operations & Production Management, 39(1), pp.75-93
Purpose The purpose of this paper is to investigate how the complexity of the service offering (service complexity) affects the uncertainty during service operations in engineering services. Specifically, the authors compare the existence of organisational, relational, environmental and technological uncertainty in maintenance services and performance-based services.Design/methodology/approach The authors present insights from four cases – two each for maintenance services and performance-based services. The in-depth data were based on 56 semi-structured interviews, multiple site visits, meeting notes, service contracts and other secondary data.Findings The case findings indicate that organisational and relational uncertainty were not linked to service complexity, while observations of environmental and technological uncertainty were higher and more varied for performance-based services. Based on these findings, the authors formulate four propositions regarding the relationship between service complexity and uncertainty in service operations.Originality/value This research contributes to the OM literature by suggesting that external sources of uncertainty increase with increasing service complexity, while internal sources of uncertainty remain unchanged.
Link: http://dx.doi.org/10.1108/IJOPM-01-2018-0009 [Google]
Ponsignon, F., A. Smart and L. Phillips (2018): A customer journey perspective on service delivery system design: insights from healthcare, International Journal of Quality & Reliability Management, 35(10), pp.2328-2347
Purpose The purpose of this paper is to provide novel theoretical insight into service delivery system (SDS) design. To do so, this paper adopts a customer journey perspective, using it as a frame to explore dimensions of experience quality that inform design requirements. Design/methodology/approach This study utilises UK Patient Opinion data to analyse the stories of 200 cancer patients. Using a critical incident technique, 1,207 attributes of experience quality are generated and classified into 17 quality dimensions across five stages of the customer (patient) journey. Findings Analysis reveals both similarity and difference in dimensions of experience quality across the patient journey: seven dimensions are common to all five journey stages, from receiving diagnosis to end of life care; ten dimensions were found to vary, present in one or several of the stages but not in all. Research limitations/implications Limitations include a lack of representativity of the story sample and the impossibility to verify the factual occurrence of the stories. Practical implications Adopting a patient journey perspective can improve the practitioner understanding of the design requirements of SDS in healthcare. The results of the study can be applied by managers to configure SDS that achieve a higher quality of patient care throughout the patient journey. Originality/value This paper extends existing literature on SDS design by adopting a customer journey perspective, revealing heterogeneity in experience quality across the customer journey currently unaccounted for in SDS design frameworks. Specifically, the findings challenge homogeneity in extant SDS design frameworks, evidencing the need for multiple, stage-specific SDS design requirements.
Link: http://dx.doi.org/10.1108/IJQRM-03-2018-0073 [Google]
Chen, S., H. Lee and K. Moinzadeh (2019): Pricing Schemes in Cloud Computing: Utilization‐Based vs. Reservation‐Based, Production & Operations Management, 28(1), pp.82-102
Cloud computing has been a rising trend in the business world. In this study, we consider two most important pricing schemes offered to sustained customers by major service providers in the cloud industry: the reservation‐based scheme (the R‐scheme) by Amazon or Microsoft, and the utilization‐based scheme (the U‐scheme) by Google. We consider a duopoly model with heterogeneous customers characterized by the mean and the coefficient of variation of their usage. We show that under either pricing scheme, the effective price is essentially an increasing function of the coefficient of variation of usage, and thus both schemes aim for rewarding stability in usage. However, when the providers adopt different schemes, we show that customers with lower demand volatility would prefer the R‐scheme, while those with higher demand volatility would prefer the U‐scheme. Furthermore, we study the impact of evolving market characteristics, including the distributions of market preference, demand size, and demand volatility, as well as the impact of the providers’ service levels on their choices of schemes and decisions on the pricing parameters. We find that if the market has a stronger preference for a particular provider or that provider has a higher service level than its competitor, the provider is more likely to adopt the R‐scheme, while its competitor’s adoption of a scheme depends on the extent of the price competition. Specifically, when the diversity of customer preference becomes higher (lower), the price competition becomes softened (intensified), and the competitor is more likely to adopt the R‐scheme (U‐scheme, respectively).
Link: http://dx.doi.org/10.1111/poms.12893 [Google]
Wang, J., S. Cui and Z. Wang (2019): Equilibrium Strategies in M/M/1 Priority Queues with Balking, Production & Operations Management, 28(1), pp.43-62
We consider an M/M/1 queueing system with a pay‐for‐priority option, and study customers’ joint decisions between joining/balking and pay‐for‐priority. The equilibrium strategies are thus two‐dimensional. First, we fully characterize the equilibrium structure and identify the Pareto‐dominant strategies of such a game analytically, under both the observable and unobservable settings. Interestingly, the equilibrium structure, the system throughput, and the service provider’s optimal price for priority premium can all be non‐monotone in the service reward, which departs from the existing models of priority queues without balking. In particular, we find that an increase in service reward can actually hurt the firm’s revenue (everything else being equal). Second, we compare the server’s revenue between the observable and the unobservable settings. We find that the service provider is better off with the observable setting when the system load is either low or high, but benefits more from the unobservable setting when the system load is medium. The fact that the optimal setting switches twice as the system load increases, is rather interesting; we explain the intuitions behind it in this study. Finally, we demonstrate the implications of these findings by applying our model framework to Papa John’s Pizza, based on publicly available information. Our analysis suggests that Papa John’s could benefit from prviding customers with wait information while slightly decreasing its fee for Papa Priority.
Link: http://dx.doi.org/10.1111/poms.12889 [Google]
Ye, H., J. Luedtke and H. Shen (2019): Call Center Arrivals: When to Jointly Forecast Multiple Streams?, Production & Operations Management, 28(1), pp.27-42
We consider call centers that have multiple (potentially inter‐dependent) demand arrival streams. Workforce management of such labor intensive service systems starts with forecasting future arrival demand. We investigate the question of whether and when to jointly forecast future arrivals of the multiple streams. We first develop a general statistical model to simultaneously forecast multi‐stream arrival rates. The model takes into account three types of inter‐stream dependence. We then show with analytical and simulation studies how the forecasting benefits of the multi‐stream forecasting model vary by the type, direction, and strength of inter‐stream dependence. In particular, we find that it is beneficial to simultaneously forecast multi‐stream arrivals (instead of separately forecasting each stream), when there exists inter‐stream lag dependence among daily arrival rates. Empirical studies, using two real call center datasets further demonstrate our findings, and provide operational insights into how one chooses forecasting models for multi‐stream arrivals.
Link: http://dx.doi.org/10.1111/poms.12888 [Google]
Azemi, Y., W. Ozuem, K. E. Howell and G. Lancaster (2019): An exploration into the practice of online service failure and recovery strategies in the Balkans, Journal of Business Research, 94(), pp.420-431
To help managers better balance online service failures and recovery strategies, organisations are increasingly offering a variety of recovery programmes. Anecdotal reports suggest that organisations are experimenting with various recovery strategies, and particularly transitioning offline recovery strategies into the emerging technological tapestries. Drawing on data collected from two Balkan countries (Kosovo and Albania) with varying service failures, recovery strategies and levels of participation in online environments, this study examines how interactions between the customer and provider impact on recovery strategies. Unlike existing studies regarding online service failure and recovery strategies, we argue that rather than examining the subconscious of the customer as a stand-alone explanation for failure-recovery perceptions, interactions with the provider must also be taken into account. The current study extends the related construct of failure-recovery perceptions and it suggests that service failure generates different recovery strategies based on the contextual social world.
Link: http://dx.doi.org/10.1016/j.jbusres.2018.08.035 [Google]
Hwang, Y., J. Shin and A. S. Mattila (2018): So private, yet so public: The impact of spatial distance, other diners, and power on solo dining experiences, Journal of Business Research, 92(), pp.36-47
Solo consumption contributes 1.9 trillion dollars to the US economy annually. However, there is scant research understanding solo consumption experiences. To fill this gap, we investigate the joint effect of spatial distance and other diners on enjoyment in solo dining. Results from Study 1 show that, when the spatial distance between the dining tables is small and nearby diners are solo diners (vs. social diners), individuals form a more favorable attitude towards their fellow customers. Such in-group bias has a positive impact on enjoyment. Study 2 investigates the moderating effect of power in influencing the impact of others on solo dining. Results show that powerless individuals evaluate solo dining experiences more (vs. less) favorably when the spatial distance between tables is large (vs. small). Conversely, powerful individuals’ ratings of solo dining experiences are uniformly favorable regardless of spatial distance. Implications for service providers catering to solo consumers will be discussed.
Link: http://dx.doi.org/10.1016/j.jbusres.2018.07.004 [Google]
Jaiswal, A. K., R. Niraj, C. H. Park and M. K. Agarwal (2018): The effect of relationship and transactional characteristics on customer retention in emerging online markets, Journal of Business Research, 92(), pp.25-35
Trust is important for maintaining customer relationships in online retailing, as customers have only a virtual connection with sellers. This is especially true in online markets of emerging economies, given their lack of trust-enhancing infrastructure and well-functioning regulatory institutions. We investigate the effect of trust and a set of other relationship and transactional characteristics—mode of customer acquisition, length of relationship, service communication, product return activity, and type of products purchased—on retention in the context of emerging online markets. We obtain data from an online retailer in India that include both survey and transaction information. Using a latent attrition model, we find that trust positively affects customer retention behavior. We also find that relationship length, service communication, product return experience, and the type of products purchased affect retention. Furthermore, we conduct split-sample analysis and suggest some managerial actions on spending efforts to enhance retention.
Link: http://dx.doi.org/10.1016/j.jbusres.2018.07.007 [Google]
Jaziri, D. (2019): The advent of customer experiential knowledge management approach (CEKM): The integration of offline & online experiential knowledge, Journal of Business Research, 94(), pp.241-256
This paper builds a conceptual reflection leading to the proposition of the customer experiential knowledge management (CEKM) approach. The challenge, here, is how to connect the customer knowledge management to the customer lived service experience. Hence, a conceptual analysis ascertains that the customer knowledge, as retrieved from his lived experience, plays a key role in the implementation of an experiential innovation. In this regard, the customer experiential knowledge is drawn from the lived service experience in situ, both online and offline. The customer experiential knowledge is redefined by integrating the experience lived and shared online. Then, a strategic model of CEKM, that integrates the customer experience processed through the knowledge management, is proposed. Research gaps are highlighted through a critical review of the literature in order to defend CEKM approach and give way to the proposition of practical implications in terms of competencies and research questions.
Link: http://dx.doi.org/10.1016/j.jbusres.2018.05.029 [Google]
Kwak, H., R. E. Anderson, T. W. Leigh and S. D. Bonifield (2019): Impact of salesperson macro-adaptive selling strategy on job performance and satisfaction, Journal of Business Research, 94(), pp.42-55
Drawing on the tenants of the adaptive strategy paradigm and configuration theory in the management and marketing literature, a model introducing the concept of salesperson macro-adaptive selling strategy that considers the overall selling environment, as contrasted with micro-adaptive selling tactics tailored to a specific customer, is introduced and investigated empirically within the context of the financial services industry. Using a widely accepted management theory typology— prospector , defender , analyzer —the model places macro-adaptive selling strategy into the sales performance literature as an expanded more holistic understanding of strategies influencing salesperson performance. Findings indicate significant direct and indirect effects on sales performance and job-related incomes, including job involvement, effort, and job satisfaction, for salespeople using different macro-adaptive selling strategies.
Link: http://dx.doi.org/10.1016/j.jbusres.2018.09.015 [Google]
Lechner, A. T. and M. Paul (2019): Is this smile for real? The role of affect and thinking style in customer perceptions of frontline employee emotion authenticity, Journal of Business Research, 94(), pp.195-208
Previous research has demonstrated that authentic positive emotion displays from frontline employees outperform inauthentic displays with respect to important customer outcomes. Recent evidence, however, indicates variability in customer authenticity perceptions, which, to date, is poorly understood. This study jointly investigates two factors influencing customer authenticity perceptions, customer affect and thinking style, which represent feeling and thinking, two key domains of the human mind. The results of two experiments reveal that customers who experience positive affect perceive positive emotion displays of frontline employees as more authentic, regardless of its objective extent of authenticity. Likewise, customer thinking style of combined processing (highly rational and highly experiential) is found to create upward bias on authenticity perceptions. This study contributes to research on frontline employee-customer interactions by advancing the understanding of variability in customer perceptions of frontline employee emotion authenticity. Managers are advised to incorporate these findings into frontline employee management and service design.
Link: http://dx.doi.org/10.1016/j.jbusres.2017.06.009 [Google]
Yuan, Y., B. Feng, F. Lai and B. J. Collins (2018): The role of trust, commitment, and learning orientation on logistic service effectiveness, Journal of Business Research, 93(), pp.37-50
Firms can strategically use organizational routines (dynamic capabilities) and cooperative linkages (relational views) to build competitive advantages. In the current study, we incorporated these theoretical lenses to evaluate how commitment, trust, and learning orientation affect performance in the supply chain. Data collected from 213 third-party logistics providers (3PLs) and their partner firms suggested that both learning orientation and commitment positively related to performance. Commitment was particularly salient as it mediated the relationship between trust and logistic effectiveness, as well as moderated the learning orientation and logistic service effectiveness linkage. Managerial implications and suggestions for future research are discussed.
Link: http://dx.doi.org/10.1016/j.jbusres.2018.08.020 [Google]
