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Empirical studies in marketing conceptualize commitment as a three-component construct comprised of affective, normative, and calculative commitment. We develop and empirically test a five-component typology of consumer commitment—
Calls for increased transparency and reduced information asymmetry between service firms and their customers are getting louder in the marketplace. Yet, it remains unclear what exactly constitutes transparency in the eyes of customers and how, if at all, service firms benefit from it. This research contributes to extant knowledge by articulating the key properties of service firms’ performance transparency and by developing and validating a parsimonious scale to measure it. We show that through a reduction in customer uncertainty, the provision of accessible and objective information about a firm’s service offering is positively associated with customers’ intention to purchase and willingness to pay a price premium for its service. Furthermore, we find that the positive effect of performance transparency is influenced by customers’ perceptions of a firm’s ability to deliver on its service promise. An important managerial implication of the current research is that performance transparency benefits customers by lowering uncertainty, and hence service firms should proactively consider it as a critical measure that helps differentiate their services from competitive offerings, even when customer perceptions of a service firm’s ability are low.
This article explores direct and indirect antecedents that contribute to corporate image formation in a service recovery context. Two studies were carried out in Egypt. Study 1 comprises 29 semistructured interviews with complainants of mobile phone network service providers in Egypt. Study 2 encompasses a mail survey of another 437 complainants. Findings reveal the importance of perceived justice, namely, interactional justice, in corporate image formation, as well as the mediating role of satisfaction with service recovery in the perceived justice-corporate image relationship. Results also reveal two empirical relationships: problem solving as a determinant of distributive justice and follow-up as a driver of procedural justice. Accordingly, this study contributes to the service field by providing the first empirical evaluation of new direct and indirect antecedents of corporate image formation in a service recovery context. Managerial recommendations are provided that encourage service practitioners to emphasize perceived justice and satisfaction with a service recovery process to enhance the company’s image. Additionally, companies should invest in implementing problem solving and follow-up as service recovery strategies since both significantly enhance perceived justice.
Traditional customer satisfaction research considers satisfaction judgments invariant to temporal distance. We conduct two experiments and a field study to show that the amount of time elapsed between a service consumption experience and its evaluation influences satisfaction judgments. We show that consumers rely on concrete attributes to represent near-past (NP) experiences and on abstract attributes to represent distant-past (DP) experiences (i.e., different construal levels). The findings indicate that construal mechanisms generate intertemporal shifts in the importance of the attributes driving satisfaction over time (Study 1), in the weights assigned to abstract and concrete attributes of a past service experience (Study 2), and in overall satisfaction judgments when abstract and concrete attributes perform differently (Study 3). Overall, the results provide support for the idea that satisfaction judgments shift over time as a result of the different psychological mechanisms that are activated as a function of the time elapsing between the service experience and its evaluation. Managers are advised to adopt longitudinal approaches to customer satisfaction measurement: An immediate assessment to capture customers’ evaluations of the performance of the concrete details of the experience and a delayed assessment to measure customer satisfaction with more abstract and goal-related features of the experience.
In a long history of capacity and demand management research in services, it has often been suggested that pricing discounts and specials can increase demand in off-peak periods. We examine this issue in the contexts of restaurants, where the practices of offering discounts to restaurant patrons for dining early or dining late—commonly known as “early-bird” and “night-owl” specials, respectively—exist throughout the world. These specials bridge marketing and operations—marketing from the goal of increasing customer demand in the off-peak periods and operations from the perspective of having to serve those customers. The effectiveness of these specials has yet to be examined. While simulation would be an ideal tool for predicting the specials’ net revenue benefits, it might be impractical for many restaurateurs, so we develop three simple “back-of-the-envelope” type calculations. Restaurateurs could use these calculations when deciding whether to offer a special. In the eight large simulation-based experiments we conducted, we find that it is important to estimate revenue cannibalization from full-fare customers. The calculations prove to be far more accurate for night-owl specials than for early-bird specials. This has important implications for decisions about offering the specials and raises a flag regarding a potential marketing-operations conflict.
During professional service encounters, integrating customers into the process of service provision is both important and challenging, as the complexity of professional services can impair value creation at the service provider–customer interface. This study addresses this problem by examining how service complexity impacts customer cognitive capacity and finally important marketing outcomes. Through an examination of 310 interactions between service providers and customers of a retail bank, this study shows that customers’ cognitive capacity is drastically reduced at moderate levels of perceived complexity. Subsequently, a lack of cognitive capacity decreases customer satisfaction with the encounter and loyalty intentions toward the company, two important drivers of company profitability. Results further show that service providers’ ability to adapt to the specific nature of the encounter helps customers to conserve cognitive capacity. This study hence contributes to service literature by emphasizing the central role of perceived service complexity and establishing the importance of customers’ cognitive capacity in professional service encounters. From a managerial perspective, this study underlines the importance of decreasing service complexity to avoid the negative consequences of mentally overtaxing customers and shows how service providers can effectively use adaptive selling to manage customers’ cognitive capacity at the service provider–customer interface.