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1 – 10 of 25René Hubert Kerschbaumer, Thomas Foscht and Andreas B. Eisingerich
The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription…
Abstract
Purpose
The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription contracts. At the same time, disruptive platform businesses have arisen in several consumer markets, bypassing traditional value chains while growing through network effects. In a conceptual approach, the authors address the future market for durable consumer goods in light of developments toward access-based consumption, subscription models and platform business models.
Design/methodology/approach
In a conceptual approach, the authors apply a scenario analysis following the Framework Foresight method and address trends, constants, plans and projections shaping the future market of subscriptions for durable goods. The authors create a baseline scenario and two alternative scenarios for the future of consumer durables and thereby discuss platform growth stages and implications for manufacturer brands.
Findings
The rising market power of platform companies leads to a baseline scenario where these platforms enter the market of subscriptions for durable goods. Alternative scenario 1 addresses the successful market entry of new platform businesses. In contrast, alternative scenario 2 describes the rise of manufacturer brand platforms.
Originality/value
This conceptual research enriches the discussion of access-based business models by creating scenarios depicting possible future developments. Moreover, it adds to the increasing focus on platform business models and thereby addresses the role of traditional manufacturer brands in markets for durable consumer goods subscriptions.
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Thomas Foscht, Yuting Lin and Andreas B. Eisingerich
This paper aims to explore how and when a business’ transparency leads to greater willingness to engage in sustainable and responsible consumption by consumers.
Abstract
Purpose
This paper aims to explore how and when a business’ transparency leads to greater willingness to engage in sustainable and responsible consumption by consumers.
Design/methodology/approach
Data were collected in two studies. Study 1 collected data from 219 consumers in a large shopping mall. Study 2 followed an experimental approach and used data from 327 participants.
Findings
The current research contributes to theory by hypothesizing and demonstrating when transparency is associated with higher willingness for sustainable and responsible consumption. Critically, the positive benefits of transparency vary according to a business’ future orientation, corporate social responsibility (CSR) and levels of customer involvement.
Practical implications
An important societal and practical implication of the current research is that business should not be expected to only focus on transparency in isolation but rather also needs to consider levels of perceived future orientation, CSR and levels of customer involvement to strengthen sustainable and responsible behavior effectively.
Originality/value
This research builds on and extends current knowledge by exploring the key role of business’ transparency in influencing sustainable and responsible customer behavior and examines critical boundary conditions for the observed effects.
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Hueiting Tsai, Shengce Ren and Andreas B. Eisingerich
The purpose of this paper is to theorize and empirically examine the effects of intra- and inter-regional geographic diversification on firm performance in China. Furthermore, it…
Abstract
Purpose
The purpose of this paper is to theorize and empirically examine the effects of intra- and inter-regional geographic diversification on firm performance in China. Furthermore, it investigates they key firm capabilities, which moderate the relationships between intra- and inter-regional geographic diversification and firm performance.
Design/methodology/approach
In this research, the authors studied 366 listed companies that invest in mainland China. The authors used the Taiwan Economy Journal database to construct a panel data set from 2005 to 2014 and employed panel regression estimations as part of the empirical analyses.
Findings
The authors find that the effect of regional diversification on firm performance is significantly influenced by the contexts of the expansion. More specifically, the results show that the effect of intra-regional geographic diversification on firm performance takes the form of a U-shape relationship. In contrast, the authors find that inter-regional geographic diversification has a negative effect on firm performance. Firm marketing, research and development (R&D) and managerial capabilities moderate these relationships.
Research limitations/implications
First, the companies studied in this research are mainly Taiwanese manufacturers with investments in mainland China. Second, the current model can be expanded by exploring additional process explanations and moderators in future research.
Practical implications
An important practical implication of this research is that when firms choose an intra-regional expansion strategy in China, they should adopt a moderate provincial diversification strategy in the invested region and reinforce its marketing capability to enhance firm performance. A careful consideration of a firm’s marketing, R&D and managerial capabilities is needed for successful regional diversification strategies in the China market.
Originality/value
The findings of this study contribute significantly to the existing literature on firms’ regional diversification. First, the authors explore and empirically test intra- and inter-regional geographic diversification strategies in China. The authors find that the effect of regional diversification on firm performance varies according to the contexts of the expansion (for instance, global, regional, in a single country). Second, this study furthers the research theme of intra- and inter-regional diversification by introducing and investigating previously unexplored firm capabilities as part of the framework.
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Andreas B. Eisingerich and Simon J. Bell
Current marketing theory and practice have recognized that exchanges between buyers and sellers are frequently embedded in social relationships. Despite the vast body of research…
Abstract
Purpose
Current marketing theory and practice have recognized that exchanges between buyers and sellers are frequently embedded in social relationships. Despite the vast body of research on interorganizational exchange, there has been little effort to address the role of larger social networks in which business‐to‐business services firms operate. This paper seeks to present a model of how social network theory can help in understanding why some services firms manage to reinvent themselves and continue to succeed in a business‐to‐business environment, while others are slow to change and decline.
Design/methodology/approach
Drawing on 81 in‐depth interviews conducted with general managers/chief executive officers operating in information technology, and biotechnology business‐to‐business services contexts, we consider the relative importance of both network strength and network openness in driving business performance.
Findings
The authors identify both network strength between firms and openness towards new actors as underpinning competitive advantage in business‐to‐business services.
Research limitations/implications
Data were collected for service firms operating in two different industries in two regions. The paper underscores the importance of examining the network properties that connect exchange partners when discussing firm performance in business‐to‐business service contexts.
Originality/value
The paper makes a series of important contributions to the small, but growing literature on services networks and has direct implications for managers.
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Simon J. Bell and Andreas B. Eisingerich
The purpose of this paper is to consider the dynamics of customer education by exploring the relationship between education and customer expertise and their combined effects on…
Abstract
Purpose
The purpose of this paper is to consider the dynamics of customer education by exploring the relationship between education and customer expertise and their combined effects on customer loyalty in a high involvement investment services context. The paper also considers the service context within which customer education initiatives are delivered. More specifically, it explores the moderating effects of increasing levels of customer expertise (the outcome of customer education) on the relative importance of technical service quality (what is delivered) and functional service quality (how it is delivered) in determining the loyalty decision. In doing so, the paper aims to provide implications for the investment service firm for managing the service offering as customers develop expertise over time.
Design/methodology/approach
The paper proposes a conceptual model that formalises the research objectives as a series of testable hypotheses. This is followed by an outline of the research design and method. The hypotheses are tested using a sample of 1,268 high value clients from a global investment services firm. An analysis of the model and the results is presented.
Findings
Customer loyalty was found to be positively and significantly related to technical service quality, functional service quality, and customer education. Contrary to expectations, however, customer expertise was not negatively related to customer loyalty. Customer education was found to be positively associated with customer expertise. The main effect of customer education on loyalty was significant; however it did not diminish when customer expertise was entered into the third equation. In other words, the conditions for partial mediation were not satisfied. Finally, the positive and significant interaction coefficient between technical service quality and expertise implied that the positive effect of technical service quality on consumer customer loyalty was indeed stronger when customer expertise was high. Conversely, and consistent with expectations, the interaction term between functional service quality and customer expertise was significant and negative, indicating that the positive relationship between functional service quality and customer loyalty is diminished as customer expertise increases.
Originality/value
Where there is a significant amount of research on customer knowledge and expertise, there is relatively less understanding of how customers acquire such knowledge. It is hoped that this paper can shed some additional light on the subject of customer education, its impact on customer expertise and, ultimately, on the way in which service quality is perceived.
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Andreas B. Eisingerich and Simon J. Bell
The growing importance of relationship marketing has increased interest in the role of consumer trust and loyalty in establishing, developing, and maintaining successful…
Abstract
Purpose
The growing importance of relationship marketing has increased interest in the role of consumer trust and loyalty in establishing, developing, and maintaining successful relational exchanges. The aim of this study is first, to examine the differential effects of perceived service quality, trust, and loyalty on repurchase intentions, second, to specify loyalty as a key mediating variable in the consumer‐trust repurchase intentions relationship, and finally, to directly confront the thesis that loyalty is a more powerful determinant of long‐term relationships than trust.
Design/methodology/approach
To test the proposed model in the context of professional services, the authors use data collected from 1,125 customers of a global financial services firm.
Findings
The results highlight customers' willingness to recommend the firm to relatives or friends to be the key driver of customer commitment to the organization.
Research limitations/implications
Although this single‐industry approach may establish the internal validity of the proposed model, replication in alternative service settings is needed to increase the generalizability of the findings. Further research is needed to investigate the longitudinal effects of trust and loyalty on repurchase intentions in professional service contexts.
Originality/value
The findings contribute to understanding of the relationships between different elements of service quality, trust, loyalty, and repurchase intentions; provide critical implications for managers of service organizations; and highlight directions for future research.
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Katherine Tyler, Mark Patton, Marco Mongiello and Derek Meyer
The purpose of this article is to review the emerging literature of services business markets (SBMs) from 1974 to 2007 and analyse main themes that indicate the development of the…
Abstract
Purpose
The purpose of this article is to review the emerging literature of services business markets (SBMs) from 1974 to 2007 and analyse main themes that indicate the development of the literature. It also aims to provide an introduction to the special issue on services business‐to‐business markets by examining the context.
Design/methodology/approach
The literature of SBMs from 1974 through 2007 was searched in relevant databases. The articles were analysed using Glaser's grounded theory. The constant comparison method was used with in vivo coding to reveal themes in the literature. These themes were then analysed contextually.
Findings
The literature revealed seven themes which followed a trajectory from implicit to explicit consideration of SBMs, as well as to multi‐ and cross‐disciplinary focus with integration of variables from consumer services marketing. The landscape for SBMs has become blurred due to deregulation, globalisation and information technology, particularly the internet and e‐commerce. The complexity and diversity of the literature reflects this new, blurred reality.
Research limitations/implications
This research is limited to indicative literature about SBMs as an introduction to the special issue on services business‐to‐business markets. The literature would benefit from a full critical review and research agenda.
Practical implications
The integration of theories coupled with the focus on specific service sectors and contexts, provide useful, applicable and transferable concepts which may be helpful to managers who are working in new contexts.
Originality/value
This article surveys the emergence of the literature on SBMs and defines its trajectory, themes and characteristics. It provides a useful background for academics and practitioners who would find a guide to the fissiparous literature on SBMs useful.
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Xiaochi Sun, Andreas Benedikt Eisingerich, Thomas Foscht, Xuebin Cui and Judith Schloffer
Customers often want to learn about a product/service, and companies can benefit from such a learning desire. While prior research has shed light on firm-beneficial outcomes of…
Abstract
Purpose
Customers often want to learn about a product/service, and companies can benefit from such a learning desire. While prior research has shed light on firm-beneficial outcomes of customer learning and explored the motivational factors of business partners’ learning behavior, less is known about the critical antecedents of individual customers’ learning behavior. This study aims to explore the key drivers of individual customers’ learning desires and identified customers with a stronger learning desire.
Design/methodology/approach
This research used both a lab experiment (Study 1, N = 148) and surveys (Study 2, N = 553; Study 3, N = 703) across different participant populations and product contexts.
Findings
This study indicated that both involvement and knowledge-sharing intention drove customer learning desire. Customer expertise further strengthened these main effects. Moreover, a stronger learning desire led to greater customer satisfaction.
Research limitations/implications
This study identified key factors involved in customer learning desire and its potential benefits for companies. Additional research to investigate customer learning in specific environments and forms and regarding specific brands is warranted.
Practical implications
This study emphasizes the importance of supporting customer learning and encourages businesses to manage customer learning proactively. It also provides suggestions for effective learning support for targeted customer groups.
Originality/value
This study contributes to the customer learning literature by exploring key influencing factors of individual customers’ learning desires, based on self-determination theory. It also identified the role of customer expertise in shaping customers’ learning processes. Moreover, this study examined customer learning as a novel way to enhance customer satisfaction.
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Yeyi Liu, Tobias Johannes Hubert Mayerhofer, André Marchand, Thomas Foscht, Martin Paul Fritze and Andreas Benedikt Eisingerich
This study aims to explore the extent to which customer orientation and creative benefits offered by a firm may weaken rather than strengthen customer engagement. In doing so, it…
Abstract
Purpose
This study aims to explore the extent to which customer orientation and creative benefits offered by a firm may weaken rather than strengthen customer engagement. In doing so, it sheds new light on how customer orientation and creative benefits may facilitate rather than hinder engagement by customers.
Design/methodology/approach
A field study provides a test of the proposed effects in a hedonic consumption setting with 1,703 customers of an online dating service. Furthermore, an experimental study with 277 executives in a functional consumption setting (new mobile app) helps affirm the robustness of the field study findings.
Findings
This research theorizes and examines how communal relationship norms between customers and a firm, along with customers’ psychological empowerment, mediate the effect of customer orientation and creative benefits on customer engagement. A provocative finding of the study is that communal relationship norms help boost, whereas psychological empowerment reduces, the effects of both customer orientation and creative benefits on customer engagement.
Research limitations/implications
The research examines different relationship norms and how they can become integral to customer–company relationships; this perspective helps reveal the underlying dynamics. It contributes to the literature on customer engagement by theorizing and demonstrating the link between customer orientation and customer engagement, two central constructs in the marketing literature. It theorizes and demonstrates that providing creative benefits brings about a direct competitive advantage for the product itself, and acts as a significant variable that explains the company−customer relationship.
Practical implications
The findings highlight the advantages and challenges associated with encouraging customer engagement. First, they suggest that companies emphasize their customer orientation and creative benefits. Second, managers should try to minimize the possible process of raising customers’ psychological empowerment while maximizing the impact of communal relationship norms.
Originality/value
This study identifies psychological empowerment as a key reason customer-oriented companies that provide creative benefits still struggle to engage their customers. It also suggests viable tactics to overcome barriers to enhanced customer engagement, such as by minimizing the effects of customers’ psychological empowerment while maximizing the impact of their perceived communal relationship norms.
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Yu-Ting Lin, Thomas Foscht and Andreas Benedikt Eisingerich
Prior work underscores the important role of customer advocacy for brands. The purpose of this study is to explore the critical role customers can play as brand heroes. The…
Abstract
Purpose
Prior work underscores the important role of customer advocacy for brands. The purpose of this study is to explore the critical role customers can play as brand heroes. The authors developed and validated a measurement scale composed of properties that are derived from distinct brand hero motivational mechanisms.
Design/methodology/approach
The authors conducted one exploratory pilot, using semi-structured interviews, with industry and academic experts, and employed three main studies across varying brands and market settings.
Findings
This study explores and empirically demonstrates how the brand hero scale (BHS) is related to, yet distinct from, existing scales of opinion leaders, market mavens, attachment and customer advocacy. The six-item BHS demonstrates convergent, discriminant, nomological and predictive validity across several different brand contexts.
Research limitations/implications
This research extends the extant body of work by identifying and defining brand heroes, developing and validating a parsimonious BHS, and demonstrating how its predictive validity extends both to a range of key advocacy and loyalty customer behaviors.
Practical implications
The study provides provocative insights for marketing researchers and brand managers and ascertains the important role heroes may play for brands in terms of strong customer advocacy and loyalty behaviors.
Originality/value
Building on the theory of meaning, this study shows that identifying and working with brand heroes is of great managerial importance and offers critical avenues for future research.
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