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Article
Publication date: 22 August 2008

Rakesh Niraj, George Foster, Mahendra R. Gupta and Chakravarthi Narasimhan

Achieving high level of customer satisfaction (CS) involves spending marketing resources in terms of money, managerial time, and focus. Consistent with the return on quality…

3377

Abstract

Purpose

Achieving high level of customer satisfaction (CS) involves spending marketing resources in terms of money, managerial time, and focus. Consistent with the return on quality framework this paper aims to look at both the costs and benefits of a satisfaction program.

Design/methodology/approach

This paper reports the results of a longitudinal study of a beverage distributor. Two satisfaction surveys were conducted before and after the launch of the program. Profitability was calculated using activity based costing (ABC) principles. The link between changes in satisfaction and changes in profitability was analyzed.

Findings

It was found that as a result of the launch of satisfaction program CS increased significantly, but the weighted least square analysis of the relationship between CS and customer profitability (CP) shows that it does not necessarily result in higher customer profits. CS is found to be positively related to sales volume and gross profits at the customer level. However, a net profit measure of CP, derived after careful allocation of costs based on activities, shows a much more complex and non‐linear pattern of relationship.

Originality/value

The paper shows that there are several valuable lessons to be drawn from the study. First, the cost of increasing satisfaction could be substantial. A positive relationship between satisfaction and profitability, posited by most of the customer satisfaction literature, could reach its limit much sooner than generally believed. Second, allocating costs based on activities in serving the customers, and not merely on revenues is important since doing so results in a different and more complete profitability profile of customers, as is described in the sample. Finally, the complexities and non‐linearities in the CS‐CP link documented in this study imply that satisfaction improvement efforts (and dollars) should be directed towards larger customers and customers who are already relatively highly satisfied.

Details

Journal of Business & Industrial Marketing, vol. 23 no. 7
Type: Research Article
ISSN: 0885-8624

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Book part
Publication date: 10 November 2010

S. Sriram and Pradeep K. Chintagunta

Abstract

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Review of Marketing Research
Type: Book
ISBN: 978-0-85724-728-5

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Article
Publication date: 1 February 1988

Emin Babakus, Peter Tat and William Cunningham

This study examined three attitudinal dimensions of coupon usage. A review of the literature suggested that price consciousness, time value, and satisfaction/pride are three major…

1174

Abstract

This study examined three attitudinal dimensions of coupon usage. A review of the literature suggested that price consciousness, time value, and satisfaction/pride are three major motivational factors that determine coupon usage by consumers. Measurement of these three variables, using Likert‐type items, revealed acceptable levels of reliability. The three factors were found to relate to coupon usage as hypothesized. Further, significant differences were found in the predicted direction between coupon users and nonusers. Managerial implications and recommendations are provided.

Details

Journal of Consumer Marketing, vol. 5 no. 2
Type: Research Article
ISSN: 0736-3761

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Book part
Publication date: 1 February 2007

Ruth N. Bolton and Crina O. Tarasi

Abstract

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Review of Marketing Research
Type: Book
ISBN: 978-0-7656-1306-6

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Book part
Publication date: 10 November 2010

Shantanu Dutta, Mark E. Bergen and Sourav Ray

Abstract

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Review of Marketing Research
Type: Book
ISBN: 978-0-85724-728-5

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Article
Publication date: 13 July 2010

Murali Sambasivan and Ching Nget Yen

The basic purpose of this paper is to establish and test the relationship between organizational culture and strategic alliances in a manufacturing supply chain that consists of…

5202

Abstract

Purpose

The basic purpose of this paper is to establish and test the relationship between organizational culture and strategic alliances in a manufacturing supply chain that consists of alliance companies (manufacturers) and alliance partners (suppliers and customers). The relationships have been analyzed from the manufacturer's perspective.

Design/methodology/approach

This paper specifically addresses: the relationship between the culture type of alliance company and the degree of integration (trust, communication, and commitment) between the alliance companies and partners; the relationship between the culture type of alliance company and value creation in the alliance company; and the relationship between the degree of integration and value creation in the alliance company. A questionnaire was constructed and distributed to 109 companies that had some form strategic alliance with their suppliers and/or customers. The data collected were tested using analysis of variance and correlation analysis.

Findings

The culture type of the alliance company has a significant effect on the degree of integration and value creation. The degree of integration has a significant relationship with value creation. Specifically, the following have been found: ad hocracy culture favors a higher level of communication and commitment with the suppliers; hierarchy culture favors a higher level of commitment with suppliers and helps build a higher level of trust with customers and suppliers; and clan and ad hocracy cultures help in achieving a higher degree of value creation.

Originality/value

Identifying the link between the culture and strategic alliances in a supply chain can help decision makers choose the right kind of alliance partners and decide appropriate strategies that need to be adopted to form and maintain alliances.

Details

International Journal of Physical Distribution & Logistics Management, vol. 40 no. 6
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 17 May 2013

Andreas Wieland and Carl Marcus Wallenburg

The purpose of this research is to explore the resilience domain, which is important in the field of supply chain management; it investigates the effects relational competencies…

13214

Abstract

Purpose

The purpose of this research is to explore the resilience domain, which is important in the field of supply chain management; it investigates the effects relational competencies have for resilience and the effect resilience, in turn, has on a supply chain ' s customer value.

Design/methodology/approach

The research is empirical in nature and employs a confirmatory approach that builds on the relational view as a primary theoretical foundation. It utilizes survey data collected from manufacturing firms from three countries, which is analyzed using structural equation modeling.

Findings

It is found that communicative and cooperative relationships have a positive effect on resilience, while integration does not have a significant effect. It is also found that improved resilience, obtained by investing in agility and robustness, enhances a supply chain ' s customer value.

Practical implications

Some findings contrast the expectations derived from theory. Particularly, practitioners can learn that integration has a limited role in enhancing resilience.

Originality/value

The study distinguishes between a proactive and reactive dimension of resilience: robustness and agility. The relational view serves as the theoretical basis to explain the effects between three types of relational competencies (communication, cooperation, and integration) and the above-mentioned two dimensions of resilience.

Details

International Journal of Physical Distribution & Logistics Management, vol. 43 no. 4
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 1 March 1991

John C. Anderson, Roger G. Schroeder and Gary Cleveland

Manufacturing strategy has become a subject of increasingimportance to practice and research. It involves two elements: contentand process. The content of manufacturing strategy…

569

Abstract

Manufacturing strategy has become a subject of increasing importance to practice and research. It involves two elements: content and process. The content of manufacturing strategy has recently received considerable attention. The process of manufacturing strategy has not received the same level of emphasis. There is little prescriptive literature on the subject, and even less literature of an empirical nature. It is argued that effective manufacturing strategy is inseparable from an effective process for the development of manufacturing strategy. This article provides some beginnings with regard to the process of manufacturing strategy by (1) exploring and drawing out concepts and methodologies in existing literature which can contribute to the process of manufacturing strategy, (2) reporting on an empirical study of the process of manufacturing strategy involving 53 manufacturing executives within organisations primarily from the midwest region of the USA, and (3) developing implications for future practice and research.

Details

International Journal of Operations & Production Management, vol. 11 no. 3
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 14 October 2009

Antonio J. Verdú and José‐María Gómez‐Gras

The purpose of this paper is to explore the nature of managerial flexibility and analyse its relationship to the organizational responsiveness of firms. This paper seeks to…

3555

Abstract

Purpose

The purpose of this paper is to explore the nature of managerial flexibility and analyse its relationship to the organizational responsiveness of firms. This paper seeks to measure responsiveness by determining the fit between contextual and organizational variables.

Design/methodology/approach

Using an empirical approach and data drawn from a wide range of countries and different industries this paper obtains a sufficiently validated multidimensional scale.

Findings

The research proposes a measurement scale of organizational responsiveness through four types of managerial flexibility: internal and external, structural and strategic.

Practical implications

Whereas researchers can benefit from the development of a methodology that integrates different perspectives on fit, practitioners can identify the organizational responsiveness in their organizations.

Originality/value

This paper contributes to the literature by proposing a method to identify the organizational responsiveness of firms and developing a measurement scale.

Details

Journal of Organizational Change Management, vol. 22 no. 6
Type: Research Article
ISSN: 0953-4814

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Article
Publication date: 12 January 2015

Ville Hallavo

The purpose of this paper is to examine how the moderating effect of uncertainty impacts the relationship of operational responsiveness and firm performance. Research on the…

2489

Abstract

Purpose

The purpose of this paper is to examine how the moderating effect of uncertainty impacts the relationship of operational responsiveness and firm performance. Research on the relationship of supply chain fit and firm performance is discussed in isolation in different streams of research – such as in studies on responsiveness, agility, flexibility, efficiency and lean – without promptly recognising cross-stream contributions. This, at worst, prevents theory development. Therefore, the authors build a synthesis of literature from these streams. Grounded in the synthesis, a well-positioned empirical study that uses best research practices of past studies on the phenomenon is presented.

Design/methodology/approach

A cross-sectional survey sample of 875 Russian manufacturing firms was analysed with hierarchical regression.

Findings

The findings show that operational responsiveness leads to superior organisational performance if the relationship is moderated by uncertainty and supply chain responsiveness. Additionally, a direct relationship between operational responsiveness and operational performance was found. These results imply that efficiency is a precursor to responsiveness.

Originality/value

This paper contributes to the unification of practice–performance studies on lean, agility, flexibility, efficiency and responsiveness into a single stream of research: supply chain fit. The empirical results support contingency theory in the context of supply chain design. This paper also contributes by shedding light on supply chain dynamics of an under-researched national context. For managers, this paper offers concrete advice on decision-making regarding supply chain strategy trade-offs.

Details

Supply Chain Management: An International Journal, vol. 20 no. 1
Type: Research Article
ISSN: 1359-8546

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