Husni Kharouf, Donald J. Lund, Alexandra Krallman and Chris Pullig
Drawing on signaling theory, the purpose of this study is to investigate the effects of the strength and framing of firm signals sent to repair relationships following…
Abstract
Purpose
Drawing on signaling theory, the purpose of this study is to investigate the effects of the strength and framing of firm signals sent to repair relationships following relationship violations.
Design/methodology/approach
Three 2 × 2 scenario-based experiments (total n = 527) manipulate signal strength × violation type (Study 1); signal frame × violation type (Study 2); and signal strength × brand familiarity (Study 3) to examine their dynamic impacts on relationship recovery efforts.
Findings
Stronger signals are more effective at relationship repair and are especially important following integrity (vs competence) violations. Signals framed as customer gains (vs firm costs) lead to more favorable relationship outcomes. Finally, brands that are less (vs more) familiar see greater benefits from strong signals.
Research limitations/implications
The three experiments were scenario-based, which may not replicate real-life behavior or capture participants’ actual emotions following a violation, thus future research should extend into real-world recovery efforts.
Practical implications
Managers should send strong signals (communicating the level of resources invested in the recovery efforts) framed as benefits to the customer, rather than costs to the firm. Strong signals are especially important when brand familiarity is low or an integrity violation has occurred.
Originality/value
This is the first research to directly apply signaling theory to the relationship recovery process and contributes to theory by examining the role of signal strength; framing of the signal as a customer gain vs firm cost; and the interplay of signal strength and brand familiarity on the relationship recovery effort.
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Yihui (Elina) Tang, Christian Hinsch, Donald J. Lund and Husni Kharouf
This study aims to investigate the process of service gifting (i.e. unexpected upgrades or benefits) and examine why service gifts do not always result in firm-beneficial…
Abstract
Purpose
This study aims to investigate the process of service gifting (i.e. unexpected upgrades or benefits) and examine why service gifts do not always result in firm-beneficial reciprocal behaviors from consumers.
Design/methodology/approach
Through a series of three studies including both scenario-based and game-theory-based experiments, this research proposes and empirically validates a conceptual model that examines the effect of service gifts on firm-beneficial reciprocal behaviors, and the role of collective social connection and norm of positive reciprocity (NPR) in this process.
Findings
The findings of this research show that the consumer’s feelings of collective social connection mediate the link between the provision of service gifts and firm-beneficial outcomes. Furthermore, an individual’s adherence to NPR moderates this process. Specifically, individuals with a strong adherence to NPR do not display increases in collective social connection following the receipt of a service gift. Those who are low in NPR follow the expected pattern of increased collective social connection leading to reciprocation.
Research limitations/implications
Future research may further generalize the model to other situations such as high vs low context cultures. Longitudinal field experiments can be used to further investigate collective versus relational social connection, which can be either a by-product or a primary benefit derived from service delivery.
Practical implications
The results of this research reveal the critical role of collective social connection which has been largely ignored in service gifting research. It encourages managers to use service gifting to directly boost consumers collective social connection. Furthermore, it offers managers insight into why service gifts do not always result in firm-beneficial outcomes because of the moderating role of NPR.
Originality/value
The roles of social connection and the norm of reciprocity have been under-studied in both theoretical and empirical work on service gifting. This paper demonstrates that, contrary to traditional thought, those typically expected to reciprocate the most (i.e. high in NPR) may not realize increased collective social connection leading to reciprocation following receipt of a service gift.
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Donald J. Lund, John D. Hansen, Robert A. Robicheaux and Clara Cid Oreja
This paper aims to examine the direct and interactive effects of community engagement and economic value on customers’ trust in, and commitment to, the retailer. This paper also…
Abstract
Purpose
This paper aims to examine the direct and interactive effects of community engagement and economic value on customers’ trust in, and commitment to, the retailer. This paper also examines the extent to which these variables, in turn, drive desirable behavioral outcomes in the form of positive word of mouth communications and share of customer.
Design/methodology/approach
Study results are derived from a cross-sectional survey of 1,757 respondents.
Findings
The authors find that retailer community engagement positively impacts word of mouth and share of customer indirectly through commitment and trust. As hypothesized, the results support a suppressing interaction between community engagement and economic value on trust. Contrary to the hypothesis, the interactive effects on commitment are positive.
Research limitations/implications
The study uses cross-sectional, single-sourced data. Incorporating secondary data or using experiments would reinforce these findings. This research is limited to local community engagement, future studies could broaden the focus to strategies that benefit communities outside the local area.
Practical implications
Study results indicate that managers can indeed build stronger customer relationships through community engagement as customers are more apt to be trusting of and committed to retailers perceived to be more actively engaged in the community. These findings are particularly important considering that community engagement is typically less expensive than other marketing strategies. Community investments are inexpensive initiatives that retailers can leverage to generate a big impact in the hearts and minds of their customers.
Originality/value
While it seems logical to assume that community engagement will benefit retailers in the form of stronger customer relationships, the authors empirically validate this assumption. The finding that community engagement simultaneously serves as both an antecedent and moderator is novel, albeit counterintuitive in the sense that the variable negatively moderates the economic value-trust relationship while positively moderating the economic value-commitment relationship. Taken in their totality, these findings indicate that community engagement serves to simultaneously drive stronger customer relationships while also differentially affecting the way customers arrive at their assessments.
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Husni Kharouf, Donald J. Lund and Harjit Sekhon
The purpose of this paper is to investigate the role of retailer trustworthiness in driving customer trust and the subsequent impact on loyalty. The authors position…
Abstract
Purpose
The purpose of this paper is to investigate the role of retailer trustworthiness in driving customer trust and the subsequent impact on loyalty. The authors position trustworthiness as a mediator in the link between retail strategies and the development of trust. They model customer loyalty to the service retailer as a function of the trust created through trustworthy perceptions.
Design/methodology/approach
The authors validate their model using 420 survey responses from customers in a service retail setting. Nine research hypotheses were tested using structural equation modeling. Alternate models are estimated, and the results provide support for the theory-based trustworthiness mediation model.
Findings
Trustworthy behaviors first build trustworthiness, which then translates into customer trust and ultimately has a positive impact on both behavioral and attitudinal loyalty.
Research limitations/implications
The research highlights the importance for retailers to signal their trustworthiness to build customer trust and loyalty. Researchers should measure trustworthiness perceptions when examining customer relationships and managers should plan strategically to develop both trust and trustworthiness with their customers.
Originality/value
This study is one of the first to investigate the mediating effect of trustworthiness on customer loyalty in service settings. While past research has investigated dimensions of trustworthy behaviors, none has included a measure of trustworthiness perceptions and consumer trust in the same theoretical model. The results of the research provide important insights for both researchers and managers.
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Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured…
Abstract
Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured supply chain practices, lack of awareness of the implications of the sustainability concept and failure to recycle poultry wastes. The current research thus attempts to develop an integrated supply chain model in the context of poultry industry in Bangladesh. The study considers both sustainability and supply chain issues in order to incorporate them in the poultry supply chain. By placing the forward and reverse supply chains in a single framework, existing problems can be resolved to gain economic, social and environmental benefits, which will be more sustainable than the present practices.
The theoretical underpinning of this research is ‘sustainability’ and the ‘supply chain processes’ in order to examine possible improvements in the poultry production process along with waste management. The research adopts the positivist paradigm and ‘design science’ methods with the support of system dynamics (SD) and the case study methods. Initially, a mental model is developed followed by the causal loop diagram based on in-depth interviews, focus group discussions and observation techniques. The causal model helps to understand the linkages between the associated variables for each issue. Finally, the causal loop diagram is transformed into a stock and flow (quantitative) model, which is a prerequisite for SD-based simulation modelling. A decision support system (DSS) is then developed to analyse the complex decision-making process along the supply chains.
The findings reveal that integration of the supply chain can bring economic, social and environmental sustainability along with a structured production process. It is also observed that the poultry industry can apply the model outcomes in the real-life practices with minor adjustments. This present research has both theoretical and practical implications. The proposed model’s unique characteristics in mitigating the existing problems are supported by the sustainability and supply chain theories. As for practical implications, the poultry industry in Bangladesh can follow the proposed supply chain structure (as par the research model) and test various policies via simulation prior to its application. Positive outcomes of the simulation study may provide enough confidence to implement the desired changes within the industry and their supply chain networks.
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Donald J. Rudawsky, David C. Lundgren and Anthony F. Grasha
This study examined the impact of interpersonal and intrapersonal factors upon the use of competitive and collaborative conflict resolution strategies in response to negative…
Abstract
This study examined the impact of interpersonal and intrapersonal factors upon the use of competitive and collaborative conflict resolution strategies in response to negative feedback Male and female college students were asked to recall instances of interpersonal conflicts where they received negative feedback from peers. Different factors predicted competition and collaboration. Greater negative affect led to more competition, while feedback on more important topics within closer relationships led to more collaboration. Gender had indirect effects on both of these assertive strategies, with women being more likely to both compete and collaborate. Several implications for further research are discussed.