Ricardo Sellers‐Rubio and Francisco J. Más‐Ruiz
The purpose of this paper is to estimate the influence of inventory investment, wage levels, and age of the firm on retailer technical efficiency.
Abstract
Purpose
The purpose of this paper is to estimate the influence of inventory investment, wage levels, and age of the firm on retailer technical efficiency.
Design/methodology/approach
The methodology is based on the estimation of a stochastic parametric function. To estimate technical efficiency the output supermarket chain sales volume is used, calculated by isolating the retailer price effect on sales revenue.
Findings
The empirical analyses applied to panel data show that inventory investment and wage level have a positive impact on technical efficiency.
Research limitations/implications
The limitations of the study include the generalisation of the conclusions to the entire sector, which must be done with due care, since only one of the players in the distribution channel (supermarket chains) has been analysed.
Practical implications
First, the estimation of the efficiency of the different supermarket chains helps the management of producers, since they can identify efficient supermarket chains, which is important for vertical relationships in the distribution channel. Second, the analysis of the determinant factors of efficiency for different chains may be used as external benchmarking.
Originality/value
The focus of the paper is on developing a useful methodology for managers, determining some of the sources of retail efficiency gains. The paper develops and tests a composite set of hypotheses, analysing the influence of some managerially controlled factors on technical efficiency.
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Francisco J. Mas, Juan L. Nicolau and Felipe Ruiz
The purpose of this study is to examine the impact on firm performance of foreign concentration vs diversification strategies, as well as the moderating role played by market…
Abstract
Purpose
The purpose of this study is to examine the impact on firm performance of foreign concentration vs diversification strategies, as well as the moderating role played by market, product and firm characteristics.
Design/methodology/approach
Moderated regression analysis is used.
Findings
Distribution and cultural distance (CU) moderate the relationship between foreign concentration‐diversification and stock market performance; while the non‐repetitive character of product purchase moderates the relationship at an accounting performance level.
Research limitations/implications
First, the lack of information prevented us from examining other groups of determining factors. Second, the possible existence of bias in the results due to the selection of stock market quoted firms.
Practical implications
Managers must realise that CU, distribution channel, and the product factor of non‐repeat purchase, play an important role in the choice of a concentration vs diversification strategy when explaining business results. Government authorities should develop training programmes for firms located in middle‐income countries in order to detect the CU with target markets, as well as the development of effective distribution channels and of product strategy in these markets.
Originality/value
The findings of this study and the implications proposed show the relevance of this topic. The paper focuses on a middle‐income country (Spain) and uses two measurements of firm performance: an accounting rate and a market measure based on the event‐study (excess returns on the stock market generated by the announcement of a foreign expansion).
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Ana B. Casado‐Díaz, Francisco J. Mas‐Ruiz and Ricardo Sellers‐Rubio
The purpose of this paper is to focus on the impact of third‐party complaints on firm performance. It aims to use a financial measurement of performance, the variation in firm…
Abstract
Purpose
The purpose of this paper is to focus on the impact of third‐party complaints on firm performance. It aims to use a financial measurement of performance, the variation in firm share returns in the stock market following the publication of the Annual Complaints Service Report by the Bank of Spain. Building on modern theory of financial markets and resource‐based theory, it aims to propose that the release of information about third‐party complaints negatively influences firms' stock returns.
Design/methodology/approach
The empirical research is conducted on a sample of Spanish banks to which complaints were made and which were quoted on the Spanish Stock Exchange between 1992 and 2002. It employs the event study methodology.
Findings
The results of the study indicate that the release of the annual report of the Complaints Service of the Bank of Spain negatively affects the market's assessment of future cash flows.
Research limitations/implications
Banks of a large size were selected, which restricts generalisation of the conclusions. Future research is needed to validate the findings across a wider sample base (e.g. cross‐nationally). The study described is conducted in the banking industry. Therefore, more research is needed to examine the effects of third‐party complaints on performance in different industry contexts (e.g. airlines, mobile phone industry).
Practical implications
Firms should invest in improving complaint management systems in order to prevent future complaints reaching the third‐party level. The study results show that this information damages corporate reputation and it is negatively received by investors.
Originality/value
The study meets the demands for greater attention to be given to third‐party complaints made by various authors. It is also an attempt to better understand the chain from service and marketing effort to financial outcome and to link customer assets such as complaints to the value of the firm.
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Ana B. Casado‐Díaz, Francisco J. Más‐Ruiz and Hans Kasper
Research has shown that more than half of attempted recovery efforts only reinforce dissatisfaction, producing a “double deviation” effect. Surprisingly, these double deviation…
Abstract
Purpose
Research has shown that more than half of attempted recovery efforts only reinforce dissatisfaction, producing a “double deviation” effect. Surprisingly, these double deviation effects have received little attention in service marketing literature. To fill this gap, this paper aims to develop and empirically test a model of how customers form satisfaction judgments in double deviation scenarios. The paper seeks to propose that emotions have a distinct and separate influence from perceived justice in explaining satisfaction with failed recovery.
Design/methodology/approach
The paper employs the critical incident technique to obtain data from banking customers and apply latent variable path analysis to test the proposed model.
Findings
The results of the study support the model and highlight the important role of specific recovery‐related emotions in double deviation contexts.
Research limitations/implications
Future research should try to determine whether different specific negative emotions and/or the interactional and procedural components of justice affect post‐recovery judgments in double deviation scenarios.
Practical implications
The results show that specific emotions such as anger play an important role in explaining satisfaction with service recovery. The paper proposes that in future, customer satisfaction surveys could include items measuring specific emotions. This could increase their efficiency as managerial tools.
Originality/value
To the authors' knowledge, this has been the first attempt to model the effect of specific emotions triggered by the service recovery on satisfaction with service recovery and to empirically test a model of satisfaction with service recovery in double deviation scenarios. Furthermore, this study is based on the analysis of real service failures and recovery strategies.
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Ana B. Casado, Juan L. Nicolau and Francisco J. Mas
This paper aims to examine which behaviour or set of behaviours customers are prone to follow in double deviation scenarios (i.e. consumption experiences in which customers face…
Abstract
Purpose
This paper aims to examine which behaviour or set of behaviours customers are prone to follow in double deviation scenarios (i.e. consumption experiences in which customers face both the initial service failure and a failed service recovery), as well as how customers' perceptions of the problem and the firm's recovery efforts may influence these behaviours.
Design/methodology/approach
The paper uses multinomial logit models with random coefficients to test the proposed model.
Findings
Magnitude of service failure, explanations, apologies, perceived justice, anger and frustration felt by the customer, and satisfaction with the service recovery have significant and different effects on customers' choice of a type of response.
Research limitations/implications
Additional research should try to determine the effects of different variables and their potential interactions. Further work incorporating different subjects, service settings or additional combinations of complaining behaviours is needed to validate the results of this investigation.
Practical implications
This study highlights the importance of effective management of consumer responses to double deviations. Even when it is not possible to respond to customer complaints the first time, firms can learn from double deviations. Furthermore, new market entrants and competitors who want to capture consumer switchers should recognise what happened and try to avoid making the same mistakes.
Originality/value
This study is the first to examine the consequences of double deviations by considering the multi‐dimensional nature of complaint behaviour and the existence of simultaneous responses. This study is based on analyses of real service failures and recovery strategies and actual customer behaviour.
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Juan L. Nicolau and Francisco J. Más
This study intends to decompose the tourist choice process into two stages (decision to take a holiday and tourist expenditure), and to propose and test various expectations on…
Abstract
Purpose
This study intends to decompose the tourist choice process into two stages (decision to take a holiday and tourist expenditure), and to propose and test various expectations on the dimensions which explain the above decisions.
Design/methodology/approach
In order to simultaneously model the two decisions, we use a system of equations based on the Heckit model.
Findings
The dimensions affecting the decision to go on holiday are income, household size, education, size of the city of origin and opinion of going on holiday. The determinant factors influencing the level of expenditure are distance between origin and destination, type of accommodation, income, household size, age, marital status and length of stay. An important finding of this analysis is the differentiated effect of a given dimension on each decision.
Research limitations/implications
The lack of information on some explanatory dimensions. Joint modelling. The spending decision should be modelled jointly with the decision to go on holiday due to the dependency between them.
Practical implications
The promotion of destinations should be developed with special attention paid to some faraway markets of origin, due to the expected propensity for these tourists to spend longer periods at the destination. The specialisation of destinations in terms of accommodation type and length of stay. The design of holiday packages should be adapted to the needs of the tourists identified, as they represent the most profitable tourist profiles.
Originality/value
The particular findings, and the research and practical implications proposed show the relevance of the topic analysed. Also, these aspects are backed by a sample of 3,781 individuals, which assures the robustness of the results.
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Ana B. Casado Díaz and Francisco J. Más Ruíz
The objective of this study is to examine the relationships that exist among the attributions, the affect and behavioural intentions of consumers who suffer delays in services. As…
Abstract
The objective of this study is to examine the relationships that exist among the attributions, the affect and behavioural intentions of consumers who suffer delays in services. As a new element, we propose to consider two different affective dimensions: anger (emotional reaction) and satisfaction with the service (cognitive and emotional evaluation). The methodology employed is based on structural equation modeling and the empirical application in the airline industry, which was carried out in Spain, demonstrates the existence of the sequence “attribution‐affect‐behavioural intention”, with anger being the mediator in the relationship between the attribution of control on behavioural intention (propensity to complain and repurchase intentions).
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Stephanie Taché and Laura Hill‐Sakurai
Little attention has been given to the field of medical assisting in US health services to date. To explore the roles medical assistants (MAs) currently play in primary care…
Abstract
Purpose
Little attention has been given to the field of medical assisting in US health services to date. To explore the roles medical assistants (MAs) currently play in primary care settings, the paper aims to focus on the work scope and dynamics of these increasingly common healthcare personnel.
Design/methodology/approach
This is a multiple step, mixed methods study, combining a quantitative survey and qualitative semi‐structured interviews: eight experts in the field of medical assisting; 12 MAs from diverse primary care practice settings in Northern California.
Findings
Survey results revealed great variation in the breadth of tasks that MAs performed. Five overarching themes describe the experience of medical assistants in primary care settings: ensuring patient flow and acting as a patient liaison, “making a difference”; diversity within the occupation and work relationships.
Research implications/limitations
As the number of medical assistants working in primary care practices in the United States increases, more attention must be paid to how best to deploy this allied health workforce. This study suggests that MAs have an expertise in maintaining efficient clinic flow and promoting patient satisfaction. Future recommendations for changes in MA roles must address the diversity within this occupation in terms of workscope and quality assurance as well as MA relationships with other members of ambulatory care teams.
Originality/value
This is the first study to explore perspectives of medical assistants in the USA. As this is a largely unregulated and understudied field, a qualitative study allowed the exploration of major themes in medical assisting and the establishment of a framework from which further study can occur.
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Franco Manuel Sancho-Esper and Francisco José Mas-Ruiz
The purpose of this paper is to analyse the role of switching costs (SwCs) on established firm cost behaviour towards a competitive entry in the Spanish domestic airline market…
Abstract
Purpose
The purpose of this paper is to analyse the role of switching costs (SwCs) on established firm cost behaviour towards a competitive entry in the Spanish domestic airline market, taking into account the entrant profile and airport capacity restrictions.
Design/methodology/approach
The dynamic model is based on information of 193 Spanish domestic routes in which incumbents react to entrants (quarterly data during 10 years, 620 reactions are analysed). The balanced panel used is constructed by setting up a multiple-source database based on accounting and industrial engineering procedures.
Findings
Results show that both entrant profile and regulatory constraints conditions incumbent cost reaction (CR) to entry at the route-level. Regression models show that the relationship between SwCs and incumbent reaction is moderated by the entrant profile and the regulatory conditions of the market.
Practical implications
This study reveals the importance of policy measures aimed at reducing firm market power and increasing consumer protection in the airline industry, in which SwCs are artificially created at the company’s discretion and where operating costs at the route-level need to be evaluated together with the various service elements.
Originality/value
This study complements current literature related to incumbent CR to entry in the airline industry since it analyses the specific reaction performed by a carrier at the route-level. Moreover, it analyses the whole set of routes in the Spanish domestic market rather than a selection of it. It also explicitly includes three alternative measures of SwCs that can influence such incumbent reaction.
Objetivo
Esta investigación analiza el papel de los costes de cambio en el comportamiento en costes de las empresas establecidas ante las entradas competitivas en el mercado aéreo nacional español, teniendo en cuenta el perfil de los entrantes y las restricciones de capacidad de los aeropuertos.
Diseño/Metodología/Enfoque
El modelo dinámico propuesto se basa en la información de 193 rutas nacionales españolas en las que los implicados reaccionan ante los nuevos entrantes (datos trimestrales durante 10 años, se analizan 620 reacciones). El panel equilibrado utilizado se construye configurando una base de datos de múltiples fuentes basada en procedimientos de contabilidad de costes e ingeniería industrial.
Resultados (Hallazgos)
Los resultados muestran que tanto el perfil del entrante como las restricciones a la entrada condicionan la reacción en costes del implicado ante la entrada a nivel de ruta. Los resultados de las regresiones muestran que la relación entre los costes de cambio y la reacción del implicado está moderada tanto por el perfil del entrante como por las condiciones regulatorias del mercado.
Implicaciones prácticas
Este estudio revela la importancia de las medidas de política destinadas a reducir el poder de mercado de las empresa y a aumentar la protección del consumidor en el sector de las aerolíneas, en las que los costes de cambio se crean artificialmente a discreción de la compañía y donde los costes operativos a nivel de ruta deben evaluarse juntos con diversos elementos de servicio.
Originalidad/Valor
Este estudio complementa la literatura actual relacionada con la reacción del implicado ante la entrada en el sector de las aerolíneas, ya que analiza la reacción específica realizada por las compañías a nivel de ruta. Además, analiza de forma exhaustiva el conjunto de rutas en el mercado nacional español en lugar de una muestra de ellas. También, incluye explícitamente tres medidas alternativas de costes de cambio que pueden influir en dicha reacción predominante.