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 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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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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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.
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Francisco José Mas-Ruiz, Carla Rodriguez-Sanchez, Franco Manuel Sancho-Esper and Esther de Quevedo-Puente
This study examines the relationships between the foreign entry mode (FEM) used by a company, its global corporate social responsibility (CSR) and the host country's local CSR…
Abstract
Purpose
This study examines the relationships between the foreign entry mode (FEM) used by a company, its global corporate social responsibility (CSR) and the host country's local CSR environment in Spanish quoted firms. Additionally, it seeks to explore the moderating role of the host country's CSR in the relationship between firm's global CSR and FEM.
Design/methodology/approach
To test the proposed hypotheses, binary logistic regression is used with a sample of 418 foreign direct investment (FDI) operations between 2002 and 2008. This period is chosen with the aim of knowing what happened after the boom in Spanish investments abroad in the 1990s and the uncertainty of the early 2000s.
Findings
The results reveal firm patterns of behaviour regarding the FEM of companies and the two types of CSR according to the proposed hypotheses. Furthermore, it is found that the host country's local CSR may not only have a direct influence on the FEM decision but may also moderate the relationship between the firm's global CSR and firm's entry mode in a host country.
Originality/value
This is one of the first studies to propose as explanatory variables of FEM two types of CSR (firm's global CSR and host country's local CSR). This has been possible by the creation of an ad-hoc database with data from different information sources of FDI (Instituto Español de Comercio Exterior) and CSR [Eikon™ and AccountAbility National Corporate Responsibility Index (NCRI)].
Propósito
Se examina las relaciones entre el modo de entrada en el exterior (MEE) de una empresa, su responsabilidad social corporativa (RSC) global y el entorno de RSC local del país de destino en empresas cotizadas en España. Además, analiza el papel moderador de la RSC del país de destino en la relación entre la RSC global de la empresa y el MEE.
Diseño/metodología/enfoque
Se utiliza la regresión logística binaria con una muestra de 418 operaciones de inversión directa exterior (IED) entre 2002–2008. Este período se elige para conocer qué sucedió durante el auge de las inversiones españolas en el exterior a principios de 2000.
Hallazgos
Los resultados revelan patrones de comportamiento en relación al MEE de las empresas y los dos tipos de RSC según las hipótesis propuestas. Además, se encuentra que la RSC local del país de destino puede también moderar la relación entre la RSC global de la empresa y el MEE.
Originalidad/valor
Este es uno de los primeros estudios en proponer como variables explicativas del MEE, dos tipos de RSC (RSC global de la empresa y RSC local del país de destino), gracias a la creación de una base de datos ad-hoc con datos de diferentes fuentes de información de IED (ICEX) y RSC (Eikon ™ y AccountAbility NCRI).
Details
Keywords
- Social responsibility
- Foreign direct investment
- Reputation
- Empirical studies of trade
- Trade and the environment
- Binary choice model
- Responsabilidad social
- Inversión extranjera directa
- Reputación
- Estudios empíricos de comercio
- Comercio y medio ambiente
- Modelo de elección binaria
- C250
- F18
- F140
- L140
- M140
- M160
Francisco M. Mas-Ruiz, Franco Sancho-Esper and Ricardo Sellers-Rubio
The purpose of this paper is to analyse the advertising productivity of a collective brand strategy vs a non-collective brand strategy, as well as the moderating role of company…
Abstract
Purpose
The purpose of this paper is to analyse the advertising productivity of a collective brand strategy vs a non-collective brand strategy, as well as the moderating role of company characteristics (age of the company, individual brand reputation and degree of competition that the company faces). The main hypothesis is that a collective brand has a positive influence on the advertising productivity of its member companies, as it is a collective reputation indicator in experience goods.
Design/methodology/approach
The methodology is based on the application of regression models with panel data of companies in a Spanish experience goods industry between 2004 and 2012. The empirical analysis is made in the Spanish winery sector, given the proliferation in the wine market of public collective brands (i.e. protected designation of origin labels).
Findings
The results show that a company associated with a collective brand has greater advertising productivity than a non-associated company. Advertising productivity is also higher for brands with better individual reputations associated with a collective brand. Moreover, the relative effect of a collective brand on advertising productivity is higher when the company competes in a market with a higher level of competition.
Originality/value
The literature has paid little attention to the relationship between collective brand strategy and the advertising productivity of member companies. This study considers that the advertising productivity of companies in collective brands could be explained by the effects derived from the collective brand reputation.
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Felipe Ruiz‐Moreno, Antonio Ladrón‐de‐Guevara and Francisco Mas‐Ruiz
The main objective of this paper is to propose a model that allows the detection of the competitive pattern of the Spanish loans market between 1992 and 1996.
Abstract
Purpose
The main objective of this paper is to propose a model that allows the detection of the competitive pattern of the Spanish loans market between 1992 and 1996.
Design/methodology/approach
In order to achieve this objective, the paper estimates, following the New Empirical Industrial Organization paradigm, a conjectural variation model for the strategic marketing dimension of price. The model proposed allows the measurement of strategic group‐level rivalry while simultaneously considering demand, costs, and profit specifications for each bank.
Findings
The findings evidence a high degree of competition between the firms within the same strategic group. Further, the demand for loans of a firm has a positive (negative) relationship with the rivals' price (own price), with the own branch network (rivals' branch network), and with the economic activity in the regions where firm operates.
Research limitations/implications
The major limitation of this research could become from the necessity to operate with detailed information that the authors try to overcome using proxies of several non‐available variables.
Originality/value
The model proposed herein represents a contribution to previous works and also provides more information about banking competition in the sense that it estimates price competition between firms within three strategic groups.
Josefa Parreño-Selva, Francisco José Mas-Ruiz and Enar Ruiz-Conde
This paper aims to propose models that capture the own effect of price promotions of virtue and vice products on sales and cross effects within the subcategory, between…
Abstract
Purpose
This paper aims to propose models that capture the own effect of price promotions of virtue and vice products on sales and cross effects within the subcategory, between subcategories and between periods. The hypotheses assume that, due to reverse consumption self-control, the demand for vice products is more price-sensitive than demand for virtue products, but the demand for vice products is less price-sensitive between periods than demand for virtue products; furthermore, due to the degree of impulse-buying and to licensing, the demand sensitivity of the products of a subcategory and of those of other subcategories varies according to the type of promoted product (vice or virtue).
Design/methodology/approach
The methodology is based on different econometrical models that estimate the total net effect of price promotions of virtue and vice products on sales.
Findings
The results show a greater own effect for price promotions of vice products than for virtue products. However, the complementary sales effect between subcategories for virtue products facilitates greater expansion of the subcategory in virtue products than in vice products.
Originality/value
Although price promotions of virtue products (light) and vice products (regular) have proliferated in recent years, researchers have only estimated their own sales effect. Alternatively, the paper contributes by considering own and cross effects.
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Aims to extend the individual analysis of one supply sector to that of another, thereby permitting a more detailed examination, not only of the bilateral relationships that exist…
Abstract
Aims to extend the individual analysis of one supply sector to that of another, thereby permitting a more detailed examination, not only of the bilateral relationships that exist between the supply and the retail sectors, but also of the influence that such relationships have on the client‐retailers’ loyalties to, or mobility among, their different supply firms. Employs a cognitive approach based on the study of strategic groups. This should afford us a better understanding of the links that exist between the supply and the retail sectors, as well as the retail companies’“fickleness”, or mobility among their suppliers. The methodology employs cluster analysis to define groups, and logit models to explain the client‐companies’ mobility. The results imply that the quality, the design and the price of a supplier’s product have proven to be good indicators of its client group’s migration trends over a given period of time.