A crossover effect exists in the relationship between recommendation apps and restaurants in the online-to-offline (O2O) service platform context. Yet, how this effect evolves…
Abstract
Purpose
A crossover effect exists in the relationship between recommendation apps and restaurants in the online-to-offline (O2O) service platform context. Yet, how this effect evolves across subsequent consumption episodes, from the initial stage of information searching to the final stage of loyalty to a service provider, remains unclear.
Design/methodology/approach
This study utilizes a two-time-lag interval approach to test changes in temporal and carryover effects and attribute weights.
Findings
While there is no crossover effect between restaurant satisfaction and recommendation app loyalty during two time-lag interval periods, the crossover effect between recommendation app satisfaction and restaurant loyalty intentions is significant. These findings indicate that the satisfaction–loyalty intentions linkage operates systematically within the O2O consumption domain and increases over time. Particularly, the initial selection of a restaurant based on an app’s recommendation strengthens the intention to use the app again and increases loyalty toward the restaurant.
Originality/value
This study contributes to the literature by demonstrating the crossover effects of the two consumption systems on consumer evaluations. It underscores the importance of changes in individual attribute weights between the two systems as behavioral responses occur during initial and subsequent consumption phases.
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Vertical business-to-business (B2B) relationship models are dynamic and depend on economic and relational constructs. However, it remains unclear how relationship termination…
Abstract
Purpose
Vertical business-to-business (B2B) relationship models are dynamic and depend on economic and relational constructs. However, it remains unclear how relationship termination intentions evolve across the mature and final stages of the B2B relationship cycle, particularly in the hospitality sector. Thus, this study investigates the dynamics of B2B relationship termination mechanisms.
Design/methodology/approach
The authors use a two time-lag interval method to provide insights into how these two variables (relational satisfaction and partner trust) mediate (e.g. strengthen or weaken) the relationship between social dependence and relationship termination intentions over time.
Findings
The authors demonstrate that relational satisfaction is not directly linked to relationship termination intentions across B2B relationship stages. However, our findings show that social dependence and partner trust are both key determinants of relationship termination intentions over time. Based on the mature and final stages of a B2B relationship cycle, these results suggest that researchers must understand the theoretical mechanism of B2B relationships and the roles key constructs play in determining how these relationships conclude.
Originality/value
This study is novel in capturing the evolution of B2B relationship stages. This research presents the first collection of ample evidence on the manifestation of relationship termination in the transition from social dependence to reduced partner trust.
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Changes in consumers’ awareness of interest rates (deposits and loans) are important for making financial decisions, particularly in the banking industry. However, little is known…
Abstract
Purpose
Changes in consumers’ awareness of interest rates (deposits and loans) are important for making financial decisions, particularly in the banking industry. However, little is known about the effect of consumer awareness on customer orientation and loyalty. The purpose of this paper is to examine how changes in consumers’ awareness of interest rates in Korea can influence customer loyalty, considering banks’ efforts to improve customer orientation. The authors explicitly rationalize the fact that consumers’ awareness of interest rates can play an important role in moderating the strength of the relationship between customer orientation and loyalty.
Design/methodology/approach
The data were collected from participants (n=327) who had made banking transactions based on their real income in Seoul. Participants mainly focused on personal loans and debts, and most people had banked with a specific bank (one of the main Korean banks) for longer than three years. The authors tested the effect of interest rates using two methodologies, namely, a field study using SEM and an experimental design.
Findings
The study tested these relationships with survey data and two simulated experiments. The findings indicated that the influence of customer orientation on customer loyalty decreased with the increase in loan interest rate awareness. Moreover, the customer orientation-loyalty link weakened with the increase in awareness of central bank base rates. Conversely, the awareness that loan rates were decreasing strengthened the relationship.
Research limitations/implications
Banks need to know the importance of periodic consultation services with valuable consumers who transact with one or more banks because changes in the consumer awareness of interest rates influence customer loyalty (or switching behavior), particularly when their awareness of loan interest rates increases.
Originality/value
This paper is, to the best of the authors’ knowledge, the first to investigate the consequence of such a change in consumers’ awareness of both deposit and loan interest rates with regard to the relationship between customer orientation and loyalty.
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This study aims to assess how continuous outcomes of brand personality vary as a function of time and other predictors. Specifically, the author investigates the roles of brand…
Abstract
Purpose
This study aims to assess how continuous outcomes of brand personality vary as a function of time and other predictors. Specifically, the author investigates the roles of brand trust on the direct influence of brand personality, resulting in brand loyalty.
Design/methodology/approach
Using a longitudinal study of online travel consumers, the author demonstrates that the process of brand evolution is related to the investigation of both temporal and carryover effects.
Findings
The findings show that the effect of the brand personality–brand trust linkage decreases over time and leads to the re-evaluation of three dimensions of brand personality when changes in consumers’ perceptions are involved in brand evaluations. Another interesting finding is that the carryover effects of these three dimensions of brand personality are much stronger and stable than the effects of brand personality and brand loyalty. Furthermore, this research uncovers the important boundary conditions for the effects of brand trust on the brand personality–brand loyalty linkage.
Originality/value
This study contributes to the growing literature on tourism management by examining both temporal and carryover effects and using the longitudinal approach. Thus, our study extends prior findings by examining the dynamics of brand personality as determinants of brand loyalty as they develop over time.
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This study aims to explore the moderating outcomes of mobile promotions in three parts. First, Study 1 is conducted to discover the moderating effect of mobile promotions when…
Abstract
Purpose
This study aims to explore the moderating outcomes of mobile promotions in three parts. First, Study 1 is conducted to discover the moderating effect of mobile promotions when consumers initially purchase a restaurant service. Second, Study 2 investigates how the promotion level during subsequent purchasing events moderates the relationship between attitudes toward selecting a restaurant brand (ATRB) and repurchase intentions. Third, the study compares mobile promotion effects between the initial purchase stage and subsequent purchase state.
Design/methodology/approach
Two studies are conducted to test the hypotheses. Using a longitudinal survey, Study 1 demonstrates the moderating role of mobile promotions (M-promotions) during the initial restaurant choice stage (T). Study 2 extends these findings to the reordering stage (T+1).
Findings
The results of Study 1 show that price discounts are much more impactful than free delivery when food quality and online reviews are positive. Study 2 shows that price discounts have more substantial effects than gifts at time T+1 when ATRB is positive. The findings are relevant to both scholars and managers, adding insights to discussions on promotions arising from the evolution of consumption experiences.
Research limitations/implications
Promotions differ in financial value; hence, comparisons of promotional packages may vary during subsequent purchase states, helping to explain subsequent promotion stages and enabling scholars to understand their impact on the food reordering context.
Originality/value
The fact that no empirical studies have examined the roles of M-promotions during subsequent purchasing stages constitutes a significant gap in extant promotion research. Therefore, this study seeks to fill this gap by providing robust evidence to demonstrate these effects and related temporal mechanisms. Additionally, although the literature on promotion is used mostly in cross-sectional studies, this study addresses a common challenge to reveal dynamics of promotion levels during subsequent consumption periods.
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The purpose of this paper is to develop and test a dynamic model of security-based consumer purchasing intentions and empirically addresses gaps in online purchasing theory by…
Abstract
Purpose
The purpose of this paper is to develop and test a dynamic model of security-based consumer purchasing intentions and empirically addresses gaps in online purchasing theory by examining how loyalty intention may become stronger or weaker over time as a result of prior relationship evaluations.
Design/methodology/approach
Using a longitudinal study (three-time waves) of commercial website consumers, the authors investigate the proposed model by depicting the relationships among perceived security, perceived risk, website trust and loyalty intentions.
Findings
The results show that two relationships, namely the perceived security-perceived risk link and the perceived risk-website trust link, which have been little investigated on a longitudinal basis in previous studies, change over time. Interestingly, while social network service (SNS) information perceptions do not have direct effects on perceived risk or loyalty intention, the relationships in which either perceived security and website trust are involved are more important for positively improving perceived security and building website trust.
Practical implications
The authors suggest that managers may actually benefit from handling SNS information or social communities by delivering well-designed information at strategic stages, targeting key constructs.
Originality/value
The research contributes to the establishment and testing of temporal carryover effects of various online purchasing-related constructs: perceived security, perceived risk, trust and loyalty intention. More specifically, the longitudinal approach provides new insights regarding the role, potential impact and limitations of two types of perception. It thus highlights how understanding loyalty intention requires reevaluating consumer perceptions as consumers’ judgments evolve.
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Yongkyun Chung and Hong-Youl Ha
The purpose of this paper is to identify the determinants of arbitrator acceptability and investigate whether the perceived costs of arbitration moderate the relationship between…
Abstract
Purpose
The purpose of this paper is to identify the determinants of arbitrator acceptability and investigate whether the perceived costs of arbitration moderate the relationship between arbitrator acceptability and arbitrator characteristics in international commercial arbitration.
Design/methodology/approach
A two-stage analytic process is used to test the dimensionality, reliability and validity of each construct and then the proposed hypotheses.
Findings
The findings show that the five constructs of arbitrator characteristics – reputation, practical expertise, legal expertise, experience and procedural justice – statistically significantly explain arbitrator acceptability. Moreover, perceived cost of arbitration moderates the relationship between arbitrator acceptability and arbitrator characteristics. However, the moderating effect of perceived costs of arbitration is not equal across characteristics.
Research limitations/implications
Knowledge regarding potential moderators of the strength of the indicators of arbitrator acceptability will be useful to future researchers in determining which variables to study in arbitrator selection research.
Practical implications
Useful guidelines in the selection of an international arbitrator are proposed.
Originality/value
This study contributes to arbitrator acceptability literature through the suggestion of a hypothesized model of arbitrator acceptability with auxiliary hypothesis of reputation in international contexts. In addition, this study investigates the moderating role of perceived cost of arbitration on the relationship between arbitrator acceptability and arbitrator characteristics.
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Huifeng Pan, Zhiqiang Liu and Hong-Youl Ha
Prior hospitality studies have reviewed review trustworthiness and perceived price as predictors of restaurant selection. However, the impacts of these two factors may vary by…
Abstract
Purpose
Prior hospitality studies have reviewed review trustworthiness and perceived price as predictors of restaurant selection. However, the impacts of these two factors may vary by sales promotion and customer types. This study aims to determine whether sales promotions and customer type are the key elements that facilitate behavioral intentions by moderating the linkage between perceived price and behavioral intentions as well as the linkage between online review trustworthiness and behavioral intentions.
Design/methodology/approach
Analysis of the responses of 533 individuals familiar with the Michelin Guide for restaurants in Seoul provided evidence supporting a sales promotion theory wherein promotions signal benefits in consumers’ minds.
Findings
The findings show that when perceived price is positive and the trustworthiness of online reviews is high, repeat customers prefer mixed coupons to price discounts. Notably, the results indicate that when the trustworthiness of online reviews is high, first-time customers also prefer mixed coupons to price discounts. Furthermore, the findings suggest that negative evaluations of perceived price increase the impact of mixed coupons by signaling to first-time customers that given restaurants’ offerings provide monetary benefits regardless of their intentions to revisit said restaurants.
Research limitations/implications
The study findings provide insights that should help managers better understand various levels of promotion. Managers can design their pricing strategies to strengthen customers’ motivations to visit their restaurants – the very thing customers often seek in sales promotions.
Originality/value
This study provides indisputable evidence for a sales promotion theory, wherein promotions signal benefits in consumers’ minds; however, it also shows that first-time and repeat customers do not respond equally to sales promotions.
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Hong-Youl Ha, Jang-Gyem Kim and Yongkyun Chung
The purpose of this paper is to select the best model among alternative models explaining the relationship maintenance in mediation.
Abstract
Purpose
The purpose of this paper is to select the best model among alternative models explaining the relationship maintenance in mediation.
Design/methodology/approach
Four alternative models are employed in order to select best fit model through the test of each construct using Korean and Indonesian firm data.
Findings
The settlement model out of four alternative models is the best fit model in both Korea and Indonesia. The nexus of experience-settlement is not similar between Korea and Indonesia. The nexus of cost-saving-settlement is similar between two countries.
Practical implications
The field manager and policy maker get useful information from the findings. In particular, Korea and Indonesia belong to different cultural clusters.
Originality/value
This study contributes to the mediation literature through the suggestion of hypothesized model of relationship maintenance intention in mediation.
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Huifeng Pan, Man-Su Kang and Hong-Youl Ha
Although the study of credit ratings has focused on traditional credit bureau resources, scholars have recently emphasized the importance of big data. The purpose of this paper is…
Abstract
Purpose
Although the study of credit ratings has focused on traditional credit bureau resources, scholars have recently emphasized the importance of big data. The purpose of this paper is to examine both how these data affect the credit evaluations of small businesses and how financial managers use them to stabilize their risks.
Design/methodology/approach
Using data from 97,889 data points for normal guarantees and 1,678 data points for accidents in public funds, the authors explore the effects of trade area grades as well as the superiority of the use of big data when evaluating credit ratings for small businesses.
Findings
The results indicate that the grade information of trade areas is useful in predicting accident rates, particularly for small businesses with high credit scores (AAA-A). On the other hand, the accident rates of small businesses with low credit scores increased from 3.15-16.67 to 3.20-33.3 percent. These findings demonstrate that accident rates for the businesses with high credit scores decrease, but accident rates for businesses with low credit scores increase when using the grades of trade areas.
Originality/value
The authors contribute to the literature in two ways. First, this study provides one of the first investigations on information on trade areas through public financial perspectives, thereby extending the financial risk and retail literature. Second, the current study extends the research on the credit evaluation of small businesses through the big data application of real transaction-based trade areas, answering the call of Park et al. (2012), who recommended an exploration of the relationship between business start-ups and financial risk.