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Article
Publication date: 29 June 2020

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…

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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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Article
Publication date: 13 October 2020

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…

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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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Article
Publication date: 5 August 2014

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…

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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.

Details

Journal of Services Marketing, vol. 28 no. 5
Type: Research Article
ISSN: 0887-6045

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