This study seeks to explain a buyer's response to a seller's violation of trust. Four negative responses (decline in trust, negative emotions, negative word‐of‐mouth (WOM) and…
Abstract
Purpose
This study seeks to explain a buyer's response to a seller's violation of trust. Four negative responses (decline in trust, negative emotions, negative word‐of‐mouth (WOM) and reduction in repurchase intentions) and four explanatory variables (magnitude of violation, integrity versus capability‐based cause of failure, perceived likelihood of repeated violations and stage of trust prior to the violation) were identified. The study develops and tests hypotheses regarding the possible influence of the explanatory variables on each of the four negative responses.
Design/methodology/approach
An experiment was conducted in which business professionals were given one of 16 scenarios, varied by levels of the four explanatory variables, describing a violation of trust in a business‐to‐business service situation. Respondents were asked questions regarding their probable response. Four‐way ANCOVA was used to analyze the results.
Findings
The study finds that stage of trust and perceived likelihood of repeated violation had significant main effects on decline in trust, negative WOM and repurchase intentions. Integrity‐based attribution influenced decline in trust, but magnitude of violation had no main effects. Three significant interactions were found.
Research limitations/implications
Findings show the importance of first impressions and reputation. Care should be taken to assure customers that violations will not be repeated. A major limitation was that scenarios cannot induce the same intensity of thought and emotion that real situations do.
Originality/value
Despite extensive literature in service failure and recovery, this is perhaps the first study to rigorously examine and seek to explain a buyer's response to a seller's violation of trust.
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Abul‐Rashid Abdul‐Aziz, Ho Shiew Yi and Mastura Jaafar
Using the resource‐based view, a study was conducted to identify resources required to successfully compete in the Malaysian housing development industry. Data was collected using…
Abstract
Using the resource‐based view, a study was conducted to identify resources required to successfully compete in the Malaysian housing development industry. Data was collected using postal questionnaires and interviews. From the statistical tests done on the data, it was found that variation in certain firm characteristics influenced the value the respondents attached to certain resources. In addition, the more housing segments the developers operated, the more emphasis are given to organisational strategy and policies. There is an inverted‐U relationship between product diversification and trade secrets and innovation, with the maximum value at four housing segments. The housing developers that practise strategic management emphasised significantly more on management expertise and experience than those that did not. No variation in the value attached to resources was found when the other two firm characteristics, i.e. legal status and geographical diversification, were examined. Given the small number of companies that participated in the study, the results should be treated with circumspect. What the study provided though are grounds for more in‐depth study to be conducted.
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Lane Kelley, Brent MacNab, Reginald Worthley, Ian Pagano and Lenard Huff
Japanese organizations have been forced to re-evaluate their management systems in light of recent economic and competitive pressures. Much can be learned about the adjustments of…
Abstract
Japanese organizations have been forced to re-evaluate their management systems in light of recent economic and competitive pressures. Much can be learned about the adjustments of the Japanese management mindset, and a more competitive Japan may emerge as a result of successful adaptation. This study makes a longitudinal examination of the dynamic nature of management practices and thinking in the Japanese banking industry. Pressures on key industries in Japan during this time, e.g. the financial sector, provide insight into how adaptable Japanese institutions might be. The study finds important areas of meaningful change, supporting a crossvergence approach.