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The social licence literature contains two quite different accounts of the concept. Sometimes social licence is presented as an essentially empirical matter; sometimes it is…
Abstract
The social licence literature contains two quite different accounts of the concept. Sometimes social licence is presented as an essentially empirical matter; sometimes it is portrayed as having normative significance. Both advocates and critics assume that the normative version is easy to generate from the empirical version but the author argues that it is difficult to account for the normativity of social licence. It is commonly claimed that social licence is a ‘metaphor’ or ‘analogy’ drawing on familiar understandings of institutional licences, and standard accounts purport to ‘build in’ normativity. Neither strategy establishes the normativity of social licence. If that is correct, we have reason to be sceptical about the normative significant of claims about the possession of empirical social licence. The approval or acceptance by affected communities may be one factor to be taken into account in such analysis, but it will not itself settle whether a practice ought to be approved or accepted or licenced.
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Russell Lacey and Angeline G Close
Given the strong interest among services marketing practitioners in sponsoring events, this study illustrates how events and sponsorships synergistically facilitate and deepen…
Abstract
Given the strong interest among services marketing practitioners in sponsoring events, this study illustrates how events and sponsorships synergistically facilitate and deepen consumer relationships by connecting service brands with consumers' passions. Structural equation modeling is used to test a congruity theory-based framework via a field study conducted at a professional cycling event. The tested model holds for two service brands operating at different levels of sponsorship. The results demonstrate how the combination of consumers' attitudes toward the event, knowledge of the sponsor brand and their level of activity in the event domain influence their assessments of event-sponsor fit. Interestingly, the findings indicate that, in the context of a community-based sports event, the title sponsor did not experience any discernable advantage of sponsorship, despite its elevated position as a sponsor and higher brand equity.
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Concepción Varela‐Neira, Rodolfo Vázquez‐Casielles and Víctor Iglesias
Preferential treatment of selected customers is one of the strategies employed by companies seeking to implement relationship marketing. However, it remains unclear whether or not…
Abstract
Purpose
Preferential treatment of selected customers is one of the strategies employed by companies seeking to implement relationship marketing. However, it remains unclear whether or not this policy negatively affects relationships with customers not receiving the above‐mentioned preferential treatment, as existing literature focuses, for the most part, on the beneficiaries. The purpose of this paper is to study whether or not the perception of lack of preferential treatment has a positive impact on dissatisfaction following a service failure, after accounting for the effects of attribution.
Design/methodology/approach
The sample used in this paper consists of 344 subjects who, over the last six months, have experienced service failures. The data are collected via personal interviews using a structured survey. Structural equation modelling is employed in order to test the relationship between lack of preferential treatment and dissatisfaction.
Findings
The results of this investigation indicate that lack of preferential treatment has an additional explanatory power with regard to customer dissatisfaction, after considering the effects of attributions, and that negative emotions have a mediation effect on the relationship between these cognitive antecedents and the aforementioned dissatisfaction.
Research limitations/implications
This paper examines only one service context; as a consequence, caution is needed when generalizing the results.
Practical implications
Given the findings of this paper, managers are advised to consider the “merits” of preferential treatment to help strengthen customer relationships.
Originality/value
This paper provides an initial step towards understanding the impact of systematic and deliberate use of preferential treatment as a relationship marketing strategy from a non‐beneficiaries perspective.
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Successful incorporation of transducers into measuring devices depends on choosing the type most suited to the task.
As internet dividends are gradually disappearing, loyalty programs have become the panacea for monetizing traffic, attracting new customers and retaining existing customers…
Abstract
Purpose
As internet dividends are gradually disappearing, loyalty programs have become the panacea for monetizing traffic, attracting new customers and retaining existing customers. Improving their effectiveness has thus become key to enterprises’ market competitiveness. However, member customers’ hedonic adaptation to this relationship strategy undermines its effectiveness. Based on the hedonic adaptation theory, this study aims to analyze the process of member customers' hedonic adaptation to preferential treatment in loyalty programs and explore the boundary conditions of alleviating this effect.
Design/methodology/approach
This study surveyed 271 member customers in China and tested the hypothesized relationships using structural equation modeling and multigroup analysis.
Findings
Preferential treatment suffers from hedonic adaptation to member customer engagement and customer gratitude, and customer tenure is a key condition for these effects. Customer gratitude is an intermediary mechanism that explains the hedonic adaptation effect of preferential treatment to member customers engagement. In addition, the structural characteristics of loyalty programs form the boundary condition that alleviates hedonic adaptation. The authors found that high-tier and -payment strategies are more likely to mitigate hedonic adaptation of preferential treatment to customer gratitude.
Originality/value
This study elucidates the factors that influence the effectiveness of preferential treatment and provides constructive insights into customer relationship management and for improving enterprise performance.
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Eleonora Pantano and Kim Willems
Crisis can bring out the true nature of people. Also in terms of consumers, this can be for better or for worse. On the one hand, irresponsible consumer behaviours rose, with for…
Abstract
Crisis can bring out the true nature of people. Also in terms of consumers, this can be for better or for worse. On the one hand, irresponsible consumer behaviours rose, with for example people starting to hoard bulk quantities of toilet paper, rice and flour, which in turn increased scarcity perceptions and induced fear in others. Besides panic buying, impulse purchasing also rose, as a means to alleviate negative feelings and to treat oneself (particularly once the stores reopened again). For some consumers, this increased buying can become compulsive, leading to shopping addiction and financial problems. On the other hand, the crisis also forced a pause in the rat race we live, allowing people to reconsider their consumption behaviour and evolve towards more sustainable choices. This chapter provides insights on both directions, allowing retail managers to incorporate this new reality in further strategic decisions. In what follows, three consecutive stages in notable changes in consumer behaviour in the pandemic crisis are discussed: from reacting (e.g. hoarding), over coping (e.g. do-it-yourself behaviours), to longer-term adapting (e.g. potentially transformative changes in consumption).
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Vivian Pontes, Nicolas Pontes, Dominique A. Greer and Amanda Beatson
Although preferential treatment has been considered a positive relationship marketing tactic, this research aims to examine how perceived harm to others as a result of…
Abstract
Purpose
Although preferential treatment has been considered a positive relationship marketing tactic, this research aims to examine how perceived harm to others as a result of preferential treatment invokes consumers’ negative moral emotions and negative attitudes towards the service provider.
Design/methodology/approach
Four studies are presented in this research. A pilot study first provides empirical evidence that customers who receive preferential treatment are aware of potential harm caused to other customers. Three experimental studies then test the hypothesis that shame and embarrassment mediate the effect of perceived harm to others on consumers’ responses to earned and unearned preferential treatment, respectively.
Findings
The present studies demonstrate that consumers naturally scan the environment and seek out information about others when judging their own experience; consequently, when preferential treatment is perceived to cause harm to others, it can trigger negative moral emotions. In particular, the authors show that shame mediates the effect of perceived harm to others when preferential treatment is earned, whereas embarrassment mediates this effect when preferential treatment is unearned.
Research limitations/implications
The results of this research contribute to the literature on earned and unearned preferential treatment and negative moral emotions. To the best of the authors’ knowledge, this is the first research to show that negative moral emotions may arise because of perceptions of harm to other customers, particularly in the context of earned preferential treatment. The authors demonstrate that ordinary shopping contexts have the potential to elicit these negative emotions, raising concerns about ethical and moral practices in service environments.
Practical implications
When designing relationship marketing programs incorporating preferential treatment, firms need to consider both the ethics of justice and the ethics of care. Guidelines considering ethics of care should be developed for employees to ensure appropriate training to deliver preferential treatment effectively and avoiding situations causing potential harm to others. Strategies could include encouraging employees to better scan the servicescape to identify if other customers’ needs should be attended first, and providing clearer justifications when administering preferential treatment. The provision of choices such as delayed redemption and passing on benefits to others can help minimise harm and potentially enhance customer service experience.
Originality/value
The studies presented here are the first to examine the role of perceived harm to others as an antecedent of consumers’ negative responses to preferential treatment. In particular, to the best of the authors’ knowledge, this is the first study to show that negative moral emotions may arise in the context of earned preferential treatment, calling into question some basic principles of relationship marketing.
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Vivian Pontes, Dominique A. Greer, Nicolas Pontes and Amanda Beatson
This paper aims to examine how individuals’ need for distinction moderates the effect of perceived harm to others as a result of preferential treatment on customers’ attitudes…
Abstract
Purpose
This paper aims to examine how individuals’ need for distinction moderates the effect of perceived harm to others as a result of preferential treatment on customers’ attitudes towards the service provider.
Design/methodology/approach
Two experiments test the hypothesis that when a customer receives preferential treatment, the effect of perceived harm to others on the customer’s attitudes towards the service provider is moderated by their need for distinction and mediated by negative moral emotions, such that mediation occurs for customers with a lower (but not higher) need for distinction.
Findings
When customers have a lower need for distinction, they scan the environment to seek information about others when judging their own experience. In contrast, customers with a higher need for distinction tend to disregard others’ opinions and feelings, focusing solely on the benefits they receive from the service provider and avoiding moral emotions. Our results show that customers with a higher need for distinction tend to evaluate the service provider more favourably than those with a lower need for distinction in scenarios where the benefit given to an advantage customer imposes a disadvantage on other customers.
Originality/value
To the best of author’s knowledge, this research is the first to examine the interaction between perceived harm to others and one’s need for distinction as drivers of customers’ response to preferential treatment. The authors are the first to show that negative moral emotions may arise for customers with a lower need for distinction but not for those with a higher need for distinction.
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