Sherriff T.K. Luk, Ben S.C. Liu and Esther L.Y. Li
This paper aims to draw on the trust-commitment theory and the framework of service-dominant marketing logic to investigate the potential effect of trust at both brand and service…
Abstract
Purpose
This paper aims to draw on the trust-commitment theory and the framework of service-dominant marketing logic to investigate the potential effect of trust at both brand and service personnel level on consumers’ value co-creation behaviour.
Design/methodology/approach
The study adopts a consumer perspective to investigate and interpret consumers’ value co-creation behaviour. The measurement scales were developed based on literature review and findings from focus group study. Survey interviews were undertaken in the USA and Hong Kong so as to test the potential moderator effect of country.
Findings
Effort-in-use and service co-design behaviour are two aspects of value cocreation behaviour. The findings provide theoretical expansion of the theory on value cocreation in two ways and suggest to discriminate the effect of consumer trust on and role in value cocreation behaviour at brand and service employee levels. Besides, the relationships among “trust in employee”, “trust in brand”, effort in use behaviour, service co-design behaviour, and customers’ perceived value actually could be moderated by country factor.
Research limitations/implications
The study only focuses on the behavioural dimension of value cocreation behaviour but provides a number of suggestions on how to expand the domain of the measurement scale for value co-creation behaviour, cultural influences and customer perceived value and identifies several potential moderators such as reputation of the service brand and type of service for future research.
Practical implications
The findings provide important insights to service marketers on how to adopt appropriate service strategy, service operation, marketing communications and service training to facilitate consumers’ value co-creation behaviour.
Originality/value
The present study represents the first attempt to investigate the potential impact of consumer trust at different levels on customers’ value cocreation behaviour. It explains the connections between trust as an antecedent to value cocreation under different country contexts, thereby adding new knowledge in both domains.
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Sherriff T.K. Luk, Ivy Siok Ngoh Chen and John Coombes
Marketing.
Abstract
Subject area
Marketing.
Study level/applicability
Target audience this decision case has been tried and tested in a classroom setting with final-year undergraduate BBA students and postgraduate students studying an MSc in marketing. The specific course in which this case was used was marketing management in China. This case may also be suitable for an undergraduate or masters level courses in consumer behaviour, distribution management or marketing in China. The case covers environment analysis, market segmentation, consumer behaviour and distribution channels.
Case overview
Skyworth, a Chinese manufacturer of television sets, was faced with some major decisions. Government subsidies on consumer purchases of household appliances had stimulated demand for TV sets especially in rural areas. However, there were limited distribution channels serving rural areas. Large-scale nationwide chain stores like Gome and Suning served mainly urban areas and top-tier cities. These retailer chains were less interested in selling TV sets as their profit margins were lower. How should Skyworth set up its distribution network to take advantage of the growth in rural markets? Establishing its own channel network would involve huge investments that would affect Skyworth's profits in the next few years. Relying on existing retailer chains may not give it the coverage it wanted. Skyworth's brand reputation had also suffered because of poor product quality and customer support. Can the distribution channel network help to improve its brand reputation and customer loyalty? This case highlights how government policies in China can shape the growth of the household appliance market and change consumption patterns.
Expected learning outcomes
By studying this case, students will: 1. Examine how environmental factors affect television manufacturers in China; 2. Understand the buying behaviour of rural households for household appliances; 3. Examine distribution channels in an emerging market; 4. Evaluate a company's product portfolio strategy; and5. Suggest segmentation bases for the market for television sets in China.
Supplementary materials
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Yim‐Yu Wong, Thomas E. Maher and Sherriff T.K. Luk
The seconf of two articles on the transfer from foreign companies to affiliates in China. Addresses wholly owned subsidiaries. Tries to determine strategic management know‐how and…
Abstract
The seconf of two articles on the transfer from foreign companies to affiliates in China. Addresses wholly owned subsidiaries. Tries to determine strategic management know‐how and if it is currently being transferred. Attempts to forecast the likelihood of access to China’s domestic market and if this will grow.
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Yim‐Yu Wong, Thomas E. Maher and Sherriff T.K. Luk
Briefly outlines the development and attraction of the “joint venture” approach to foreign investment in China. Provides a number of in‐depth interviews with top management…
Abstract
Briefly outlines the development and attraction of the “joint venture” approach to foreign investment in China. Provides a number of in‐depth interviews with top management personnel of five well‐known international joint ventures. Attempts to discover what strategic management knowledge was transferred from the Western partner. Finds only limited evidence to suggest such a transfer was taking place but suggests that these ventures are still relatively new. Points to China’s likely entry into the World Trade Organisation as an opportunity for change.
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Sherriff T.K. Luk, Ken Lu and Ben Liu
The present study is specifically designed to accomplish two objectives: to validate the SERV*OR scale in an emerging oriental market; and to test empirically the effect of…
Abstract
Purpose
The present study is specifically designed to accomplish two objectives: to validate the SERV*OR scale in an emerging oriental market; and to test empirically the effect of service orientation on front-line employees ' service performance in various service skill areas.
Design/methodology/approach
The whole research involved a triangulation process, which involved in-depth interviews, pilot test, and survey interviews, to collect both qualitative and quantitative information to validate the measurement scales and test the hypotheses. The major objective was to validate the measurement scales and test the relationship between service orientation and front-line service employees ' performance in various skill areas.
Findings
The results from measurement scale development show that service orientation was represented by service leadership, service contact, human resources management, and service system, whereas service skills were embodied by functional skills and technical skills. Results from structural equation model (SEM) analysis show that various dimensions of the service orientation have differential positive effects on different types of the service skills.
Research limitations/implications
Although the model is supported by empirical findings, only through replication in other service industries can it enhance its generalizability. Such factors as investment in service training, quality of training program, employee learning attitude may mediate or moderate the effect of service orientation on performance in different skill areas and future research should include them for a better explanation of the effect of service orientation on service skills.
Practical implications
Based on the results of this study, firms can strengthen the service orientation as an effective strategy to improve service skills and this broad strategy can be decomposed into more workable tactics like building service leadership, service contact, human resources management and service system improvement.
Originality/value
The present study bridged the macro and micro perspectives by developing a framework that provides a deeper and richer portrait of what kind of front-line employees engage in good service performance and, at the same time, what kind of service orientation component will be more effective in facilitating service performance. The findings contribute to the explanation of significant variance in employees ' service performance. The present study is thus a compelling extension of the previous approach to research on service behavior.
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Saeed Samiee, Leslie S.C. Yip and Sherriff T.K. Luk
The aim of this study is to highlight developments and opportunities in the retail and distribution sectors of China. In particular, we focus on the entry of international…
Abstract
The aim of this study is to highlight developments and opportunities in the retail and distribution sectors of China. In particular, we focus on the entry of international retailers into this rapidly growing market and classify various forms of retailing in China. The emerging Southeast Asian markets are still dependent on traditional and inefficient distribution and retailing systems. These markets are ripe for cultivation by international retailers whose advanced systems, processes, and management and marketing skills can bring added levels of efficiency and enhanced performance to these markets.
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Competition in Hong Kong’s tourism market is very intense and local travel agencies have to improve the quality of their service in order to enhance their competitive edge. This…
Abstract
Competition in Hong Kong’s tourism market is very intense and local travel agencies have to improve the quality of their service in order to enhance their competitive edge. This industry‐specific research examines the relationship between marketing culture and the perceived service quality of outbound tours. The author sampled tour escorts and asked them to describe the patterns and characteristics of their firms’ marketing culture. Tour members who had just returned from outbound tours were also sampled for the measurement of their perceptions of the quality of tours. The findings indicate a positive relationship between marketing culture and service quality. High quality service can be delivered when a travel agency successfully fosters a customer‐oriented marketing culture characterized with a strong emphasis on service quality orientation and interpersonal relationships. In a high‐contact service business such as tourism service, marketers must understand that commitment to quality service and service mentality are integral elements in the firm’s culture and that a positive attitude towards interpersonal relationships must be held by service employees.
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Sherriff T.K. Luk, Piyush Sharma and Ivy S.N. Chen
Prior research explores the moderating effects of age and gender on the relationships in the comprehensive service evaluation model, but it ignores the role of contextual…
Abstract
Purpose
Prior research explores the moderating effects of age and gender on the relationships in the comprehensive service evaluation model, but it ignores the role of contextual variables. The study aims to test the moderating effect of an important contextual variable (shopping motivation) on the service evaluation process.
Design/methodology/approach
Responses were collected from 2,727 shoppers in six retail categories (cosmetics, electronics, fashion, jewelry, telecommunication services, and department stores) using a mall-intercept approach and all the hypotheses were tested using structural equation modeling technique.
Findings
The study finds that relationships among sacrifice, value, satisfaction, and behavioral intentions are stronger in retail categories with utilitarian vs hedonic shopping motivation. In contrast, the relationships among service quality, value, satisfaction, and behavioral intentions are stronger in hedonic vs utilitarian retail categories.
Research limitations/implications
This paper uses a cross-sectional survey to test all the hypotheses, hence it cannot study actual shopping behavior in future. Moreover, it examines shopping motivation at a retail category level and not at individual shopper level. The results may also vary based on cross-cultural differences in customer expectations and perceptions.
Practical implications
The findings would help retail managers to identify relevant service dimensions, to improve perceived service quality, customer satisfaction, and value for the shoppers in their stores, which in turn may lead to more favorable behavioral intentions.
Originality/value
This paper offers new insights on the differences in expectations, perceptions, and evaluations of shoppers in hedonic vs utilitarian retail categories, and introduces the moderating role of shopping motivation, an important contextual variable.
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Piyush Sharma, Ivy S.N. Chen and Sherriff T.K. Luk
Prior research exploring the relationships among sacrifice, service quality, value, satisfaction, and behavioral intentions in service evaluation models did not consider customer…
Abstract
Purpose
Prior research exploring the relationships among sacrifice, service quality, value, satisfaction, and behavioral intentions in service evaluation models did not consider customer characteristics. This study aims to test the moderating effects of two demographic variables (i.e. gender and age) on all the relationships in the “comprehensive” service evaluation model.
Design/methodology/approach
Responses from a diverse group of shoppers (n=2,727) in six retail categories (cosmetics, electronics, fashion, jewelry, telecom services, and department stores) were examined using structural equation modeling.
Findings
The negative relationship between sacrifice and perceived value, and the positive association of perceived value and satisfaction with behavioral intentions, is stronger for the male and older customers; whereas the positive association of service quality with satisfaction and value is stronger for female and younger customers.
Research limitations/implications
The study examined behavioral intentions instead of actual behavior due to its cross‐sectional design. However, in the categories examined (cosmetics, fashion, department stores, etc.) where purchase frequencies range from moderate to high, behavioral intentions may highly correlate with actual behavior.
Practical implications
The findings help retail managers understand the differences in the influence of perceived sacrifice, value, service quality, and satisfaction on the behavioral intentions of customers, based on individual characteristics such as gender and age. They should be able to plan and prioritize their marketing activities for diverse customer segments.
Originality/value
The study offers new insights on the individual differences in the service expectations and perceptions, which in turn affect customer behavior and loyalty.
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One of the essential components of China’s economic open door policy is the reform in its distribution system. So far the distribution reform has transformed China’s distribution…
Abstract
One of the essential components of China’s economic open door policy is the reform in its distribution system. So far the distribution reform has transformed China’s distribution system from being non‐responsive and supply‐driven to increasingly responsive and market‐ driven and the nature of exchange relationships among channel members has also changed. Consequently, the China market has become more accessible. This paper reviews a series of distribution reform programs and the emerging trends, highlights major changes in China’s distribution system, identifies the unresolved marketing and administration issues, and assesses their implications for the design of channel strategy, market entry strategy, and effective channel management in China.