Journal of Service Theory and Practice

Lin, Hsin-Hui

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-05-2014-0100

Purpose– The purpose of this paper is to investigate the effects of three price-matching guarantee (PMG) variables, including refund depth, refund period and competitive scope, on consumer response; the moderating role of consumer search costs is also examined. Design/methodology/approach– This study uses a scenario simulation method with a 2×2×2 factorial design to test the research model and hypotheses. Findings– The results indicate that refund depth has a significant effect on price perception and purchase intention, while competitive scope has a significant effect on purchase intention. In addition, the effects of both refund depth and competitive scope on price perception are moderated by consumer search costs. Originality/value– This study is a pioneering effort to explore the effects of PMGs variables on consumer response in the context of online retailing. These findings provide several important theoretical and practical implications for the PMG strategy of online retailing.

Liu, Maggie Wenjing; Keh, Hean Tat

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-08-2014-0178

Purpose– The purpose of this paper is to develop and validate measurement scales for consumer delight and outrage. Design/methodology/approach– The paper used both qualitative, survey, and experiment methodology. Findings– First, develop and validate the scale of customer delight, second, conceptualize the construct of customer outrage, as well as develop and validate its scale; third, explore the differential behavioral results of delight vs satisfaction, and outrage vs dissatisfaction; and fourth, further our understanding of the satisfaction-dissatisfaction continuum. Originality/value– While researchers increasingly recognize that delight and outrage are distinct from satisfaction and dissatisfaction, it is important to have scales that differentiate between these constructs. To this end, this paper develops and validates scales to measure consumer delight and outrage, respectively. These scales will be useful to other researchers interested in measuring consumer delight and outrage in various research contexts.

Iglesias, Víctor; Varela-Neira, Concepción; Vázquez-Casielles, Rodolfo

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-04-2014-0073

Purpose– The purpose of this paper is to analyze the effects of attributions on the efficacy of service recovery strategies in preventing customer defection following a service failure. Design/methodology/approach– The empirical investigation is carried out on the retail banking industry with a final sample of 448 real cases of customer retention or defection after a service failure. Findings– The results of the study not only highlight the relevance of intentionality as an additional factor in explaining customer defection, but also show the effects of some attributional dimensions (intentionality and controllability) on the efficacy of some recovery strategies (redress, apology and explanation) applied by companies to prevent post-complaint customer defection. Practical implications– The efficacy of the recovery strategies depends on the causal attributions that the customer makes about the service failure. Originality/value– This study analyzes not only the effects of traditional dimensions of attribution (stability and controllability), but also the additional effect that intentionality attributions may have on actual customer defection (not intentions). Moreover, it analyzes their effects on the effectiveness of recovery strategies in preventing customer defection. Most of these effects have never been empirically analyzed in the literature.

Rabbanee, Fazlul K.; Burford, Oksana; Ramaseshan, B.

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-06-2014-0126

Purpose– Employees in community pharmacies play a far significant and distinct role compared to the employees in traditional retail stores. The purpose of this paper is to examine the effects of employee performance (EP) on customer loyalty of pharmacy services. Design/methodology/approach– Data were collected through a self-administered survey filled in by the customers of 25 community pharmacies. A total of 679 completely filled-in questionnaires were analysed. The proposed model was tested through structural equation modelling using AMOS 22. Findings– EP positively affects pharmacy customers’ perceived value (PV), trust and loyalty. PV and trust fully mediates the relationships between EP and customers’ attitudinal and behavioural loyalty. Unlike short-term customers, the long-term relational customers’ PV was found to have significant impact on their trust and behavioural loyalty. Research limitations/implications– This study is based on the Australian community pharmacy industries; hence, caution must be exercised in the generalization of the results to other countries. The study has considered only PV and trust in examining the link between the EP and customer loyalty. Other variables such as commitment could possibly influence the link, which has not been considered in this study. Originality/value– The study contributes to the existing literature by focusing on how EP affects both attitudinal and behavioural loyalty of pharmacy customers. It shows empirical evidence that EP influences customers’ PV and trust en-route to influencing their loyalty. The study measures EP based on both empathy and service provider performance covering a broader spectrum of the construct.

Giovanis, Apostolos; Athanasopoulou, Pinelopi; Tsoukatos, Evangelos

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-11-2013-0263

Purpose– The purpose of this paper is to extend the well-established nomological network of service quality-relationship quality-customer loyalty by introducing service fairness – a distinct service evaluation concept. Specifically, the study aims to investigate the impact of service fairness on relationship quality as a complementary to service quality driver, and the direct and indirect effect of service fairness on customer loyalty in the presence of service quality and relationship quality in a no failure/recovery effort service context. Design/methodology/approach– A telephone survey of a random sample of 408 customers of auto repair and maintenance services was implemented using a structured questionnaire with established scales. Data were analyzed with partial least squares path methodology, a structural equation modeling methodology. Findings– Interactional fairness is the most important formative determinant of customers’ overall fairness perception, followed by procedural and distributive fairness. Relationship quality measured as a higher order construct, made of satisfaction; trust; affective and calculative commitment, is the main determinant of customer loyalty. Also, it partially mediates, along with service quality, the relationship between service fairness and customer loyalty and fully mediates the effect of service quality on customer loyalty. Finally, service fairness has the highest overall effect on customer loyalty. Research limitations/implications– The sample is industry-specific and this may affect generalizability of findings. Also, the cross-sectional design adopted does not reflect temporal changes. Practical implications– Interactional fairness is of utmost importance to customers of the investigated industry. So, customers should be fairly treated at every point of contact. Also, service quality is heavily affected by service fairness. Thus, fair service leads to high-perceived service quality. Third, service quality affects customer loyalty only through relationship quality. Only when service quality is coupled by long-term quality relationships, signs of customer loyalty appear. Finally, service fairness influences customer loyalty mainly through service and relationship quality and has the highest overall effect on customer loyalty. So, fairly treating customers is crucial for developing long-term relationships that lead to customer loyalty. Originality/value– The role of service fairness in the service quality-relationship quality-customer loyalty chain is investigated and using a higher order construct for relationship quality.

Carmona, Pedro; Momparler, Alexandre; Lassala, Carlos

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-07-2014-0163

Purpose– The purpose of this paper is to explore whether the provision of non-audit services (NAS) by public accounting firms undermines audit quality. The study addresses this question by testing for an association between the provision of consulting services and auditor independence in listed companies. Design/methodology/approach– The authors study if the magnitude of non-audit fees explains variations in earnings management by looking at the joint determination of non-audit fees, audit fees, and abnormal accruals using the SURE-regression estimation method. Findings– Evidence from tested models suggests that audit services quality is uncompromised by the provision of NAS. In other words, high non-audit fees do not necessarily result in poor quality financial reporting. Research limitations/implications– A different research methodology and a different sample (e.g. non-listed companies) may lead to differing results. As the paper analyses only one country, generalizability of the results might be a limitation. There is no need to increase legal restrictions on the provision of consulting services by public accounting firms in order to better safeguard audit quality. Practical implications– Consulting clients may be more confident to hire both audit and NAS with the same firm and can make a case before the general Shareholders’ meeting. By providing both audit and NAS, consulting firms obtain knowledge spillovers and synergies while appealing highly qualified professionals. Originality/value– The use of simultaneous equations (SURE-regression) to establish the auditor-client relation allows us to better model theoretical relations between audit fees, non-audit fees, and abnormal accruals. Likewise, joint modeling takes account of correlations between the error terms of the individual models, yielding more efficient estimates than ordinary least squares. Performing this analysis in a non-Anglo-American country with low litigation risk is also a valuable contribution to extant literature.

Saunders, Stephen G.

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-07-2014-0148

Purpose– Many service employees rely on non-contractual voluntary customer tips as a major source of their income. The purpose of this paper is to empirically test the relationship between the service employee’s cognitive evaluation of the tip (expectations-disconfirmation tip gap), affective state (AS) and displayed emotions (DE) toward customers in the workplace. Design/methodology/approach– An experimental, between-subjects, scenario-based research design was conducted on 107 waiters in the US restaurant industry. A simple mediation model was first tested, before testing a more complex moderated mediation model that was developed to investigate if employees self-control (SC) moderates the relationship between the employees tip gap, AS, and DE. Findings– An employee’s negative disconfirmation tip gap negatively influences the employee’s AS, which in turn results in negative DE toward customers in the workplace. However, an employee’s positive tip gap does not positively influence the employee’s AS, relative to the control. In addition, employees’ SC does not moderate the relationship, which suggests that when employees experience negative tip disconfirmation they may openly violate the service provider’s display rules and service scripts, and display negative emotions toward customers in the workplace. Research limitations/implications– The scenario-based research design was limited to self-reported perceived levels of SC and DE. The scenario was also limited to one country and one tipping context (i.e. restaurants). Future studies could compliment these findings by conducting both qualitative studies, and survey research that relies on actual tipping data or re-enactments of actual service encounters. Practical implications– Service managers not only need to manage display rules and service scripts to influence employee DE, but also need to manage employee tip expectations, especially when employees expect to receive tips that are greater than actual tips (i.e. negative disconfirmation). Communicating and educating employees on customer tipping and what tips to expect should be central to managing employees who rely on customer tips. Originality/value– Tipping has received very little attention in the services management literature. This study broadens the focus of tipping research in the literature by presenting a more complex expectations-disconfirmation tip gap model.

Bayo-Moriones, Alberto; Etayo, Cristina; Sánchez-Tabernero, Alfonso

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-09-2014-0217

Purpose– The purpose of this paper is to elucidate the relationship between the political orientation of television viewers and their perception of television programming quality. Design/methodology/approach– Information from a sample of 2,843 viewers is used. Ordinary least square models are estimated to test the theoretical hypotheses. Findings– The results suggest that the ideological position of viewers has a significant bearing on their evaluation of the quality of television channels. They also point to the key role played by news programming in the audience’s general assessment of channels quality. Research limitations/implications– There are a number of limitations to this research, which are largely related to the data analyzed, since they are cross-sectional and measures based on a single item are used. Future research in this field ought to take the multidimensional nature of the concepts discussed here into greater consideration. Practical implications– If political orientation colors viewer perception of quality television, it seems worthwhile for television schedulers to have more information about the political-ideological profile of their audience, so as to design a more appealing programming range for their target viewers. Regarding the impact of the perceived quality of news programs on the perceived quality of the whole channel, it would make sense for television managers to invest in news programs not only on the basis of the size of the audience reached, but also as a way to build up a strong brand and to differentiate it from competitors. Originality/value– There is scarce empirical research on the perceptions of quality media and television by viewers. This paper develops and tests hypotheses that contribute to a better knowledge of the mechanisms that generate the perceptions of consumers about the quality of television channels.

Cheng, Yin-Hui; Chang, Chia-Jung; Chuang, Shih-Chieh; Liao, Ya-Wei

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-12-2013-0296

Purpose– Research on the service recovery paradox (SRP) effect has indicated that after recovery from failures in customer service, customers will commonly rate their satisfaction higher than prior to the service failure. However, thus far there has been little research on the cause of this phenomenon. Accordingly, the purpose of this paper is to explore the effect of “guilt” emotions in the context of consumer service. Design/methodology/approach– Three experiments were conducted to test the hypotheses. Data were collected from 532 undergraduate, graduate students and the general people. Findings– The results of the experiments demonstrate that if customers are compensated for service failures by receiving better than anticipated service, they will commonly experience feelings of “guilt.” In an attempt to alleviate this guilt, customers will project their feelings in evaluating a company, and will rate their customer satisfaction more highly. In doing so, the customer feels relief in reciprocating the kindness of the firm; in this way, the firm wins over the customer’s heart. Originality/value– This is one of the first studies to discuss the effect of guilt in the SRP effect. This research shows that relying on the emotion of “guilt” for receiving exceptional service helps companies to overcome service failures and successfully rebuild their relationships with customers.

López-Cabarcos, M. Ángeles; Machado-Lopes-Sampaio-de Pinho, Ana Isabel; Vázquez-Rodríguez, Paula

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-09-2014-0218

Purpose– The purpose of this paper is to analyze the mediating role of affective commitment (AC) in the relationship between organizational justice (OJ) and personal initiative (PI). Design/methodology/approach– Data were collected from 321 employees from hotels in northern Portugal. The study required that all hotels be at least four-star establishments operating for over a year. The data and hypotheses were analyzed by using structural equation modeling. Findings– Employee perceptions of justice in relation to rewards, procedures, or interpersonal relationships can only lead to displays of initiative behaviors if employees have developed AC toward their organization. Accordingly, employee perception of justice does not directly bring about initiative behavior; a feeling of AC toward the organization must be created beforehand. Practical implications– Knowing how to increase employee PI could be one of the keys to obtaining successful results within the hotel industry. This study provides evidence of an indirect relationship between OJ and PI via AC. Such knowledge may help to establish a plan of action aimed at improving perceptions of justice within the hotel industry in order to obtain committed and proactive employees. Originality/value– Very few studies carried out within the context of the hotel industry have considered the relationship between the three variables proposed in this research paper. Additionally, this study examines the mediating role of employee AC, which has not been previously confirmed.

Yeh, Ching-Wen

2015 Journal of Service Theory and Practice

doi: 10.1108/JSTP-07-2014-0146

Purpose– The purpose of this paper is to examine the mechanisms that link customer verbal aggression with service sabotage. Additionally, this study also tests whether emotional dissonance mediates the relationships between customer verbal aggression and the revenge motive, and between customer verbal aggression and service sabotage. Design/methodology/approach– This study investigated flight attendants from six airlines in Taiwan. A total of 1,000 questionnaires were distributed, resulting in the return of 504 valid questionnaires, yielding a valid response rate of 50.4 percent. Findings– The findings demonstrate that: emotional dissonance mediates the relationship between customer verbal aggression and revenge motive; emotional dissonance mediates the relationship between customer verbal aggression and service sabotage; customer verbal aggression is positively related to the revenge motive; revenge motive positively relates to service sabotage. Originality/value– This study has investigated the following: how customer verbal aggression causes revenge motive via the mediation of emotional dissonance, how customer verbal aggression results in service sabotage via the mediation of emotional dissonance. The results provide a basis for making suggestions regarding service management as a reference for airlines.