Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Moderating effects of service separation on customer relationships with service firms

Moderating effects of service separation on customer relationships with service firms The purpose of this paper is to examine the impact of service separation on the ability of service firms to build and maintain customer relationships, by exploring the differences in the strength of interrelationships among key relational constructs between separated and unseparated service delivery modes.Design/methodology/approachA field survey was conducted with retail banking customers in Saudi Arabia (n=592) using a structured self-administered questionnaire consisting of well-established scales. Data were analyzed using AMOS 24.FindingsService separation negatively moderates (weakens) the ability of the service firms to leverage their social benefits, relational trust and affective commitment to increase customer loyalty and to strengthen overall customer relationships.Research limitations/implicationsThis study uses retail banking customers in Saudi Arabia to test the impact of service separation in their relationship with the bank; hence, its findings may not be generalizable to other types of services and cultural settings.Practical implicationsService firms using online and mobile technologies should be aware that trust and commitment remain key to building customer loyalty. Hence, the trade-off between the benefits of these technologies and their negative impact on customer relationship needs to be factored into managerial decision making.Originality/valueThe paper highlights the importance of maintaining face-to-face interactions with service customers to create robust relationships that yield loyalty, despite the growing popularity of online and mobile technologies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Service Theory and Practice Emerald Publishing

Moderating effects of service separation on customer relationships with service firms

Download PDF
22 pages

Loading next page...
 
/lp/emerald-publishing/moderating-effects-of-service-separation-on-customer-relationships-2FZabWP0QF
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2055-6225
DOI
10.1108/jstp-09-2017-0149
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to examine the impact of service separation on the ability of service firms to build and maintain customer relationships, by exploring the differences in the strength of interrelationships among key relational constructs between separated and unseparated service delivery modes.Design/methodology/approachA field survey was conducted with retail banking customers in Saudi Arabia (n=592) using a structured self-administered questionnaire consisting of well-established scales. Data were analyzed using AMOS 24.FindingsService separation negatively moderates (weakens) the ability of the service firms to leverage their social benefits, relational trust and affective commitment to increase customer loyalty and to strengthen overall customer relationships.Research limitations/implicationsThis study uses retail banking customers in Saudi Arabia to test the impact of service separation in their relationship with the bank; hence, its findings may not be generalizable to other types of services and cultural settings.Practical implicationsService firms using online and mobile technologies should be aware that trust and commitment remain key to building customer loyalty. Hence, the trade-off between the benefits of these technologies and their negative impact on customer relationship needs to be factored into managerial decision making.Originality/valueThe paper highlights the importance of maintaining face-to-face interactions with service customers to create robust relationships that yield loyalty, despite the growing popularity of online and mobile technologies.

Journal

Journal of Service Theory and Practice – Emerald Publishing

Published: Apr 23, 2019

Keywords: Customer loyalty; Affective commitment; Service separation; Relational trust; Social benefits

References

  • Fading customer relationships in professional services
    Åkerlund, H.
  • The measurement and antecedents of affective, continuance and normative commitment to the organization
    Allen, N.J.; Meyer, J.P.
  • Affective, continuance, and normative commitment to the organization: an examination of construct validity
    Allen, N.J.; Meyer, J.P.
  • Structural equation modelling in practice: a review and recommended two-step approach
    Anderson, J.C.; Gerbing, D.W.
  • Why customers won’t relate: obstacles to relationship marketing engagement
    Ashley, C.; Noble, S.M.; Donthu, N.; Lemon, K.N.
  • Inter-personal and inter-organizational trust in business relationships: an attitude-behavior-outcome model
    Ashnai, B.; Henneberg, S.C.; Naudé, P.; Francescucci, A.
  • Relationship quality: a critical literature review and research agenda
    Athanasopoulou, P.
  • Co-production and customer loyalty in financial services
    Auh, S.; Bell, S.J.; McLeod, C.S.; Shih, E.
  • The differing and mediating roles of trust and relationship commitment in service relationship maintenance and development
    Aurier, P.; N’Goala, G.
  • On the evaluation of structural equation models
    Bagozzi, R.P.; Yi, Y.
  • When traditionally inseparable services are separated by technology: the case of patient portal features offered by primary care providers
    Baird, A.; Raghu, T.S.; North, F.; Edwards, F.
  • The role of communication and trust in explaining customer loyalty: an extension to the ECSI model
    Ball, D.; Simões Coelho, P.; Machás, A.
  • A three-component model of customer commitment to service providers
    Bansal, H.S.; Irving, P.G.; Taylor, S.F.
  • Exploring the antecedents of loyalty in the context of multi-channel banking
    Bapat, D.
  • A perceived reliability-based customer satisfaction model in self-service technology
    Barua, Z.; Aimin, W.; Hongyi, X.
  • Customer relationship dynamics: service quality and customer loyalty in the context of varying levels of customer expertise and switching costs
    Bell, S.J.; Auh, S.; Smalley, K.
  • Customer’s motivations for maintaining relationships with service providers
    Bendapudi, N.; Berry, L.L.
  • Psychological implications of customer participation in co-production
    Bendapudi, N.; Leone, R.P.
  • Relationship marketing of services: growing interest, emerging perspectives
    Berry, L.L.
  • Relationship marketing of services perspectives from 1983 and 2000
    Berry, L.L.
  • The role of relational and operational performance in business-to-business customers’ adoption of self-service technology
    Bhappu, A.D.; Schultze, U.
  • Technology infusion in service encounters
    Bitner, M.J.; Brown, S.W.; Meuther, M.L.
  • Service characteristics’ impact on key service quality relationships: a meta-analysis
    Black, H.G.; Childers, C.Y.; Vincent, L.H.
  • The impact of service characteristics on the switching costs–customer loyalty link
    Blut, M.; Beatty, S.E.; Evanschitzky, H.; Brock, C.
  • Service relationships and the customer disengagement-engagement conundrum
    Bowden, J.L.H.; Gabbott, M.; Naumann, K.
  • Functional, emotional, and social benefits of new B2B services
    Candi, M.; Kahn, K.B.
  • A consumer-based view of multi-channel service
    Cassab, H.; MacLachlan, D L.
  • Emotional and rational motivations for customer loyalty in business-to-business professional services
    Čater, B.; Čater, T.
  • Antecedents and consequences of commitment in marketing research services: the client’s perspective
    Čater, B.; Zabkar, V.
  • Customer orientation structure for internet-based business-to-business platform firms
    Chakravarty, A.; Kumar, A.; Grewal, R.
  • Impact of initial trust, involvement, and mood on trusting belief: evidence from the financial industry in Taiwan
    Chen, Y.H.; Wu, J.J.; Chien, S.H.
  • The influence of corporate character on customers and employees: exploring similarities and differences
    Chun, R.; Davies, G.
  • Creating customer loyalty through service customization
    Coelho, P.S.; Henseler, J.
  • Social exchange theory: an interdisciplinary review
    Cropanzano, R.; Mitchell, M.S.
  • Self-service technology adoption: comparing three technologies
    Curran, J.M.; Meuter, M.L.
  • Service encounters and service relationships: implications for research
    Czepiel, J.A.
  • Does experience matter? Differences in relationship benefits, satisfaction, trust, commitment and loyalty for novice and experienced service users
    Dagger, T.S.; O’Brien, T.K.
  • Service quality attribute weights how do novice and longer-term customers construct service quality perceptions?
    Dagger, T.S.; Sweeney, J.C.
  • Creating commitment and loyalty behavior among retailers: what are the roles of service quality and satisfaction?
    Davis-Sramek, B.; Droge, C.; Mentzer, J.T.; Myers, M.B.
  • Customer loyalty: toward an integrated conceptual framework
    Dick, A.S.; Basu, K.
  • An examination of the nature of trust in buyer-seller relationships
    Doney, P.M.; Cannon, J.P.
  • Collaborative and iterative translation: an alternative approach to back translation
    Douglas, S.; Craig, C.
  • Rapport in conflict resolution: accounting for how face-to-face contact fosters mutual cooperation in mixed-motive conflicts
    Drolet, A.L.; Morris, M.W.
  • Developing buyer-seller relationships
    Dwyer, F.R.; Schurr, P.H.; Oh, S.
  • Impact of participative service relationships on quality, satisfaction and retention: an exploratory study
    Ennew, C.T.; Binks, M.R.
  • Insufficient discriminant validity: a comment on Bove, Pervan, Beatty, and Shiu (2009)
    Farrell, A.M.
  • Evaluating structural equation models with unobservable variables and measurement error
    Fornell, C.; Larcker, D.F.
  • The different roles of satisfaction, trust, and commitment in customer relationships
    Garbarino, E.; Johnson, M.S.
  • Impact of frontline service employees’ acculturation behaviors on customer satisfaction and commitment in intercultural service encounters
    Gaur, S.S.; Sharma, P.; Herjanto, H.; Kingshott, R.P.
  • The effects of trust and interdependence on relationship commitment: a trans-Atlantic study
    Geyskens, I.; Steenkamp, J.; Scheer, L.; Kumar, N.
  • The role of service fairness in the service quality-relationship quality-customer loyalty chain: an empirical study
    Giovanis, A.; Athanasopoulou, P.; Tsoukatos, E.
  • Service provider’s experiences of service separation: the case of telehealth
    Green, T.; Hartley, N.; Gillespie, N.
  • From marketing mix to relationship marketing: towards a paradigm shift in marketing
    Grönroos, C.
  • The new marketing: developing long-term interactive relationships
    Gummesson, E.
  • Relationship marketing in the new economy
    Gummesson, E.
  • The structure of commitment in exchange
    Gundlach, G.T.; Achrol, R.S.; Mentzer, J.T.
  • Relational benefits in services industries: the customer’s perspective
    Gwinner, K.P.; Gremler, D.D.; Bitner, M.J.
  • A process theory of relationship ending
    Halinen, A.; Tähtinen, J.
  • Can the building of trust overcome consumer perceived risk online?
    Harridge‐March, S.
  • The four levels of loyalty and the pivotal role of trust: a study of online service dynamics
    Harris, L.C.; Goode, M.M.
  • Consumer construal of separation in virtual services
    Hartley, N.; Green, T.
  • Understanding relationship marketing outcomes
    Hennig-Thurau, T.; Gwinner, K.P.; Gremler, D.D.
  • Cross-cultural examination of the relationships among firm reputation, e-satisfaction, e-trust, and e-loyalty
    Jin, B.; Park, J.; Kim, J.
  • Relationship marketing in a self-service context: no longer applicable?
    Johns, R.
  • The impact of internet banking on business-customer relationships (are you being self-served?)
    Johns, R.; Perrott, B.
  • Understanding how technology paradoxes affect customer satisfaction with self-service technology: the role of performance ambiguity and trust in technology
    Johnson, D.S.; Bardhi, F.; Dunn, D.T.
  • Customer reactions to service separation
    Keh, H.; Pang, J.
  • Relationship marketing: the influence of consumer involvement on perceived service benefits
    Kinard, B.R.; Capella, M.L.
  • The impact of psychological contracts on trust and commitment within supplier–buyer relationships: a social exchange view
    Kingshott, R.P.
  • The impact of psychological contracts on trust and commitment in supplier-distributor relationships
    Kingshott, R.P.; Pecotich, A.
  • An empirical analysis of the relationship between brand loyalty and consumer price elasticity
    Krishnamurthi, L.; Raj, S.P.
  • Shopping centre customer service: creating customer satisfaction and loyalty
    Kursunluoglu, E.
  • Switching barriers and customer retention: why customers dissatisfied with online service recovery remain loyal
    Li, C.Y.
  • Refinement of the technology readiness index scale: a replication and cross-validation in the self-service technology context
    Lin, J.S.C.; Hsieh, P.L.
  • Whither services marketing? In search of a new paradigm and fresh perspectives
    Lovelock, C.; Gummesson, E.
  • Trust considerations on attitudes towards online purchasing: the moderating effect of privacy and security concerns
    McCole, P.; Ramsey, E.; Williams, J.
  • Dimensions of service quality in developed and developing economies: multi-country cross-cultural comparisons
    Malhotra, N.K.; Ulgado, F.M.; Agarwal, J.; Shainesh, G.; Wu, L.
  • Choosing among alternative service delivery modes: an investigation of customer trial of self-service technologies
    Meuter, M.L.; Bitner, M.J.; Ostrom, A.L.; Brown, S.W.
  • Self-service technologies: understanding customer satisfaction with technology-based service encounters
    Meuter, M.L.; Ostrom, A.L.; Roundtree, R.I.; Bitner, M.J.
  • Commitment in the workplace: toward a general model
    Meyer, J.; Herscovitch, L.
  • Factors affecting trust in market research relationships
    Moorman, C.; Deshpande, R.; Zaltman, G.
  • Relationships between providers and users of market research: the dynamics of trust within and between organizations
    Moorman, C.; Zaltman, G.; Deshpande, R.
  • The commitment-trust theory of relationship marketing
    Morgan, R.; Hunt, S.
  • The role of inter-personal liking in building trust in long-term channel relationships
    Nicholson, C.Y.; Compeau, L.D.; Sethi, R.
  • Whence consumer loyalty?
    Oliver, R.L.
  • Service research priorities in a rapidly changing context
    Ostrom, A.L.; Parasuraman, A.; Bowen, D.E.; Patricio, L.; Voss, C.A.
  • The effects of customer equity drivers on loyalty across services industries and firm
    Ou, Y.C.; Verhoef, P.C.; Wiesel, T.
  • Factors influencing the effectiveness of relationship marketing: a meta-analysis
    Palmatier, R.W.; Dant, R.P.; Grewal, D.; Evans, K.R.
  • Service separation and customer satisfaction assessing the service separation/customer integration paradox
    Paluch, S.; Blut, M.
  • E-S-QUAL: a multiple-item scale for assessing electronic service quality
    Parasuraman, A.; Zeithaml, V.A.; Malhotra, A.
  • Risk as moderator of the trust-loyalty relationship
    Paulssen, M.; Roulet, R.; Wilke, S.
  • Commercial friendships: service provider-client relationships in context
    Price, L.L.; Arnould, E.J.
  • Analyzing the commitment-loyalty link in service contexts
    Pritchard, M.P.; Havitz, M.E.; Howard, D.R.
  • Firm self-service technology readiness
    Ramaseshan, B.; Kingshott, R.P.; Stein, A.
  • Relationship quality as a predictor of B2B customer loyalty
    Rauyruen, P.; Miller, K.E.
  • E-loyalty: your secret weapon on the web
    Reichheld, F.F.; Schefter, P.
  • The mismanagement of customer loyalty
    Reinartz, W.; Kumar, V.
  • Image, brand relationships and customer value: exploring the moderating role of advertising spending-and labour-intensity in customer loyalty
    Sajtos, L.; Kreis, H.; Brodie, R.
  • The value of self-service: long-term effects of technology-based self-service usage on customer retention
    Scherer, A.; Wünderlich, N.V.; Von Wangenheim, F.
  • The evolution of relationship marketing
    Sheth, J.N.; Parvatiyar, A.
  • Employing proactive interaction for service failure prevention to improve customer service experiences
    Shin, H.; Ellinger, A.E.; Mothersbaugh, D.L.; Reynolds, K.E.
  • Service providers and customers: social exchange theory and service loyalty
    Sierra, J.J.; McQuitty, S.
  • Managing online service recovery: procedures, justice and customer satisfaction
    Singh, J.; Crisafulli, B.
  • Consumer trust, value, and loyalty in relational exchanges
    Sirdeshmukh, D.; Singh, J.; Sabol, B.
  • Service quality in multi-channel service employing virtual channels
    Sousa, R.; Voss, C.A.
  • Gaining customer trust: a conceptual guide for the salesperson
    Swan, J.E.; Nolan, J.J.
  • Offshore outsourcing of services: a stakeholder perspective
    Tate, W.L.; Ellram, L.M.; Brown, S.W.
  • The social aspects of consumption as predictors of consumer loyalty online vs offline services
    Tsiotsou, R.H.
  • Interaction, relationships and networks in business markets: an evolving perspective
    Turnbull, P.; Ford, D.; Cunningham, M.
  • Banking system trust, bank trust, and bank loyalty
    van Esterik-Plasmeijer, P.W.; van Raaij, W.F.
  • Evolving to a new dominant logic for marketing
    Vargo, S.L.; Lusch, R.F.
  • Service-dominant logic: continuing the evolution
    Vargo, S.L.; Lusch, R.F.
  • Customer experience creation: determinants, dynamics and management strategies
    Verhoef, P.C.; Lemon, K.N.; Parasuraman, A.; Roggeveen, A.; Tsiros, M.; Schlesinger, L.A.
  • Does relationship marketing matter in online retailing? A meta-analytic approach
    Verma, V.; Sharma, D.; Sheth, J.
  • Assessing the effects of multichannel service provider corporate reputation on customer new product adoption and RFM value
    Walsh, G.; Schaarschmidt, M.; Ivens, S.
  • Capgemini and EFMA
  • Internet retail customer loyalty: the mediating role of relational benefits
    Yen, H.J.R.; Gwinner, K.P.
  • Joint and interactive effects of trust and (inter) dependence on relational behaviors in long-term channel dyads
    Yilmaz, C.; Sezen, B.; Ozdemir, O.
  • Strengthening customer loyalty through intimacy and passion: roles of customer-firm affection and customer-staff relationships in services
    Yim, C.K.; Tse, D.K.; Chan, K.W.
  • The behavioral consequences of service quality
    Zeithaml, V.A.; Berry, L.; Parasuraman, A.
  • Problems and strategies in services marketing
    Zeithaml, V.A.; Parasuraman, A.; Berry, L.L.
  • Group service recovery strategies effectiveness: the moderating effects of group size and relational distance
    Zhou, Y.; Tsang, A.S.L.; Huang, M.; Zhou, N.
  • The service encounter: diagnosing favorable and unfavorable incidents
    Bitner, M.J.; Booms, B.H.; Tetreault, M.S.
  • An experimental study of service recovery options
    Boshoff, C.
  • The dark side of long-term relationships in marketing services
    Grayson, K.; Ambler, T.
  • Analyzing service failures and recoveries: a process approach
    Michel, S.
  • The dark side of trust: when trust becomes a ‘poisoned chalice’
    Skinner, D.; Dietz, G.; Weibel, A.
  • Assessing measurement invariance in cross-national consumer research
    Steenkamp, J.; Baumgartner, H.
  • Offline and online banking: where to draw the line when building trust in e-banking?
    Yap, K.B.; Wong, D.H.; Loh, C.; Bak, R.