The effect of bonds on loyalty towards auditors: the mediating role of commitment

The study examines the impact of knowledge and social bonds on commitment and behavioural loyalty in auditor-client relationships. A model is proposed and tested using data collected from stock exchange company executives in the UK. The results show the significant effects of the knowledge and social bonds on commitment. Commitment is shown to be a mediating variable, which influences word-of-mouth and continuance but not the purchase of non-audit services. In the light of these findings, suggestions are provided to auditors in developing relationship bonds and managing the relationship at the firm level.

Serving Multiple Masters: Exploring HRD in the Context of Third Sector Partnerships for Public Service Delivery

Organisations in the Non-Profit and Voluntary (NPV) sector increasingly face challenging and uncertain times with an increasing shift from public grant funding towards contract funding. As a result many of these changes employees in such organisations have often found themselves working more closely under contract with colleagues in public sector organisations in order to provide public services. Using a multiple case study methodology and in-depth interviewing of a range of stakeholders form two large Northern Irish based Non Profit Organisations in the social care sector, the purpose of this research was to
investigate HRD and people management issues and how a turbulent environment can affect how organisations approach HRD strategy and implementation.

The research identifies the importance placed upon NPOs adopting HRD strategies and addressing the development of unique and specialised skills in order to claw back power within the relationships they serve with statutory funding bodies. However this research also notes that the manner in which HRD and its associated issues are considered within NPOs can have an impact on the loyalty and commitment of the workforce which serves them. What is of concern is that the context for the delivery of public services under contract is putting increasing strain on NPOs and this has been felt markedly by their respective workforces, and unless strong values-led leadership and managerial practice is in
place in NPOs, the voluntary-centred ethos of those who work in the sector may be significantly damaged.

Defining the nation, defining public television: discourses of publics on public service television in post-communist Latvia

Institutional and political economy approaches have long dominated the study of post-Communist public broadcasting, as well as the entire body of post-Communist media transformations research, and the enquiry into publics of public broadcasting has traditionally been neglected. Though media scholars like to talk about a deep crisis in the relationship between public broadcasters and their publics in former Communist bloc countries across Central and Eastern Europe, little has been done to understand the relationship between public broadcasters and their publics in these societies drawing on qualitative audience research tradition. Building on Hirschman’s influential theory of ‘exit, voice and loyalty’, which made it possible to see viewing choices audiences make as an act of agency, in combination with theoretical tools developed within the framework of social constructionist approaches to national imagination and broadcasting, my study focuses on the investigation of responses publics of the Latvian public television LTV have developed vis-à-vis its role as contributing to the nation-building project in this ex-Soviet Baltic country. With the help of focus groups methodology and family ethnography, the thesis aims to explore the relationship between the way members of the ethno-linguistic majority of Latvian-speakers and the sizeable ethno-linguistic minority of Russian-speakers conceptualize the public broadcaster LTV, as well as understand the concept of public broadcasting more generally, and the way they define the national ‘we’. The study concludes that what I call publics of LTV employ Hirschman’s described exit mechanism as a voice-type response. Through their rejection of public television which, for a number of complex reasons they consider to be a state broadcaster serving the interests of those in power they voice their protest against the country’s political establishment and in the case of its Russian-speaking publics also against the government’s ethno-nationalistic conception of the national ‘we’. I also find that though having exited from the public broadcaster LTV, its publics have not abandoned the idea of public broadcasting as such. At least at a normative level the public broadcasting ideals are recognized, accepted and valued, though they are not necessarily associated with the country’s de jure institutional embodiment of public broadcasting LTV. Rejection of the public television has also not made its non-loyal publics ‘less citizens’. The commercial rivals of LTV, be they national or, in the case of Russian-speaking audiences, localized transnational Russian television, have allowed their viewers to exercise citizenship and be loyal nationals day in day out in a way that is more liberal and flexible than the hegemonic form of citizenship and national imagination of the public television LTV can offer.

Achieving better service level results, through improvements in procedures

This project aims to prepare Worten Empresas (WE) fulfilling the increasing market demand through process changings, focusing on the Portuguese market, particularly on internal B2B clients1. Several methods were used to measure the current service level provided - process mapping, resources assessment, benchmark and a survey. The results were then used to compare against service level actually desired by WE’s customer, and then to identify the performance gaps in response times and quality of the follow-up during the sales process. To bridge the identified gaps, both a set of recommendations and an implementation plan were suggested to improve and monitor customer experience. This study concluded that it is possible to fulfill the increasing level of demand and at the same time improve customer satisfaction by implementing changes at the operations level.

How to reduce the causes of call center contact by implementing web self-service at Sonae MC?

This project aims to provide feasible solutions to improve customer´s Help Area at Continente Online. The goal is to increase satisfaction and loyalty by reducing the main causes that lead customers to appeal to Call Center or abandon the website. The pursued solution is the implementation of Web Self-Service and the vision taken is focused not only on providing customers basic help tools but also innovate with international best practices to sustain Sonae MC´s present and future market leader position. Customer´s feedback, costs and impact are taken in consideration to find the best fit for the company.

Impact of Product Quality, Service Quality and Contextual Experience on Customer Perceived Value and Future Buying Intentions

Recognizing that high satisfaction leads to high customer loyalty, companies today are aiming for total customer satisfaction. This article explains relative impact of product quality, service quality and contextual experience on customer perceived value and intention to shop in the future. The data has been collected using a questionnaire from 205 customers of a national retailer chain. The relative importance of product quality, service quality and contextual experience on customer perceived value and thus on customer preference and future intentions was measured using multiple regression. Also, the contribution of perceived value to preference and thus on future buying intention was also measured. Structural Equation Model (SEM) using Amos 4 was used to find the overall fitness of the model. It was found that product quality, service quality and contextual experience have a major influence on customer perceived value

Service provider switching: a study on the switching process in retail banking

In a business environment that is characterized by intense competition, building customer loyalty has become a key area of focus for most financial institutions. The explosion of the services sector, changing customer demographics and deregulation and emergence of new technology in the financial services industry have had a critical impact on consumers’ financial services buying behaviour. The changes have forced banks to modify their service offerings to customers so as to ensure high levels of customer satisfaction and also high levels of customer retention. Banks have historically had difficulty distinguishing their products from one another because of their relative homogeneity; with increasing competition,the problem has only intensified with no coherent distinguishing theme. Rising wealth, product proliferation, regulatory changes and newer technologies are together making bank switching easier for customers. In order to remain competitive, it is important for banks to retain their customer base. The financial services sector is the foundation for any economy and plays the role of mobilization of resources and their allocation. The retail banking sector in India has emerged as one of the major drivers of the overall banking industry and has witnessed enormous growth. Switching behaviour has a negative impact on the banks’ market share and profitability as the costs of acquiring customers are much higher than the costs of retaining. When customers switch, the business loses the potential for additional profits from the customer the initial costs invested in the customer by the business get . The Objective of the thesis was to examine the relationship among triggers that customers experience, their perceptions of service quality, consumers’ commitment and behavioral intentions in the contemporary India retail banking context through the eyes of the customer. To understand customers’ perception of these aspects, data were collected from retail banking customers alone for the purpose of analysis, though the banks’ views were considered during the qualitative work carried out prior to the main study. No respondent who is an employee of a banking organization was considered for the final study to avoid the possibility of any bias that could affect the results adversely. The data for the study were collected from customers who have switched banks and from those who were non switchers. The study attempted to develop and validate a multidimensional construct of service quality for retail banking from the consumer’s perspective. A major conclusion from the empirical research was the confirmation of the multidimensional construct for perceived service quality in the banking context. Switching can be viewed as an optimization problem for customers; customers review the potential gains of switching to another service provider against the costs of leaving the service provider. As banks do not provide tangible products, their service quality is usually assessed through service provider’s relationship with customers. Thus, banks should pay attention towards their employees’ skills and knowledge; assessing customers’ needs and offering fast and efficient services.

Influence of Frequent Flyer Programme and Airline Service Quality on Re-buy Intentions of Airline Frequent Passengers

The growth potential of service sector, especially the aviation sector in the Indian economy is splendid. Therefore, it is crucial for the airline service providers to realize their customers, design offers and deliver the desired value to their customers. This study reveals the effect of airline passenger satisfactions particularly on re-buy intentions derived from the attributes-level performance dimensions of both service aspects and loyalty programme of an airline. The mediation effect of satisfaction and other selected antecedents on the re-buy intention of a passenger is hypothesized in this study. Critical areas affecting buying intentions such as core service quality and loyalty attribute-level performances, effect of frequent flyer programme and service quality satisfaction, passenger trust on airline, brand image and moderating effects of perceived value, frequent programme status and travel frequency of airline passengers are linked in a structural model to assess the strength of each facet in affecting re-buy intentions. Implications to the airlines were made based on the finding that re-buy intentions cannot be attributed solely to the impacts of frequent flyer programme, rather affected through the mediation effect of airline service quality satisfaction, which is very much valid for the higher FFP status category of frequent travelers. The effects of moderation caused by perceived value, FFP status and flying experience were also found to be significant in making re-buy intentions.

An empirical investigation of customer satisfaction and loyalty across two divergent bank segments

Customer satisfaction is an important indicator for customer loyalty, and numerous studies have identified the benefits that customer loyalty delivers to an organisation. Nevertheless, research also suggests that satisfied customers still defect. This study investigated the relationship between customer satisfaction and loyalty intentions within the Australian banking industry for two distinct customer segments, retirees and university students. Results indicate no significant difference in the satisfaction levels of either group; however, there were differences with respect to two of the five behavioural intentions dimensions: loyalty and switch. Satisfaction was found to have a significant impact on three of the five behavioural intentions dimensions: loyalty, pay more and external response, suggesting that management should initiate service policies aimed at securing improvements in customer satisfaction. However, there are also other constructs at work aside from satisfaction in determining future behavioural intentions.

The need to vent and dissatisfactory self-service technology encounters

Reports of customer dissatisfaction with self-service technologies (SSTs) are becoming increasingly common. The SST context is characterised by customer participation in service production and delivery, independently of service personnel. With no opportunity for humanto- human interaction, feelings of customer irritation and frustration can have a tendency to build-up in dissatisfactory SST encounters. If SSTs do not perform as promised, customers can become angry and frustrated, and do not have the security or reassurance of human service personnel. With this in mind, it is argued that customers’ “need to vent” will be an important predictor of customers’ complaint behaviours (CCBs), i.e., voice, negative word of mouth, negative “word of mouse”, third party action, false loyalty and exit, in dissatisfactory SST encounters. The “need to vent” is defined as the need, when one has a problem, to seek relief by expressing one’s problem / “getting it off one’s chest”. This construct has been subject to little conceptual or empirical scrutiny, and to the researchers’ knowledge, has not been previously operationalised or measured. This paper begins to address this gap by presenting a conceptual model and hypotheses depicting the relationships between the need to vent and CCBs in the context of SSTs.

Loyalty program attributes and their influence on retail customer satisfaction

This paper empirically examines the extent to which loyalty program attributes explain variations in satisfaction with the retail offer. Two dimensions of loyalty program attributes are introduced including hard attributes and soft attributes. Store satisfaction is examined in terms of the elements of the retail offer. The results suggest that emphasis on hard and soft attributes enhance customer satisfaction with a retailers’ merchandise, trading format, customer service and customer communication. Additionally, hard attributes have a more significant influence than soft attributes on satisfaction with all elements of the retail offer excluding merchandise.

An exploration of relational customers` response to service failure

Purpose – The purpose of this paper is to examine how customers with different relational bonds respond to the same service failure. In particular, the framework to service failure and recovery devised by Fournier and Mick is applied.
Design/methodology/approach – To uncover rich emotional and cognitive responses to service failure, in-depth interviews with eight former and current patrons of an Australian opera were used.
Findings – Three types of relationship were identified: satisfaction-as-love (SaL), satisfaction-as-trust (SaT) and satisfaction-as-control (SaC). Each responded to the same failure in different ways. SaL customers had emotional bonds with the product category and thus reaffiremed their loyalty following the failure. SaT customers saw the service failure and inadequate recovery as a breach of the brand's implied promise and thus excited the relationship. SaC customers took charge of the situation, using their status to improve their situation and then defended the brand.
Practical implications – The findings indicate the importance of customizing service recovery strategies, in this case to those customers with the strongest emotional bonds to the brand, not the product class.
Originality/value – This is the first paper to examine how relational customers respond to service failure and identify how different customer-brand relationships result in different post-failure reactions and expectations of service recovery.

Financial planners in Australia : an examination of loyalty

The purpose of this paper is to determine whether the demographic variables of age, gender and length of service, and the levels of the three independent variables of internal versus external locus of control personality dimension, individualist versus collectivist personality dimension, and perceived environmental uncertainty can be shown to be related to the organisational commitment (OC) and professional commitment (PC) of financial planners in Australia. The financial planners employed by one major Australian bank, during the period November to December, 2004 were surveyed using an instrument derived from established questionnaires. It was mailed nationally to 312 financial planners. A response rate of 36% was achieved, equating to 113 useable responses. The analyses revealed no statistically significant results at the 95% confidence level (p=0.05), that the level of OC and PC for respondents over the age of 35 differed from those under the age of 35. At the same level of confidence, females demonstrated a statistically significant higher level of OC than did their male counterparts, however there was no difference between their levels of PC. Financial planners employed for a period of over 3 years showed no difference in their levels of OC or PC than those employed for a period of less than 3 years (p=0.05). Respondents with an external locus of control displayed  statistically significant lower levels of OC than those with an internal locus of control, however there was no difference between these groups in their levels of PC (p=0.05). Such findings contribute to our understanding of the organisational and professional commitment of financial planners, and have implications for employers in terms of hiring and retention of employees. The analyses are also important from a public policy perspective in an era of increasing attention to, and likely increased regulation of, the financial planning industry.

Experience as a moderator of involvement and satisfaction on brand loyalty in a business-to-business setting 02-314R

This paper examines the relative influence of two key antecedents of brand loyalty—satisfaction and involvement and the moderating role of experience, using a sample of business buyers. The central argument of this paper is that the strength of the effect of these variables on attitudinal brand loyalty will vary with the level of customer experience with purchasing the service. Building on previous research which examined low-risk, customer product settings [Kim, J., Lim, J.S., & Bhargava, M. (1998). The role of affect in attitude formation: A classical conditioning approach. Journal of the Academy of Marketing Science 26 (2): pp. 143–152; Shiv, B., & Fedorikhin, A. (1999). Heart and mind in conflict: The interplay of affect and cognition in consumer decision-making. Journal of Consumer Research 26: 278], this study shows that for a high-risk setting, involvement with the service category will be more dominant in its influence on brand loyalty than satisfaction with the preferred brand. Furthermore, it was found that experience moderated the influence of involvement and satisfaction on attitudinal brand loyalty for a high-risk business-to-business service. This study provides new insights into the theory and practice of buyer behavior and business-to-business brands.

Do organizational service recovery actions impact on hotel guests future intentions and does speed of recovery matter?

This paper investigates hotel guests’ responses to organizational actions dealing with service failure. Eight service failure scenarios were used to identify guests’ intentions towards future visits. Guests’ intentions to switch hotels, revisit the property and remain loyal to the chain were found to vary based on the recovery efforts undertaken. This research found that empowering employees contribute to positive consumer intentions toward the service provider. Compensation was also found effective if offered through empowered employees. Speed of response to service failure was also identified as important action to improve consumer future intentions. Based on these findings, implications for future research are highlighted. Recommendations to the practitioners of hospitality and tourism sector were made for the management of failed service encounter.