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.

Are university students really customers? when illusion may lead to delusion for all!

Purpose – The marketing concept is an idea that has been adopted in non-marketing contexts, such as the relationships between universities and their students. This paper aims to posit that marketing metaphors are inappropriate to describe the student-university relationship.

Design/methodology/approach – The authors provide a conceptual discussion of the topic.

Findings – The use of marketing metaphors appears sometimes to be indiscriminate and the appropriateness to use them in student-university relationships is questioned in this article.

Research limitations/implications – This notion of students as customers has caused a misinterpretation of the relationship between universities and students.

Practical implications – Students should not be viewed as customers of the university, but as citizens of the university community. The contention contained within this paper is that the customer metaphor is inappropriate to describe students' relationships to universities.

Originality/value – The use of marketing buzzwords does not contribute to a correct description or an accurate understanding of the student-university relationship. On the contrary, misconceptions and misunderstandings flourish due to misleading terminology and contradictory vocabulary. These frameworks tend to be illusionary if used in non-marketing contexts, such as universities.

The influence of procedural and interactional justice, and disconfirmation on customers post recovery satisfaction evaluations

This study examines the influence of distributive and interactional justice and disconfirmation on customers’ postrecovery satisfaction evaluations, and in so doing, combines, for the first time, two existing instruments to operationalise the interactional justice construct. Using Structural Equation Modelling, the findings suggest that while both disconfirmation and justice are important predictors of satisfaction, distributive justice has the greatest influence. The research presented here reports on a section of a larger experiment-based study examining how customers’ postrecovery satisfaction evaluations are influenced by the way in which the organisation responds to the failure.

Enabling successful web-based information technology support for enterprise customers: a service provider perspective of stakeholder-based issues

An understanding by support organisations of the key factors enabling successful enterprise after-sales customer support provision when using Web-based Selfservice Systems (WSSs) is essential to making  improvements in such systems. This paper reports key stakeholder-oriented findings from an interpretive study of critical success factors (CSFs) for the transfer of after-sales support-oriented knowledge from an information technology (IT) service provider to enterprise customers when a WSS is used. The findings suggest that researchers and practitioners should consider WSSs within a complex network of service providers, business partners and customer firms. The paper also clearly points to a need for support organisations to engage in greater collaboration and integration of WSSs with enterprise customers and business partners.

SME myths: if we put up a website customers will come to us-why usability is important

Many businesses use their Websites primarily as an alternative marketing strategy. How a business’s image, via a Website, is presented to potential customers is therefore important. There are many factors that will influence the effectiveness of a Website, two critical factors are how easily users are able to navigate and how easy the site is to use. The research reported here examined these two factors on users’ responses to small and medium-sized business Websites. The research found that the quality of navigation and how easy a site is to use does have an impact, how much information is read, the importance of the graphical components, a user's emotional response to a Website, users’ frustration and the user’s intention to return to that Website. The research established the statistically significant elements that contribute to navigation and ease-of-use, and describes the design and successful application of a usability evaluation instrument.

Personal acquaintance measure : distinguishing among friends and good and bad customers

Evidence from social psychology confirms that strong relationships are founded on deep knowledge of others gained over long periods after sharing personal information. The existence, benefit, and management of relationships are also topics of increasing interest in Marketing. This paper reports on the results of a study of sales persons’ assessments of their personal acquaintance with friends and customers. The results indicate that personal acquaintance as a construct and measure can be successfully employed in a business context and used to distinguish among friends and good and bad customers. The findings open the way for the use of the construct in a commercial context as well as in the development of marketing theory. Limitations and avenues for future research are given.

Reasons why dissatisfied customers exhibit behavioral loyalty

The development of supplier loyalty and its potential application to the business-to-business settings has not been widely explored. Day (1969) cautions that loyalty viewed in terms of purchase decisions may not distinguish between loyalty and spurious loyalty. This study follows the composite loyalty approach providing both behavioral aspects (purchase intentions) and attitudinal loyalty in order to fully explain the concept of supplier loyalty. This framework has not been previously applied in the B2B literature.The objective of this research is to identify reasons why B2B customers do not show consistency between attitudinal and behavioral loyalty and why dissatisfied customers do not switch suppliers. A survey was conducted during 2006 with a sample of executives from 240 SME companies in a large Asian city. A range of measures was obtained including attitudinal loyalty, behavioral loyalty, satisfaction and open ended responses on nature of current problems. Following Dick and Basu (1994), customers are classified into loyalty groups. Customers having high and low attitudinal loyalty are compared on satisfaction, switching attitudes and problems within the relationship. Constraints to switching by the dissatisfied customers are discussed. A profile of the "Spurious Loyal" customer is provided. This study seeks to better understand the nature of dissatisfaction and loyalty within these long term focal relationships.

Personal acquaintances and salespeople in financial services: Differences between customers and friends

The existence, benefit and management of customer–salesperson relationships in the marketing of financial services are topics of increasing interest. Much of the sales and marketing literature implies that because of time spent together, salespeople and some of their customers develop close relationships that are akin to friendships. Evidence from social psychology confirms that strong relationships are founded in deep knowledge of others gained over long periods after sharing personal information. This paper reports on the results of a study of salespeople's assessments of their personal acquaintance with customers and friends in a financial services setting. The results indicate that salespeople do not classify customers as friends on all the dimensions of personal acquaintance. Furthermore, the nature of personal acquaintance differs between ‘good’ customers (those salespeople enjoy serving), and ‘bad’ (those they do not), with the exception of the personal acquaintance dimensions of interaction frequency and personal disclosure. We discuss the implications for practice and make recommendations for future research.

Sweet talking to ethnic customers : a field experiment on the links between entrepreneurial business planning, cultural sensitivity and sales growth

The purpose of this study was to test whether calculated inclusion of cultural sensitivity in a selected entrepreneurial business planning (EBP) process could increase sales growth in a test market and to explore the implications of a positive answer for the theory and practice of entrepreneurial business planning. Execution of a pretest-posttest control group experimental design measured and compared the implemented effectiveness of a planned entrepreneurial initiative based on cultural sensitivity. Though small in scale and limited in focus, the initiative qualified as an example of entrepreneurial business planning (EBP) and could be used to apply, test and extend aspects of the developing theory in this field of entrepreneurship research. Since the initiative was planned to overcome a culturally-defined impediment to business growth, it also offered opportunity to explore the specific importance of cultural variables in the context of EBP.

A planned sales-promotion was offered to a control group (receiving information in English) and a treatment group (who received the information in the language of ethnic origin). The sixty subjects had been chosen at random from a population of route-trade retailers of defined ethnic origins (Greek, Lebanese and Chinese) and randomly assigned to control and treatment groups. Monthly sales averages of the promoted product were measured before and after treatment. A Chi Square test was used to evaluate the relative proportion of the control and treatment groups who accepted the promotional offer. A two sample t-test procedure and complementary non-parametric Mann-Whitney test were performed to compare the mean sales-performance change of the two groups. Analysis showed that there was a significant increase in mean sales when the planned entrepreneurial initiative was communicated in the relevant language of origin.

The experimental results have specific practical relevance to revitalising the deteriorating route-trade segment of the Australian confectionery market through increasing the sales growth of wholesalers who are prepared to act entrepreneurially and include cultural sensitivity as an element in planning and implementation. By introducing cultural sensitivity as a necessary extension of a plan’s communications role, the results also have general theoretical implications for the developing paradigm of entrepreneurial business planning.

The ethical and policy implications of profiling 'vulnerable' customers

In the shadow of the global financial crisis, the issue of the marketing of credit has become an increasing concern in the past 12 months. Outstanding personal debt in the UK currently stands at £1479 billion and is rising by £1 million every 10.6 min. In Australia, there is currently $44.6 billion worth of outstanding credit card debt, and in the US, $2596 billion was owed on credit cards in 2008. At present, the banking sector utilizes sophisticated research methods to profile consumers, including those who might be considered financially vulnerable. However, the policy frameworks in most industrialized countries do not account for this form of target marketing when considering how to protect vulnerable groups. This paper is an initial attempt to examine the different methods by which profiling is conducted and the policy implications of this sophisticated form of segmentation and targeting. We argue that current consumer policies are inadequate in protecting vulnerable consumers from these marketing techniques, and recent recommendations from the Federal Reserve Bank of the United States, and the Australian Law Reform Commission to allow banks and lenders to ‘pre-screen’ potential customers will exacerbate personal debt levels, rather than reducing them.

Characteristics of physically active and inactive men from low socioeconomic communities and housing estates : a qualitative study using the socioecological model

This qualitative study compares experiences of men from low socioeconomic status (SES) communities who achieved sufficient physical activity (PA) with those who did not. The socioecological model of health guided interviews with men (n=25) and community health workers (n=4) to explore individual, interpersonal, organizational, community, environmental and policy influences on PA participation. Men generally reported that they had poor health, financial barriers, were unfamiliar with community PA facilities and programs, had limited social support, and lived in unsafe neighbourhoods. There were clear differences between active and inactive men. Inactive men described their inability to cope with poor health, and consequent perceptions of disconnection. They did not identify positive PA outcomes and seemed consumed by stressful life situations. Active men identified barriers to existing programs such as the exclusive culture of PA facilities. It is important that personal circumstances are understood, and financial and cultural barriers addressed to promote PA among men from low SES communities.