Who chose this restaurant anyway? The effect of responsibility for choice, guarantees and failure stability on customer complaining

Customers often behave in the context of a group, with different behavior occurring in this context to that which transpires in an individual context. However, customer complaining behavior (CCB), including voice, negative word of mouth, in addition to that transmitted electronically, and exit, in a group setting has not been studied previously. A service failure during a group celebration at a restaurant and the pattern of CCB that ensues is examined. This is based on customers’ level of responsibility in restaurant selection on behalf of the group, the presence of an unconditional service guarantee, and the perceived stability of the failure. Findings suggest that customers are more inclined to exit when they have participated to a greater degree in choice and that the presence of an unconditional guarantee interacts with participation to influence negative word of mouth intentions. Perceived failure stability had the greatest influence on CCB.

A fuzzy decision support method for customer preferences analysis based on Choquet integral

The explosion of the Web 2:0 platforms, with massive volume of user generated data, has presented many new opportunities as well as challenges for organizations in understanding consumer's behavior to support for business planning process. Feature based sentiment mining has been an emerging area in providing tools for automated opinion discovery and summarization to help business managers with achieving such goals. However, the current feature based sentiment mining systems were only able to provide some forms of sentiments summary with respect to product features, but impossible to provide insight into the decision making process of consumers. In this paper, we will present a relatively new decision support method based on Choquet Integral aggregation function, Shapley value and Interaction Index which is able to address such requirements of business managers. Using a study case of Hotel industry, we will demonstrate how this technique can be applied to effectively model the user's preference of (hotel) features. The presented method has potential to extend the practical capability of sentiment mining area, while, research findings and analysis are useful in helping business managers to define new target customers and to plan more effective marketing strategies.

Measuring customer satisfaction in tourist service encounters

This paper sets out to model quality and satisfaction judgements of college students within four distinct tourist encounters. A novel approach is used where respondents rated an entire service setting by proxy when evaluating a picture in which certain quality variables had been manipulated. Each picture contained separate ôobjectsö of the service that we claim would be evaluated on a cognitive plane along different dimensions for the relevant attributes of each encounter. The scores were then used to develop regression models to estimate the influence of distinct quality factors on overall satisfaction

Developing customer-focused public sector rewards schemes : evidence from the Botswana government's performance based reward system (PBRS)

Purpose – Governmental agencies are interested in improving the quality of their service delivery. One tool that has been used to manage their performance is performance based reward schemes (PBRS). The aim of this paper is to examine the degree to which a sample of these plans, used within the Botswana public sector, is customer-focused. Being more customer-focused should deliver improved public sector service quality.

Design/methodology/approach – This study carried out an evaluation of a sample of Botswana PBRS plans, using multidimensional content analysis undertaken by four expert “evaluators”, to identify the degree to which the PBRS were customer-focused.

Findings – Classifying PBRS plans as being customer-focused was difficult, as the plans had few objectives related to customer experiences or outcomes. Those that did had poorly defined performance objectives, their targets were not specific, or there was limited explicit role responsibility. Thus, PBRS plans seemed not to focus on improving customer outcomes.

Research limitations/implications – The PBRS evaluated do not appear to be customer-focused and, thus, would have limited ability to improve customer experiences (i.e. public sector quality). Further research is needed in other countries to see whether these results are generalisable, and whether service levels vary with more customer-focused PBRS plans.

Practical implications – The results suggest improvements that could be adopted by organisations seeking to make their PBRS schemes customer-focused.

Originality/value – Extensive research suggests that PBRS plans can be used to improve service quality. Most of the studies have focused on the employees' perspectives and have not looked at the degree of customer orientation within the plans.

The relationship between market orientation, brand orientation and perceived benefits in the non-profit sector: a customer-perceived paradigm

The purpose of this paper is to examine the relationship between ‘market orientation’, ‘brand orientation’ and ‘perceived benefits’ in the non-profit sector from the perspective of the customers. Data were collected from a number of church organizations in Australia using a self-administered questionnaire. The tests for construct reliability, validity and research hypotheses were conducted using structural equation modelling. Findings reveal that ‘market orientation’ is significantly associated with both ‘perceived brand orientation’ and ‘perceived benefits’. An alternative model also reveals significant relationship between ‘brand orientation’ and ‘perceived benefits’ through ‘market orientation’ as the mediating variable. The study contributes to the body of literature and provides practical implications for non-profit managers and church leaders alike. An organization that endeavours to build a strong brand and deliver relevant benefits to its members should ensure that it has sufficient understanding of its members and utilizes the various resources of the organization to deliver superior values to its existing and prospective members.

Dynamic price discrimination with customer recognition

This paper studies a general two-period model of product line pricing with customer recognition. Specifically, we consider a monopolist who can sell vertically differentiated products over two periods to heterogeneous consumers. Each consumer demands one unit of the product in each period. In the second period, the monopolist can condition the price-quality offers on the observed purchasing behavior in the first period. In this setup, the monopolist can price discriminate consumers in two dimensions: by quality as well as by purchase history. We fully characterize the monopolist's optimal pricing strategy when there are two types of consumers. When the type space is a continuum, we show that there is no fully separating equilibrium, and some properties of the optimal contracts (price-quality pairs) are characterized within the class of partitional perfect Bayesian equilibria.