The Effect of Consumers' Value Motives on the Perception of Blog Reviews Credibility: the Moderation Effect of Tie Strength (소비자의 가치 추구 동인이 블로그 리뷰의 신뢰성 지각에 미치는 영향: 유대강도에 따른 조절효과를 중심으로)
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- Asia Marketing Journal
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- v.13 no.4
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- pp.159-189
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- 2012
What attracts consumers to bloggers' reviews? Consumers would be attracted both by the Bloggers' expertise (i.e., knowledge and experience) and by his/her unbiased manner of delivering information. Expertise and trustworthiness are both virtues of information sources, particularly when there is uncertainty in decision-making. Noting this point, we postulate that consumers' motives determine the relative weights they place on expertise and trustworthiness. In addition, our hypotheses assume that tie strength moderates consumers' expectation on bloggers' expertise and trustworthiness: with expectation on expertise enhanced for power-blog user-group (weak-ties), and an expectation on trustworthiness elevated for personal-blog user-group (strong-ties). Finally, we theorize that the effect of credibility on willingness to accept a review is moderated by tie strength; the predictive power of credibility is more prominent for the personal-blog user-groups than for the power-blog user groups. To support these assumptions, we conducted a field survey with blog users, collecting retrospective self-report data. The "gourmet shop" was chosen as a target product category, and obtained data analyzed by structural equations modeling. Findings from these data provide empirical support for our theoretical predictions. First, we found that the purposive motive aimed at satisfying instrumental information needs increases reliance on bloggers' expertise, but interpersonal connectivity value for alleviating loneliness elevates reliance on bloggers' trustworthiness. Second, expertise-based credibility is more prominent for power-blog user-groups than for personal-blog user-groups. While strong ties attract consumers with trustworthiness based on close emotional bonds, weak ties gain consumers' attention with new, non-redundant information (Levin & Cross, 2004). Thus, when the existing knowledge system, used in strong ties, does not work as smoothly for addressing an impending problem, the weak-tie source can be utilized as a handy reference. Thus, we can anticipate that power bloggers secure credibility by virtue of their expertise while personal bloggers trade off on their trustworthiness. Our analysis demonstrates that power bloggers appeal more strongly to consumers than do personal bloggers in the area of expertise-based credibility. Finally, the effect of review credibility on willingness to accept a review is higher for the personal-blog user-group than for the power-blog user-group. Actually, the inference that review credibility is a potent predictor of assessing willingness to accept a review is grounded on the analogy that attitude is an effective indicator of purchase intention. However, if memory about established attitudes is blocked, the predictive power of attitude on purchase intention is considerably diminished. Likewise, the effect of credibility on willingness to accept a review can be affected by certain moderators. Inspired by this analogy, we introduced tie strength as a possible moderator and demonstrated that tie strength moderated the effect of credibility on willingness to accept a review. Previously, Levin and Cross (2004) showed that credibility mediates strong-ties through receipt of knowledge, but this credibility mediation is not observed for weak-ties, where a direct path to it is activated. Thus, the predictive power of credibility on behavioral intention - that is, willingness to accept a review - is expected to be higher for strong-ties.
This study probes the effect of loyalty program on the customer retention based on the real transaction data(n=2,892) acquired from education service industry. We try to figure out the outcomes of reward program through more than 1 year-long data gathered and analyzed according to quasi-experimental design(i.e., before and after design). We adopt this kinds of research scheme in regard that previous studies measured the effect of loyalty program by dividing the customers into two group(i.e., members vs. non-members) after the firms or stores had started the program. We believe that it might not avoid the self-selection bias. The research questions of this study could be explained such as: First, most research said that the loyalty programs could increase the customer loyalty and contribute to the sustainable growth of company. But there are little confirmation that this promotional tool could be justified in terms of financial perspective. Thus, we are interested in both the retention rate and financial outcomes caused by the introduction of loyalty programs. Second, reward programs target mainly current customer. Especially CRM(customer relationship management) said that it is more profitable for company to build positive relationship with current customer instead of pursuing new customer. And it claims that reward program is excellent means to achieve this goal. For this purpose, we check in this study whether there is a interaction effect between loyalty program and customer type in retaining customer. Third, it is said that dis-satisfied customers are more likely to leave the company than satisfied customers. While, Bolton, Kannan and Bramlett(2000) claimed that reward program could contribute to minimize the effect of negative service by building emotional link with customer, it is not empirically confirmed. This point of view explained that the loyalty programs might work as exit barrier to current customer. Thus, this study tries to identify whether there is a interaction effect between loyalty program and service experience in keeping customer. To achieve this purpose, this study adopt both Kaplan-Meier survival analysis and Cox proportional hazard model. The research outcomes show that the average retention period is 179 days before introducing loyalty program but it is increased to 227 days after reward is given to the customers. Since this difference is statistically significant, it could be said that H1 is supported. In addition, the contribution margin coming from increased transaction period is bigger than the cost for administering loyalty programs. To address other research questions, we probe the interaction effect between loyalty program and other factors(i.e., customer type and service experience) affecting it. The analysis of Cox proportional hazard model said that the current customer is more likely to engage in building relationship with company compared to new customer. In addition, retention rate of satisfied customer is significantly increased in relation to dis-satisfied customer. Interestingly, the transaction period of dis-satisfied customer is notably increased after introducing loyalty programs. Thus, it could be said that H2, H3, and H4 are also supported. In summary, we found that the loyalty programs have values as a promotional tool in forming positive relationship with customer and building exit barrier.
In recent years, one of the major reasons for the fierce competition amongst firms is that they strive to increase their own market shares and customer acquisition rate in the same market with similar and apparently undifferentiated products in terms of quality and perceived benefit. Because of this change in recent marketing environment, the differentiated after-sales service and diversified promotion strategies have become more important to gain competitive advantage. Price promotion is the favorite strategy that most retailers use to achieve short-term sales increase, induce consumer's brand switch, in troduce new product into market, and so forth. However, if marketers apply or copy an identical price promotion strategy without considering the characteristic differences in product and consumer preference, it will cause serious problems because discounted price itself could make people skeptical about product quality, and the changes of perceived value might appear differently depending on other factors such as consumer involvement or brand attitude. Previous studies showed that price promotion would certainly increase sales, and the discounted price compared to regular price would enhance the consumer's perceived values. On the other hand, discounted price itself could make people depreciate or skeptical about product quality, and reduce the consumers' positivity bias because consumers might be unsure whether the current price promotion is the retailer's best price offer. Moreover, we cannot say that discounted price absolutely enhances the consumer's perceived values regardless of product category and purchase situations. That is, the factors that affect consumers' value perceptions and buying behavior are so diverse in reality that the results of studies on the same dependent variable come out differently depending on what variable was used or how experiment conditions were designed. Majority of previous researches on the effect of price-comparison advertising have used consumers' buying behavior as dependent variable. In order to figure out consumers' buying behavior theoretically, analysis of value perceptions which influence buying intentions is needed. In addition, they did not combined the independent variables such as brand loyalty and price discount rate together. For this reason, this paper tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception. And we provided with theoretical and managerial implications that marketers need to consider such variables as product attributes, brand loyalty, and consumer involvement at the same time, and then establish a differentiated pricing strategy case by case in order to enhance consumer's perceived values properl. Three research concepts were used in our study and each concept based on past researches was defined. The perceived acquisition value in this study was defined as the perceived net gains associated with the products or services acquired. That is, the perceived acquisition value of the product will be positively influenced by the benefits buyers believe they are getting by acquiring and using the product, and negatively influenced by the money given up to acquire the product. And the perceived transaction value was defined as the perception of psychological satisfaction or pleasure obtained from taking advantage of the financial terms of the price deal. Lastly, the brand loyalty was defined as favorable attitude towards a purchased product. Thus, a consumer loyal to a brand has an emotional attachment to the brand or firm. Repeat purchasers continue to buy the same brand even though they do not have an emotional attachment to it. We assumed that if the degree of brand loyalty is high, the perceived acquisition value and the perceived transaction value will increase when higher discount rate is provided. But we found that there are no significant differences in values between two different discount rates as a result of empirical analysis. It means that price reduction did not affect consumer's brand choice significantly because the perceived sacrifice decreased only a little, and customers are satisfied with product's benefits when brand loyalty is high. From the result, we confirmed that consumers with high degree of brand loyalty to a specific product are less sensitive to price change. Thus, using price promotion strategy to merely expect sale increase is not recommendable. Instead of discounting price, marketers need to strengthen consumers' brand loyalty and maintain the skimming strategy. On the contrary, when the degree of brand loyalty is low, the perceived acquisition value and the perceived transaction value decreased significantly when higher discount rate is provided. Generally brands that are considered inferior might be able to draw attention away from the quality of the product by making consumers focus more on the sacrifice component of price. But considering the fact that consumers with low degree of brand loyalty are known to be unsatisfied with product's benefits and have relatively negative brand attitude, bigger price reduction offered in experiment condition of this paper made consumers depreciate product's quality and benefit more and more, and consumer's psychological perceived sacrifice increased while perceived values decreased accordingly. We infer that, in the case of inferior brand, a drastic price-cut or frequent price promotion may increase consumers' uncertainty about overall components of product. Therefore, it appears that reinforcing the augmented product such as after-sale service, delivery and giving credit which is one of the levels consisting of product would be more effective in reality. This will be better rather than competing with product that holds high brand loyalty by reducing sale price. Although this study tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception, there are several limitations. This study was conducted in controlled conditions where the high involvement product and two different levels of discount rate were applied. Given the presence of low involvement product, when both pieces of information are available, it is likely that the results we have reported here may have been different. Thus, this research results explain only the specific situation. Second, the sample selected in this study was university students in their twenties, so we cannot say that the results are firmly effective to all generations. Future research that manipulates the level of discount along with the consumer involvement might lead to a more robust understanding of the effects various discount rate. And, we used a cellular phone as a product stimulus, so it would be very interesting to analyze the result when the product stimulus is an intangible product such as service. It could be also valuable to analyze whether the change of perceived value affects consumers' final buying behavior positively or negatively.
Arab boycotts of Danish products, Australian boycotts of French products and Chinese consumer aversion toward Japanese products are all examples of how adverse actions at the country level might impact consumers' behavior. The animosity literature has examined how consumers react to the adverse actions of other countries, and how such animosity impacts consumers' attitudes and preferences for products from the transgressing country. For example, Chinese consumers are less likely to buy Japanese products because of Japanese atrocities during World War II and the unjust economic dealings of the Japanese (Klein, Ettenson and Morris 1998). The marketing literature, however, has not examined how consumers react to adverse actions committed by their own country against other countries, and whether such actions affect their attitudes towards purchasing products that originated from the adversely affected country. The social psychology literature argues that consumers will experience a feeling called collective guilt, in response to such adverse actions. Collective guilt stems from the distress experienced by group members when they accept that their group is responsible for actions that have harmed another group (Branscombe, Slugoski, and Kappenn 2004). Examples include Americans feeling guilty about the atrocities committed by the U.S. military at Abu Ghraib prison (Iyer, Schamder and Lickel 2007), and the Dutch about their occupation of Indonesia in the past (Doosje et al. 1998). The primary aim of this study is to examine consumers' perceptions of adverse actions by members of one's own country against another country and whether such perceptions affected their attitudes towards products originating from the country transgressed against. More specifically, one objective of this study is to examine the perceptual antecedents of collective guilt, an emotional reaction to adverse actions performed by members of one's country against another country. Another objective is to examine the impact of collective guilt on consumers' perceptions of, and preference for, products originating from the country transgressed against by the consumers' own country. If collective guilt emerges as a significant predictor, companies originating from countries that have been transgressed against might be able to capitalize on such unfortunate events. This research utilizes the animosity model introduced by Klein, Ettenson and Morris (1998) and later expanded on by Klein (2002). Klein finds that U.S. consumers harbor animosity toward the Japanese. This animosity is experienced in response to events that occurred during World War II (i.e., the bombing of Pearl Harbor) and more recently the perceived economic threat from Japan. Thus this study argues that the events of Word War II (i.e., bombing of Hiroshima and Nagasaki) might lead U.S. consumers to experience collective guilt. A series of three hypotheses were introduced. The first hypothesis deals with the antecedents of collective guilt. Previous research argues that collective guilt is experienced when consumers perceive that the harm following a transgression is illegitimate and that the country from which the transgressors originate should be responsible for the adverse actions. (Wohl, Branscombe, and Klar 2006). Therefore the following hypothesis was offered: H1a. Higher levels of perceived illegitimacy for the harm committed will result in higher levels of collective guilt. H1b. Higher levels of responsibility will be positively associated with higher levels of collective guilt. The second and third hypotheses deal with the impact of collective guilt on the preferences for Japanese products. Klein (2002) found that higher levels of animosity toward Japan resulted in a lower preference for a Japanese product relative to a South Korean product but not a lower preference for a Japanese product relative to a U.S. product. These results therefore indicate that the experience of collective guilt will lead to a higher preference for a Japanese product if consumers are contemplating a choice that inv olves a decision to buy Japanese versus South Korean product but not if the choice involves a decision to buy a Japanese versus a U.S. product. H2. Collective guilt will be positively related to the preference for a Japanese product over a South Korean product, but will not be related to the preference for a Japanese product over a U.S. product. H3. Collective guilt will be positively related to the preference for a Japanese product over a South Korean product, holding constant product judgments and animosity. An experiment was conducted to test the hypotheses. The illegitimacy of the harm and responsibility were manipulated by exposing respondents to a description of adverse events occurring during World War II. Data were collected using an online consumer panel in the United States. Subjects were randomly assigned to either the low levels of responsibility and illegitimacy condition (n=259) or the high levels of responsibility and illigitemacy (n=268) condition. Latent Variable Structural Equation Modeling (LVSEM) was used to test the hypothesized relationships. The first hypothesis is supported as both the illegitimacy of the harm and responsibility assigned to the Americans for the harm committed against the Japanese during WWII have a positive impact on collective guilt. The second hypothesis is also supported as collective guilt is positively related to preference for a Japanese product over a South Korean product but is not related to preference for a Japanese product over a U.S. product. Finally there is support for the third hypothesis, since collective guilt is positively related to the preference for a Japanese product over a South Korean product while controlling for the effect of product judgments about Japanese products and animosity. The results of these studies lead to several conclusions. First, the illegitimacy of harm and responsibility can be manipulated and that they are antecedents of collective guilt. Second, collective guilt has an impact on a consumers' decision when they face a choice set that includes a product from the country that was the target of the adverse action and a product from another foreign country. This impact however disappears from a consumers' decision when they face a choice set that includes a product from the country that was the target of the adverse action and a domestic product. This result suggests that collective guilt might be a viable factor for company originating from the country transgressed against if its competitors are foreign but not if they are local.
This research attempted to present the efficiency of culture marketing to the organizations producing culture-art products and to the companies utilizing art and suggest the practical viewpoints to the culture and art policy agencies. The methodology used was to take an in-depth look at the consumer value cognition and benefits of culture-art products in contemporary consumption culture from a social context by conducting a total of 12 Focus Group Interviews, consisting of 58 males and females in their 10s~50s who can represent culture-art product consumers. The culture-art products refer to the artist's spiritual, actual act of creating or to the end products with economic exchange value. They are also sense goods and merit goods that affect the mental state of consumers. By looking at culture-art products as consumer merit goods, this research examined consumer value cognition of culture-art products based on the characteristics culture-art products. As a result, this research determined that consumers view culture-art products largely as 'aesthetic and sensuous merit goods', 'actual and individual merit goods', and 'social public property'. As 'aesthetic and sensuous merit goods', culture-art products are considered as the products of an artist's creative activities; as 'social public property', culture-art products have a public value in terms of ownership; and as 'actual and individual merit goods', culture-art products act on the spirit and reality of a consumer in terms of consumption. As a result of analyzing the benefits of culture-art products based on the above-mentioned consumer value cognition, it was observed that the benefits of culture-art-product consumption are chiefly divided into 'aesthetic character-oriented', 'social relationships-oriented', and 'individual benefits-oriented' depending on how consumers see culture-art products. A 3-conceptional structures model was constructed according to the relationship between consumer value cognition of culture-art products and the benefits. This research revealed that consumers who pursue the aesthetic value or sense of beauty as the central reason experience culture-art products themselves, enjoy intellectual quests, and pursue their satisfaction by expressing affection for and interests in culture-art products. On the other hand, consumers who pursue social value as the central reason as a means of communication by perceiving culture-art products as a public property of society, pursue sympathy with people close to them through the symbolic power of culture-art product consumption or the joy of self-display. Consumers who perceive art products as spiritual and actual merit goods and pursue consumer value as a central reason want to express their own personality, develop themselves, and differentiate themselves or identify themselves with others in the context of social relations for the ultimate goal of living a happy and satisfied life while pursuing to satisfy imminent and actual necessities as emotional stability and rest. The fact that culture-art product benefits could vary according to how a consumer perceives them implies that consumer value cognition of culture-art products and their benefits significant affect consumers' decision in choosing and consuming various culture-art products. It turned out that such benefits from the consumption of culture-art products reflect the complex contemporary consumption culture of rational consumption, symbolic consumption, experiential consumption, and social reflective consumption. This research identified conceptional structures of consumer value cognition on culture-art products and benefits that can be used for studying and understanding culture-art products consumers who pursue a variety of consumption values. They can also be used by private companies in utilizing art, as well as by national agencies in enhancing the population's quality of life. However, since this research could only conceptually grasp consumer perception of culture-art products and reveal the dimension of classification due to its own limitations arising from characteristic investigation, quantitative data on the benefits of culture-art product consumers should be measured in future studies through a quantitative investigation, while using the value cognition of culture-art products and the individual characteristics of consumers as variables based on this research.
I. Introduction The industry of domestic discount store was reorganized with 2 bigs and 1 middle, and then Home Plus took over Home Ever in 2008. In present, Oct, 2008, E-Mart has 118 outlets, Home Plus 112 outlets, and Lotte Mart 60 stores. With total number of 403 outlets, they are getting closer to a saturation point. We know that the industry of discount store has been getting through the mature stage in retail life cycle. There are many efforts to maintain existing customers rather than to get new customers. These competitions in this industry lead firms to acknowledge 'store loyalty' to be the first strategic tool for their sustainable competitiveness. In other words, the strategic goal of discount store is to boost up the repurchase rate of customers throughout increasing store loyalty. If owners of retail shops can figure out main factors for store loyalty, they can easily make more efficient and effective retail strategies which bring about more sales and profits. In this practical sense, there are many papers which are focusing on the antecedents of store loyalty. Many researchers have been inspecting causal relationships between antecedents and store loyalty; store characteristics, store image, atmosphere in store, sales promotion in store, service quality, customer characteristics, crowding, switching cost, trust, satisfaction, commitment, etc., In recent times, many academic researchers and practitioners have been interested in 'dual path model for service loyalty'. There are two paths in store loyalty. First path has an emphasis on symbolic and emotional dimension of service brand, and second path focuses on quality of product and service. We will call the former an extrinsic path and call the latter an intrinsic path. This means that consumers' cognitive path for store loyalty is not single but dual. Existing studies for dual path model are as follows; First, in extrinsic path, some papers in domestic settings show that there is 'store personality-identification-loyalty' path. Second, service quality has an effect on loyalty, which is a behavioral variable, in the mediation of customer satisfaction. But, it's very difficult to find out an empirical paper applied to domestic discount store based on this mediating model. The domestic research for store loyalty concentrates on not only intrinsic path but also extrinsic path. Relatively, an attention for intrinsic path is scarce. And then, we acknowledge that there should be a need for integrating extrinsic and intrinsic path. Also, in terms of retail industry, this study is meaningful because retailers want to achieve their competitiveness by using store loyalty. And so, the purpose of this paper is to integrate and complement two existing paths into one specific model, dual path model. This model includes both intrinsic and extrinsic path for store loyalty. With this research, we would expect to understand the full process of forming customers' store loyalty which had not been clearly explained. In other words, we propose the dual path model for discount store loyalty which has been originated from store personality and service quality. This model is composed of extrinsic path, discount store personality
Currently, Social Media, it has widely a renown keyword and its related social trends and businesses have been fastly applied into various contexts. Social media has become an important research area for scholars interested in online technologies and cyber space and their social impacts. Social media is not only including web-based services but also mobile-based application services that allow people to share various style information and knowledge through online connection. Social media users have tendency to common identity- and bond-attachment through interactions such as 'thumbs up', 'reply note', 'forwarding', which may have driven from various factors and may result in delivering information, sharing knowledge, and specific experiences et al. Even further, almost of all social media sites provide and connect unknown strangers depending on shared interests, political views, or enjoyable activities, and other stuffs incorporating the creation of contents, which provides benefits to users. As fast developing digital devices including smartphone, tablet PC, internet based blogging, and photo and video clips, scholars desperately have began to study regarding diverse issues connecting human beings' motivations and the behavioral results which may be articulated by the format of antecedents as well as consequences related to contents that people create via social media. Social media such as Facebook, Twitter, or Cyworld users are more and more getting close each other and build up their relationships by a different style. In this sense, people use social media as tools for maintain pre-existing network, creating new people socially, and at the same time, explicitly find some business opportunities using personal and unlimited public networks. In terms of theory in explaining this phenomenon, social capital is a concept that describes the benefits one receives from one's relationship with others. Thereby, social media use is closely related to the form and connected of people, which is a bridge that can be able to achieve informational benefits of a heterogeneous network of people and common identity- and bonding-attachment which emphasizes emotional benefits from community members or friend group. Social capital would be resources accumulated through the relationships among people, which can be considered as an investment in social relations with expected returns and may achieve benefits from the greater access to and use of resources embedded in social networks. Social media using for their social capital has vastly been adopted in a cyber world, however, there has been little explaining the phenomenon theoretically how people may take advantages or opportunities through interaction among people, why people may interactively give willingness to help or their answers. The individual consciously express themselves in an online space, so called, common identity- or bonding-attachments. Common-identity attachment is the focus of the weak ties, which are loose connections between individuals who may provide useful information or new perspectives for one another but typically not emotional support, whereas common-bonding attachment is explained that between individuals in tightly-knit, emotionally close relationship such as family and close friends. The common identify- and bonding-attachment are mainly studying on-offline setting, which individual convey an impression to others that are expressed to own interest to others. Thus, individuals expect to meet other people and are trying to behave self-presentation engaging in opposite partners accordingly. As developing social media, individuals are motivated to disclose self-disclosures of open and honest using diverse cues such as verbal and nonverbal and pictorial and video files to their friends as well as passing strangers. Social media context, common identity- and bond-attachment for self-presentation seems different compared with face-to-face context. In the realm of social media, social users look for self-impression by posting text messages, pictures, video files. Under the digital environments, people interact to work, shop, learn, entertain, and be played. Social media provides increasingly the kinds of intention and behavior in online. Typically, identity and bond social capital through self-presentation is the intentional and tangible component of identity. At social media, people try to engage in others via a desired impression, which can maintain through performing coherent and complementary communications including displaying signs, symbols, brands made of digital stuffs(information, interest, pictures, etc,). In marketing area, consumers traditionally show common-identity as they select clothes, hairstyles, automobiles, logos, and so on, to impress others in any given context in a shopping mall or opera. To examine these social capital and attachment, we combined a social capital theory with an attachment theory into our research model. Our research model focuses on the common identity- and bond-attachment how they are formulated through social capitals: cognitive capital, structural capital, relational capital, and individual characteristics. Thus, we examined that individual online kindness, self-rated expertise, and social relation influence to build common identity- and bond-attachment, and the attachment effects make an impact on both the willingness to help, however, common bond seems not to show directly impact on information sharing. As a result, we discover that the social capital and attachment theories are mainly applicable to the context of social media and usage in the individual networks. We collected sample data of 256 who are using social media such as Facebook, Twitter, and Cyworld and analyzed the suggested hypotheses through the Structural Equation Model by AMOS. This study analyzes the direct and indirect relationship between the social network service usage and outcomes. Antecedents of kindness, confidence of knowledge, social relations are significantly affected to the mediators common identity-and bond attachments, however, interestingly, network externality does not impact, which we assumed that a size of network was a negative because group members would not significantly contribute if the members do not intend to actively interact with each other. The mediating variables had a positive effect on toward willingness to help. Further, common identity attachment has stronger significant on shared information.
Service failure is one of the major reasons for customer defection. As the business environment gets tougher and more competitive, a single service failure might bring about fatal consequences to a service provider or a firm. Sometimes a failure won't end up with an unsatisfied customer's simple complaining but with a wide-spread animosity against the service provider or the firm, leading to a threat to the firm's survival itself in the society. Therefore, we are in need of comprehensive understandings of complainants' attitudes and behaviors toward service failures and firm's recovery efforts. Even though a failure itself couldn't be fixed completely, marketers should repair the mind and heart of unsatisfied customers, which can be regarded as an successful recovery strategy in the end. As the outcome of recovery efforts exerted by service providers or firms, recovery of the relationship between customer and service provider need to put on the top in the recovery goal list. With these motivations, the study investigates how service failure and recovery makes the changes in dynamics of fundamental elements of customer-firm relationship, such as customer affection, customer trust and loyalty intention by comparing two time points, before the service failure and after the recovery, focusing on the effects of recovery satisfaction and the failure severity. We adopted La & Choi (2012)'s framework for development of the research model that was based on the previous research stream like Yim et al. (2008) and Thomson et al. (2005). The pivotal background theories of the model are mainly from relationship marketing and social relationships of social psychology. For example, Love, Emotional attachment, Intimacy, and Equity theories regarding human relationships were reviewed. As the results, when recovery satisfaction is high, customer affection and customer trust that were established before the service failure are carried over to the future after the recovery. However, when recovery satisfaction is low, customer-firm relationship that had already established in the past are not carried over but broken up. Regardless of the degree of recovery satisfaction, once a failure occurs loyalty intention is not carried over to the future and the impact of customer trust on loyalty intention becomes stronger. Such changes imply that customers become more prudent and more risk-aversive than the time prior to service failure. The impact of severity of failure on customer affection and customer trust matters only when recovery satisfaction is low. When recovery satisfaction is high, customer affection and customer trust become severity-proof. Interestingly, regardless of the degree of recovery satisfaction, failure severity has a significant negative influence on loyalty intention. Loyalty intention is the most fragile target when a service failure occurs no matter how severe the failure criticality is. Consequently, the ultimate goal of service recovery should be the restoration of customer-firm relationship and recovery of customer trust should be the primary objective to accomplish for a successful recovery performance. Especially when failure severity is high, service recovery should be perceived highly satisfied by the complainants because failure severity matters more when recovery satisfaction is low. Marketers can implement recovery strategies to enhance emotional appeals as well as fair treatments since the both impacts of affection and trust on loyalty intention are significant. In the case of high severity of failure, recovery efforts should be exerted to overreach customer expectation, designed to directly repair customer trust and elaborately designed in the focus of customer-firm communications during the interactional recovery process to affect customer trust rebuilding indirectly. Because it is a longer and harder way to rebuild customer-firm relationship for high severity cases, low recovery satisfaction cannot guarantee customer retention. To prevent customer defection due to service failure of high severity, unexpected rewards as a recovery will be likely to be useful since those will lead to customer delight or customer gratitude toward the service firm. Based on the results of analyses, theoretical and managerial implications are presented. Limitations and future research ideas are also discussed.
While recent economic stagnation has left consumers dispirited, rapid growth has been seen in the domestic coffee industry recently. With the growth in coffee consumption, a tremendous increase in the number of specialty coffee shops has been seen in the domestic coffee market. The expectation that markets specializing in coffee will continue to grow for a long time will cause existing enterprises to expand their shops and increase the rate of entry of new shops. Intense competition in the domestic coffee market will force companies to create a competitive advantage through differentiated marketing strategies. This paper focuses on how the shopping value and repatronage intention of customers using coffee shops is affected by service quality. Moreover, this paper intends to examine the service quality that is critical for the successful management of relationships and the values that are important to consumers. For these purposes, the discriminative effect of service quality on shopping value was analyzed and the effect of utilitarian and hedonic value on repatronage intention was reviewed. The results of this study are detailed below. First, interaction and outcome quality can positively affect the hedonic value, whereas environment quality is not meaningful for utilitarian value. Considering the relative effect on utilitarian value outcome, the effect of outcome quality is greater than that of interaction. This result shows that the role of outcome quality is most important for improving utilitarian value. Second, outcome and environment quality positively affect hedonic value; however, interaction quality does not meaningfully increase hedonic value. These results indicate that customers recognize hedonic value on the basis of their evaluation of the service outcomes and the background to delivery service. In particular, it was revealed that the relative effect of outcome quality on hedonic value is greater than that of environment quality. Third, both utilitarian value and hedonic value had a positive effect on repatronage intention. The relative influence of the hedonic value is that the shopping value affects the repatronage intention more than the utilitarian value. These results mean that customers recognize coffee shops as spaces for satisfying utilitarian and hedonic values, and they place more importance on the benefits of the emotional experience than functional needs. Finally, this study suggests that output quality is more important than other service factors, and the results of this paper give some implications to the coffee shop industry that customers seek utilitarian needs based on economic value and place more weight on hedonic value, such as that offered by relationship media.
According to the clear potential of mobile banking growth, many studies related to this are being conducted, but in Korea, it is concentrated on the analysis of technical factors or consumers' intentions, behaviors, and satisfaction. In addition, even though it has a strong customer base of 20s, there are few studies that have been conducted specifically for this customer group. In order for mobile banking to take a leap forward, a strategy to secure various perspectives is needed not only through research on itself but also through research on external factors affecting mobile banking. Therefore, this study analyzes impulsiveness, credit card use, and SNS addiction among various external factors that can significantly affect mobile banking in their 20s. This study examines whether the relationship between impulsiveness and mobile banking usage depends on whether or not a credit card is used, and checks whether a customer's impulsiveness is possible by examining whether a credit card is used. Based on this, it is possible to establish new standards for classification of marketing target groups of mobile banking. After finding out the static or unsuitable relationship between whether to use a credit card and impulsiveness, we want to indirectly predict the customer's impulsiveness through whether to use a credit card or not to use a credit card. It also verifies the mediating effect of SNS addiction in the relationship between impulsiveness and mobile banking usage. For this analysis, the collected data were conducted according to research problems using the SPSS Statistics 25 program. The findings are as follows. First, positive urgency has been shown to have a significant static effect on mobile banking usage. Second, whether to use credit cards has shown moderating effects in the relationship between fraudulent urgency and mobile banking usage. Third, it has been shown that all subfactors of impulsiveness have significant static relationships with subfactors of SNS addiction. Fourth, it has been confirmed that the relationship between positive urgency, SNS addiction, and mobile banking usage has total effect and direct effect. The first result means that mobile banking usage may be high if positive urgency is measured relatively high, even if the multi-dimensional impulsiveness scale is low. The second result indicates that mobile banking usage rates were not affected by the independent variable, negative urgency, but were found to have a significant static relationship with negative urgency when using credit cards. The third result means that SNS is likely to become addictive if lack of premeditation or lack of perseverance is high because it provides instant enjoyment and satisfaction as a mobile-based service. This also means that SNS can be used as an avoidance space for those with negative urgency, and as an emotional expression space for those with high positive urgency.