Examining the role of customer engagement in augmenting referral value

2019 ◽  
Vol 29 (5/6) ◽  
pp. 539-564
Author(s):  
Gurjeet Kaur Sahi ◽  
Rita Devi ◽  
Satya Bhusan Dash

Purpose The purpose of this paper is to examine the impact of a customer engagement-enabling platform on a value captured by the firm and value acquired by the customer. It explores the relevance of relational and expertise value for customers during the engagement process so as to ensure positive referrals about the service provider. Design/methodology/approach Using a sample of 482 students, the study examines the customer engagement efforts of professional institutes that provide training to prepare for the civil service examinations of the Union Public Service Commission. The survey is confined to central areas of New Delhi, India. Statistical techniques including confirmatory factor analysis and structural equation modelling are used to analyse the data, and reliability and validity tests are performed. Findings The findings reveal the indispensable role of service providers as creators of a meaningful effective learning process and of interpersonal relations with customers for generating more business through customer referrals. Research limitations/implications The study validated the moderating role of relational value between customers’ expertise value and their referrals on the basis of motivation theory, which asserts that customers’ motivation to contribute to the organisation is driven by the individuals’ extrinsic relational need for belongingness, acceptance by like-minded individuals, and feedback, recognition and respect from employees of the organisation. Originality/value The study contributes to the existing literature by integrating the well-developed social exchange and motivation theory so as to investigate the factors that propel customers’ positive word of mouth for the service provider.

2019 ◽  
Vol 34 (3) ◽  
pp. 628-642 ◽  
Author(s):  
José L. Ruiz-Alba ◽  
Anabela Soares ◽  
Miguel A. Rodríguez-Molina ◽  
Dolores M. Frías-Jamilena

Purpose This paper aims to investigate the moderating role of co-creation in the implementation of servitization strategies in the pharmaceutical industry in a business-to-business (B-to-B) context. More specifically, this investigation explores the impact of different levels of services (base, intermediate and advanced) on servitization and on performance by using co-creation as a moderating factor. Design/methodology/approach A research framework was developed and empirically tested in the pharmaceutical sector. Data collection was conducted through the online distribution of questionnaires. The final sample included 219 pharmacy stores, and the data were analysed using structural equation modelling. Findings Main findings suggest that when the level of co-creation of the design of services is high, there are significant effects of servitization on firm performance. The moderating effect of co-creation is illustrated in regard to intermediate and advanced services, but results referring to the impact of intermediate services on servitization appear non-significant with a low degree of co-creation. No significant effects could be found for the impact of base services on performance and servitization for both high and low degrees of co-creation. Findings show an impact of advanced services on performance through the mediating effect of servitization when the degree of co-creation is high. Originality/value Most research concerning servitization has been done from the perspective of manufacturers and service providers. This study adds value to the literature because it was designed from a customer’s perspective. Moreover, it contributes towards the conceptualization of the servitization research strategy and business models in a B2B context. This is accomplished through the investigation of the moderating effect of co-creation on the impact of the different levels of services on servitization and on performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saifeddin Alimamy ◽  
Waqar Nadeem

PurposeRapid advancements in augmented reality (AR) technology have created new opportunities for service providers and customers to cocreate value. Using AR as a platform for generating authentic experiences, the purpose of this study is to explore the impact of authentic experiences on customers' intention to cocreate value while considering the mediating influence of perceived ethics and customer engagement on this relationship.Design/methodology/approachAn online survey was used to collect data. Participants were asked to download and try the “IKEA PLACE” AR application. The responses were used as inputs into a structural equation model.FindingsThe findings reveal that AR generates perceptions of authentic experiences but no direct relationship between authentic experiences and intention to cocreate value was found. On the other hand, the authentic experiences generated through AR increases customer perceptions of ethics and customer engagement, both of which lead to an increased intention to cocreate value.Originality/valueThe findings from this study highlight the importance of authentic experiences within the cocreation process. The results provide a unique understanding of the relationship between authentic experiences generated through AR technology on the intention to cocreate with the service provider, which is fully mediated by perceived ethics and customer engagement. The findings of this study extend the understanding of the cocreation process and the role of technology within this process.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pedro Gaudencio ◽  
Arnaldo Coelho ◽  
Neuza Ribeiro

Purpose The study aims to show how organisational corporate social responsibility (CSR) can influence workers’ attitudes, especially in terms of turnover intentions (TI). A second aim is to explore the social exchange process that may underlie this relationship, by examining the mediating role of leader–member exchange (LMX) and the moderation role of perceived external prestige (PEP). Design/methodology/approach The authors use structural equation modelling based on survey data obtained from 315 Portuguese individuals. Findings The findings show that the perceptions of CSR predict TI through the mediating role of LMX. Seemingly PEP appears to be moderating the relationship between TI and its determinants. These findings suggest that managers should implement CSR practices because these can contribute towards reducing TI. Originality/value This study enriches the existing knowledge about relationships in organisational contexts and responds to the need of understanding the underlying mechanisms linking CSR with workers’ organisational outcomes, by analysing CSR practices in a holistic stakeholder perspective.


2019 ◽  
Vol 21 (2) ◽  
pp. 255-272
Author(s):  
Yatish Joshi ◽  
Anugamini Priya Srivastava

Purpose The purpose of this study is to investigate the role of customer engagement (CE) on green apparel purchase intention (GPI) among young consumers in India. Design/methodology/approach A survey was performed on 460 young consumers. Structural equation modeling was applied to check the extent to which the considered variables predicted green purchase intention. Findings The results determined CE and social influence as key predictors of consumers’ purchase intention toward green apparel products. Study further confirms that CE mediates the association between brand experience (BE) and purchase intention toward green apparels. Research limitations/implications Data were collected from young consumers. Further the impact of only few determinants was studied. Practical implications The study offers deep insights into the role of CE on consumers’ GPI, which may enable managers to plan suitable marketing plans to encourage such intentions. Social implications The outcomes of this study can be used by managers to incorporate CE strategies in their environmental campaigns for promoting green purchasing practices. Such activities may limit the harmful effect of purchasing practices on the nature. Originality/value The current study is a pioneer in examining the role of CE and BE on GPI of consumers in India.


2018 ◽  
Vol 36 (7) ◽  
pp. 764-777 ◽  
Author(s):  
Rojanasak Chomvilailuk ◽  
Ken Butcher

Purpose The purpose of this paper is to determine the effectiveness of strategic corporate social responsibility (CSR) initiatives that seek to enhance customer engagement, through different forms of positive word of mouth. Design/methodology/approach A total of 258 responses were collected from customers of mobile telephone service providers, and analysed using t-tests, ANOVA and structural equation modelling. The survey embedded a realistic press release, purporting to originate from the respondent’s service provider, communicating CSR information. Findings Mobile telephone users are largely indifferent to CSR communication activities but segments of the market respond differently. Customer-perceived community value of the strategic CSR initiative to the intended beneficiary of the activity was found to be an effective antecedent of customer engagement. Research limitations/implications Alternative modes of customer engagement have the potential to enhance customer discourse. Customer-perceived community value of the strategic initiative provides further explanatory power to the CSR–customer relationship. Practical implications Customer-perceived community value can be used as a planning tool for marketers to gauge the effectiveness of CSR advertising campaigns before launch. Managers can adapt their CSR communications message to better reflect customer concerns. Social implications NGOs that offer greater perceived community value can partner with companies more successfully. Originality/value A holistic CSR-centric approach to evaluate strategic CSR initiatives and determine their influence on alternative forms of customer engagement is novel.


2018 ◽  
Vol 46 (8) ◽  
pp. 764-779 ◽  
Author(s):  
John Paul Basewe Kosiba ◽  
Henry Boateng ◽  
Abednego Feehi Okoe Amartey ◽  
Robert Owusu Boakye ◽  
Robert Hinson

PurposeIn recent times, there has been a growing research interest in customer engagement; however, there is a paucity of empirical evidence on the drivers and outcomes of customer engagement such as brand loyalty. Furthermore, the customer engagement and brand loyalty literature have paid little attention to trustworthiness, even though it has the potential of explaining customer engagement, brand loyalty and their relationships. Consequently, the purpose of this paper is to ascertain the drivers of customer engagement and its relationship with brand loyalty in the context of retail banking in Ghana.Design/methodology/approachThe authors employed the survey research design. The authors collected data from retail banking customers in Ghana using the intercept approach. There were 385 respondents. The authors analysed the data using the structural equation modelling approach.FindingsThe results show that trustworthiness drives customer engagement which results in brand loyalty. The findings reveal that trustworthiness is defined through integrity, benevolence and ability while customer engagement is defined via emotional engagement, cognitive engagement and behavioural engagement.Originality/valueThis study examines the impact of trustworthiness on customer engagement and brand loyalty. It shows the mediating role of customer engagement in the relationship between trustworthiness and brand loyalty.


Author(s):  
Nada Hammad ◽  
Syed Zamberi Ahmad ◽  
Avraam Papastathopoulos

Purpose This paper aims to investigate residents’ perceptions of tourism’s impact on their support for tourism development in Abu Dhabi, United Arab Emirates (UAE). Design/methodology/approach Data were collected using self-administered questionnaires from Abu Dhabi residents (n = 407), who represented 30 nationalities residing in the emirate. Based on social exchange theory, structural equation modeling was used to test hypotheses. Findings Results suggest that Abu Dhabi residents perceive the impacts of tourism positively and are more sensitive to the environmental and economic influences of tourism than the social and cultural influences. Research limitations/implications This study was limited to Abu Dhabi residents; findings cannot be generalized to other emirates in the UAE, or other countries. Originality/value This study adds value to extant tourism literature by investigating residents’ perceptions of the influence of tourism in one of the richest cities worldwide, which aspires to be one of the fastest growing tourism destinations in the Middle East.


SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824401989910 ◽  
Author(s):  
James Agyei ◽  
Shaorong Sun ◽  
Eugene Abrokwah ◽  
Emmanuel Kofi Penney ◽  
Richmond Ofori-Boafo

This study examined the influence of trust dimensions on customer engagement, and the resultant impact of customer engagement on customer loyalty in the context of life insurance. Furthermore, it investigated the mediating role of customer engagement in the relationships between trust dimensions and customer loyalty. A total of 452 valid responses from life insurance customers in Ghana were examined using structural equation modeling (SEM). The results revealed that trust in service provider, trust in the regulator, economy-based trust, and information-based trust significantly influence customer engagement, with trust in service provider and trust in the regulator driving a higher level of customer engagement. The results also uncovered that customer engagement significantly enriches customer loyalty and mediated the relationships between the trust dimensions and customer loyalty. The findings highlight the importance of building convincing customer trust to advance customer engagement and customer loyalty.


2019 ◽  
Vol 31 (1) ◽  
pp. 474-495 ◽  
Author(s):  
Heesup Han ◽  
Kiattipoom Kiatkawsin ◽  
Wansoo Kim

PurposeThe purpose of this paper is to examine the intricate associations among the performance of ambient atmospherics, emotional experiences, overall image and guest satisfaction and test the influence of these relationships on loyalty intentions by considering the moderating impact of continuance commitment in the upscale hotel context.Design/methodology/approachA field survey was conducted to collect the data. A quantitative approach was used for data analysis. Structural equation modeling and a test for metric invariance were used to identify the impact of study variables.FindingsThe results of this paper indicated that the hypothesized relationships were in general significant, that the proposed theoretical framework satisfactorily predicted guests’ intentions to be loyal and that the role of satisfaction among study constructs was prominent. Findings from the test for metric invariance also showed that continuance commitment significantly affected the associations among emotional experiences, satisfaction and loyalty intentions. Moreover, emotional experiences, overall hotel image and guest satisfaction were found to play a significant mediating role in generating loyalty intentions.Practical implicationsThe findings of this paper inform hotel practitioners of the clear role of atmospherics, emotional experiences, image, satisfaction and continuous commitment in building loyalty. In addition, these findings can help hotel practitioners and researchers invent thorough and strategic methods for loyalty enhancement.Originality/valueThe existing hotel literature has provided a limited view regarding the impact of these research variables. The present paper filled this research gap through the successfully development of a robust framework for hotel guest loyalty.


2015 ◽  
Vol 29 (2) ◽  
pp. 81-92 ◽  
Author(s):  
Mark Scott Rosenbaum ◽  
Ipkin Anthony Wong

Purpose – This paper aims to investigate a guest’s subjective appraisal of a hotel’s green marketing program, or green equity, along with value, brand and relationship equities on guest loyalty. Design/methodology/approach – Study 1 presents three models to explicate the role of a luxury hotel’s green initiatives in influencing guest loyalty. By means of structural equation modeling, one model emerges with the best fit. Study 2 examines how tourists assign economic value to a hotel’s green programs. Findings – Green equity plays a significant role in customers’ overall assessment of a hotel’s marketing programs; however, the effect is weaker when compared with the other indicators, including a hotel’s value proposition, brand image and loyalty programs. Furthermore, the results reveal that tourists are willing to pay a price premium for a hotel’s green marketing programs. Research limitations/implications – The paper links green marketing to the customer equity model and clarifies the impact of green marketing programs on loyalty and profitability. However, the study was conducted among luxury hotel guests and tourists in Macau, a leading gambling destination; thus, these customers might not have been concerned with green marketing initiatives. Practical implications – The results show that green initiatives are beneficial as long as managers include these initiatives in their overall strategic marketing programs that also promote firm value propositions, brand images and reputation. Originality/value – The paper clarifies the role of green marketing programs in hospitality and shows how hotels can benefit from enhanced guest loyalty and decreased operational expenses by implementing green initiatives.


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