Impact of customer loyalty and service operations on customer behaviour and firm performance: empirical evidence from UK retail sector

Abstract

Retail networks are striving to achieve competitive advantage by increasing value through loyalty and efficiency with a focus on service operations. As sales promotions have become an integral part of the retail supply chain planning, customer behavioural aspects based on loyalty and service operations have been challenged greatly. Subsequently, management capabilities, such as planning and timely replenishment, have become complicated tasks for many retail store managers. This study develops a model integrating retail network value and efficiencies with customer behaviour and performance. We validate the model using survey data from prominent U.K. retail store customers. Our data analysis shows that both loyalty and service operation attributes have positive significant impact on customer behaviour, while the service operation mediates the relationship between loyalty and customer behaviour. This result gives a new outlook to build managerial capability based on customer loyalty and service operations. Our results specifically show that the service operation attributes will indirectly influence the customers’ buying behaviour even in the presence of loyalty attribute such as promotion schemes. This result sends a strong signal to retail supply chain managers to offer customised promotions considering local community rather than having uniform sales promotion nationwide.     

The quality of service: An overall performance assessment for water utilities

Over the last decades, the delivery of water supply services has changed among regions and actors, in order to meet the changing needs. Those services can be balanced based on the relation between the obligations they must fulfill, the quality offered, and the associated price/value for money. Furthermore, due to the water services inherent characteristics, they are prone to poor quality of service (in general terms). Thus, global performance assessments are of paramount relevance under those constraints. In Portugal, the water regulator has developed a system of performance indicators (partial measures of performance) and, therefore, it is not possible to achieve the desired holistic performance evaluation (global measure). To enable such assessment, we propose an application based on the ELECTRE TRI-nC method to define quality of service categories and aggregate performance indicators. To obtain a coherent family of criteria (i.e., exhaustive, cohesive, and non-redundant) we apply an iso-preference logic. The results obtained are presented through a geographical information system allowing for a clearer visualization of the overall performance of water utilities. The method proposed can be considered a suitable decision support system and useful regulatory tool able to provide policy relevant outputs.     

顾客满意度不确定性对服务质量评价的影响

在以顾客为中心的时代,企业服务质量的评价直接依赖于顾客满意度的高低,而顾客满意度的评价结果往往是基于某种评价等级的一个分布.论文研究顾客满意度评价的不确定性对服务质量总体评价的影响,结果表明在服务质量的评价中存在着一种“反射现象”,即当服务质量总体水平处于满意的状态下,管理者追求的是保持和稳定,展现出对不确定性的厌恶;而当服务质量总体水平处于不满意的状态时,管理者力图改变和进步,展现出对不确定性的偏爱,而且,顾客满意度评价的负面结果要比同等程度的正面结果对服务质量总体评价的影响要大.这些现象在两项实证研究中获得了中高层管理人员的确认.作者进一步建立了一个在顾客满意度有不确定性情况下服务质量评价的模型.     

Application of Design for Six Sigma tools in telecom service improvement

Abstract

Six Sigma is a systematic methodology aiming at operational excellence. Under the general umbrella of Six Sigma, DMAIC and Design for Six Sigma are usually be implemented to improve product and process quality. Facing quality bottlenecks in traditional improvement projects, tools in Design for Six Sigma is an efficient way to achieve better results. In this paper, to meet the high-quality requirement of key clients, a telecom service system improvement project is illustrated by redesigning troubleshooting and service delivery processes in company Shanghai Telecom Co. Ltd. (ST) with the aid of some Design for Six Sigma tools. Company ST improved its service system performance and obtained significant economic benefits from this project implementation. Four key factors that affect the success of Design for Six Sigma tools application in improvement projects are discussed at last.     

基于SERVQUAL的供电服务质量测量标尺研究

服务质量的测量是近年来服务管理的热点问题。本文基于PZB提出的SERVQUAL标尺,采用实证方法,发展了测量供电服务质量的标尺。研究结果表明,新的标尺更为适合供电服务的特征,并且具有更合理的维度结构、信度、结构效度和预测效度,对于其它行业服务质量的测量也具有相当的借鉴意义。     

A methodology for industrial studies of productivity performance

This article describes a methodology for measuring productivity and competitiveness in industry. The methodology is developed mainly for the mechanical industry (including shipyards, offshore and electromechanical companies). Two different approaches are described—one is based on a self-audit using a questionnaire answered by the industry itself, the second, using a more complete audit, is based on expert teams analysing the company. The productivity is described by indicators given points on a scale from 1 to 7 (1—far behind international competitors, 7—(best practice’).     

Coaching at the heart of managerial effectiveness: A cross-cultural study of managerial behaviours

This article considers the assessed performances of non-commissioned officers in aprogramme perceived as an important career enhancing activity for British military personnel. We introduce the idea of cognitive style as an important individual difference affecting performance on programmes of training and development and the implications for career progression. The research methodology adopted involved mixed methods as an alternative way of ‘seeing’, ‘researching’ and ‘theorising’ human resources development in this context. The research drew upon a mix of data from course participants and organizers, and it comprised cognitive style testing, within course assessment data and notes recorded during field observation. The results revealed relationships between the factors associated with ‘styles’, ‘assessed learning performance’ and ‘course experience’. Key perspectives on the experiences of training in terms of success and strategic direction were also identified. The study provides a deeper understanding of career-development processes in the military organization, considers the implications in which knowledge of an individual's style may have for the individual and course organizers and imports new theoretical frameworks into the study of human resource development.     

第三方物流客户满意度前因研究——基于客户视角

满意是企业维持老顾客,保持竞争优势的基础.为了提高客户满意度,企业不仅要从自身出发去理解并实践物流客户满意,更为重要的是要从客户角度探察哪些因素会影响物流客户满意度.本文在回顾国内外相关研究的基础上,通过对物流客户的深度访谈,探察了第三方物流客户满意的7个前因,首次采用"直接测量感知期望差"的物流服务质量测量方法,在服装行业进行了实证研究,验证了误差处理质量等7个物流客户满意的前因,并发现了它们对物流客户满意度的影响权数.     

A Flexible Evaluative Framework for Order Picking Systems

This paper develops a novel framework to evaluate the integral performance of order picking systems with different combinations of storage and order picking policies. The warehousing literature on order picking mostly considers minimizing either elapsed time or distance as the sole objective, whereas warehouse managers in a supply chain have to look beyond single‐dimensional performance and consider trade‐offs among different criteria. Thus managers still need a unified and efficient framework to select a portfolio of appropriate order picking policies from a multi‐criteria and contextual perspective. Our framework—combining data envelopment analysis, ranking and selection, and multiple comparisons—provides an efficient methodology to simultaneously analyze several interrelated problems in order picking systems with multiple performance attributes, such as service levels and operational costs. We demonstrate our approach through comprehensive evaluations of order picking policies in three low‐level, picker‐to‐parts rectangular warehouses facing demand variations.     

An Exploratory Study of the Impact of e‐Service Process on Online Customer Satisfaction

Although extensive academic research has examined the dynamics of interpersonal interactions between service providers and customers, much less research has investigated customer service encounters through technological interfaces such as the Web in electronic commerce transactions. Corporate websites have become an important point of contact with customers for many companies. Service has been described as one of the most important attributes for online business to influence traffic and sales. However, more research is needed to understand how Web‐based technological capabilities of services affect customer satisfaction. In this paper, we propose viewing the interface between online buyers and sellers through the lens of service management to identify possible determinants of online customer satisfaction. A company's website is considered its electronic service delivery system. We look at this electronic service delivery system from its process point of view. Our findings indicate that as the electronic service delivery system process improves, a customer's perception of the website's ease of use increases, leading to increased service value and perceived control over the process, which increases customer satisfaction. The research provides evidence that the technological capabilities embedded in the website processes are an important factor in determining service quality and ultimately online customer satisfaction.     

A conceptual model for measuring supply chain's performance

In this article, a conceptual model for measuring supply chain (SC) performance is proposed which can be used for most organisations with the same class at various industries. The model has been developed according to performance metrics interdependencies and some existing shortcomings in the available literature of performance models. Furthermore, it has tried to see the key features of a performance evaluation model. The methodology which is used for solving and integrating the model is a combination of the analytical hierarchy process (AHP) and Decision Making Trial and Evaluation Laboratory (DEMATEL) methods. The DEMATEL and AHP are used for understanding the relationship between comparison metrics and integration to provide a value for performance, respectively.     

Green supply chain performance measurement using the analytic hierarchy process: a comparative analysis of manufacturing organisations

The main purpose of this research is to develop and deploy an analytical framework for measuring the environmental performance of manufacturing supply chains. This work's theoretical bases combine and reconcile three major areas: supply chain management, environmental management and performance measurement. Researchers have suggested many empirical criteria for green supply chain (GSC) performance measurement and proposed both qualitative and quantitative frameworks. However, these are mainly operational in nature and specific to the focal company. This research develops an innovative GSC performance measurement framework by integrating supply chain processes (supplier relationship management, internal supply chain management and customer relationship management) with organisational decision levels (both strategic and operational). Environmental planning, environmental auditing, management commitment, environmental performance, economic performance and operational performance are the key level constructs. The proposed framework is then applied to three selected manufacturing organisations in the UK. Their GSC performance is measured and benchmarked by using the analytic hierarchy process (AHP), a multiple-attribute decision-making technique. The AHP-based framework offers an effective way to measure and benchmark organisations’ GSC performance. This study has both theoretical and practical implications. Theoretically it contributes holistic constructs for designing a GSC and managing it for sustainability; and practically it helps industry practitioners to measure and improve the environmental performance of their supply chain.     

QoS in the internal supply chain: the next lever of competitive advantage and organisational performance

This article presents a research that examines the relationship of quality of service (QoS) and organisational performance in a manufacturing setting. There are few empirical studies that measure QoS in the manufacturing supply chain. A model linking QoS with organisational performance through intermediate variables of satisfaction, loyalty and competitive advantage is introduced and tested in the internal supply chain of three automotive organisations. The research design for this article includes a combination of literature review, exploratory interviews with scholars and practitioners, and a survey of 156 practitioners in three automotive companies in North India. Structural equation modelling has been used for data analysis. This research comes out with four factor scale for internal service quality and six-factor scale for external service quality. The research revealed that employee-driven QoS is a source of value addition that is positively linked with the organisational performance. This study would be of interest to manufacturing industry practitioners interested in internal and external service quality improvements. Future researchers could validate this scale, and empirically test the proposed model.     

Heuristic methods for the analysis of managerial problems

Problem analysis is a critical element of managerial problem solving that has not been included in or explicated by traditional stage models of the process. This paper argues that an analysis stage is needed to develop the implications of a problem's definition and to direct the selection and pursuit of solution strategies. Problem analysis is a beuristic activity. The paper explains and applies seven heuristic methods of analysis to a classic management case, generating a richer understanding and broader set of solution alternatives. Strategies for future research on problem analysis are discussed.     

Decision model of customer order decoupling point on multiple customer demands in logistics service supply chain

The key factor in realising competitiveness of a logistics service supply chain (LSSC) is its ability to meet customised requirements with the cost of mass service. This paper introduces the concepts of mass customisation and customer order decoupling point (CODP) into the field of logistics service to solve the problem of CODP when a logistics service integrator (LSI) in an LSSC operates under mass customisation. Two models of CODP decision, respectively, on single and multiple customer demands, are developed. Both process constraints and lead time constraints from the customised logistics service orders are considered. Unlike CODP positioning models within the manufacturing supply chain, the objective of this paper is to exclusively consider the cost of order transferring and order waiting at CODP to minimise total cost of the LSI. The applications of the two models are also discussed by two real cases, and three major conclusions are drawn. First, introducing mass customisation into an LSSC and minimising total cost of order processing of the LSI by selecting an optimised CODP is feasible. Second, total cost will decrease monotonously along with the movement of CODP toward the last service procedure under the precondition of satisfying lead time constraints. Third, parameters about the customers’ logistics service orders will bring about great influence on the selection of CODP. For instance, the lead time of orders will influence the number of feasible CODPs and the position of optimal CODP. Also, decreasing cost of order transferring and order waiting will not cause the change of optimal CODP, while increasing cost of order transferring and order waiting will lead to the switch of optimal CODP.     

Measuring business performance in the high-tech manufacturing industry: A case study of Taiwan's large-sized TFT-LCD panel companies

The nature of competition in the high-technology manufacturing industry has changed dramatically over the last two decades, and any of the traditional indicators of business performance are insufficient today. We have identified a new set of financial and non-financial performance indicators that can be used by high-tech manufacturing companies and have developed a business performance evaluation model. A data envelopment analysis (DEA), an analytic hierarchy process (AHP), and a fuzzy multi-criteria decision-making approach are used in the model. Data from large-sized thin-film transistor liquid-crystal display panel companies in Taiwan were collected via a field survey and from various published databases and were fed into the model to determine the relative business performance of the companies. We hope that our findings will help high-tech manufacturing executives determine their companies’ strengths and weaknesses and lead to future improvements in business operations.     

Gaining Competitive Advantages in Higher Education: Analyzing the Gap between Expectations and Perceptions of Service Quality

The research findings have provided several implications for higher educational institutions, managers, and leaders of decision-making processes throughout the world. Service quality, customer satisfaction, and behavioral intentions are global issues that affect all organizations, large or small, profit or non-profit, global or local. We are all influenced or discouraged, satisfied or dissatisfied with positive loyalty behavioral intentions or negative complaining reactions, propelled by the level of service quality received. This revised version was published online in July 2006 with corrections to the Cover Date.     

The role of organizational facilitators in promoting job-related mental health and group service effectiveness: a two-wave analysis

This study aimed to add to knowledge by providing a more systematic integration of work characteristics, workers’ health and performance. The two-wave multi-source study was conducted to test the relationship over time between the healthy states of groups of service-oriented workers and their service effectiveness when their organizations provide facilitators such as training, technical support and autonomy. The study takes healthy states to be a composite of affective-motivational and competent collective states (collective vigour and service competence) and service effectiveness. Service effectiveness was a combination of service quality as assessed by customers and their loyalty intentions. Data from 53 hotels and restaurants in Spain were aggregated from 256 boundary workers (i.e. workers in direct contact with customers) and 530 customers at Time 1 and from 470 customers at Time 2 six month later. Structural equation modelling showed that organizational facilitators at Time 1 were related to the service effectiveness reported by customers at Time 2, and also that there was a relationship between service effectiveness at Time 1 and the healthy states reported by the groups at Time 2. That is, contrary to what is widely believed, there was an influence of performance on well-being.     

Impacts of demand and supply factors on the capacity scheduling performance of logistics service supply chain with mass customisation service modes: an empirical study from China

This paper studies the influence of the demand–supply environment on the capacity scheduling performance of the logistics service supply chain. According to the key characteristics of the demand–supply environment, the cases of five Chinese companies were introduced and cross-analysed, then research hypotheses were developed. After receiving 154 valid questionnaires and testing our hypotheses, some key conclusions were obtained. From the aspect of demand, there is a positive correlation between the customised levels of demand and the scheduling cost of logistics service integrators but a negative correlation between the customised levels of demand and the scheduling flexibility; From the aspect of supply, a higher self-support ratio of logistics source and a higher sourcing integrity of logistics service integrators will lead to a higher scheduling cost and a lower scheduling flexibility; a whole-process performance evaluation is a moderator, which will positively improve the impact of the whole process scheduling performance.     

The Impact of Service Quality and Service Characteristics on Customer Retention: Small Businesses and their Banks in the UK1

The recent developments in relationship marketing have increasingly focused attention on the beneficial effects of customer retention. The notion of building relationships and delivering quality service in order to encourage loyalty is perhaps of particular importance in the service sector where it is often argued that customer attraction costs are significantly higher than retention costs. Central to the idea of investment in the development of service quality and customer relationships is the belief that such investments will enhance loyalty, retention and profitability. Empirical evidence on the extent to which such links exist is still partial. This paper explores the relationship between service qualitylcustomer relationships and customer loyalty and retention using evidence from the UK banking sector and its small business customers.