Product defects are not created equal: prioritizing production process improvements

Abstract

Despite manufacturers’ efforts to improve quality, customers frequently experience product defects. Based on expectation confirmation theory, hypotheses concerning the effects of experiencing product defects on overall quality perceptions and loyalty to the product manufacturer have been developed and tested. Our results show that experiencing product defects related to performance, ease of use, prestige and versatility damages overall quality perceptions and decrease customer loyalty to the product manufacturer, either fully or partially mediated through overall quality perceptions. Contrary to frequent claims in the literature, experiencing even a single product defect per quality dimension damages customers’ quality perceptions. Furthermore, different types of product defect damage customer perceptions of product quality and loyalty to the manufacturer differently. Building on these results, we develop a defect typology and a portfolio visualization that allows operations managers to prioritize production process improvements.     

Managing Internet Product Returns: A Focus on Effective Service Operations

Product returns present one of the biggest operational challenges in the world of Internet retailing due to the sheer volume and cost of processing returns. But returns also represent an often‐missed opportunity to manage customer relationships and build customer loyalty to the retailer. Based upon data from a survey of 464 customers of five different Internet retailers, this article explores how firms' returns management systems affect loyalty intentions. We draw upon extant literature in the fields of Internet retailing, service quality, supply chain management, and customer satisfaction/loyalty to develop a model and a set of hypotheses relating ten latent variables in the service returns offering area. Our resulting structural equation model provides evidence of the impact of the returns management system upon customer loyalty intentions. The model also identifies effects on loyalty intentions arising from customers' satisfaction with, and perceptions of, the value of the returns service offered. These findings will help inform managers' choices regarding investment in the returns management system as an element of service quality improvement and a potential means of improved profitability. In addition, this study's empirical exploration and testing of a returns management model in the Internet retailing environment is a contribution to the currently underrepresented body of academic literature linking marketing and supply chain management in the context of end consumers.     

DEVELOPING SOPHISTICATED QUALITY IMPROVEMENT APPROACHES THROUGH BUSINESS-ACADEME COLLABORATIONS: INTRODUCTION TO THE SPECIAL ISSUE

The pursuit of better performance has led to a number of business-academe collaborations. These collaborators have developed a number of sophisticated approaches that go far beyond such traditional simple methods as benchmarking against the best company, Ishikawa diagrams on feedback and control, Pareto diagrams, incentive systems based solely on output or quality, standard process control charts, and separate treatment of control charts and product inspection. The authors in this special issue report on approaches like benchmarking industrial performance through industry studies; the use of an artificial-intelligence statistical-tree growing method to analyze complex customer service data; an incentive system based on the total quality management (TQM) concepts of continuous improvement, teamwork, adaptation to change, and a focus on customer satisfaction; and integration of product inspection and process control. Because of the continuing widespread interest in TQM, there is an opportunity to take stock of how successful TQM initiatives have been and how we should consolidate and further extend the knowledge in TQM. Two of the papers report on the gap between what organizations espouse as TQM and what they actually implement and on the literature on TQM.     

GREENING THE SERVICE PROFIT CHAIN: THE IMPACT OF ENVIRONMENTAL MANAGEMENT PRACTICES

This paper explores the relationship between environmental practices and performance in services and the impact of such practices on the external portion of the service profit chain. Using structural equation modeling, it tests the hypotheses developed with data from the European hospitality industry. The findings suggest that environmental practices are positively related to performance through the mediating effect of enhanced customer satisfaction and loyalty. The paper's contributions include: the conceptual development of the relationship between environmental practices and performance in services, the incorporation of environmental practices within the service profit chain, and the testing of their impact on customer satisfaction.     

UNDERSTANDING THE IMPORTANT DIFFERENCES BETWEEN THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD AND ISO 9000 REGISTRATION

Market globalization, higher requirements for improved quality, and tough, faster-pace, price-sensitive competition have led to two parallel and visible quality thrust: the Baldrige Award in the U.S. and, internationally, the ISO 9000 standards. The relationship between the Baldrige Award and ISO 9000 registration is widely confused. Two common misper-ceptions stand out: (1) that they both cover the same requirements and (2) that they both address improvement, relying on high quality results, and thus, are both forms of recognition. Many have concluded that the Baldrige Award and ISO 9000 are equivalent and that companies should choose one or the other. These conclusions are incorrect. The Baldrige Award and ISO 9000 registration differ fundamentally in focus, purpose, and content. The focus of the Baldrige Award is on enhanced competitiveness. The Award Criteria reflect two key competitiveness thrusts: (1) delivery of ever-improving value to customers and (2) improvement of overall operational performance. The Award's central purpose is educational-to encourage sharing knowledge and experience of competitiveness and to drive this learning, creating an evolving fund of knowledge. By contrast, the focus of ISO 9000 registration is on conformity to practices specified in the registrant's own quality systems. Its central purpose is to enhance and facilitate trade. The Baldrige Award addresses competitiveness factors either not addressed in ISO 9000 registration or addressed differently. These factors include a customer and market focus, results orientation, continuous improvement, competitive comparisons, a tie to business strategy, cycle time and responsiveness, integration via analysis, public responsibility, human resource development, and information sharing. Overall, ISO 9000 registration covers less than 10% of the scope of the Baldrige Award Criteria and does not fully address any of the 28 Criteria items. As a result, the national drive to improve competitiveness could be diminished. Companies required to or electing to seek ISO 9000 registration are encouraged to integrate their conformity efforts with the Baldrige Award competitiveness improvement framework.     

企业内部服务质量、关系质量对内部顾客忠诚的影响机制:基于内部营销视角的实证研究

本文基于内部营销视角,揭示内部服务质量的各个组成因素之间的关系以及内部服务质量对关系质量的影响,进而探索内部服务质量、关系质量对内部顾客忠诚的影响机制。通过对某电信企业内部238份员工样本的采集分析,提出并验证内部服务质量(含实体环境质量、交互质量和结果质量)、关系质量(含内部顾客信任、满意)对内部顾客忠诚的影响机制整合模型。研究发现,内部服务质量的三个维度之间确实存在层级叠加作用,而服务质量则会通过信任这一中介变量影响内部顾客的满意、承诺。内部关系质量的三因素中,内部顾客的承诺水平对内部顾客的忠诚度有直接正向影响,提高对内部顾客的承诺水平是提高内部顾客忠诚度的关键。     

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.     

基于PLS-SEM模型的民航客户忠诚度研究

如何最大限度的保留老客户是影响民航企业未来发展的非常重要的问题,各国航空公司非常重视提高客户忠诚度的研究。研究影响客户忠诚度的因素,对于提高航空公司服务水平有着重要作用。本文运用PLS-SEM(Partial Least Square-Structural Equation Model)方法,建立了客户忠诚度评价模型;结合实际采样数据,通过忠诚度指标因子定量分析了各变量对客户忠诚度的影响,为民航企业提高客户忠诚度的研究提供了新途径。研究结果表明,影响民航企业忠诚度的因素依次是安全、企业形象和感知质量。     

QUALITY AND WORK FORCE MANAGEMENT PRACTICES: THE MANAGERIAL PERFORMANCE IMPLICATION

Quality has been in the limelight as organizations have sought to create a competitive advantage and theorists have sought to understand the implications of quality management. This paper examines the synergistic effects of the quality emphasis in the organizations, the use of appropriate work force management practices, and the managerial performance outcomes as interactive phenomena. Using data from multiple levels of employees in manufacturing units in various industries, we tested hypotheses regarding the managerial performance impact of the synergy in work force management practices and the quality emphasis. The results indicate that the effectiveness of work force management practices in enhancing managerial performance varies with the emphasis on quality that is manifested by meeting and exceeding customer needs and preferences through accurate, consistent, reliable, and durable products, and by making design changes in the products as desired by the customer.     

顾客满意感与忠诚感关系的实证研究

作者在民航、移动通信、医院、银行、宾馆等五个行业的13个企业进行了一次实证研究,探讨顾客满意感与各类忠诚感之间的关系。数据分析结果表明,顾客的认知性忠诚感、情感性忠诚感、意向性忠诚感和行为性忠诚感是顾客忠诚感二阶因子的子因子,顾客满意感是忠诚感的重要前提因素,服务公平性、服务质量、顾客与企业之间的友谊、顾客的信任感、归属感也对顾客的忠诚感有直接或间接的影响。     

ADAPTING THE QFD APPROACH TO EXTENDED SERVICE TRANSACTIONS

This paper proposes an adaptation of quality function deployment (qfd) for services, more specifically extended service transactions. We propose two modifications to service applications of Qfd. One is the inclusion of higher-level customer needs (consequences, benefits, experiences, and personal values) to incorporate the experiential and personal nature of extended service transactions into the process. The second modification is to use customers' knowledge and expertise regarding service production and delivery as input beyond the house of quality. An interviewing method is proposed for a comprehensive assessment of customer needs at multiple levels. Results from an empirical application of this technique to luxury business hotels support the proposed modifications to Qfd to increase its potential for application to services.     

基于公平理论探讨服务补救质量影响的实证研究——来自中国电信服务行业的证据

企业与客户交易时并不会一帆风顺,当客户面对交易过程中出现的故障时,不同服务补救措施会如何对客户感知、满意度和信任度产生影响?本文区别于以往实验或准实验法为主的定性或定量研究,引入组织行为学的公平理论,采取真实客户服务数据,基于不同客户类型深入探讨服务补救质量对客户满意、客户信任和客户忠诚的影响.实证研究发现,服务补救质量对感知价值、满意和信任均会产生正向作用;大客户对服务补救过程中的"互动公平"最为重视,公众客户更为强调"结果公平"的影响.这就告诉服务型企业应如何采取补救措施,大客户看重过程,一般客户更看重结果.本文从理论和实践两方面为服务补救领域的研究提供了有力证据.     

网络购物顾客忠诚度影响因素的实证研究

顾客忠诚度是网络商家维护市场地位、保持持续竞争优势的重要因素。然而,网络环境下顾客忠诚度的复杂性和不确定性却成为阻碍电子商务进一步发展的瓶颈。因此,本文通过对以往文献的梳理,构建了以信任、在线网站特性、线下物流服务质量、顾客满意度、转换成本为外因潜在变量,以顾客忠诚度为内因潜在变量的假设模型,并以问卷调研的方式收集实证数据,采用因子分析和结构方程模型揭示网络环境下顾客忠诚度的影响因素和作用机制。研究发现：在网络环境下,信任不仅可以通过影响顾客满意度来间接地影响顾客忠诚度,而且可以成为顾客忠诚度的直接前因变量;在线网站特性和线下物流服务质量共同作用于顾客满意度的提升,并间接地影响顾客忠诚度的积累;顾客满意度和转换成本是网络环境下顾客忠诚度的主要影响因素。研究结论较为全面地反映了网络环境下顾客忠诚度的影响因素和作用机制,对于网络零售商有针对性地实施顾客忠诚计划有着十分重要的参考价值。     

SERVICE PROCESS CONFIGURATIONS IN ELECTRONIC RETAILING: A TAXONOMIC ANALYSIS OF ELECTRONIC FOOD RETAILERS

We developed a taxonomy of service processes in electronic retailing using data from 255 electronic food retailers. The taxonomy is comprised of eight service process configurations. Analysis of publicly available data on on‐line customer ratings for 52 retailers in the study sample shows that the ordering of the configurations in the taxonomy on a continuum of low to high flexibility is associated positively with (i) customer satisfaction with web site aesthetics, web site navigation, product selection, product information, customer support, and ease of return, and (ii) customer loyalty.     

中国本土品牌形象对感知质量-顾客满意-品牌忠诚影响机制的实证研究——基于消费者视角

为探求品牌形象对消费行为的影响机制,在中国背景下构建品牌形象的理论架构,将品牌形象分为3个维度:品牌表现、品牌个性和公司形象;在此基础上,建立了品牌形象与感知质量、顾客满意和品牌忠诚的影响机制模型;对该模型进行了实证检验。分析结果表明品牌表现、品牌个性和公司形象对品牌感知质量有直接影响;品牌表现对顾客满意产生直接影响,品牌个性和公司形象对顾客满意产生间接影响;品牌表现、品牌个性对品牌忠诚有直接影响;公司形象与品牌忠诚无相关关系。     

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.     

PIECING TOGETHER SERVICE QUALITY: A FRAMEWORK FOR ROBUST SERVICE*

This paper addresses the issue of service design, specifically that of designing the service encounter for improved quality. We introduce a framework based on the three T's of task, treatment, and tangibles as a means of organizing the application of the diverse and growing body of service quality literature to encounter design. The framework is consistent with how successful service managers disaggregate the design problem. More importantly, we show that mutually supportive interrelationships between the three T's produce an opportunity for designing in a robustness to service failure. The framework is supported by case based evidence.     

基于顾客角度的市场占有率研究

市场占有率是企业最为关心的问题之一。中国的企业一直趋向于采取降价竞争的方式获得市场占有率。本文以顾客满意度的形成理论为基础,阐述了顾客满意度、顾客忠诚度和产品价格等因素对市场占有率的影响,并通过对中国7个家用电器行业数据实证分析得到如下结论:价格对市场占有率有一定影响,但提高顾客忠诚度、顾客满意度、顾客对品牌形象的感知以及顾客对产品和服务的感知才是获取市场占有率的关键。     

THE IMPACT OF HUMAN ERROR ON DELIVERING SERVICE QUALITY

This paper opens a new avenue for investigation of quality issues in services. We take the viewpoint that a substantial portion of service failures is the result of human error in the delivery process. Drawing upon the Generic Error Modeling System (gems) from the cognitive science literature, we develop a framework for understanding the role of human error in service failures. An empirical investigation assesses the applicability of this framework to services, identifies which error mechanisms are important sources of service failure, and clarifies how the different roles of customers and providers affect the errors made by each.     

MODELING CUSTOMER SATISFACTION IN TELECOMMUNICATIONS: ASSESSING THE EFFECTS OF MULTIPLE TRANSACTION POINTS ON THE PERCEIVED OVERALL PERFORMANCE OF THE PROVIDER

The ability of telecommunication operators to focus successfully on the customer has proven to be one of the most competitive issues toward the end of the 20th century. The services management literature is short of theoretical and empirical studies on customer satisfaction measurement in the telecommunications industry. This, however, is contrary to the industry practice since almost all major telecommunications companies around the world gather information about customer satisfaction and other related information about the quality of their services. Our research focuses on the customer satisfaction function of residential customers of a major European telecommunications company. Customer satisfaction is seen as the overall performance of the telecommunications company stemming from adequate service provision, value for money, loyalty, and relationship management. The antecedents of the performance of the organization are obtained from the contact points between the customers and the service points of the telecommunications company.