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Full-Text Articles in Business

Judging Similarity Among Strings Described By Hierarchical Trees, Lola L. Lopes, Michael D. Johnson Jul 2015

Judging Similarity Among Strings Described By Hierarchical Trees, Lola L. Lopes, Michael D. Johnson

Michael D. Johnson

The paper compares the tree-theoretical model of similarity judgement (in which the similarity between two objects is a function of the distance between them in a conceptual tree) with an averaging model of similarity judgement that is drawn jointly from information integration theory and from current research indicating the prevalence of anchoring and adjustment mechanisms in judgement. Results of an experiment are presented that suggest that even when subjects organize conceptual material as a hierarchical tree, judgments of similarity among the objects are better accounted for by an averaging mechanism than by distances in the tree. These data are discussed …


The Evolution And Future Of National Customer Satisfaction Index Models, Michael D. Johnson, Anders Gustafsson, Tor Wallin Andreassen, Line Lervik, Jaesung Cha Jul 2015

The Evolution And Future Of National Customer Satisfaction Index Models, Michael D. Johnson, Anders Gustafsson, Tor Wallin Andreassen, Line Lervik, Jaesung Cha

Michael D. Johnson

A number of both national and international customer satisfaction barometers or indices have been introduced in the last decade. For the most part, these satisfaction indices are embedded within a system of cause and effect relationships or satisfaction model. Yet there has been little in the way of model development. Of critical importance to the validity and reliability of such indices is that the models and methods used to measure customer satisfaction and related constructs continue to learn, adapt and improve over time. The primary goal of this research is to propose and test a number of modifications and improvements …


The Effects Of Price Bundling On Consumer Evaluations Of Product Offerings, Michael D. Johnson, Andreas Herrmann, Hans H. Bauer Jul 2015

The Effects Of Price Bundling On Consumer Evaluations Of Product Offerings, Michael D. Johnson, Andreas Herrmann, Hans H. Bauer

Michael D. Johnson

The bundling of multiple products or components at a set price has become a popular marketing strategy. Although little is known of how bundled price information should be presented to consumers, mental accounting principles provide guidelines. These principles suggest that more positive evaluations should result from bundling or integrating component prices into a single price and debundling or segregating component discounts into a set of discounts. A study is reported in which consumers were presented an offer for an automobile and then asked to evaluate their satisfaction with the offer, likelihood of recommending, and likelihood of repurchasing the brand. The …


The Effects Of Satisfaction And Loyalty On Profits And Growth: Products Versus Services, Bo Edvardsson, Michael D. Johnson, Anders Gustafsson, Tore Strandvik Jul 2015

The Effects Of Satisfaction And Loyalty On Profits And Growth: Products Versus Services, Bo Edvardsson, Michael D. Johnson, Anders Gustafsson, Tore Strandvik

Michael D. Johnson

The paper uses data from the Swedish Customer Satisfaction Index together with performance data from competing industries to study the difference in logic in terms of customer satisfaction and loyalty between services and products. We find that for product firms loyalty can have a negative effect on company performance, while for service firms the effect is positive. The implication is that service firms must earn their loyalty but product firms can lower their prices and thus retain their customers.


Growth Through Product-Sharing Services, Michael D. Johnson, Andreas Herrmann, Frank Huber Jul 2015

Growth Through Product-Sharing Services, Michael D. Johnson, Andreas Herrmann, Frank Huber

Michael D. Johnson

The authors argue that product-sharing services, where companies offer customers the use of a physical product on a limited basis at a lower cost, offer an overlooked opportunity for growth. The primary advantage of product-sharing services is that they leverage a firm’s core product development and production capabilities to expand their portfolio of offerings and market segments. A framework is developed for distinguishing likely candidates for product sharing from unlikely candidates based on product, customer, and company-strategy considerations. An empirical study of a new car-sharing service at Daimler-Benz is then used to illustrate the development of such a service, its …


Technology, Customization, And Reliability, Michael D. Johnson, John E. Ettlie Jul 2015

Technology, Customization, And Reliability, Michael D. Johnson, John E. Ettlie

Michael D. Johnson

This research examines the relative importance that customers place on product reliability, or things-gone-wrong, and customization, or things-gone-right, across a range of industrial settings. We integrate an evolutionary theory of technology with a dynamic theory of competition to predict that: (1) when technological intensity is relatively low or high, customers place greater value on customization and (2) when technological intensity is more intermediate, product reliability and customization are more equally important. The predictions are tested and supported using data from the American Customer Satisfaction Index (ACSI) survey.


Capturing Customer Heterogeneity Using A Finite Mixture Pls Approach, Carsten Hahn, Michael D. Johnson, Andreas Herrmann, Frank Huber Jul 2015

Capturing Customer Heterogeneity Using A Finite Mixture Pls Approach, Carsten Hahn, Michael D. Johnson, Andreas Herrmann, Frank Huber

Michael D. Johnson

An approach for capturing unobserved customer heterogeneity in structural equation modeling is proposed based on partial least squares. The method uses a modified finite-mixture distribution approach. An empirical analysis using quality, customer satisfaction and loyalty data for convenience stores illustrates the advantages of the new method vis-à-vis a traditional market segmentation scheme based on well known grouping variables. The results confirm the assumption of heterogeneity in the individuals’ perception of the antecedents and consequences of satisfaction and their relationships. The results also illustrate how the finite-mixture approach complements and provides insights over and above a traditional segmentation scheme.


Order Effects In Customer Satisfaction Modelling, Seigyoung Auh, Linda Court Salisbury, Michael D. Johnson Jul 2015

Order Effects In Customer Satisfaction Modelling, Seigyoung Auh, Linda Court Salisbury, Michael D. Johnson

Michael D. Johnson

This research examines the effects of question order on the output of a customer satisfaction model. Theory suggests that locating product attribute evaluations prior to overall evaluations of satisfaction and loyalty should increase the impact of performance drivers in the model, explain more variation in the overall evaluations, and make positive satisfaction and loyalty evaluations more extreme. Our results show that, although customers′ overall evaluations are more extreme and better explained when provided after attribute evaluations, the impact of satisfaction drivers is relatively unaffected. Consistent with expectations, question order does affect the explained variation in satisfaction and the levels of …


The Impact Of Quality Practices On Customer Satisfaction And Business Results: Product Versus Service Organizations, Lars Nilsson, Michael D. Johnson, Anders Gustafsson Jul 2015

The Impact Of Quality Practices On Customer Satisfaction And Business Results: Product Versus Service Organizations, Lars Nilsson, Michael D. Johnson, Anders Gustafsson

Michael D. Johnson

Research on the differences in customer satisfaction between product and service organizations has focused on an output perspective, or how customers evaluate performance. This study takes this research inside organizations to analyze and investigate how key internal quality practices of product versus service organizations (employee management, process orientation, and customer orientation) influence customer satisfaction and business results. Using a national quality survey from 482 companies in Sweden, our analysis shows that for product organizations, internal quality practices influence customer satisfaction and business results primarily through an organization's customer orientation. For service organizations, both customer and process orientation impact customers directly, …


Maximum Versus Meaningful Discrimination In Scale Response: Implications For Validity Of Measurement Of Consumer Perceptions About Products, Madhubalan Viswanathan, Seymour Sudman, Michael D. Johnson Jul 2015

Maximum Versus Meaningful Discrimination In Scale Response: Implications For Validity Of Measurement Of Consumer Perceptions About Products, Madhubalan Viswanathan, Seymour Sudman, Michael D. Johnson

Michael D. Johnson

This paper argues for the use of the number of response categories that are meaningful to respondents as a criterion in designing attribute rating scales in marketing in contrast to a focus in past research on using scales to maximize the discrimination elicited from respondents. Whereas scales eliciting a maximum level of discrimination may be more reliable than scales eliciting a meaningful level of discrimination, the latter are argued to be more valid in measuring sameness and difference between brands that are meaningful to respondents. Specifically, a distinction is drawn in this paper between the maximum number of categories that …


The Role Of Quality Practices In Service Organizations, Anders Gustafsson, Lars Nilsson, Michael D. Johnson Jul 2015

The Role Of Quality Practices In Service Organizations, Anders Gustafsson, Lars Nilsson, Michael D. Johnson

Michael D. Johnson

The widespread interest in using quality management to improve organizational performance started in the manufacturing sector and later spread to service organizations. Quality management can be viewed as an approach to management characterized by its principles, practices and techniques (Dean and Bowen, 1994). Each principle is implemented through a set of practices, which consist of activities such as collecting customer information, improving work processes and managing employees. The practices are, in turn, made effective by the support of a wide array of techniques. The strength of quality management compared with other business philosophies is its focus on practical methodology, i.e. …


Expectations, Perceived Performance, And Customer Satisfaction For A Complex Service: The Case Of Bank Loans, Michael D. Johnson, Georg Nader, Claes Fornell Jul 2015

Expectations, Perceived Performance, And Customer Satisfaction For A Complex Service: The Case Of Bank Loans, Michael D. Johnson, Georg Nader, Claes Fornell

Michael D. Johnson

The models currently used to describe customers' satisfaction with products and services presume that customers have well-formed performance expectations. The present study uses data from the Swedish Customer Satisfaction Barometer to show that these models fail to describe customer satisfaction with bank loans, a complex, heterogeneous, and infrequently purchased service. Performance expectations are more likely an artifact of performance in this case and have no effect on satisfaction. This is quite different from other products and services where expectations are a stronger predictor of performance and have a positive effect on customer satisfaction.