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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.


The Existence And Perception Of Redundancy In Consumer Information Environments, Michael D. Johnson, Jerome M. Katrichis Jul 2015

The Existence And Perception Of Redundancy In Consumer Information Environments, Michael D. Johnson, Jerome M. Katrichis

Michael D. Johnson

Two studies are reported which examine the existence of attribute redundancy as well as consumers' ability to perceive attribute redundancy in consumer information environments. The results of the first study suggest that attribute redundancy varies widely from product category to product category. The results of the second study suggest that consumers' ability to perceive attribute relationships improves with product knowledge. Unexpected was an observed U-shaped relationship between consumers' perceptions of attribute redundancy and attribute knowledge. Together the results suggest a number of policy implications regarding the value of consumer information programs.


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, …


The Effects Of Fatigue On Judgments Of Interproduct Similarity, Michael D. Johnson, Donald R. Lehmann, David A. Horne Jul 2015

The Effects Of Fatigue On Judgments Of Interproduct Similarity, Michael D. Johnson, Donald R. Lehmann, David A. Horne

Michael D. Johnson

Similarity scaling often requires subjects to produce such a large number of judgments that fatigue may become a problem. Yet it remains unclear just how respondent fatigue affects similarity perceptions and resulting judgments. The present study uses a categorization perspective to examine the effects of fatigue on similarity judgments. The results suggest that subjects rely increasingly on category membership as they progress through a similarity judgment task.


Attribute Abstraction, Feature-Dimensionality, And The Scaling Of Product Similarities, Michael D. Johnson, Donald R. Lehmann, Claes Fornell, David A. Horne Jul 2015

Attribute Abstraction, Feature-Dimensionality, And The Scaling Of Product Similarities, Michael D. Johnson, Donald R. Lehmann, Claes Fornell, David A. Horne

Michael D. Johnson

This paper examines the attributes that consumers use when making product similarity judgments and their effect on similarity scaling. Previous research suggests that concrete brands are judged using dichotomous features while more abstract product categories are judged using continuous dimensions. This, in turn, suggests that the appropriateness of spatial scaling increases relative to tree scaling as one moves from brands to product categories. The results of two studies support an increase in the fit of spaces relative to trees from brands to categories. However, the abstractness of the judgments appears to be driving the effect, not the use of features …


The Effect Of Customer Information During New Product Development On Profits From Goods And Services, Lars Witell, Anders Gustafsson, Michael D. Johnson Jul 2015

The Effect Of Customer Information During New Product Development On Profits From Goods And Services, Lars Witell, Anders Gustafsson, Michael D. Johnson

Michael D. Johnson

Purpose – This study aims to investigate how customer information obtained at different phases of a new product development (NPD) process influences profits from new offerings. Design/methodology/approach – A survey was conducted in the context of NPD in goods and services. A unique database was constructed that merged key informant survey responses with financial data for 244 firms. This database was used to replicate and extend previous research by posing a number of hypotheses regarding the role of obtaining customer information in NPD. Findings – The results show that obtaining customer information during NPD influences the profits from new offerings, …


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 …


A Within-Attribute Model Of Variety-Seeking Behavior, Michael D. Johnson, Andreas Herrmann, Jens Gutsche Jul 2015

A Within-Attribute Model Of Variety-Seeking Behavior, Michael D. Johnson, Andreas Herrmann, Jens Gutsche

Michael D. Johnson

Existing models view variety seeking as the result of differences in the level of attribute satiation across attributes. An alternative within-attribute variety-seeking (WAVS) model is proposed. The model posits that variety seeking occurs among the nested features, or meaningful value ranges, of an underlying dimension. The resulting pattern of consumption is represented as an oscillation about a consumer's ideal point on the dimension. An empirical study that illustrates different oscillation patterns is reported.


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. …


The Locus Of Context Effects On Product Proximity Judgments, Lauren Goldberg Block, Michael D. Johnson Jul 2015

The Locus Of Context Effects On Product Proximity Judgments, Lauren Goldberg Block, Michael D. Johnson

Michael D. Johnson

Tversky's (Tversky, A., 1977. Features of similarity. Psychological Review 84, 327–352) contrast model of similarity is used to examine the locus of two contextual effects on product judgments. More familiar stimuli may be perceived as more similar as well as more dissimilar than less familiar stimuli. Priming subjects' product knowledge should, meanwhile, increase the similarity of brands but decrease the similarity of categories. We argue that both of these context effects should be more prominent among the moderately proximal stimuli in any given set. Two studies, one examining the similarity/dissimilarity effect and one examining priming effects, support this conclusion. The …


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.


Determining Attribute Importance In A Service Satisfaction Model, Anders Gustafsson, Michael D. Johnson Jul 2015

Determining Attribute Importance In A Service Satisfaction Model, Anders Gustafsson, Michael D. Johnson

Michael D. Johnson

Determining the importance that customers place on the product and service attributes that drive their satisfaction with, and loyalty to, service providers is an essential part of a firm’s resource allocation process. An unsettled issue is whether importance measures should come directly from customers or be derived statistically and, if so, how. The authors compare direct importance ratings with a variety of methods for statistically deriving attribute importance in a customer satisfaction model. Using three data sets, the methods are compared on criteria that include their ability to explain variation in satisfaction, to identify customers’ more important attributes, and to …


A Review Of Consumer Judgment And Choice, Michael D. Johnson, Christopher P. Puto Jul 2015

A Review Of Consumer Judgment And Choice, Michael D. Johnson, Christopher P. Puto

Michael D. Johnson

Whether the goal is to improve or predict consumer decisions, understanding human judgment and choice processes long has been recognized as an essential component in the study of marketing. Though several reviews of judgment and choice research have been published recently (Abelson and Levi 1985; Einhom and Hogarth 1981; Pitz and Sachs 1984; Slovic, Lichtenstein, and Fischhoff 1985), relatively little attention has been given to the growing body of knowledge on consumer (including industrial buyer) judgment and choice. Consumer judgment and choice researchers face unique conceptual, contextual, and methodological problems that warrant special attention.


The Evolution Of Loyalty Intentions, Michael D. Johnson, Andreas Herrmann, Frank Huber Jul 2015

The Evolution Of Loyalty Intentions, Michael D. Johnson, Andreas Herrmann, Frank Huber

Michael D. Johnson

The drivers of customer loyalty intentions are dynamic. What remains unclear is how these intentions evolve through the introduction and growth phases of a life cycle. Using a longitudinal study of cellular phone customers, the authors demonstrate that loyalty intentions are a function of perceived value early in the life cycle. Over time, more affective attitudes toward the brand and the relationship with the company come to mediate the effects of value on intentions. The results suggest that from the introduction to the growth stage of a life cycle, managers must adapt from improving value per se to measuring and …


Customer Portfolio Management: Toward A Dynamic Theory Of Exchange Relationships, Michael D. Johnson, Fred Selnes Jul 2015

Customer Portfolio Management: Toward A Dynamic Theory Of Exchange Relationships, Michael D. Johnson, Fred Selnes

Michael D. Johnson

Management of an entire portfolio of customers who are at different relationship stages requires a dynamic theory of exchange relationships that captures the trade-offs between scale economies and lifetime customer value. This article contributes to the understanding of relationship management by developing a typology of exchange relationship mechanisms and a model of relationship dynamics and by simulating the model to provide guidelines for customer portfolio management. An important insight from the research is that a key to the creation of value through closer relationships lies in bringing weaker relationships into a portfolio in the first place. Another insight is that …


Rational And Adaptive Performance Expectations In A Customer Satisfaction Framework, Michael D. Johnson, Eugene W. Anderson, Claes Fornell Jul 2015

Rational And Adaptive Performance Expectations In A Customer Satisfaction Framework, Michael D. Johnson, Eugene W. Anderson, Claes Fornell

Michael D. Johnson

This article develops and tests alternative models of market-level expectations, perceived product performance, and customer satisfaction. Market performance expectations are argued to be largely rational in nature yet adaptive to changing market conditions. Customer satisfaction is conceptualized as a cumulative construct that is affected by market expectations and performance perceptions in any given period and is affected by past satisfaction from period to period. An empirical study that supports adaptive market expectations and stable market satisfaction using data from the Swedish Customer Satisfaction Barometer is reported.


The Effects Of Customer Satisfaction, Relationship Commitment Dimensions, And Triggers On Customer Retention, Anders Gustaffsson, Michael D. Johnson, Inger Roos Jul 2015

The Effects Of Customer Satisfaction, Relationship Commitment Dimensions, And Triggers On Customer Retention, Anders Gustaffsson, Michael D. Johnson, Inger Roos

Michael D. Johnson

In a study of telecommunications services, the authors examine the effects of customer satisfaction, affective commitment, and calculative commitment on retention. The study further examines the potential for situational and reactional trigger conditions to moderate the satisfaction–retention relationship. The results support consistent effects of customer satisfaction, calculative commitment, and prior churn on retention. Prior churn also moderates the satisfaction–retention relationship. The results have implications for both customer relationship managers and researchers who use satisfaction surveys to predict behavior.


Modeling Choice Strategies For Noncomparable Alternatives, Michael D. Johnson Jul 2015

Modeling Choice Strategies For Noncomparable Alternatives, Michael D. Johnson

Michael D. Johnson

Theoretical models are developed for two strategies consumers use to choose among "noncomparable" alternatives. The models view consumers as trading off decision error and processing effort when selecting a decision strategy. The models predict the use of choice strategies, and implicit abstraction processes, for noncomparable alternatives in a number of different circumstances.


The Differential Processing Of Product Category And Noncomparable Choice Alternatives, Michael D. Johnson Jul 2015

The Differential Processing Of Product Category And Noncomparable Choice Alternatives, Michael D. Johnson

Michael D. Johnson

This article contrasts consumer choice processing of single products from different categories (noncomparable alternatives) with the processing of multiple products from different categories (product category alternatives). It is unclear whether choosing among single or multiple alternatives from different product categories will drastically affect choice processing. Theoretically, the processing of product categories should be more hierarchical or top-down, and the processing of noncomparables should be more constructive or bottom-up. The results reported here support the theoretical predictions and demonstrate the perceptual and processing differences between the two types of choices.


Consumer Choice Strategies For Comparing Noncomparable Alternatives, Michael D. Johnson Jul 2015

Consumer Choice Strategies For Comparing Noncomparable Alternatives, Michael D. Johnson

Michael D. Johnson

Research on consumer choice has focused on easily comparable alternatives, a subset of the choices consumers regularly face. This paper outlines the problem and two general strategies for comparing noncomparable alternatives, a subset of choices that has been overlooked in the literature. Experiments are reported that support use of the strategies.