Customer Focus Groups Research Articles

The value creation failure of grocery retailers’ last-mile value proposition: A sustainable business model perspective

How a sustainable business model (SBM) is created for last-mile deliveries (LML) has been highlighted for a long time. However, research is limited regarding understanding the value creation process and it is important that both firms and customers are considered when creating a sustainable business model. In this paper, we explore how a SBM for grocery LML can be created and how discrepancy of value created, and value expected, is displayed. Through interviews with retailers and customer focus groups, we analyze how value can lead to horizontal coherence within layers, or vertical coherence between layers (economic, social, and environmental). We find that discrepancy within and between layers mainly derive from low customer acceptance and different views on what is being offered. We also find that environmental concerns do not add to the value creation process. This study contributes to the understanding of the grocery LML value creation process by using SBM as arising from dual perspectives: firm vis-à-vis customer. In addition, our study contributes by explaining and identifying that the discrepancy in the grocery LML's SBM depends on the perceived value proposition of the product bundle and service solution payoff. • We explore SBM creation for grocery LML and identify value creation discrepancies. • Discrepancy in grocery LML SBM is potentially due to low customer acceptance. • Low perceived individual value limits value captured. • Failed value capturing is a result of societal stakeholders view on the offer. • Environmental layer does not add to the value creation process.

Service journey quality: conceptualization, measurement and customer outcomes

PurposeThe quality of the customer journey has become a critical determinant of successful service delivery in contemporary business. Extant journey research focuses on the customer path to purchase, but pays less attention to the touchpoints related to service delivery and consumption that are key for understanding customer experiences in service-intensive contexts. The purpose of this study is to conceptualize service journey quality (SJQ), develop measures for the construct and study its key outcomes.Design/methodology/approachThe study uses a discovery-oriented research approach to conceptualize SJQ by synthesizing theory and field-based insights from customer focus group discussions. Next, using consumer survey data (N = 278) from the financial services context, the authors develop measures for the SJQ. Finally, based on an additional survey dataset (N = 239), the authors test the nomological validity and predictive relevance of the SJQ.FindingsSJQ comprises of three dimensions: (1) journey seamlessness, (2) journey personalization and (3) journey coherence. This study demonstrates that SJQ is a critical driver of service quality and customer loyalty in contemporary business. This study finds that the loyalty link is partially mediated through service quality, indicating that SJQ explains loyalty above and beyond service quality.Research limitations/implicationsSince service quality only partially mediates the link between service journey quality and customer loyalty, future studies should examine alternative mediators, such as customer experience, for a more comprehensive understanding of the performance effects.Practical implicationsThe study offers concrete tools for service managers who wish to understand and develop the quality of service journeys.Originality/valueThis study advances the service journey concept, demonstrates that the quality of the service journey is a critical driver of customer performance and provides rigorous journey constructs for future service research.

Acceptability and feasibility of a café-based sustainable food intervention in the UK.

Dietary change is needed to improve health and reduce the environmental burden of food production and consumption. Using an Intervention Mapping approach, this study aimed to explore the views caterers and customers held towards point-of-choice interventions that promote healthy and environmentally friendly (EF) food and beverage choices at the University of Sheffield. Intervention options proposed during focus groups were devised using the Nuffield Bioethics ladder of intervention. Ten focus groups were held involving caterers (n = 16) and customers (n = 45). Thematic analysis was conducted on the transcripts of caterer and customer focus groups seperately, and then comparisons were made to identify concerns about the acceptability and feasibility of intervention options. Attitudes towards intervention options varied considerably amongst stakeholders, with the greatest disparity of opinion in the acceptability of interventions that restrict or limit personal choice, particularly with regards to meat consumption. Information provision was favoured as an acceptable intervention by both customers and caterers. However, labelling products in terms of their environmental impact was considered practically unfeasible. Social norms around eating also emerged as influencing the acceptability and feasibility of interventions with concerns raised about: shaming customers who chose meat, the exclusivity of vegan choices and the limited availability and appeal of meatless café options. Financial considerations were the main priority of caterers when discussing point-of-choice interventions. An acceptable and feasible café-based intervention ought to increase awareness and understanding of healthy and EF food choices, protect customer choice and avoid additional costs.

Configuring Retail Fulfillment Processes for Omni-Channel Customer Steering

ABSTRACTThe fulfillment of customer orders has gained a particularly important role within omni-channel retailing, as it requires significant effort to integrate logistics networks and product flows. Offering additional fulfillment options is costly but allows the enhancement of customer services via cross-channel substitutions and faster deliveries. Retailers are asking themselves how they can leverage these integrated systems to improve return on investment as well as customer service. One option is to influence customers’ channel choice (i.e., steering). Because this has so far mainly been viewed from a marketing perspective, this study investigates how and why different fulfillment options can help to steer customers across channels. By using multiple sources of data (i.e., market data, retailer interviews, customer focus groups), this paper identifies how customers can be guided through channels by means of related options in inventory management (e.g., cross-channel inventory information and substitution), delivery modes (e.g., differentiation of prices and delivery velocity across channels), and return modes (e.g., pricing for returns and options to return goods in-store). In essence, this research paper contributes a theory of cross-channel customer steering by means of different fulfillment options.

BEVQUAL: a tool for measuring performance quality in beverage operations

ABSTRACTThe main objective of this study was to develop an instrument to measure the multidimensional nature of performance quality in beverage establishments. This study was based on a sequential exploratory mixed methods design. Interviews with beverage managers and customer focus groups were conducted to create an initial instrument. After that, 405 customers were surveyed, and the final BEVQUAL instrument was developed, including six dimensions that were measured with 23 items. Atmosphere, service quality, and pricing were shown to be good predictors of customer satisfaction, while ambiance, beverage quality, and location did not affect customer satisfaction.

A mainstream social housing response to dementia

Purpose The purpose of this paper is to explore how social housing providers could respond to residents living with dementia in non-specialist housing. Design/methodology/approach A research framework was developed from published material and used to assess how dementia friendly a national housing provider was, and what could be different. Electronic surveys were completed by 209 members of staff; semi-structured interviews with 18 senior managers and an external contractor; a customer focus group with five residents. A literature review and telephone interviews with housing providers identified current areas of innovation and good practice which informed the research recommendations. Findings There are ways a non-specialist social housing provider can develop dementia friendly services through developing a customer focused approach, staff awareness raising and training, and through working collaboratively with specialist statutory and non-statutory services across health and social care. These have the potential to impact positively on the quality of life of residents with dementia or caring for people with dementia. Practical implications Social housing providers should be considering their older residents, and how they can design and develop services to respond to specific needs. Originality/value There is limited understanding of how mainstream housing providers could and should develop an offer for their residents living with dementia. This research provides an assessment approach and has developed ideas about what this offer could look like.

Exploiting big data for customer and retailer benefits

Purpose – Mobile checkout in the retail store has the promise to be a rich source of big data. It is also a means to increase the rate at which big data flows into an organization as well as the potential to integrate product recommendations and promotions in real time. However, despite efforts by retailers to implement this retail innovation, adoption by customers has been slow. The paper aims to discuss these issues. Design/methodology/approach – Based on interviews and focus groups with leading retailers, technology providers, and service providers, the authors identified several emerging in-store mobile scenarios; and based on customer focus groups, the authors identified potential drivers and inhibitors of use. Findings – A first departure from the traditional customer checkout process flow is that a mobile checkout involves two processes: scanning and payment, and that checkout scenarios with respect to each of these processes varied across two dimensions: first, location – whether they were fixed by location or mobile; and second, autonomy – whether they were assisted by store employees or unassisted. The authors found no evidence that individuals found mobile scanning to be either enjoyable or to have utilitarian benefit. The authors also did not find greater privacy concerns with mobile payments scenarios. The authors did, however, in the post hoc analysis find that mobile unassisted scanning was preferred to mobile assisted scanning. The authors also found that mobile unassisted scanning with fixed unassisted checkout was a preferred service mode, while there was evidence that mobile assisted scanning with mobile assisted payment was the least preferred checkout mode. Finally, the authors found that individual differences including computer self-efficacy, personal innovativeness, and technology anxiety were strong predictors of adoption of mobile scanning and payment scenarios. Originality/value – The work helps the authors understand the emerging mobile checkout scenarios in the retail environment and customer reactions to these scenarios.

Using the PRECEDE Planning Approach to Develop a Physical Activity Intervention for African American Men Who Visit Barbershops: Results From the FITShop Study.

African American (AA) men have a higher prevalence of many chronic disease risk behaviors compared to Caucasian men, including physical inactivity. Innovative ways to reach AA men with interventions to increase physical activity (PA) and decrease other key risk factors are needed to reduce health disparities in this population. The barbershop is a natural but underutilized setting for reaching AA men. In the Fitness in the Shop (FITShop) study, shop owners, barbers, and customers were recruited from four local barbershops to complete structured interviews and customer focus groups. We assessed knowledge, perceived barriers, and interests/concerns about PA, as well as explored how to best intervene in the barbershop. Barbers and customers endorsed the idea of receiving health and PA information in the barbershop. These formative research results generated information and strategies for developing a multilevel barbershop-based health intervention to promote PA in the barbershop. This article describes the formative research results and how PRECEDE was used to develop a culturally and contextually appropriate, multilevel barbershop-based intervention designed to promote PA and to reduce chronic disease disparities among AA men.

The impact of personalization and complaint handling on customer loyalty

The main objective is to determine the impacts of personalization, service quality and complaint handling on the satisfaction and loyalty of current account holders with Chilean banks. Information on these impacts would help bank executives responsible for managing resources to improve offerings that secure customer loyalty. A conceptual model based on criteria found in a literature survey and data from bank customer focus groups is formulated. A personal survey measuring instrument is designed and a structural equation model is applied. This paper offers a methodology for measuring the effects of personalization, complaint handling and perceived quality on the satisfaction and loyalty of current account customers at banks. The measurement of these impacts has not been previously attempted for the Chilean banking sector and should prove useful to industry managers in their decision-making processes. The model results demonstrate that perceived quality and personalization of service, and, to a lesser but still significant degree, good complaint handling, positively impact customer satisfaction and through it customer loyalty. Our findings would be useful to Chilean banking executives in focussing their actions, strategies and loyalty programs to improve the long-term continuity of customers with their respective banks. Key words: Personalization, perceived quality, complaint handling, satisfaction, loyalty.

Federated searching and usability testing: Building the perfect beast

With the ubiquity of federated search tools as viable solutions for students and researchers to search across external sources and internal repositories, users have become more sophisticated in their application of this technology. With the goal of optimizing the user experience of its newly introduced federated search offering, Endeavor Information Systems employed usability testing to gain insights into the critical requirements of librarians and information professionals for this solution. The results of this analysis, conducted in concert with market research and customer focus groups, and their relevance to Endeavor's federated search technology are the focus of this article.

Federated searching and usability testing: Building the perfect beast

With the ubiquity of federated search tools as viable solutions for students and researchers to search across external sources and internal repositories, users have become more sophisticated in their application of this technology. With the goal of optimizing the user experience of its newly introduced federated search offering, Endeavor Information Systems employed usability testing to gain insights into the critical requirements of librarians and information professionals for this solution. The results of this analysis, conducted in concert with market research and customer focus groups, and their relevance to Endeavor's federated search technology are the focus of this article.

The Economic Payout Model for Service Guarantees

ABSTRACTService guarantees consist of a promise to a customer (marketing), the delivery of a service to the customer (operations), and actions to appease the customer when service failures happen (recovery). A part of recovery involves offering the customer an economic and/or noneconomic payout when things go wrong. When the economic payout is too high or low, the impact on the organization and the customer is usually negative. Therefore, determining the size of the economic payout is of critical strategic and tactical importance in businesses. Yet, no systematic quantitative methods are found in the literature to help managers determine the economic payout for service failures. The current ways an economic payout is determined are management judgment, the consensus of customer focus groups, competitive benchmarking, and the use of simple expected value methods. In this article, we define the Economic Payout Model for Service Guarantees (EPMSG) that provides an optimal service guarantee economic payout under certain conditions. The EPMSG and its objective function considers customer revenue over the short‐ and long‐term, the cost of creating and providing the service, the cost of recovery, the probability of a service failure, and the probability of customer retention as a function of economic payout. A numerical example is provided of how EPMSG works. Customer retention probability distributions are examined assuming normal and gamma distributions. We end the article by describing the theoretical contributions, model limitations, managerial implications, and opportunities for future research.

1.3.2 Customer focused Engineering in Airbus A380 programme

AbstractAt the very beginning of a new program, the environment is not stable because nobody is able to know the answers to the future needs from the previous solutions. In this phase, it is necessary to brain storm with potential customers in order to identify new ideas that are emerging and to learn very fast from the feedback, because the target is moving.The elicitation of the basic ideas allows the preparation of a consistent framework of top level requirements and design solutions. It is a factor of critical success for the continuation of the project.Since the beginning of the development of A380, Airbus has organized many workshops (Customer Focus Group / CFG) with Airline companies who are potential customers of the A380, Airports and other stakeholders. These events give the opportunity to elicit customers needs and to provide visibility on design. This is supported by a process that covers: customer requests capture and validation during workshop or during bilateral meeting; processing of the request feedback and acknowledgment by the customer In addition, the repository used to manage the requests and answers is a source for Top Level Requirements that drives the development of the A380.The role of the CFG is fundamental to support communication between airlines customers and Airbus specialists from all disciplines. It allows establishing a common and clear vision of the purposes to be achieved by the new product.This paper presents the engineering process deployed by Airbus to guarantee the consideration of the customer point of view and ensure its satisfaction on the final product.

Exploring the future roles and capabilities of customer service professionals

The study investigates the roles and capabilities likely to be required of customer service professionals (CSPs) in future service encounters. Following a literature review and the results from customer focus groups, a matrix for future customer service roles is developed in which the domains of technical interaction and emotional interaction are displayed. The matrix is tested against interview data from executives in leading service organisations and four key CSP roles are developed, corresponding to the customer service domains displayed in the matrix. The study concludes with a discussion of these four roles and the management implications of the study.

Client-responsive product development

When clients desert their MFI (microfinance institution) in large numbers, this should signal that the MFI'sproducts are not right. This article discusses the product development process for microfinance. It starts with defining a research issue and carrying out market research to find out what clients want, moves on to developing an initial product concept, refines the concept with input from customer focus group discussions and finally pilot-tests the new product. This process has been used to launch new products that have boosted the profitability of organizations such as Equity Building Society, Kenya, Tanzania Postal Bank and Buro Tangail, Bangladesh.

Users of official European statistical data

Reports the findings of a research project, undertaken by r•cade (the Resource Centre for Access to Data on Europe) into the needs of users of European statistical data. The aim was to assist r•cade with the future development of its own services and to disseminate the research findings and their implications to the wider data-providing community, through partnership in the EU Info 2000 MADAME project (Methods for Access to Data and Metadata on Europe) (http://www.info2000-madame.org/). The study involved focus groups, a questionnaire survey, helpdesk logging data, and feedback questionnaires from academics attending a training programme in 1999. The consultation process revealed the complex environment in which r•cade operates and the extent to which any disseminator of official statistics has little control over the data supply chain. The mixed customer focus group clearly highlighted the considerable variation in service expectations. While Eurostat is the sole source of official harmonized statistics for the European Union, the potential market is enormous and very complex. Eurostat has to balance its service delivery between different, and sometimes conflicting, customer and supplier groups, while at the same time balancing access rights versus data protection; harmonization versus specificity; and high resource demands versus a complex supply chain.

From coaching inn to chameleon — Trends in consumer behaviour and attitudes in the pub/bar market

The basis for this paper is a presentation the author made in January 1999 on demographic and lifestyle changes and their likely impact on the restaurant industry. Much of the data and research for that session were compiled over the previous year while the author worked on a major consulting project for Coca-Cola: ‘From ingredient shopping to meal solutions — meeting the consumer appetite for change’. The project lasted over six months and investigated the potential for ‘meal solutions’ (or ready meals) in Europe, as traditional boundaries between the retail food market and food-service providers (not least the pub) blurred as a result of dramatic changes in people's lifestyles. It included extensive research visits across the USA and Europe, where the world's leading food retail companies were interviewed, along with customer focus groups in six countries.As a consultant to the hospitality and leisure industry it became increasingly clear that there were a number of significant ‘drivers’ that were likely to have real impact on our world — irrespective of whether operating pubs, bars, restaurants or retail foodstores. The paper concentrates on these ‘drivers’, and the likely implications for the industry (including the pub/bar market). The opinions, while based largely on the data and consulting experience derived from relevant projects, are solely attributable to the author and are intended to provoke discussion and debate.

Customer Focus Groups: Developments in Health Care

The independent health care industry is experiencing turbulence, with competitors currently seeking differentiation using quality focused strategies. In pursuit of such strategies increasing attention is being paid to the customer. Until now, understanding the customer has not been recognized for its full significance. Numerous methods of gathering information are being explored, with one of the larger providers introducing the use of regular customer focus groups. It is argued that this method, rarely employed in the UK, is particularly appropriate to use with patients as a customer group. The full potential of customer groups will only be realized, however, if part of a wider total quality approach, advocated by the authors.