Level Of Customer Participation Research Articles

‘Do not be Deteriorated by service failures, Learn from them and start managing it’: Conditions and mechanisms for managing online service failures

Online consumers rely on two hospitality channels, direct websites and online travel agents (OTAs), to search for and book hospitality services. Although these online service channels improve service delivery efficiency, service failures have become common and unavoidable. Although online service failures and recovery efforts have received significant research attention, studies have ignored whether customer evaluations following a service failure differ based on the type of failure (informational, functional, or system) occurring in different online service booking channels (direct or OTA). Additionally, despite the significance of customer participation in service recovery, no research has examined the suitability of different recovery types based on varying levels of customer participation, such as firm, joint, and customer recovery. Thus, utilising three between-subjects experiments, this study demonstrated that information failures are more detrimental in a direct channel, whereas functional failures are more harmful to OTAs. However, system failures affect both platforms equally. The results also revealed that firm recovery is most appropriate when an information failure occurs in a direct channel. Joint recovery is suitable for functional failures in OTAs, while customer recovery is sufficient to rectify system failures. Finally, customer expectations (outcome, process, and cost) drive these positive outcomes. This research offers unique contributions to the literature and managerial practice on online service failure and recovery.

The Influence of Electronic Word of Mouth on Online Purchasing: A Bhubaneswar Perspective

Electronic word of mouth (EWom) has become a crucial communication tool in the digital age. The importance of online reviews and ratings on consumers has increased recently. The study's primary goal is to determine how certain eWom characteristics, such as eWom message consistency, eWom content platform, and eWom valency, affect the popularity of a product and the level of customer participation that influences consumers' intentions to make a purchase. The study is intended to know the impact of factors of eWom on the purchase intention of online buyers in Bhubaneswar. The study was tested on 201 respondents through a cluster sampling method with a structured questionnaire. The regression analysis approach was utilized to analyze the objective and obtain the findings. It revealed that the EWom content platform and Information credibility strongly impact buyers' purchase intention. Information credibility plays a vital role in the purchase decisions of buyers.

The Effect of Express Delivery Robot Autonomy on Customer Responsibility Attribution in a Service Failure Scenario

In order to improve the efficiency of e-commerce logistics services and reduce labor costs, many cities have introduced express delivery robots to provide express delivery services. Robotic service failures occur from time to time due to the complexity of the service environment, immature technology, and other constraints. This study investigates the effect of service robot autonomy on customer responsibility attribution using a 2 (robot autonomy: high vs. low) x 2 (customer participation level: high vs. low) between-groups experimental approach to investigate the mediating role of controllability and the moderating role of customer participation using the scenario of service failure of a express delivery robot. The experimental results show that robot autonomy increases customers' attribution of responsibility to the robot in service failure scenarios, and controllability partially mediates this effect, but the moderating effect of customer participation is not demonstrated. The experimental results provide implications for the design and use of service robots.

Work more, pay more? The impact of customer participation on customer pay-what-you-want payments

PurposeThe optimal level of customer participation is an important factor in service design. However, researchers know little about the impact of customer participation for their willingness to pay and hence organizations’ financial outcomes. This paper examines the impact of customer participation in a pay-what-you-want (PWYW) pricing system, allowing customers to pay any price they want for a product or service.Design/methodology/approachThis paper reports the results of three experiments, in which the authors manipulated the level of customer participation (Study 1: Low versus high, Study 2: Medium versus high, Study 3: Low versus medium versus high) and measured customers' PWYW payments (Studies 1–3), customer satisfaction (Studies 1–3), perceived equity (Study 3) and perceived enjoyment (Study 3). Studies 1 and 3 were scenario-based experiments, while study 2 was a field experiment. Study 3 was preregistered.FindingsThe results support a direct effect of customer participation in service production on customer PWYW payments, yet only when comparing low to high levels of customer participation. High levels of customer participation lead to a decrease in perceived equity and an increase in perceived enjoyment, which in turn spilled over to customer PWYW payments through customer satisfaction.Originality/valueThis research provides causal evidence at the individual level of analysis for the relationship between customer participation in service production and financial results. The paper also provides insights into its underlying mechanisms.

Can you ask “too much” of your customers?

PurposeCompanies are beginning to rely more on customer participation (CP). As a result, consumers are expected to expend more resources throughout the service exchange. Through three studies, this study aims to examine the effect of CP on customers’ evaluations of these exchanges. Study 1 examines the interaction between two levels of CP (low versus high) and shopping experience type (hedonic versus utilitarian). In Study 2, the focus shifts to understanding the negative consequences of high CP. In Study 3, the authors explore how the negative effects of high CP can be mitigated.Design/methodology/approachScenario-based experiments were implemented across three studies. This study used multivariate analysis of variance (Study 1) and PROCESS (Hayes, 2018; Studies 2 and 3) to uncover how consumers respond to CP.FindingsResults of Study 1 indicate that the CP level negatively impacts satisfaction and positive word-of mouth (PWOM) in a utilitarian context but has no effect in a hedonic context. Study 2 finds that the negative effects of high CP on satisfaction and PWOM are mediated by fairness and frustration. Study 3 suggests that these negative results can be mitigated by offering a financial incentive.Originality/valueThis study’s two primary objectives address specific calls in the CP literature. First, this study examines the effects of increased CP during hedonic and utilitarian shopping experiences. Second, this study investigates mediators and moderators associated with the negative effects of increased CP, shedding light on how the consumer processes high CP service encounters.

Potensi Teknologi dan Media Sosial Dalam Meningkatkan Pemasaran Produk Asuransi Syariah

As the largest Muslim country, the country occupied by 236,53 The population is Muslim, if this is used and used as an opportunity for sharia insurance to develop rapidly in this country. Indonesia should have the potential to become the largest Muslim country where most of the Muslim population uses sharia products, especially sharia insurance. In fact, the current fact is that not many Indonesian Muslims use banking and non-banking products on the basis of sharia principles. AAJI's data report, if users of insurance products in Indonesia still reach 7.5%, and only 5% of them are users of sharia insurance. The lack of awareness of knowledge and the lack of strong exposure to sharia insurance products are indicators of the reason why there is still a small level of customer participation using sharia insurance. This reason is further strengthened when viewed from the literacy rate for sharia insurance in Indonesia which has only reached a nominal figure of 19,4%. For this reason, considering the widespread use of social media in Indonesia, which is dominated by the current millennial and generation Z, the marketing strategy of sharia insurance is now starting to move by utilizing the digitalization of marketing media. This study is intended to find out the potential influence of technology and social media in helping to increase sales of sharia insurance products in terms of marketing aspects. Observational analysis of previous research and of sharia insurance companies that carried out this marketing strategy, obtained the findings that social media marketing and the compliance of several insurance products that apply sharia principles in it, are significantly able to increase people's purchasing power or contribute significantly. Indirectly persuade social media users to determine their decision to buy sharia insurance products.
 Key words : Sharia insurance marketing, Social media, Technology.

Potensi Teknologi dan Media Sosial Dalam Meningkatkan Pemasaran Produk Asuransi Syariah

As the largest Muslim country, the country occupied by 236,53 The population is Muslim, if this is used and used as an opportunity for sharia insurance to develop rapidly in this country. Indonesia should have the potential to become the largest Muslim country where most of the Muslim population uses sharia products, especially sharia insurance. In fact, the current fact is that not many Indonesian Muslims use banking and non-banking products on the basis of sharia principles. AAJI's data report, if users of insurance products in Indonesia still reach 7.5%, and only 5% of them are users of sharia insurance. The lack of awareness of knowledge and the lack of strong exposure to sharia insurance products are indicators of the reason why there is still a small level of customer participation using sharia insurance. This reason is further strengthened when viewed from the literacy rate for sharia insurance in Indonesia which has only reached a nominal figure of 19,4%. For this reason, considering the widespread use of social media in Indonesia, which is dominated by the current millennial and generation Z, the marketing strategy of sharia insurance is now starting to move by utilizing the digitalization of marketing media. This study is intended to find out the potential influence of technology and social media in helping to increase sales of sharia insurance products in terms of marketing aspects. Observational analysis of previous research and of sharia insurance companies that carried out this marketing strategy, obtained the findings that social media marketing and the compliance of several insurance products that apply sharia principles in it, are significantly able to increase people's purchasing power or contribute significantly. Indirectly persuade social media users to determine their decision to buy sharia insurance products.
 Key words : Sharia insurance marketing, Social media, Technology.

Interactive app-based services: Recovery evaluations and the mediating role of satisfaction in the relationship between customer-brand engagement and electronic word of mouth

Based on the theory of co-creation and resource-based theory, this study examines the differential impact of varying levels of customer participation in service recovery (firm, customer, and joint) on recovery satisfaction, customer-brand engagement (CBE), and electronic-word of mouth (e-WoM). Besides, using social exchange theory, this study examines the mediating role of consumers’ recovery satisfaction in the relationship between the types of service recovery and electronic word of mouth (e-WoM). The data to accomplish the research objectives was collected from 495 customers of interactive food delivery apps in India. The experimental design was used to collect the data. The multivariate analysis of variance (MANOVA) and PROCESS macro techniques were used to test the hypotheses. The findings suggest that joint recovery results in better recovery evaluations such as CBE, recovery satisfaction, and e-WoM. Also, recovery satisfaction mediated the relationship between CBE and e-WoM. These findings provide empirical evidence for the linkages among the theory of co-creation, resource-based theory, and social exchange theory. The marketers of interactive food delivery apps may use these findings to ascertain which recovery type they should emphasize to improve recovery satisfaction. Moreover, they are encouraged to take steps for improving recovery satisfaction as CBE affects e-WoM through recovery satisfaction.

Impacts of the COVID-19 pandemic on airline passengers’ recovery satisfaction: An experimental study

The COVID-19 pandemic has impacted nearly every country in the world and affected numerous industries. Many businesses stopped or restricted their operations, resulting in service failures. This study aims to investigate the effect of customer participation and service failure on customer recovery satisfaction in the airline industry. The research employed a scenario-based experiment with 180 respondents as the samples. Convenience sampling was adopted. The responses of customer recovery satisfaction were measured on a 7-point Likert scale. Exploratory factor analysis was then used to validate the measurement and a general linear model was carried out to examine the impacts of customer participation and service failure on customer recovery satisfaction. The results showed that when the failure was due to the COVID-19, the highest customer satisfaction occurred when customers jointly participated in service recovery. This study also revealed that increasing customer participation during the service failure due to pilots on strike resulted in decreased customer recovery satisfaction. The current study contributes to the existing literature related to customer participation in service recovery. This research also provides a practical contribution for service managers when designing the level of customer participation in service recovery.

Optimal customer participation and the role of relationship length

PurposeThis study aims to examine how customers derive satisfaction and affective commitment from their participation in financial services, which is conditional on their relationship length.Design/methodology/approachStudent interviewers approached customers who were exiting banks at two skip intervals in Taiwan. The final survey sample consists of 227 respondents.FindingsEmpirical results confirm that optimal customer participation (CP) influences affective commitment through increased customer satisfaction. The optimal level of CP with customer satisfaction and affective commitment is high if the relationship length is long.Originality/valueThis article shows that the marginal benefits of CP on customer satisfaction and affective commitment become negative after an optimum level. Furthermore, relationship length moderates the aforementioned relationships.

Stochastic Optimization for Residential Demand Response With Unit Commitment and Time of Use

As compensation to power generation dispatch, demand response (DR) enables demand controllability by changing the consumers' electricity usage patterns, which can be used to reduce electricity cost, integrate renewable energy, and provide ancillary services. To reveal the benefits from residential DR, this study develops the following two approaches: optimal load aggregation under augmented time-of-use (TOU) pricing; and active DR participation in unit commitment (UC) under rewards. We have shown that plain TOU pricing is not a promising DR policy if residential customers are equipped with home energy management systems (EMSs). We, therefore, propose an augmented TOU by radial basis functions. With a 60% participation level, the proposed optimal load aggregation model under the augmented TOU can reduce the power generation cost by 24% and decrease the standard deviation of the load profile by 42%. However, these results can be affected by the customer's participation level, which is also quantitatively studied. Specifically, when the participation level exceeds 80%, this method becomes less efficient. The second proposed approach, a two-stage stochastic UC model with DR flexibility, reduces the power generation cost by 20% and decreases the standard deviation of the load profile by 77%. In addition, the inconvenience of DR participation is quantitatively evaluated, and a Pareto surface is developed, which can be used as a baseline for residential customers to set up the home EMS for DR implementation. Both the proposed mechanisms can be used to improve the energy efficiency by uncovering the residential DR potential.

Influence of customer participation from the employee perspective

PurposeTo reduce costs, many banks have increased customer involvement during the creation and delivery of their products and services. Based on a job demands-resources (JD-R) model, this study tests an inverted U-shaped curvilinear relationship between perceived customer participation and employee work engagement. Customer orientation (CO) and service employee perceived fit with customers (PCF) moderate this relationship, which eventually affect both the internal and external benefits of service-employee work engagement.Design/methodology/approachThe authors collected survey data from 518 service employees in the South Korean banking and insurance industries and analyzed the data using structural equation modeling (SEM).FindingsThe results indicate that perceived customer participation (PCP) has a significant inverted U-shape effect on work engagement. Results also suggest that CO and PCF have positive relationships with work engagement. In addition, they moderate the inverted U-shaped relationship between service employee PCP and work engagement, while work engagement positively affects organizational citizenship, job satisfaction and commitment.Research limitations/implicationsThe authors empirically identify a curvilinear effect of PCP on work engagement. In doing so, the authors introduce and operationalize the new construct: PCF and suggest PCF and CO as unique job resources for service employees. The authors also examine these constructs as predictors based on a motivational process and as moderators based on a strain (energetic) process.Practical implicationsFrom a managerial perspective, examining the curvilinear relationships of customer participation and work engagement suggests that front-line employees’ (FLEs’) PCP does not necessarily enhance the economic benefits of productivity gains by using customers as substitutes for portions of employee labor. Another finding with managerial relevance indicates that service employees, who have more CO and PCF, showed more tolerant attitudes toward unnecessary and excessive levels of customer participation and regarded it as a job resource.Originality/valueThis study explains that researchers must consider the positive and negative sides of customer participation simultaneously because frontline employee PCP can be changed depending on the level of participation provided by customers. This study also shows that CO can be assumed as a personal resource and PCF as an environmental resource in the work engagement process.

Customer participation and well-being: the roles of service experience, customer empowerment and social support

PurposeThis research aims to contribute to the transformative service research (TSR) literature by examining how customer participation in the service process influences their service experience and eudaimonic well-being, as moderated by customer empowerment and social support.Design/methodology/approachIn the contexts of wedding (n = 623) and tourism services (n = 520), two surveys were conducted to test the hypotheses using mediation and moderation analyses.FindingsCustomer participation had a positive effect on their well-being, as mediated by service experience. These effects were moderated by customer empowerment and social support. Specifically, customer empowerment negatively moderated the relationship between customer participation and their service experience for both services. In addition, the moderating effect of social support on the relationship between customer participation and service experience was positive for the wedding service but negative for the tourism service.Practical implicationsThe findings imply that firms should encourage customer participation to enhance their service experience and well-being. In addition, the firm could judiciously empower customers by adapting to the level of customer participation. Furthermore, depending on the complexity of the service required to produce the expected service outcomes, the firm may encourage the customers to engage their social network for support.Originality/valueThis research uses the service ecosystem perspective to examine the roles of the customer, the firm and the customer's social network in shaping their service experience and well-being for two common and important mental stimulus services, enriching the authors’ understanding on the role mental stimulus services play in enhancing consumers' eudaimonic well-being.

Determination of Customer Satisfaction using Improved K-means algorithm

Effective management of customer’s knowledge leads to efficient Customer Relationship Management (CRM). To accurately predict customer’s behaviour, clustering, especially K-means, is one of the most important data mining techniques used in customer relationship management marketing, with which it is possible to identify customers’ behavioural patterns and, subsequently, to align marketing strategies with customer preferences so as to maintain the customers. However, it has been observed in various studies on K-means clustering that customers with different behavioural indicators in clustering may seem to be the same, implying that customer behavioural indicators do not play any significant role in customer clustering. Therefore, if the level of customer participation depends on behavioural parameters such as their satisfaction, it can have a negative effect on the K-means clusters and has no acceptable result. In this paper, customer behavioural features—malicious feature—is considered in customer clustering, as well as a method for finding the optimal number of clusters and the initial values of cluster centres to obtain more accurate results. Finally, according to the organizations’ need to extract knowledge from customers’ views through ranking customers based on factors affecting customer value, a method is proposed for modelling their behaviour and extracting knowledge for customer relationship management. The results of the evaluation of the customers of Hamkaran System’s Company show that the improved K-means method proposed in this paper outperforms K-means in terms of speed and accuracy.

PENGARUH DIMENSI KEPERCAYAAN (TRUST) TERHADAP PARTISIPASI (PARTICIPATION) PELANGGAN WULAN RENT CAR

The aims of this study is the level of customer participation in terms of the dimensions of trust to p articipation Rental Rental Services on Wulan Car Rental Customers. If there is a positive significant relationship, then there is a large influence trust in the participation of rental service customers. The research method is a survey with interaction and regression analysis techniques to determine the relationship between variables. The sample used as the object of research was 75 customers who used rental services in the Wulan rent car. The meeting was conducted by asking for a questionnaire from the Wulan rent customers. The instrument contains indicators of trust dimensions, there are capability, virtue, and integrity, as well as participation which are elaborated on questions that meet the Likert Scale. Validity test by using the product moment inspection technique with the result that all items of the questionnaire have a corrected value of the total correction item of more than r - table of 0.1914 so that 13 items of the questionnaire are suitable for use in research instruments. Reliability test using the value of Conbarch's alpha is 0.896 . It means that 13 items of questionnaire are good categorize d and can be a criterion in the research instrument. The conclusion is related to the variables of ability, virtue, and integrity that are significant to the participation of rental services in the Wulan rent car, there is no significant effect on the ability and benevolence of the variables on the participation of rental services in the rental car. There is a significant integrity variable to the participation of the car rental i n wulan car rental, and the most dominant variable of this study is integrity with t- value of 3.203 .

Two-step probabilistic method to enable demand response programs in renewable-based integrated energy systems

This paper presents a two-step procedure to enable residential Demand Response (DR) programs in the Multi-Carrier Energy Systems (MCES), including a combined heat and power generation, renewable resources, a boiler, and energy storage systems. In the first step, an optimization problem is solved to determine the optimal energy cost for each customer. In the second step, the system operator (SO) minimizes the summation of the total loss cost of the electrical distribution system and a designed motivational payment, subject to various operational constraints of the MCES. The motivational payment is the function of deviation of the resulted energy cost of a home in the second step from the desired cost obtained in the first step. The main idea of the proposed procedure is to consider the concerns of customers and the operator, simultaneously. This paper also addresses the uncertainties in renewable resources generation. The proposed procedure is simulated on a test energy system for various cases. The results show that as the level of customer participation in the proposed program is increased, the technical aspects of the integrated energy system are improved. In addition, the customers' costs are decreased by participation in the proposed program.

Determining optimum customer participation level in services: perceptual biases and congruence

Determining optimum customer participation level in services: perceptual biases and congruence

Customer engagement and co-created value in social media

Purpose The purpose of this paper is to understand the relationship between customer participation, co-created value and customer engagement as well as customer motivation involved in this process. Design/methodology/approach Respondents were randomly exposed to one of the six types of social media scenarios. A total of 181 respondents were drawn from an MTurk opt-in survey panel of individuals who resided in America and were over the age of 18 years. Findings Overall, the results of this study showed that as the level of customer participation increased, the level of co-created value decreased. The relationship between customer participation and customer engagement was fully mediated by co-created value. Extrinsic motivation was found to moderate the relationship between customer participation and co-created value but did not moderate the relationship between customer participation and customer engagement. Moreover, customer engagement was at its highest when an external reward was not offered, in other words, when customers were intrinsically motivated. Furthermore, when an external reward was offered, a significant effect of privacy concern on customer engagement was observed. Originality/value The study extends the current understanding of customer engagement through value co-creation, customer participation and perceptions of privacy in firm-initiated activities in social media.

The impact of value co-creation on hotel brand equity and customer satisfaction

Value co-creation with customers has emerged as a relevant topic at both academic and managerial level. Considering the positive outcomes derived from value co-creation, firms should learn how to properly manage this process which requires active customer involvement and this paper demonstrates that the level of customer participation (CP) depends to a large extent on their perception of how the hotel favours the process of value co-creation (CcV). Our model also proves the customer perception of the hotel's process of value co-creation has a positive impact on the hotel's brand equity (BE) whereas customer participation positively affects the customer's perceived value (PV). Additionally, both brand equity and perceived value are positively linked with customer satisfaction (CS). The findings indicate the moderating effect of customers' prior experience with the hotel chain in reference to some of the relationships considered (CcV→BE→CS and PV→CS).

Determining Optimum Customer Participation Level in Services: Perceptual Biases and Congruence

The effect of increased customer participation on service quality remains an enduring dialogue in the services literature. We study the relationship between increased customer participation (i.e., customer workload) and service quality from the theoretical lens of perceptual congruence, a perceptual state in which a customer and a front-line employee have similar perceptions of a co-produced service output. We use an analytical model that relates customer work allocation to perceptual congruence through perceptual biases of a customer and employee. Based on our model, we identify four cases for the service design and present strategies to increase customer work allocation while keeping the perceptual congruence. While the term 'bias' may have a negative connotation, proper management of perceptual biases could allow a service to increase customer work allocation and achieve perceptual congruence at the same time.