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Time lags, non-linearity and asymmetric effects in an extended service-profit chain
journal contribution
posted on 2020-11-01, 00:00 authored by G Strydom, Mike Ewing, Campbell HeggenCampbell HeggenPurpose: This study aims to present an extended service-profit chain (SPC) framework for assessing service performance. This framework is then used to investigate non-linear and asymmetric links between service delivery investments and customer satisfaction, as well as time lags in organisational performance outcomes. Design/methodology/approach: The study draws on panel data with repeated measures from a sample of automotive after sales service departments. Data collected comprises both objective and survey-based data, including operational inputs, productivity, service quality, service experience, behavioural intentions, customer retention and organisational performance. Findings: Non-linear and asymmetric effects are identified, suggesting that customers’ evaluations of service performance are more sensitive to negative performance (dissatisfaction) than positive performance (satisfaction). Accordingly, focusing on attributes for which customers are experiencing negative performance first, and then allocating resources to attributes for which customers are experiencing positive performance, can be far more consequential for improving customer satisfaction. Practical implications: From a practical perspective, the findings deepen current understanding of the relationships between service performance metrics. They also provide guidance for managers seeking to better deploy service resources to enhance service quality, customer satisfaction and customer retention to improve profitability over time. Originality/value: Drawing on a unique and rich data set, this study provides a significant improvement on previous SPC frameworks by adding new dimensions identified in recent meta-analyses and addresses calls for more research into non-linear, asymmetric and longitudinal effects within the SPC.
History
Journal
European Journal of MarketingVolume
54Issue
10Pagination
2343 - 2363Publisher
EmeraldLocation
Bingley, Eng.Publisher DOI
ISSN
0309-0566Language
engPublication classification
C1 Refereed article in a scholarly journal; C Journal articleUsage metrics
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No categories selectedKeywords
Organisational performanceCustomer retentionCustomer satisfactionService-profit chainFirm performanceTime lagsNon-linearityPanel dataSocial SciencesBusinessBusiness & EconomicsSTRUCTURAL EQUATION MODELSATTRIBUTE-LEVEL PERFORMANCELATENT INTERACTIONSPRODUCTIVITYQUALITYPROFITABILITYRETURNLOYALTYCONSEQUENCES
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