Consumers’ propensity for rollover service contracts: the influences of perceived value, convenience and trust on service loyalty

Wilkins, Stephen; Hazzam, Joe; Megicks, Phil

doi:10.1080/0965254x.2021.1946127

Cited by 10 publications

(22 citation statements)

References 62 publications

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“…Individuals are likely to invest in a relationshipe.g. by entering into RSCswhen they perceive the price as fair, and when they believe that the service delivery will satisfy their needs and expectations (Wilkins et al, 2023). Consumers who perceive that they are receiving special or preferential treatment may feel valued and appreciated, and the emotion of gratitude experienced by the consumer may then encourage the individual to enter into a RSC (Lee et al, 2014a).…”

Section: Theoretical Foundationsmentioning

confidence: 99%

“…Individual consumers have different needs and wants, and depending on their preferences and perceptions, they have different attitudes toward RSCs. Time-poor consumers, or those who value convenience, may perceive such contracts as a benefit, because the search and switching costs associated with moving to another provider are eliminated (Murooka and Schwartz, 2019;Wilkins et al, 2023). RSCs may also be attractive to individuals who are prone to inertia or procrastination (Henderson et al, 2021).…”

Section: Theoretical Foundationsmentioning

confidence: 99%

“…In addition to considering their own personal needs and wants, and the expected service quality, consumers consider the brand's reliability and benevolence, as well as the provider's overall attitude towards reciprocity. On the basis of reciprocity, providers may reward consumers who enter into RSCs with price discounts, product add-ons, or other loyalty-based benefits (Wilkins et al, 2023). The provision of these rewards may have a positive impact on the development and strengthening of consumer-provider relationships (Calvo-Porral et al, 2017).…”

Section: Theoretical Foundationsmentioning

confidence: 99%

“…A survey-based quantitative study utilizing Likert scales and regression analysis conducted by Wilkins et al (2023) found that conveniencee.g. eliminating the search and evaluation costs associated with comparing alternative providerswas the strongest influence on consumers' acceptance of RSCs, rather than price, as suggested by Crawford et al (2011).…”

Section: Introductionmentioning

confidence: 99%

“…eliminating the search and evaluation costs associated with comparing alternative providerswas the strongest influence on consumers' acceptance of RSCs, rather than price, as suggested by Crawford et al (2011). However, the Wilkins et al (2023) study left several opportunities for future research. First, their research aimed to offer only preliminary insights into the factors affecting consumers' initial decision to enter into RSCs, but participants were not required to make trade-offs among alternative product attributes.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Service contract type and consumer choice behavior: the contributory roles of perceived value, brand reputation and consumer incentives

Wilkins,

Ireland,

Hazzam

et al. 2024

MIP

Self Cite

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PurposeTo minimize customer churn, many service providers offer consumers the option of automatic contract renewal at the end of a contract period. Such agreements are known as rollover service contracts (RSCs). This research quantifies the effect of RSCs and other related factors, such as incentives, on consumers' service choice decisions.Design/methodology/approachThe study adopts choice-based conjoint analysis to assess the effect of RSCs on consumers' choices and to determine whether effect size varies when selecting a cell phone network or gym/leisure club provider, which represent lower-priced utilitarian and higher-priced hedonic services.FindingsIt was found that RSCs produce negative perceptions and intended behaviors for the majority of consumers across different product types. Nevertheless, as explained by social exchange theory, many individuals may be persuaded to enter into a RSC on the basis of reciprocity if they are offered an incentive such as a price discount or free product add-on.Originality/valueIn the marketing domain, this is the first comprehensive study to quantify the role of contract type among a range of other factors in consumers' decision-making when selecting a service. The authors' results offer context-specific implications for service marketers. First, RSCs are perceived more negatively in high-priced hedonistic categories, especially among those with lower incomes. Second, price discounts are more effective than product add-ons for motivating hedonic purchases, while product add-ons work better with utilitarian services.

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Section: Theoretical Foundationsmentioning

confidence: 99%

Section: Theoretical Foundationsmentioning

confidence: 99%

Section: Theoretical Foundationsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Service contract type and consumer choice behavior: the contributory roles of perceived value, brand reputation and consumer incentives

Wilkins,

Ireland,

Hazzam

et al. 2024

MIP

Self Cite

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Multi‐Technological Solutions for In‐Store Smart Retailing

Qiu,

Roy,

Singh

et al. 2024

J of Consumer Behaviour

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Smart in‐store technologies are flourishing in retail, encompassing innovations such as smart carts, in‐store mobile applications, and self‐checkouts. Despite their growing coexistence, configuring these technologies throughout the consumer in‐store shopping journey remains underexplored. To address this issue, this study investigates effective multi‐technological solutions that benefit consumers and retailers in grocery store settings from a configurational perspective, focusing on service convenience, shopping value, and retail store image. In Study 1, we developed and tested a research model relating consumer‐oriented benefits (i.e., service convenience and shopping value) and retailer‐oriented benefits (i.e., retail store image) using partial least squares structural equation modelling (PLS‐SEM). In Study 2, fuzzy set qualitative comparative analysis (fsQCA) was used to examine the technology configurations that drive these benefits. Several effective multi‐technological solutions were identified. Results show that smart shopping carts play a central role in driving several benefits, as does their combination with self‐checkouts. Also, the absence of a touchscreen kiosk is identified as a core condition in an ideal shopping experience facilitated by smart shopping carts. The findings offer novel and actionable insights into effective configurational strategies for in‐store technologies in smart retailing practices.

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Convenient = competitive? How Brick-And-Mortar Retailers can cope with Online Competition

et al. 2022

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Due to the rise of online retailing, traditional brick-and-mortar retailers need to understand what customers find convenient when shopping at physical locations and focus their efforts on those convenience dimensions to remain competitive. We test a service convenience model in the auto-parts retailing industry and examine how various dimensions of service convenience affect customers’ perceptions of the retailer (i.e., service quality, product quality, and perceived value), and subsequently their behavior (i.e., customer loyalty and share of wallet). The results suggest that in traditional retailing, the most important convenience dimensions are decision convenience and benefit convenience. We find that service convenience exerts its effect on customer loyalty and share of wallet through perceived service quality and perceived value, and product quality has an indirect effect through perceived value. Service convenience is an important driver of customer loyalty and share of wallet, and this study demonstrates the mechanism through which it happens.

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Consumers’ propensity for rollover service contracts: the influences of perceived value, convenience and trust on service loyalty

Cited by 10 publications

References 62 publications

Service contract type and consumer choice behavior: the contributory roles of perceived value, brand reputation and consumer incentives

Service contract type and consumer choice behavior: the contributory roles of perceived value, brand reputation and consumer incentives

Multi‐Technological Solutions for In‐Store Smart Retailing

Convenient = competitive? How Brick-And-Mortar Retailers can cope with Online Competition

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