The referral backfire effect: The identity-threatening nature of referral failure

Claus, Bart; Geyskens, Kelly; Millet, Kobe; Dewitte, Siegfried

doi:10.1016/j.ijresmar.2012.06.004

Cited by 10 publications

(4 citation statements)

References 65 publications

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“…For voice initiatives that are directed to companies internally, the risk of negative outcomes is somewhat lower because a firm can simply decide to not make use of their customers' input. However, customers may negatively react to the firm's lack of responsiveness, and if customers voice their feedback through a non-private communication channel, such as Facebook or Twitter, the feedback may be as visible and impactful as negative word-of-mouth (Claus et al 2012;Jaakkola and Alexander 2014;Ramani and Kumar 2008). Word-of-mouth initiatives are thus able to generate additional revenue streams while voice initiatives are not.…”

Section: Efficiency and Effectiveness Of Value Creationmentioning

confidence: 99%

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

Beckers¹,

Doorn

Verhoef

2017

J. of the Acad. Mark. Sci.

240

209

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In today's connected world, customer engagement behaviors are very important. Many companies launch initiatives to stimulate customer engagement. However, despite evidence that customer engagement behavior also matters to shareholders, academic research on the firm value consequences of customer engagement campaigns is limited. This study is the first to investigate the value-related consequences of firm-initiated customer engagement behaviors, using shareholder evaluations of the public announcements of such initiatives. We find that companies' customer engagement initiatives, on average, decrease market value, which is likely because the shareholders are sensitive to the risk of these initiatives backfiring. Nevertheless, initiatives that stimulate word-of-mouth are viewed less negatively than initiatives that solicit customer feedback, as are initiatives that are supported by social media. Companies that operate in a competitive environment or do not advertise much can create value by stimulating customer engagement, while companies with a strong corporate reputation are likely to not benefit from it.

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Section: Efficiency and Effectiveness Of Value Creationmentioning

confidence: 99%

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

Beckers¹,

Doorn

Verhoef

2017

J. of the Acad. Mark. Sci.

240

209

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show abstract

“…Vignette-based stimuli and experiments lead marketing and psychology research (for e.g. Trudel et al , 2012; Claus et al , 2012) because they reduce the ethical hazards of exposing respondents to adverse cognitive and affective load and are convenient to execute. While there remains scope for improvement, we found our stimuli to be strong and relevant (as seen in pre-tests and test of manipulation).…”

Section: Limitationsmentioning

confidence: 99%

Bringing the individual into the co-creation of value

Ranjan

Read

2019

JSM

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Purpose Despite the increasing prominence of value co-creation (VCC) in extant research, the area of customer co-creation is in its infancy and many aspects are not well-understood. This paper aims to important work from the individual psychology literature with the concept of VCC and offers empirical evidence to untested theoretical claims regarding the role of the individual in VCC. Design/methodology/approach The investigation begins with reviews of the literature of individual psychology and VCC to compare the concepts they use to explain the role of the individual in co-creation. The results of the theoretical development are empirically derived using a multiple vignette-based study to examine relationships between individual characteristics and the activity of VCC. Findings The authors find a positive effect of a customer’s prosocial orientation, perspective taking and involvement on VCC. However, a customer’s extraversion does not affect the degree of VCC. The desire-to-participate mediates these relationships. Research limitations/implications This study offers a foundation for some of the central claims about VCC and encourages a precise understanding of the impact of individual customer psychology in value co-creation with firms. Implications for the service-dominant logic of marketing and core work in psychology are discussed. Practical implications Managers seeking to design co-creative ecosystems need to know about the individuals they are co-creating with. In this research, the authors clearly exemplify how managers can use in practice a theoretical understanding of individuals to better direct the activity of VCC. Originality/value This paper provides both new theoretical knowledge from the parallel literature review and exciting empirical results from the authors’ investigation into phenomenological claims regarding VCC.

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“…Although vignette-based stimuli and experiments are prominent in leading marketing and psychology research (e.g. Claus et al , 2012; Trudel et al , 2012), we conducted stringent check and balance questions to ascertain (1) the realism of the scenario (e.g. “To what extent could you imagine yourself as the consumer in the scenario?”), (2) participants' involvement (e.g.…”

Section: Studymentioning

confidence: 99%

Effect of frontline employee's hope and consumer failure during consumer-created emergencies

Ranjan

Dash

Sugathan

et al. 2020

JSTP

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PurposeIn important interpersonal service interactions with a frontline employee (FLE), consumers at times fail to carry out their share of responsibility in the execution of the service, resulting in a situation of “consumer created emergency”. This might defeat the consumer's goal of availing the service (termed as consumer failure). This study explains the role of employee's hope in managing consumer failure in the situation of consumer created emergencies.Design/methodology/approachHypotheses were tested in three experiments that simulated service emergency across a general printing service situation and a travel service situation.FindingsThe study shows that: (1) FLE hope has a positive effect on consumer satisfaction, and is mediated by the consumer's assumed effort by the FLE; (2) the effect of FLE hope on consumer satisfaction changes with changing levels of consumer hopefulness about the service outcome; (3) despite situation of consumer created emergency, consumer failure results in low consumer satisfaction due to attribution error and (4) external attribution by the FLE could not significantly rectify consumer's attribution error and hence could not alleviate consumer dissatisfaction.Research limitations/implicationsThe study suggests relevance and pathways of managing emotions and attributions of consumers and FLEs for superior performance outcomes.Originality/valueThe study theorizes and tests the role of hope, which is an important positive emotion during emergencies because frontline service settings have heretofore predominantly focused on managing negative traits and outcomes.

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The referral backfire effect: The identity-threatening nature of referral failure

Cited by 10 publications

References 65 publications

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

Bringing the individual into the co-creation of value

Effect of frontline employee's hope and consumer failure during consumer-created emergencies

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