• The Korean Journal of Food And Nutrition
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• v.24 no.4
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• pp.670-679
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• 2011

This study investigated the hotel buffet restaurant's service quality, emotional reaction of customer, recommendation intention, and defection intention. The survey was conducted from January 3 to February 7 in 2011, and 400 respondents were used in the data analysis. As a results of this study, the hotel buffet restaurant's service quality was classified by the interaction, outcome, and physical environment quality. The emotional reaction of hotel buffet restaurant's customer was classified by the positive and negative emotion. The all factors of hotel buffet restaurant's service quality had a positive impact on positive emotion, while it had a negative impact on negative emotion. The positive emotion reaction of hotel buffet restaurant's customer had a positive impact on the recommendation intention, while the negative emotion had a negative impact on the recommendation intention. And the negative emotion had a positive impact on the defection intention in hotel buffet restaurants. In addition, there were partially differences in the service quality and emotional reaction by general characteristics. There were significant differences in the recommendation intention by marriage status and monthly income. Therefore, the hotel buffet restaurants have to design a strategy of service for increasing customer's positive emotion and recommendation intention.

• Journal of Digital Convergence
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• v.14 no.1
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• pp.413-425
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• 2016

This study investigated what effects the relational benefits perceived by the customers of solely operated beauty salons have on customer satisfaction, recommendation intention, and defection intention through the convergence of cosmetology and business management. For this, a total of 322 customers of solely operated beauty salons were chosen as final valid samples. For data analysis, frequency analysis, reliability analysis, confirmatory factor analysis, and correlation analysis were performed using SPSS 15.0 and AMOS 18. For a hypothesis test, lastly, path analysis was conducted using structural equation modeling. The study results found the following: First, among the relational benefits perceived by the customers of solely operated beauty salons, confidence benefits and social benefits had a positive effect on customer satisfaction. Second, the relational benefits perceived by the customers of solely operated beauty salons had a positive effect on recommendation intention. Third, confidence benefits and social benefits had a negative effect on defection intention. Fourth, customer satisfaction had a positive effect on recommendation intention. Fifth, customer satisfaction had a negative effect on defection intention. Sixth, in relationship between the relational benefits perceived by the customers of solely operated beauty salons and recommendation/defection intention, customer satisfaction revealed partial mediating effects.

• Journal of Distribution Research
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• v.16 no.1
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• pp.179-222
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• 2011

This research investigates the influence of relational characteristics on 'co-defection', customer defection following salesperson turnover, in the context of salesperson-customer relationship. Based on the social exchange theory, it was hypothesized that perceived relational benefits and switching costs affect directly the customer's intentions to defect. Key constructs in relationship marketing such as customer satisfaction, trust, and loyalty were hypothesized to affect the customer's intention to defect as well as perceived relational benefits and switching costs. The results of structural equation modeling using a survey sample of 503 insurance customers who purchased life insurance policies through salespersons unveiled that the customer satisfaction with salesperson and the customer trust in salesperson strongly influence the salesperson-owned customer loyalty. However, they did not have significant direct effects on co-defection intentions. All paths from salesperson-owned customer loyalty to perceived relational benefits and perceived switching costs were also significant. Salesperson-owned customer loyalty did not have significant direct effects on co-defection intentions, but it had significant indirect effects on co-defection intentions through relational benefits and switching costs. Three sub-dimensions of perceived relational benefits had significant positive effects on co-defection intentions while the perceived switching costs had significant negative effects on co-defection intentions. The significance of our research findings were verified by comparing the hypothesized model and the rival model in the past studies.

• Asia pacific journal of information systems
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• v.14 no.1
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• pp.185-209
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• 2004

The purpose of this study is to propose and test a model of customer retention in Internet shopping malls when switching barriers and comprehensive customer value exist in terms of economic and experiential aspects. The literature about customer retention propose that switching barriers are important factors other than satisfaction influencing customers' intention to remain with a specific supplier. The switching barriers mean anything that makes customers' defection difficult or costly and are consisted of perceived switching costs, attractiveness of alternatives and virtual relationships. The Customer Value Scale by Mathwick(2001) is applied to this study as economic value, shopping efficiency, service excellence, aesthetic appeal and playfulness(Zeithaml, 1988; Holbrook, 1994). The analyses showed partial support for the affirmative effect of customer values and switching costs and full support for the affirmative Influence of satisfaction on repurchase intention in the Internet shopping mall environment. But the attractiveness of alternatives and virtual relationship did not have a significant Influence like the result of Jones(1998)'s study of the service industry.

• Journal of Distribution Science
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• v.11 no.4
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• pp.73-80
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• 2013

Purpose - As the smart-phone market adds new technologies and introduces new marketing trends, competition among companies is getting fierce. Now, smart-phone companies need to pay attention not only to attaining new customers but also to retaining customers, which means managing relationships to prevent customer defection. Therefore, how to satisfy customer needs and maintain long-term relations are both important to make consistent progress in the rapidly changing smart-phone market. To illustrate this point, the study focuses on analyzing the effects of consumption value on relational factors and buying intentions among smart-phone users. First, consumption value was divided into functional, economic, and emotional values. After that, the effects of these values on satisfaction and brand trust were confirmed. Additionally, effects of satisfaction and brand trust on repurchase intention were analyzed. Research design, data, and methodology - The data was collected in a self-administered survey among 270 undergraduate students, using smart-phones between June 4th-12th, 2012. A total of 257 questionnaires were collected and used for the data analysis. A path analysis based on Lisrel 8.54 was used for the hypothesis test. Consumption value was divided into functional, economic, and emotional values. Subsequently, the effects of these values on satisfaction and trust in the brand were confirmed. Additionally, the effects of satisfaction and trust in the brand on repurchase intention were analyzed. Results - First, functional value, economic value, and emotional value - especially emotional value - were revealed to have positive effects on satisfaction. Second, emotional value was shown to have positive effects on brand trust, while functional and economic values did not. Third, satisfaction had positive effects on brand trust. In considering the relative influence on brand trust, satisfaction was the most crucial factor. It is clear that in the evaluation of the direct experience, using the product or the service plays an important role in building brand trust. Fourth, satisfaction and brand trust positively influenced repurchase intention. This indicates that both factors must be achieved to induce the repurchase Intention among customers. Conclusions - One can see that the enjoyable emotions consumers feel while using smart-phones is the most important factor in increasing levels of satisfaction. Moreover, this indicates that consumers pursue economic desires along with convenient functions in order to reduce opportunity costs. Additionally, consumers are affected by psychological and emotional messages in building trust, rather than practical and rational ones. Thus, in order to appeal to young clients as an attractive brand in the smart-phone market, approaching customers with an emotional value is recommended. In addition, in order for the brand to gain trust, the overall experience the consumer feels while using smart phones should be maximized. After all, one must fulfill the consumers' desire for a new experience and show a willingness to faithfully accomplish the responsibility of the brand to strengthen relationships with customers in the smart-phone market.

• Journal of Distribution Research
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• v.17 no.1
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• pp.1-36
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• 2012

Service failure is one of the major reasons for customer defection. As the business environment gets tougher and more competitive, a single service failure might bring about fatal consequences to a service provider or a firm. Sometimes a failure won't end up with an unsatisfied customer's simple complaining but with a wide-spread animosity against the service provider or the firm, leading to a threat to the firm's survival itself in the society. Therefore, we are in need of comprehensive understandings of complainants' attitudes and behaviors toward service failures and firm's recovery efforts. Even though a failure itself couldn't be fixed completely, marketers should repair the mind and heart of unsatisfied customers, which can be regarded as an successful recovery strategy in the end. As the outcome of recovery efforts exerted by service providers or firms, recovery of the relationship between customer and service provider need to put on the top in the recovery goal list. With these motivations, the study investigates how service failure and recovery makes the changes in dynamics of fundamental elements of customer-firm relationship, such as customer affection, customer trust and loyalty intention by comparing two time points, before the service failure and after the recovery, focusing on the effects of recovery satisfaction and the failure severity. We adopted La & Choi (2012)'s framework for development of the research model that was based on the previous research stream like Yim et al. (2008) and Thomson et al. (2005). The pivotal background theories of the model are mainly from relationship marketing and social relationships of social psychology. For example, Love, Emotional attachment, Intimacy, and Equity theories regarding human relationships were reviewed. As the results, when recovery satisfaction is high, customer affection and customer trust that were established before the service failure are carried over to the future after the recovery. However, when recovery satisfaction is low, customer-firm relationship that had already established in the past are not carried over but broken up. Regardless of the degree of recovery satisfaction, once a failure occurs loyalty intention is not carried over to the future and the impact of customer trust on loyalty intention becomes stronger. Such changes imply that customers become more prudent and more risk-aversive than the time prior to service failure. The impact of severity of failure on customer affection and customer trust matters only when recovery satisfaction is low. When recovery satisfaction is high, customer affection and customer trust become severity-proof. Interestingly, regardless of the degree of recovery satisfaction, failure severity has a significant negative influence on loyalty intention. Loyalty intention is the most fragile target when a service failure occurs no matter how severe the failure criticality is. Consequently, the ultimate goal of service recovery should be the restoration of customer-firm relationship and recovery of customer trust should be the primary objective to accomplish for a successful recovery performance. Especially when failure severity is high, service recovery should be perceived highly satisfied by the complainants because failure severity matters more when recovery satisfaction is low. Marketers can implement recovery strategies to enhance emotional appeals as well as fair treatments since the both impacts of affection and trust on loyalty intention are significant. In the case of high severity of failure, recovery efforts should be exerted to overreach customer expectation, designed to directly repair customer trust and elaborately designed in the focus of customer-firm communications during the interactional recovery process to affect customer trust rebuilding indirectly. Because it is a longer and harder way to rebuild customer-firm relationship for high severity cases, low recovery satisfaction cannot guarantee customer retention. To prevent customer defection due to service failure of high severity, unexpected rewards as a recovery will be likely to be useful since those will lead to customer delight or customer gratitude toward the service firm. Based on the results of analyses, theoretical and managerial implications are presented. Limitations and future research ideas are also discussed.

• Journal of Service Research and Studies
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• v.13 no.2
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• pp.161-180
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• 2023

This study empirically analyzed the effect of perceived injustice on service recovery measures proposed by online food delivery service (OFDS) companies on consumer disappointment. This study adopted interaction justice, information justice, procedural justice, and distributive justice as sub-variables of justice perception based on the justice theory. In addition, the differences by generation (MZ generation and other generations) were examined in the relationship between negative word-of-mouth behavior and switching intentions due to service recovery failure. An online survey was conducted targeting 250 adult consumers in the U.S for the empirical analysis of this research model. The results of the data analysis demonstrated that negative perceptions about the procedural justice and distributive justice among the service recovery strategies had a positive effect upon the consumer's disappointment. Furthermore, it was confirmed that the consumer's disappointment due to the perceived injustice of the service recovery strategy had a positive effect on the consumer's negative word-of-mouth behavior and switching intentions. The verification results of the moderation effect in the relationship between negative word-of-mouth behavior and switching intention, it was found that the younger the age(MZ generation), the higher the possibility of causing dysfunctional behavior. This study expands the scope of related research by presenting a new perspective on the justice perception in the service recovery process by verifying dysfunctional behavior of consumers caused due to the failure of the service recovery strategy. It is believed that the results of this study will be used as basic data for the establishment of practical strategies for OFDS companies to prevent double defection of their customers.