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Open Access
Article
Publication date: 26 September 2023

René Hubert Kerschbaumer, Thomas Foscht and Andreas B. Eisingerich

The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription…

Abstract

Purpose

The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription contracts. At the same time, disruptive platform businesses have arisen in several consumer markets, bypassing traditional value chains while growing through network effects. In a conceptual approach, the authors address the future market for durable consumer goods in light of developments toward access-based consumption, subscription models and platform business models.

Design/methodology/approach

In a conceptual approach, the authors apply a scenario analysis following the Framework Foresight method and address trends, constants, plans and projections shaping the future market of subscriptions for durable goods. The authors create a baseline scenario and two alternative scenarios for the future of consumer durables and thereby discuss platform growth stages and implications for manufacturer brands.

Findings

The rising market power of platform companies leads to a baseline scenario where these platforms enter the market of subscriptions for durable goods. Alternative scenario 1 addresses the successful market entry of new platform businesses. In contrast, alternative scenario 2 describes the rise of manufacturer brand platforms.

Originality/value

This conceptual research enriches the discussion of access-based business models by creating scenarios depicting possible future developments. Moreover, it adds to the increasing focus on platform business models and thereby addresses the role of traditional manufacturer brands in markets for durable consumer goods subscriptions.

Details

Journal of Business Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 2 February 2018

Thomas Foscht, Yuting Lin and Andreas B. Eisingerich

This paper aims to explore how and when a business’ transparency leads to greater willingness to engage in sustainable and responsible consumption by consumers.

2651

Abstract

Purpose

This paper aims to explore how and when a business’ transparency leads to greater willingness to engage in sustainable and responsible consumption by consumers.

Design/methodology/approach

Data were collected in two studies. Study 1 collected data from 219 consumers in a large shopping mall. Study 2 followed an experimental approach and used data from 327 participants.

Findings

The current research contributes to theory by hypothesizing and demonstrating when transparency is associated with higher willingness for sustainable and responsible consumption. Critically, the positive benefits of transparency vary according to a business’ future orientation, corporate social responsibility (CSR) and levels of customer involvement.

Practical implications

An important societal and practical implication of the current research is that business should not be expected to only focus on transparency in isolation but rather also needs to consider levels of perceived future orientation, CSR and levels of customer involvement to strengthen sustainable and responsible behavior effectively.

Originality/value

This research builds on and extends current knowledge by exploring the key role of business’ transparency in influencing sustainable and responsible customer behavior and examines critical boundary conditions for the observed effects.

Details

European Journal of Marketing, vol. 52 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 22 March 2019

Hueiting Tsai, Shengce Ren and Andreas B. Eisingerich

The purpose of this paper is to theorize and empirically examine the effects of intra- and inter-regional geographic diversification on firm performance in China. Furthermore, it…

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Abstract

Purpose

The purpose of this paper is to theorize and empirically examine the effects of intra- and inter-regional geographic diversification on firm performance in China. Furthermore, it investigates they key firm capabilities, which moderate the relationships between intra- and inter-regional geographic diversification and firm performance.

Design/methodology/approach

In this research, the authors studied 366 listed companies that invest in mainland China. The authors used the Taiwan Economy Journal database to construct a panel data set from 2005 to 2014 and employed panel regression estimations as part of the empirical analyses.

Findings

The authors find that the effect of regional diversification on firm performance is significantly influenced by the contexts of the expansion. More specifically, the results show that the effect of intra-regional geographic diversification on firm performance takes the form of a U-shape relationship. In contrast, the authors find that inter-regional geographic diversification has a negative effect on firm performance. Firm marketing, research and development (R&D) and managerial capabilities moderate these relationships.

Research limitations/implications

First, the companies studied in this research are mainly Taiwanese manufacturers with investments in mainland China. Second, the current model can be expanded by exploring additional process explanations and moderators in future research.

Practical implications

An important practical implication of this research is that when firms choose an intra-regional expansion strategy in China, they should adopt a moderate provincial diversification strategy in the invested region and reinforce its marketing capability to enhance firm performance. A careful consideration of a firm’s marketing, R&D and managerial capabilities is needed for successful regional diversification strategies in the China market.

Originality/value

The findings of this study contribute significantly to the existing literature on firms’ regional diversification. First, the authors explore and empirically test intra- and inter-regional geographic diversification strategies in China. The authors find that the effect of regional diversification on firm performance varies according to the contexts of the expansion (for instance, global, regional, in a single country). Second, this study furthers the research theme of intra- and inter-regional diversification by introducing and investigating previously unexplored firm capabilities as part of the framework.

Article
Publication date: 10 October 2008

Andreas B. Eisingerich and Simon J. Bell

Current marketing theory and practice have recognized that exchanges between buyers and sellers are frequently embedded in social relationships. Despite the vast body of research…

2831

Abstract

Purpose

Current marketing theory and practice have recognized that exchanges between buyers and sellers are frequently embedded in social relationships. Despite the vast body of research on interorganizational exchange, there has been little effort to address the role of larger social networks in which business‐to‐business services firms operate. This paper seeks to present a model of how social network theory can help in understanding why some services firms manage to reinvent themselves and continue to succeed in a business‐to‐business environment, while others are slow to change and decline.

Design/methodology/approach

Drawing on 81 in‐depth interviews conducted with general managers/chief executive officers operating in information technology, and biotechnology business‐to‐business services contexts, we consider the relative importance of both network strength and network openness in driving business performance.

Findings

The authors identify both network strength between firms and openness towards new actors as underpinning competitive advantage in business‐to‐business services.

Research limitations/implications

Data were collected for service firms operating in two different industries in two regions. The paper underscores the importance of examining the network properties that connect exchange partners when discussing firm performance in business‐to‐business service contexts.

Originality/value

The paper makes a series of important contributions to the small, but growing literature on services networks and has direct implications for managers.

Details

Journal of Services Marketing, vol. 22 no. 7
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 5 June 2007

Simon J. Bell and Andreas B. Eisingerich

The purpose of this paper is to consider the dynamics of customer education by exploring the relationship between education and customer expertise and their combined effects on…

6623

Abstract

Purpose

The purpose of this paper is to consider the dynamics of customer education by exploring the relationship between education and customer expertise and their combined effects on customer loyalty in a high involvement investment services context. The paper also considers the service context within which customer education initiatives are delivered. More specifically, it explores the moderating effects of increasing levels of customer expertise (the outcome of customer education) on the relative importance of technical service quality (what is delivered) and functional service quality (how it is delivered) in determining the loyalty decision. In doing so, the paper aims to provide implications for the investment service firm for managing the service offering as customers develop expertise over time.

Design/methodology/approach

The paper proposes a conceptual model that formalises the research objectives as a series of testable hypotheses. This is followed by an outline of the research design and method. The hypotheses are tested using a sample of 1,268 high value clients from a global investment services firm. An analysis of the model and the results is presented.

Findings

Customer loyalty was found to be positively and significantly related to technical service quality, functional service quality, and customer education. Contrary to expectations, however, customer expertise was not negatively related to customer loyalty. Customer education was found to be positively associated with customer expertise. The main effect of customer education on loyalty was significant; however it did not diminish when customer expertise was entered into the third equation. In other words, the conditions for partial mediation were not satisfied. Finally, the positive and significant interaction coefficient between technical service quality and expertise implied that the positive effect of technical service quality on consumer customer loyalty was indeed stronger when customer expertise was high. Conversely, and consistent with expectations, the interaction term between functional service quality and customer expertise was significant and negative, indicating that the positive relationship between functional service quality and customer loyalty is diminished as customer expertise increases.

Originality/value

Where there is a significant amount of research on customer knowledge and expertise, there is relatively less understanding of how customers acquire such knowledge. It is hoped that this paper can shed some additional light on the subject of customer education, its impact on customer expertise and, ultimately, on the way in which service quality is perceived.

Details

European Journal of Marketing, vol. 41 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 10 July 2007

Andreas B. Eisingerich and Simon J. Bell

The growing importance of relationship marketing has increased interest in the role of consumer trust and loyalty in establishing, developing, and maintaining successful…

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Abstract

Purpose

The growing importance of relationship marketing has increased interest in the role of consumer trust and loyalty in establishing, developing, and maintaining successful relational exchanges. The aim of this study is first, to examine the differential effects of perceived service quality, trust, and loyalty on repurchase intentions, second, to specify loyalty as a key mediating variable in the consumer‐trust repurchase intentions relationship, and finally, to directly confront the thesis that loyalty is a more powerful determinant of long‐term relationships than trust.

Design/methodology/approach

To test the proposed model in the context of professional services, the authors use data collected from 1,125 customers of a global financial services firm.

Findings

The results highlight customers' willingness to recommend the firm to relatives or friends to be the key driver of customer commitment to the organization.

Research limitations/implications

Although this single‐industry approach may establish the internal validity of the proposed model, replication in alternative service settings is needed to increase the generalizability of the findings. Further research is needed to investigate the longitudinal effects of trust and loyalty on repurchase intentions in professional service contexts.

Originality/value

The findings contribute to understanding of the relationships between different elements of service quality, trust, loyalty, and repurchase intentions; provide critical implications for managers of service organizations; and highlight directions for future research.

Details

Journal of Services Marketing, vol. 21 no. 4
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 7 August 2007

Katherine Tyler, Mark Patton, Marco Mongiello and Derek Meyer

The purpose of this article is to review the emerging literature of services business markets (SBMs) from 1974 to 2007 and analyse main themes that indicate the development of the…

3044

Abstract

Purpose

The purpose of this article is to review the emerging literature of services business markets (SBMs) from 1974 to 2007 and analyse main themes that indicate the development of the literature. It also aims to provide an introduction to the special issue on services business‐to‐business markets by examining the context.

Design/methodology/approach

The literature of SBMs from 1974 through 2007 was searched in relevant databases. The articles were analysed using Glaser's grounded theory. The constant comparison method was used with in vivo coding to reveal themes in the literature. These themes were then analysed contextually.

Findings

The literature revealed seven themes which followed a trajectory from implicit to explicit consideration of SBMs, as well as to multi‐ and cross‐disciplinary focus with integration of variables from consumer services marketing. The landscape for SBMs has become blurred due to deregulation, globalisation and information technology, particularly the internet and e‐commerce. The complexity and diversity of the literature reflects this new, blurred reality.

Research limitations/implications

This research is limited to indicative literature about SBMs as an introduction to the special issue on services business‐to‐business markets. The literature would benefit from a full critical review and research agenda.

Practical implications

The integration of theories coupled with the focus on specific service sectors and contexts, provide useful, applicable and transferable concepts which may be helpful to managers who are working in new contexts.

Originality/value

This article surveys the emergence of the literature on SBMs and defines its trajectory, themes and characteristics. It provides a useful background for academics and practitioners who would find a guide to the fissiparous literature on SBMs useful.

Details

Journal of Services Marketing, vol. 21 no. 5
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 14 March 2022

Xiaochi Sun, Andreas Benedikt Eisingerich, Thomas Foscht, Xuebin Cui and Judith Schloffer

Customers often want to learn about a product/service, and companies can benefit from such a learning desire. While prior research has shed light on firm-beneficial outcomes of…

Abstract

Purpose

Customers often want to learn about a product/service, and companies can benefit from such a learning desire. While prior research has shed light on firm-beneficial outcomes of customer learning and explored the motivational factors of business partners’ learning behavior, less is known about the critical antecedents of individual customers’ learning behavior. This study aims to explore the key drivers of individual customers’ learning desires and identified customers with a stronger learning desire.

Design/methodology/approach

This research used both a lab experiment (Study 1, N = 148) and surveys (Study 2, N = 553; Study 3, N = 703) across different participant populations and product contexts.

Findings

This study indicated that both involvement and knowledge-sharing intention drove customer learning desire. Customer expertise further strengthened these main effects. Moreover, a stronger learning desire led to greater customer satisfaction.

Research limitations/implications

This study identified key factors involved in customer learning desire and its potential benefits for companies. Additional research to investigate customer learning in specific environments and forms and regarding specific brands is warranted.

Practical implications

This study emphasizes the importance of supporting customer learning and encourages businesses to manage customer learning proactively. It also provides suggestions for effective learning support for targeted customer groups.

Originality/value

This study contributes to the customer learning literature by exploring key influencing factors of individual customers’ learning desires, based on self-determination theory. It also identified the role of customer expertise in shaping customers’ learning processes. Moreover, this study examined customer learning as a novel way to enhance customer satisfaction.

Details

European Journal of Marketing, vol. 56 no. 3
Type: Research Article
ISSN: 0309-0566

Keywords

Open Access
Article
Publication date: 15 May 2023

Yu-Ting Lin, Thomas Foscht and Andreas Benedikt Eisingerich

Prior work underscores the important role of customer advocacy for brands. The purpose of this study is to explore the critical role customers can play as brand heroes. The…

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Abstract

Purpose

Prior work underscores the important role of customer advocacy for brands. The purpose of this study is to explore the critical role customers can play as brand heroes. The authors developed and validated a measurement scale composed of properties that are derived from distinct brand hero motivational mechanisms.

Design/methodology/approach

The authors conducted one exploratory pilot, using semi-structured interviews, with industry and academic experts, and employed three main studies across varying brands and market settings.

Findings

This study explores and empirically demonstrates how the brand hero scale (BHS) is related to, yet distinct from, existing scales of opinion leaders, market mavens, attachment and customer advocacy. The six-item BHS demonstrates convergent, discriminant, nomological and predictive validity across several different brand contexts.

Research limitations/implications

This research extends the extant body of work by identifying and defining brand heroes, developing and validating a parsimonious BHS, and demonstrating how its predictive validity extends both to a range of key advocacy and loyalty customer behaviors.

Practical implications

The study provides provocative insights for marketing researchers and brand managers and ascertains the important role heroes may play for brands in terms of strong customer advocacy and loyalty behaviors.

Originality/value

Building on the theory of meaning, this study shows that identifying and working with brand heroes is of great managerial importance and offers critical avenues for future research.

Details

European Journal of Marketing, vol. 57 no. 13
Type: Research Article
ISSN: 0309-0566

Keywords

Open Access
Article
Publication date: 25 March 2022

Niloofar Kazemargi, Ernesto Tavoletti, Andrea Appolloni and Corrado Cerruti

The purpose of this paper is to investigate how focal firms in supply networks manage weak and strong ties for exploration and exploitation innovation in mature industries. In…

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Abstract

Purpose

The purpose of this paper is to investigate how focal firms in supply networks manage weak and strong ties for exploration and exploitation innovation in mature industries. In doing so, the paper extends the understanding of how focal firms manage open innovation (OI).

Design/methodology/approach

The empirical base is a multiple case study conducted on three companies operating in mature industries in Europe.

Findings

Findings of this study reveal, analyze and explain a diverse set of OI practices in the supply networks of mature industries in which the focal firms integrate strong and weak supply ties to enhance innovation outcomes. This study provides a fine-grained view of the benefits of the additive and interactive effects of strong and weak ties in OI. More specifically, the analysis reveals an enhancing role of strong supply ties in exploration, which previously was associated solely with weak ties. Moreover, this study sheds light on the dominant and orchestrating roles of focal firms.

Practical implications

The findings provide insights to enhance OI practices beyond the limited role of the weak ties of the supply network and highlight the essential role of the strong supply ties in mature industries.

Originality/value

While previous studies have associated exploration with weak ties, findings of this study reveal that exploration-oriented activities in mature industries also extend to strong ties. In the strong ties of mature industries, this study finds there is not only the exploitation of existing knowledge but also the reconfiguration and innovation of products.

Details

European Journal of Innovation Management, vol. 25 no. 6
Type: Research Article
ISSN: 1460-1060

Keywords

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