This document is the author's post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it. Building Trust through Trustworthy Perceptions in Service Retail Purpose-The purpose of this research is to investigate the role of retailer trustworthiness in driving consumer trust that leads to increased loyalty. We position trustworthiness as a mediator in the link between retail strategies and the development of trust. We model consumer loyalty to the service retailer as a function of the trust created through trustworthy perceptions. Design/methodology/approach-We validate our model using 420 survey responses from consumers in a service retailer setting. Nine research hypotheses were tested using Structural Equation Modeling. Alternate models are estimated and the results provide support for our theory-based trustworthiness mediation model. Findings-Trustworthy behaviors first build trustworthiness, which then translates into consumer trust and ultimately has a positive impact on both behavioral and attitudinal loyalty. Research limitations/implications-Our research shows that it is important for retailers to signal their trustworthiness in order to build consumer trust and loyalty. Researchers should include trustworthiness perceptions into models of consumer relationships, and managers should strategically plan to develop both trust and trustworthiness with their customers. Originality/value-This study is one of the first to investigate the mediating effect of trustworthiness on customer loyalty in service settings. While past research has investigated dimensions of trustworthy behaviors, none has included a measure of trustworthiness perceptions and consumer trust in the same theoretical model. The results of our research provide important insights for both researchers and managers.
Research on interorganizational relationships is predicated on the idea that fairness is always important. The authors question this assumption because most fairness research has been conducted in Western countries, and mixed empirical support draws into question how important fairness actually is. Drawing on Hofstede's cultural dimensions framework, the authors examine culture as an antecedent to the importance of outcome fairness (OF) and procedural fairness (PF) in retailers' assessments of their relationships with suppliers. The authors also propose that cultural exposure moderates the impact of culture on fairness importance. Using responses from retailers in ten countries analyzed with hierarchical linear modeling, the authors find that uncertainty avoidance enhances the importance of OF and PF, power distance marginally decreases the importance of PF, and long-term orientation increases the importance of both OF and PF. Cultural exposure also positively moderates the impact of uncertainty avoidance and masculinity on both fairness types. The pattern of effects is robust when compared with two alternative models. This study offers a first step in understanding culture's impact on when fairness is more or less important.
Purpose Drawing on signaling theory, the purpose of this study is to investigate the effects of the strength and framing of firm signals sent to repair relationships following relationship violations. Design/methodology/approach Three 2 × 2 scenario-based experiments (total n = 527) manipulate signal strength × violation type (Study 1); signal frame × violation type (Study 2); and signal strength × brand familiarity (Study 3) to examine their dynamic impacts on relationship recovery efforts. Findings Stronger signals are more effective at relationship repair and are especially important following integrity (vs competence) violations. Signals framed as customer gains (vs firm costs) lead to more favorable relationship outcomes. Finally, brands that are less (vs more) familiar see greater benefits from strong signals. Research limitations/implications The three experiments were scenario-based, which may not replicate real-life behavior or capture participants’ actual emotions following a violation, thus future research should extend into real-world recovery efforts. Practical implications Managers should send strong signals (communicating the level of resources invested in the recovery efforts) framed as benefits to the customer, rather than costs to the firm. Strong signals are especially important when brand familiarity is low or an integrity violation has occurred. Originality/value This is the first research to directly apply signaling theory to the relationship recovery process and contributes to theory by examining the role of signal strength; framing of the signal as a customer gain vs firm cost; and the interplay of signal strength and brand familiarity on the relationship recovery effort.
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