The cues that matter: Screening for quality signals in the ex ante phase of buying professional services

Pemer, Frida; Skjølsvik, Tale

doi:10.1016/j.jbusres.2019.02.005

Cited by 26 publications

(24 citation statements)

References 74 publications

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“…In other words, people can distinguish whether the product is good or not. However, with credence goods, it is usually hard for customers to verify the quality of the product they have received [17][18][19]. For example, in the area of online health care consultation, when patients receive suggestions from the doctor, in general, it is hard for them to know for certain whether the doctor's advice is appropriate for their personal situation.…”

Section: Introductionmentioning

confidence: 99%

Consultation Pricing of the Online Health Care Service in China: Hierarchical Linear Regression Approach

Chiu¹,

Wang²,

Yu³

et al. 2021

J Med Internet Res

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Background Online health care services are a possible solution to alleviate the lack of medical resources in rural areas, and further understanding of the related medical service pricing system would contribute to improvement of the online health care community (OHC). Although many studies have investigated the OHC, the impact of physicians’ reputations and wage levels on consulting prices in the OHC has rarely been discussed in the literature. Objective This study was designed to explore the determinants of consulting prices in the OHC. We addressed the following questions: (1) Are the prices of online health consultation services affected by wage levels at the doctor’s location? (2) How does a physician’s online and offline reputation affect their consulting prices? Methods Employing a large-scale sample of 16,008 doctors in China, we first used descriptive statistics to investigate the determinants of consulting prices in their entirety. Hierarchical linear modeling was then used to investigate the determinants of consulting prices in the OHC. Results The empirical results led to the conclusion that if doctors have more elevated clinic titles, work in higher-level hospitals, have better online reputations, and/or have made more past sales, their consulting prices will be higher. Additionally, the wage level in the city in which the doctor is working determines their opportunity cost and therefore also affects consulting prices. Conclusions The findings indicate that the characteristics of the doctor, the doctor’s online reputation, and past sales affect the consulting price. In particular, the wage level in the city affects the price of the consultation. These findings highlight that the OHC is important because it can indeed break through geographical restrictions and give rural residents the opportunity to obtain medical service from doctors in big cities. However, doctors from cities often charge higher fees because of their higher opportunity cost. The results reveal that one of the most important functions of the OHC is to reduce the medical disparity between urban and rural areas; however, planners appear to ignore the possibility that rural residents with lower incomes may not be able to afford such high medical consultation costs. Therefore, the government should consider providing incentives to encourage urban doctors to provide discounts to rural residents or directly offer appropriate subsidies.

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Section: Introductionmentioning

confidence: 99%

Consultation Pricing of the Online Health Care Service in China: Hierarchical Linear Regression Approach

Chiu¹,

Wang²,

Yu³

et al. 2021

J Med Internet Res

View full text Add to dashboard Cite

show abstract

“…Prior knowledge about professional services indicates that a professional's ability to develop a successful solution for a customer's problem is the most important driver of customer satisfaction and loyalty (Pemer and Skjølsvik, 2019). By tailoring solutions to meet demand, PSFs can secure the loyalty of valuable customers (Desyllas et al, 2018).…”

Section: Model and Hypothesesmentioning

confidence: 99%

Antecedents of professionals’ self-efficacy in professional service firms: effects of external source credibility and content quality

Cassia

Magno

2021

JBIM

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Purpose Professional service firm (PSF) performance depends on the accumulation and application of specialist knowledge to find customised solutions to customer problems. However, available research has not examined whether knowledge acquired from external sources affects PSF outcomes by strengthening professionals’ beliefs rather than only by increasing technical competency. Drawing on self-efficacy theory, this study tests a model that links the quality of content acquired from external sources and the credibility of those sources to professionals’ self-efficacy and, in turn, to PSF outcomes (solution quality and firm performance). In particular, this paper aims to consider the case of professional content exchanged through professional social media. Design/methodology/approach A cross-sectional research design was applied. Data were collected from a sample of 208 accountants, auditors and lawyers who used professional social media and were analysed using covariance-based structural equation modelling. Findings When accessing professional content from external sources, source credibility and content quality are significant antecedents of professionals’ self-efficacy, which, in turn, has positive effects on PSF outcomes (solution quality and PSF performance). Research limitations/implications Self-efficacy plays a key role in the link between knowledge acquired from external sources (professional content) and PSF outcomes. Practical implications This study provides recommendations and actionable insights for PSFs, professionals and other actors who create and exchange professional content. Professional associations may also take an active role by contributing and sharing credible and high-quality content, using, for example, professional social media. Originality/value This paper advances the current understanding of the effects of professionals’ access to content from external sources on PSF outcomes. It provides an explanation of these effects based on the enhancement of professionals’ beliefs instead of their technical competencies, as indicated in previous research. In addition, it is the first research effort to consider professional social media as a communication channel to exchange content that affects the self-efficacy of PSF professionals.

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“…Service provider’s reputation encompasses both their previous market actions (Basdeo et al , 2006), as well as the perceived honesty of their previous actions and signals related to a focal customer firm (Connelly et al , 2011). This grants reputation a status of privileged proxy (Greenwood et al , 2005), used by customer firms to deal with the problem of opaque quality, which is common in business services (Pemer and Skjølsvik, 2019; Von Nordenflycht, 2010). Accordingly, the bluffing behavior of more reputable service providers is likely to be more successful as their customers save time by paying less attention to potentially conflicting signals.…”

Section: Research Model and Hypothesis Developmentmentioning

confidence: 99%

Placebo outsourcing: when does provider’s bluffing enhance customer satisfaction?

Florea

Barbu

Rotea

2021

JBIM

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Purpose Drawing on signaling theory, this paper aims to argue in favor of a “placebo outsourcing effect” (POE) consisting of a positive relationship between provider’s bluffing and customer satisfaction. Design/methodology/approach The authors applied prediction-oriented segmentation SEM on a dyadic sample of 171 outsourcing relationships. Findings The authors highlighted two segments that display a form of POE, representing about three-quarters of the customer-provider dyads. The first segment exhibits a positive relationship between the provider’s bluffing and customer satisfaction that is further strengthened by the provider’s reputation and customer’s operational capabilities, while for the other segment, the provider’s bluffing has positive interactions with both operational capabilities and outsourcing experience. These findings show that service providers have reached the bluffing proficiency that enables them to bluff customer firms with varying levels of operational capabilities and outsourcing experience by using the most appealing signals for every type of customer. Practical implications Based on the findings, the authors provided to customer firms extensive guidelines to avoid the POE by frustrating service provider’s bluffing proficiency. Originality/value This study’s originality resides in the amendment of the disconfirmation paradigm of satisfaction in the outsourcing context by introducing and testing the POE.

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The cues that matter: Screening for quality signals in the ex ante phase of buying professional services

Cited by 26 publications

References 74 publications

Consultation Pricing of the Online Health Care Service in China: Hierarchical Linear Regression Approach

Consultation Pricing of the Online Health Care Service in China: Hierarchical Linear Regression Approach

Antecedents of professionals’ self-efficacy in professional service firms: effects of external source credibility and content quality

Placebo outsourcing: when does provider’s bluffing enhance customer satisfaction?

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