The effects of deviant customer-oriented behaviors on service friendship: The moderating role of co-production

Jung, Jin Ho; Yoo, Jaewon

doi:10.1016/j.jretconser.2019.02.012

Cited by 29 publications

(33 citation statements)

References 59 publications

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“…As described in the story above, such changes can in turn prompt the employees in stores to make changes to their ways of working. These 'new ways of doing things' are often referred to as deviance [7,34,55,79]: means of accomplishing work that are alternative to an existing routine. These phenomena have so mostly been studied under labels such as exceptions [84], drift [52], violations [86] or loss of control [8].…”

Section: Introductionmentioning

confidence: 99%

How store managers can empower their teams to engage in constructive deviance: Theory development through a multiple case study

Mertens

Recker

2020

Journal of Retailing and Consumer Services

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In this paper, we explore how leaders enable constructive deviance in teams they manage. We report on a qualitative field study of two hierarchical layers of store management in 17 supermarket store teams. We focus on the emergence of constructive deviance -better ways of creating value by departing from common ways of working -and how store leaders can enable this behavior. Our inductive analysis from the multiple case data suggests that store management can enable constructive deviance by combining empowering leadership behaviors with adequate levels of contingent reward and monitoring behaviors. These findings allow us to develop new hypotheses about the linkages between constructive deviance, psychological empowerment, and leadership. We detail implications for store management and we describe several future research opportunities on the concept of constructive deviance, its enablement through empowering leadership, and the relationship between organizational norms and constructive deviance.

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Section: Introductionmentioning

confidence: 99%

How store managers can empower their teams to engage in constructive deviance: Theory development through a multiple case study

Mertens

Recker

2020

Journal of Retailing and Consumer Services

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“…Co-production continues to generate research interest as an important and expanding element of the economy (Dellaert, 2019; Jung and Yoo, 2019; Pacheco et al , 2017). Prior scholars have noted that, while sharing similarities, co-production is different from co-creation in that co-production is concerned with the product offering itself and potential value generated from participating in the production process, whereas consumers are always co-creators of value (Chaney, 2019; Chathoth et al , 2013; Etgar, 2008; He et al , 2017; Prahalad and Ramaswamy, 2004; Vargo and Lusch, 2014; Voorberg et al , 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

“…In any case, consumers engage in co-production when the purchase situation is advantageous for doing so – that is, when the consumer can attain greater value through co-production, then the consumer is likely to co-produce when that option is available (Etgar, 2008). Co-production has been shown to enhance consumer responses in many contexts, including media communication (Bacile et al , 2014; Namin et al , 2017a) and services (Chathoth et al , 2013; Jung and Yoo, 2019; Namin, 2017; Pacheco et al , 2017; Torres et al , 2018), as well as goods.…”

Section: Literature Reviewmentioning

confidence: 99%

Co-production or DIY: an analytical model of consumer choice and social preferences

Dargahi

Namin

Ketron

2020

JPBM

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Purpose The purpose of this paper is to demonstrate how consumers choose among three different options offered by a firm in a monopolistic setting, namely, to buy a standard product with a non-customizable design, to ask the firm to customize a product using the consumer’s ideal design or to do the entire design task by themselves. The authors also investigate how social preference intensity and the possibility of reselling a product influence a consumer’s decision. Design/methodology/approach The authors develop an analytical (game theoretical) consumer choice framework and incorporate a psychological factor into the model. The authors also empirically validate the analytical findings using simulations. Findings The authors find that as social preference intensity increases, the number of co-producers can either decrease or increase. The authors offer a closed-form solution and interval graphs showing that when the setup price is large (small), the proportion of the market that chooses to do-it-yourself (DIY) is large (small) and an increase in social preference intensity leads to a decrease (increase) in co-production. Originality/value This is the first paper to incorporate a social factor into an economic model in a consumer behavior setting. It is also the first paper to explain how customers’ preferences among possible options, such as DIY (without the firm’s help), co-production (with the firm’s help) and a standard product might change while considering other people’s preferences, as well as given associated costs.

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“…Chaney (2019) qualitatively studied crowd-funding, which is considered as a specific case of co-production. Jung and Yoo (2019) empirically examined the moderating role of customer co-production in the effect of customer indebtedness on service friendship. This study complements these empirically works by modeling a closed-form game for the co-production strategy in a typical distribution channel, which includes a manufacturer who can manipulate the strength of co-production, two competing retailers with different service abilities, and heterogeneous consumers on product preferences.…”

Section: Literature Review and Theoretical Backgroundmentioning

confidence: 99%

Co-production strategy, retail competition, and market segmentation

Wang

Fan

2019

APJML

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Purpose The purpose of this paper is to examine the effect of manufacturers’ co-production strategy on market segmentation and channel performance under retail competition. Design/methodology/approach It differs from previous empirical studies by primarily focusing on the increment in consumer value accompanying co-production. The authors establish a game-theoretical model to analyze the impact of co-production on market segmentation and the profitability of channel members in a competitive retail environment. Findings The results reveal that manufacturers introducing co-production expand market coverage and benefit all channel members, when the intensity of competition is sufficiently high, especially for retailers with low-quality levels, who are out of the market without co-production. Furthermore, with the increase in customer valuation through co-production, employing a co-production strategy is always a dominant strategy for manufacturers. Research limitations/implications First, although the authors assume a monopoly manufacturer and two duopoly retailers, adding competition between manufacturers should enrich the model. Multiple products with vertical or horizontal differentiation could also be introduced into the model. Second, the authors use the multiplicative utility function to model the value co-creation effect on consumers; however, different utility functions may yield significantly different results and implications. Third, the authors model a one-shot game in a single product selling period; future studies may employ multi-period games to obtain further insight into co-production strategy. Finally, the model assumes that all consumers are homogenous in the extent of value creation and hassle cost. Future research may find it interesting to consider heterogeneity in these characteristics. Practical implications The business world today already sees the power of leadership in a supply chain to have shifted from manufacturers to retail giants such as Walmart, Home Depot and Best Buy. The findings also propose a new route to counteract the emergence and rise of dominant retailers. On the other hand, with the application of new technology in the retail industry such as 3D avatar, AR/VR, Internet of Things, consumers are more likely to participate in various forms of co-production activities, how to execute the co-production strategy has become more and more important for managers. Social implications The conclusion of this study points out the way to achieve a win–win outcome under which both channel members including manufacturer and retailers and consumers can be better off, that is, the channel can reach Pareto improvement, so the social welfare is increased accordingly. Originality/value The authors propose an analytical framework to examine the effects of co-production and competition on market segmentation and profitability, and prove that co-production is a powerful marketing tool that can attract consumers and increase profitability, which manufacturers can incorporate into their products even in a competitive environment.

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The effects of deviant customer-oriented behaviors on service friendship: The moderating role of co-production

Cited by 29 publications

References 59 publications

How store managers can empower their teams to engage in constructive deviance: Theory development through a multiple case study

How store managers can empower their teams to engage in constructive deviance: Theory development through a multiple case study

Co-production or DIY: an analytical model of consumer choice and social preferences

Co-production strategy, retail competition, and market segmentation

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