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Confronted with increasing digitalization, service firms are challenged to sustain customer loyalty. A promising means to do so is to leverage the digital presence of service employees on their website. A large-scale field study and several experimental studies show that the digital presence of service employees on the firm website increases current website service quality perceptions and positively shapes memories related to employee service quality perceptions from past service encounters. Both effects indirectly increase customer loyalty and, in turn, financial performance, and are amplified by employee accessibility and a service firm’s customer orientation. The authors examine further boundary conditions for the memory process: only service employees evoke the beneficial spillover effect to employee service quality perceptions, and the spillover effect does not generalize to evaluations of product quality. Remarkably, an employee’s digital presence, although factually unrelated, augments customer perceptions of service employees’ competence and commitment and thus strengthens rather than erodes service employees’ role in customer–firm relationships. Theoretical and managerial implications deepen the understanding of how to add a human touch to digital channels.

The proliferation of new touchpoints empowers today's customers to design their own journey from search to purchase. To address this new complexity, we segment customers by their use of specific touchpoints in the customer journey, investigate the association of several covariates with segment membership, consider the rise of mobile devices as potential "game changers" of existing segments, and explore how the relationships among product satisfaction, journey satisfaction, customer inspiration, and customer loyalty differ across segments. Based on anticipated utility theory and using latent class analyses on large-scale data from two samples of 2,443 and 2,649 journeys, we identify five time-consistent segments-store-focused shoppers, pragmatic online shoppers, extensive online shoppers, multiple touchpoint shoppers, and online-to-offline shoppers-that differ considerably in their touchpoint and mobile device usage, their segment-specific covariates, and their search and purchase patterns. The five segments remain unchanged in the two data sets even though the usage of mobile devices has increased substantially. Furthermore, we find that the relationships between various loyalty antecedents and customer loyalty differ between the segments. The insights from this paper help retailers develop segment-specific customer journey strategies. (C) 2019 Published by Elsevier Inc. on behalf of New York University.

Big data technologies and analytics enable new digital services and are often associated with superior performance. However, firms investing in big data often fail to attain those advantages. To answer the questions of how and when big data pay off, marketing scholars need new theoretical approaches and empirical tools that account for the digitized world. Building on affordance theory, the authors develop a novel, conceptually rigorous, and practice-oriented framework of the impact of big data investments on service innovation and performance. Affordances representaction possibilities, namely what individuals or organizations with certain goals and capabilities can do with a technology. The authors conceptualize and operationalize three important big data marketing affordances: customer behavior pattern spotting, real-time market responsiveness, and data-driven market ambidexterity. The empirical analysis establishes construct validity and offers a preliminary nomological test of direct, indirect, and conditional effects of big data marketing affordances on perceived big data performance.

This paper identifies and explains a potential tension between a firm's emphasis on customer orientation (CO) and the extent to which employees value CO as a success factor for individual performance. Based on self‐determination theory and CO implementation research, the authors propose that firm CO may represent both autonomous and controlled motivations for CO, but that employees’ CO is more strongly linked to individual performance when employees experience solely autonomous motivation. Hence, the authors expect a substitution effect whereby the link between employees’ CO and their performance is weaker when firm CO is high. Furthermore, the authors examine a boundary condition for the previous hypothesis and propose that performance‐contingent rewards have a positive effect on the internalization of the extrinsic motivation stemming from firm CO. Two multilevel studies with 979 employees and 201 top management team members from 132 firms support these hypotheses. Against previous research, these findings offer a new perspective on the effectiveness of CO initiatives, propose employees’ motivational states as the theoretical explanation for the heterogeneity in the link between employee CO and performance, and reappraise the role of performance‐contingent rewards in CO research. Managerial implications for the effective implementation of customer‐oriented initiatives within firms are provided.

While increasing the organizational identification of employees has been described as the ultimate goal of internal marketing and internal branding, one of its most common practices is to communicate organizational values both internally and externally. However, very little is known about the relative effectiveness of different types of organizational brand communication. Drawing from construal level theory, this research investigates whether the degree of construal fit, defined as the extent to which the construal of communication matches an employee’s construal of headquarters, determines the relative impact of organizational brand communication. A series of studies consisting of two cross-industrial multilevel field studies and a lab experiment provide evidence that organizational brand communication with low-level (high-level) construal is more effective to target employees with low (high) social distance to headquarters. These findings suggest that construal fit qualifies the effectiveness of organizational communication. JEL CLASSIFICATION: M3 Marketing and Advertising

While increasing the organizational identification of employees has been describedas the ultimate goal of internal marketing and internal branding, one of its most common prac-tices is to communicate organizational values both internally and externally. However, very littleis known about the relative effectiveness of different types of organizational brand commu-nication. Drawing from construal level theory, the current research investigates whether thedegree of construal fit, defined as the extent to which the construal of communication matchesan employee’s construal of headquarters, determines the relative impact of organizationalbrand communication. A series of studies consisting of two cross-industrial multilevel fieldstudies and a lab experiment provide evidence that organizational brand communication withlow-level (high-level) construal is more effective to target employees with low (high) socialdistance to headquarters. These findings suggest that construal fit qualifies the effectivenessof organizational communication.

This article investigates how and when a firm’s level of customer contact influences the collective organizational energy. For this purpose, we bridge the literature on collective human energy at work with the job impact framework and organizational sensemaking processes and argue that a firm’s level of customer contact is positively linked to the collective organizational energy because a high level of customer contact might make the experience of prosocial impact across the firm more likely. However, as prior research at the individual level has indicated that customers could also deplete employees’ energy, we introduce transformational leadership climate as a novel contingency factor for this linkage at the organizational level. We propose that a medium to high transformational leadership climate is necessary to derive positive meaning from customer contact, whereas firms with a low transformational leadership climate do not get energized by customer contact. We tested the proposed moderated mediation model with multilevel modeling and a multisource data set comprising 9,094 employees and 75 key informants in 75 firms. The results support our hypotheses and offer important theoretical contributions for research on collective human energy in organizations and its interplay with customers.

Online firestorms pose severe threats to online brand communities. Any negative electronic word of mouth (eWOM) has the potential to become an online firestorm, yet not every post does, so finding ways to detect and respond to negative eWOM constitutes a critical managerial priority. The authors develop a comprehensive framework that integrates different drivers of negative eWOM and the response approaches that firms use to engage in and disengage from online conversations with complaining customers. A text-mining study of negative eWOM demonstrates distinct impacts of high- and low-arousal emotions, structural tie strength, and linguistic style match (between sender and brand community) on firestorm potential. The firm’s response must be tailored to the intensity of arousal in the negative eWOM to limit the virality of potential online firestorms. The impact of initiated firestorms can be mitigated by distinct firm responses over time, and the effectiveness of different disengagement approaches also varies with their timing. For managers, these insights provide guidance on how to detect and reduce the virality of online firestorms.

Purpose – The purpose of this paper is to explore how and when customers influence organizational climate and organizational health through their feedback. Based on affective events theory, the authors classify both positive and negative customer feedback (PCF and NCF) as affective work events. The authors expect that these events influence the positive affective climate of an organization and ultimately organizational health, and that the relationships are moderated by empowerment climate. Design/methodology/approach – Structural equation modeling was utilized to analyze survey data obtained from a sample of 178 board members, 80 HR representatives, and 10,953 employees from 80 independent organizations. Findings – The findings support the expected indirect effects. Furthermore, empowerment climate strengthened the impact of PCF on organizational health but does not affect the relationship between NCF and organizational health. Research limitations/implications – The cross-sectional design is a potential limitation of the study. Practical implications – Managers should be aware that customer feedback influences an organization’s emotional climate and organizational health. Based on the results organizations might actively disseminate PCF and establish an empowerment climate. With regard to NCF, managers might consider the potential affective and health-related consequences for employees and organizations. Social implications – Customers are able to contribute to an organization’s positive affective climate and to organizational health if they provide positive feedback to organizations. Originality/value – By providing first insights into the consequences of both PCF and NCF on organizational health, this study opens a new avenue for scientific inquiry of customer influences on employees at the organizational level.

Multichannel retailers aim at steering customers to physical stores to increase cross-selling, benefit from higher margins, and offer multisensory experiences. The question is how retailers can steer customers to strategically important channels. We propose that retailers may induce customers to switch to physical stores by communicating information about channel integration on their websites but that this explicit communication of channel integration is additionally influenced by the implicit communication of shopping benefits, which customers and retailers may not be aware of. Using a multilevel and multisource approach with field data of 1,479 customers from 104 firms, we find that informational online-to-physical channel integration on a retailer’s website influences customers’ online-to-physical store switching and that the density of shopping benefits concurrently communicated moderates this effect. Our results extend literature on channel choice and provide implications for retailers on how to design their websites as information hubs to steer customers to physical stores.

The service literature highlights the importance of organizational leaders in creating an organization-wide customer orientation (CO). Yet, some open questions remain regarding this relationship: Are organizational leaders from different hierarchical levels equally effective in creating a CO? Does the functional role of employees affect the importance of certain leaders? More generally, when does customer-oriented leadership really pay off? To address these questions, we investigate how senior managers’ and direct supervisors’ CO affects the CO climate and effectiveness of both frontstage and backstage service teams. Analyzing multisource data from 575 employees and their supervisors from 110 teams in a retail bank, we find that the effect of perceived senior manager CO on team CO climate and team effectiveness is stronger in backstage teams while perceived direct supervisor CO has a greater influence on frontstage teams. Moreover, team CO climate consensus moderates the effect of team CO climate on team effectiveness. These results suggest that, contrary to past theorizing, customer-oriented leadership does not per se increase team CO climate and team effectiveness; rather, the correct coupling of leadership source and degree of customer contact needs to be achieved. Service managers should use these findings and appoint the correct leader to implement CO to make the organization-wide CO diffusion more efficient and effective.

Investigating the ambidextrous effects of its proactive and responsive dimension offers a fresh perspective on market orientation. Drawing upon the ambidexterity literature, the author derives hypotheses on the joint effects of combining and balancing proactive and responsive market orientation. He examines his hypotheses with two-wave panel survey data from 167 strategic business units. Using time-lagged performance data and polynomial regression with response surface analysis to overcome limitations of previous studies of ambidexterity, the author finds that the balance between proactive and responsive market orientation has an incremental positive effect on performance beyond their combined effect; that performance will decline less sharply when proactive is higher than responsive market orientation; and that as the level of balance increases, performance will first decrease and then increase. Given resource scarcity, an important and counterintuitive implication of the present study is that balancing proactive and responsive market orientation is as important as their combination.