It’s just not fair: exploring the effects of firm customization on unfairness perceptions, trust and loyalty

B. Nguyen, P. Klaus, Lyndon Simkin

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract


Purpose
– The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer loyalty intentions, and (b) investigate the moderating effects of trust in these relationships. The study explores how customizing offers to match customers’ individual needs and how treating customers differentially provoke unfairness perceptions among those not being considered most important. While the literature discusses unfairness perceptions of pricing, promotion, and service, less is known about unfairness in customization practices.

Design/methodology/approach
– Using a survey approach, 443 completed questionnaires we collected. Following validation of our item measures, a hierarchical linear regression analysis was conducted to test the conceptual model and hypothesized linkages between our constructs.

Findings
– The results demonstrate that customers’ negative perceptions of customization increase their unfairness perceptions. Unfairness perceptions drastically reduce customer loyalty intentions with trust acting as a significant moderator. Trust increases loyalty intentions even when unfairness perceptions are present. Our findings provide a foundation for understanding how firms may improve their perceived fairness. This increase in perceived fairness creates positive attributions, reduces negative customer experience perceptions and increases loyalty intentions.

Originality/value
– Key contribution is the development and validation of a conceptual model explaining the linkages between firm customization and unfairness perceptions, firm customization and customer loyalty intentions and the moderating role of trust between these relationships. This study extends the understanding of how customization practices impact unfairness perceptions and, subsequently, influence consumers’ perceptions, intentions and behavior.
Original languageEnglish
Pages (from-to)484 - 497
JournalJournal of Services Marketing
Volume28
Issue number6
DOIs
Publication statusPublished - 2014

Fingerprint

Loyalty
Customization
Loyalty intentions
Customer loyalty
Linkage
Perceived fairness
Conceptual model
Pricing
Conceptual framework
Moderating effect
Moderator
Design methodology
Consumer perceptions
Attribution
Regression analysis
Questionnaire
Linear regression
Customer experience

Bibliographical note

This paper is not available on the repository

Keywords

  • Trust
  • Loyalty
  • Framework
  • Customization
  • Unfairness

Cite this

It’s just not fair: exploring the effects of firm customization on unfairness perceptions, trust and loyalty. / Nguyen, B.; Klaus, P.; Simkin, Lyndon.

In: Journal of Services Marketing, Vol. 28, No. 6, 2014, p. 484 - 497.

Research output: Contribution to journalArticle

@article{b22169340d5240bf972a6d4bda6569e0,
title = "It’s just not fair: exploring the effects of firm customization on unfairness perceptions, trust and loyalty",
abstract = "Purpose– The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer loyalty intentions, and (b) investigate the moderating effects of trust in these relationships. The study explores how customizing offers to match customers’ individual needs and how treating customers differentially provoke unfairness perceptions among those not being considered most important. While the literature discusses unfairness perceptions of pricing, promotion, and service, less is known about unfairness in customization practices.Design/methodology/approach– Using a survey approach, 443 completed questionnaires we collected. Following validation of our item measures, a hierarchical linear regression analysis was conducted to test the conceptual model and hypothesized linkages between our constructs.Findings– The results demonstrate that customers’ negative perceptions of customization increase their unfairness perceptions. Unfairness perceptions drastically reduce customer loyalty intentions with trust acting as a significant moderator. Trust increases loyalty intentions even when unfairness perceptions are present. Our findings provide a foundation for understanding how firms may improve their perceived fairness. This increase in perceived fairness creates positive attributions, reduces negative customer experience perceptions and increases loyalty intentions.Originality/value– Key contribution is the development and validation of a conceptual model explaining the linkages between firm customization and unfairness perceptions, firm customization and customer loyalty intentions and the moderating role of trust between these relationships. This study extends the understanding of how customization practices impact unfairness perceptions and, subsequently, influence consumers’ perceptions, intentions and behavior.",
keywords = "Trust, Loyalty, Framework, Customization, Unfairness",
author = "B. Nguyen and P. Klaus and Lyndon Simkin",
note = "This paper is not available on the repository",
year = "2014",
doi = "10.1108/JSM-05-2013-0113",
language = "English",
volume = "28",
pages = "484 -- 497",
journal = "Journal of Services Marketing",
issn = "0887-6045",
publisher = "Emerald",
number = "6",

}

TY - JOUR

T1 - It’s just not fair: exploring the effects of firm customization on unfairness perceptions, trust and loyalty

AU - Nguyen, B.

AU - Klaus, P.

AU - Simkin, Lyndon

N1 - This paper is not available on the repository

PY - 2014

Y1 - 2014

N2 - Purpose– The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer loyalty intentions, and (b) investigate the moderating effects of trust in these relationships. The study explores how customizing offers to match customers’ individual needs and how treating customers differentially provoke unfairness perceptions among those not being considered most important. While the literature discusses unfairness perceptions of pricing, promotion, and service, less is known about unfairness in customization practices.Design/methodology/approach– Using a survey approach, 443 completed questionnaires we collected. Following validation of our item measures, a hierarchical linear regression analysis was conducted to test the conceptual model and hypothesized linkages between our constructs.Findings– The results demonstrate that customers’ negative perceptions of customization increase their unfairness perceptions. Unfairness perceptions drastically reduce customer loyalty intentions with trust acting as a significant moderator. Trust increases loyalty intentions even when unfairness perceptions are present. Our findings provide a foundation for understanding how firms may improve their perceived fairness. This increase in perceived fairness creates positive attributions, reduces negative customer experience perceptions and increases loyalty intentions.Originality/value– Key contribution is the development and validation of a conceptual model explaining the linkages between firm customization and unfairness perceptions, firm customization and customer loyalty intentions and the moderating role of trust between these relationships. This study extends the understanding of how customization practices impact unfairness perceptions and, subsequently, influence consumers’ perceptions, intentions and behavior.

AB - Purpose– The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer loyalty intentions, and (b) investigate the moderating effects of trust in these relationships. The study explores how customizing offers to match customers’ individual needs and how treating customers differentially provoke unfairness perceptions among those not being considered most important. While the literature discusses unfairness perceptions of pricing, promotion, and service, less is known about unfairness in customization practices.Design/methodology/approach– Using a survey approach, 443 completed questionnaires we collected. Following validation of our item measures, a hierarchical linear regression analysis was conducted to test the conceptual model and hypothesized linkages between our constructs.Findings– The results demonstrate that customers’ negative perceptions of customization increase their unfairness perceptions. Unfairness perceptions drastically reduce customer loyalty intentions with trust acting as a significant moderator. Trust increases loyalty intentions even when unfairness perceptions are present. Our findings provide a foundation for understanding how firms may improve their perceived fairness. This increase in perceived fairness creates positive attributions, reduces negative customer experience perceptions and increases loyalty intentions.Originality/value– Key contribution is the development and validation of a conceptual model explaining the linkages between firm customization and unfairness perceptions, firm customization and customer loyalty intentions and the moderating role of trust between these relationships. This study extends the understanding of how customization practices impact unfairness perceptions and, subsequently, influence consumers’ perceptions, intentions and behavior.

KW - Trust

KW - Loyalty

KW - Framework

KW - Customization

KW - Unfairness

U2 - 10.1108/JSM-05-2013-0113

DO - 10.1108/JSM-05-2013-0113

M3 - Article

VL - 28

SP - 484

EP - 497

JO - Journal of Services Marketing

JF - Journal of Services Marketing

SN - 0887-6045

IS - 6

ER -