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Service contract type and consumer choice behavior: the contributory roles of perceived value, brand reputation and consumer incentives
Marketing Intelligence & Planning ( IF 4.338 ) Pub Date : 2024-01-04 , DOI: 10.1108/mip-01-2023-0028
Stephen Wilkins , John J. Ireland , Joe Hazzam , Philip Megicks

Purpose

To minimize customer churn, many service providers offer consumers the option of automatic contract renewal at the end of a contract period. Such agreements are known as rollover service contracts (RSCs). This research quantifies the effect of RSCs and other related factors, such as incentives, on consumers' service choice decisions.

Design/methodology/approach

The study adopts choice-based conjoint analysis to assess the effect of RSCs on consumers' choices and to determine whether effect size varies when selecting a cell phone network or gym/leisure club provider, which represent lower-priced utilitarian and higher-priced hedonic services.

Findings

It was found that RSCs produce negative perceptions and intended behaviors for the majority of consumers across different product types. Nevertheless, as explained by social exchange theory, many individuals may be persuaded to enter into a RSC on the basis of reciprocity if they are offered an incentive such as a price discount or free product add-on.

Originality/value

In the marketing domain, this is the first comprehensive study to quantify the role of contract type among a range of other factors in consumers' decision-making when selecting a service. The authors' results offer context-specific implications for service marketers. First, RSCs are perceived more negatively in high-priced hedonistic categories, especially among those with lower incomes. Second, price discounts are more effective than product add-ons for motivating hedonic purchases, while product add-ons work better with utilitarian services.



中文翻译:

服务契约类型与消费者选择行为:感知价值、品牌声誉和消费者激励的贡献作用

目的

为了最大限度地减少客户流失,许多服务提供商为消费者提供在合同期结束时自动续签合同的选项。此类协议称为展期服务合同 (RSC)。这项研究量化了 RSC 和其他相关因素(例如激励措施)对消费者服务选择决策的影响。

设计/方法论/途径

该研究采用基于选择的联合分析来评估RSC对消费者选择的影响,并确定在选择手机网络或健身房/休闲俱乐部提供商(代表价格较低的功利性服务和价格较高的享乐性服务)时效果大小是否变化。 。

发现

研究发现,RSC 会对不同产品类型的大多数消费者产生负面看法和预期行为。然而,正如社会交换理论所解释的,如果向许多人提供价格折扣或免费产品附加等激励措施,他们可能会在互惠的基础上被说服加入 RSC。

原创性/价值

在营销领域,这是第一项量化合同类型在消费者选择服务决策中的一系列其他因素中的作用的综合研究。作者的结果为服务营销人员提供了特定环境的影响。首先,RSC 在高价享乐类别中受到更负面的认知,尤其是在收入较低的人群中。其次,价格折扣比产品附加产品更能有效地刺激享乐性购买,而产品附加产品更适合功利性服务。

更新日期:2024-01-04
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