A framework of satisfaction for continually delivered business services

Journal of Business & Industrial Marketing A framework of satisfaction for continually delivered business services Elten Briggs Timothy D. Landry Patricia J. Daugherty Article information: To cite this document: Elten Briggs Timothy D. Landry Patricia J. Daugherty , (2016),\" A framework of satisfaction for continually delivered business services \", Journal of Business & Industrial Marketing, Vol. 31 Iss 1 pp. 112 - 122 Permanent link to this document: http://dx.doi.org/10.1108/JBIM-06-2014-0125 Downloaded on: 28 January 2017, At: 19:10 (PT) Downloaded by Universidad Popular Autonoma del Estado de Puebla, AC At 19:10 28 January 2017 (PT) References: this document contains references to 86 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 401 times since 2016* Users who downloaded this article also downloaded: (2016),\"B2B technology adoption in customer driven supply chains\", Journal of Business & Industrial Marketing, Vol. 31 Iss 1 pp. 1-12 http://dx.doi.org/10.1108/JBIM-02-2015-0022 (2016),\"Trust and commitment as mediators between economic and non-economic satisfaction in manufacturer- supplier relationships\", Journal of Business & Industrial Marketing, Vol. 31 Iss 1 pp. 13-23 http://dx.doi.org/10.1108/ JBIM-07-2013-0154 Access to this document was granted through an Emerald subscription provided by emerald-srm:601691 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download.

A framework of satisfaction for continually delivered business services Elten Briggs Department of Marketing, University of Texas at Arlington, Arlington, Texas, USA Timothy D. Landry Management and Marketing Department, University of Alabama-Huntsville, Huntsville, Alabama, USA, and Patricia J. Daugherty Department of Supply Chain Management, Michigan State University, East Lansing, Michigan, USA Abstract Downloaded by Universidad Popular Autonoma del Estado de Puebla, AC At 19:10 28 January 2017 (PT) Purpose – The aim of this paper is to present a new framework for the evaluation of satisfaction in continually delivered business services (CDBS) contexts based on applicable theoretical perspectives and extant empirical research. Design/methodology/approach – The paper first describes and justifies the importance of the CDBS context. Then, a literature review of CDBS satisfaction research over the past ten years is presented and utilized in conjunction with theoretical insights from expectancy disconfirmation theory and social exchange theory to develop conceptual definitions, a general conceptual framework, and research propositions. Findings – The resulting conceptual framework focuses on global CDBS provider satisfaction as the outcome of three more specific satisfaction assessments: service satisfaction (driven by the actual performance of the service), economic satisfaction (driven by the customers’ economic outcomes from the exchange relationship) and social satisfaction (driven by the customers’ social outcomes and interactions in the exchange relationship). Originality/value – The study is the first to develop a framework of satisfaction for the CDBS context and presents propositions to guide future satisfaction research. The conceptual framework leverages insights from two existing models of satisfaction formation: expectancy disconfirmation (which provides deeper insight on service satisfaction) and social exchange theory (which provides deeper insights on social and economic satisfaction). The integration of these two models results in a more comprehensive view of satisfaction formation in the CDBS context than by using either model separately. Keywords Social exchange theory, Disconfirmation, Economic satisfaction, Satisfaction formation, Service satisfaction, Social satisfaction Paper type Conceptual paper 1. Introduction academic models of satisfaction should be revisited periodically to assess their applicability. The expectancy-disconfirmation (E/ Business-to-business (B2B) service providers have long D) model of satisfaction, for example, has been generically acknowledged the importance of customer satisfaction to the applied in both consumer and B2B contexts (Emerson and development of healthy business relationships. Satisfaction Grimm, 1999; Patterson et al., 1997; Oliver and Burke, 1999). has been established as a key determinant of customers’ Given the context-dependent nature of satisfaction formation relational outcomes, such as trust, commitment and loyalty and the evolution in services delivery involving increased (Caceres and Paparoidamis, 2007; Lam et al., 2004; Vickery interconnectivity and deeper relationships (Fournier and et al., 2004; Wiertz et al., 2004). As such, these service Mick, 1999; Coviello et al., 2002; Vargo and Lusch, 2008), providers have implemented programs to cultivate greater revisiting the E/D conceptualization of satisfaction seems to be levels of satisfaction among their customer base (Cina, 1989). a logical starting point. Exploring how completely, and how However, to improve the effectiveness of these programs, accurately, B2B services delivered in the present era are service managers must understand the process of how explained by extant theoretical perspectives helps to frame customers make satisfaction judgments. what we know and what we can build upon. As modern business relationships evolve and new marketing The lack of context-specific conceptualizations for paradigms influence firms to revise their understanding and satisfaction for B2B services represents a gap in literature and approach to exchange relationships with their customers, a gap in managerial perspective on a critical business concept. Due in part to technological advances, mainstream marketing has become more like B2B services marketing (Rust, 2004). The current issue and full text archive of this journal is available on More companies serving individual consumers now have Emerald Insight at: www.emeraldinsight.com/0885-8624.htm access to the information and tools needed to customize Received 11 June 2014 Journal of Business & Industrial Marketing Revised 20 October 2014 31/1 (2016) 112–122 © Emerald Group Publishing Limited [ISSN 0885-8624] 4 December 2014 [DOI 10.1108/JBIM-06-2014-0125] Accepted 6 January 2015 112

A framework of satisfaction for continually delivered business services Journal of Business & Industrial Marketing Elten Briggs, Timothy D. Landry and Patricia J. Daugherty Volume 31 · Number 1 · 2016 · 112–122 offerings and manage relationships to an extent that heretofore primary exchanges in services contexts often do not involve a had only been feasible when serving business customers. transfer in ownership of a tangible commodity, customers Satisfaction theory has not kept pace with these developments. often make use of cues external to the service provision as A specific framework for satisfaction formation in continually information signals when forming satisfaction responses delivered business services (CDBS) can more effectively (Crosby and Stephens, 1987; Arnold et al., 2007). Germane to account for issues pertaining to the central role of service in theory development for CDBS, service personnel influence the exchange, co-creation and ongoing business relationships. satisfaction, even those not directly involved in the provision To that end, this paper develops a general framework for of the core service (Doorn, 2008; Doorn and Verhoef, 2008; satisfaction formation in CDBS contexts with contributions to Jayawardhena, 2010). The service provider and related both theory and practice. Propositions are further offered for contact personnel should be explicitly considered in models conducting satisfaction research in this context. addressing CDBS satisfaction formation. 2. The nature of CDBS contexts: service Service customer provision, customers and relationships As the value of the transaction is higher in B2B settings, Downloaded by Universidad Popular Autonoma del Estado de Puebla, AC At 19:10 28 January 2017 (PT) organizational customers tend to participate to a greater In CDBS contexts, business customers enter into a degree in designing the service. Thus, when evaluating service membership or contractual relationship with a service providers, the quality of interactions involved in the provider (Lovelock, 1983), and service is delivered to the co-creation of the service plays a vital role (Mentzer et al., customer repeatedly over the course of the exchange 2001). Further, more rational business customers, who use relationship. Many of the most critical and fastest growing the service to fulfill an organizational rather than a personal business service sectors such as logistics, information objective, often seek to maximize the economic value received technology and financial services are representative of the from exchange relationships – whereas satisfaction for end CDBS context. For example, third-party logistics is a classic consumers is influenced more by liking and affect (Mano and CDBS industry that has received an increased amount of Oliver, 1993; Oliver, 1993). Research in business contexts research attention due to its growth, importance and indicates that social and economic factors influence buyer distinctiveness (Bask, 2001; Lin and Pekkarinen, 2011). At evaluations in distinctive ways (Bolton et al., 2003; Schakett least three key characteristics differentiate the nature of et al., 2011). Models of satisfaction in CDBS should leverage exchange in CDBS contexts from exchange in traditional these factors toward better and more complete theory. consumer purchase situations: 1 the core product – a service rather than a good; Service delivery 2 the service customer – an organization rather than an In CDBS contexts, satisfaction is derived from a series of individual; and service encounters and deliveries over time. Expectations vary 3 the nature of service delivery – ongoing rather than discrete. from t ¡ t 2 ¡ t n (Hoch and Deighthon, 1989) – with past 1 This paper incorporates these key differences in the development and present experiences with a service provider influencing of a satisfaction formation framework appropriate for CDBS future expectations and performance perceptions. The time exchange contexts (Figure 1). element thus alters the core variables influential in the satisfaction formation process, making satisfaction formation Core product markedly different than in discrete services transactions. While intangibility is frequently used to describe services, it Rather than a single observation, customers may observe a has not been clearly applied to augment satisfaction theory. As vector of performance outcomes that can reasonably be projected into the future (Briggs et al., 2010). Also, multiple Figure 1 The key differentiators of continually delivered business service deliveries over time create relational dynamics, services exchanges vs traditional exchanges supporting the occurrence of buyer/seller social interactions in the midst of economic developments (Dwyer et al., 1987; Does the core exchange involve a transfer in ownership of a Wilson, 1995). Collectively, these three broad characteristics Core tangible commodity or consist should make the process of satisfaction formation in CDBS Product mainly of intangible deeds and performances? contexts substantially different than what would be expected in traditional consumer purchase situations. Is the service fulfilling the needs of an individual (or Goods Services group of individuals) or an 3. Overview of CDBS research organization? To better understand existing conceptualizations of CDBS satisfaction, this paper presents a compendium outlining the Is each instance of Consumer Business empirical research. Table I identifies studies published from service delivery paid Services Services for separately or is service delivered on an 2003-2013 involving antecedents to satisfaction in CDBS ongoing basis? contexts services. Studies are included that specifically assess satisfaction with a service (separate from satisfaction with tangible goods included in the exchange). The table identifies Discrete Ongoing the focus of the satisfaction assessment in the study, the Transactions Delivery of Service CDBS industry and the significant antecedents of satisfaction found in each study. Two studies appeared to draw on the 113

A framework of satisfaction for continually delivered business services Journal of Business & Industrial Marketing Elten Briggs, Timothy D. Landry and Patricia J. Daugherty Volume 31 · Number 1 · 2016 · 112–122 Table I Review of empirical studies involving antecedents to CDBS satisfaction (2003-2013) Satisfaction Citation focus CDBS industry Significant antecedent(s) Vize et al. (2013) Economic Web solutions Technology readiness; service quality Chenet et al. (2010) General Financial services Service quality; commitment Khan et al. (2012) Provider Facilities management Technician performance; account representative performance; product perceptions Evanschitzky et al. (2012) Provider Financial services Service quality; product quality; value for money Gil et al. (2008) Provider Financial intermediation Service encounter perception; service value Jayawardhena et al. Provider Safety inspections Service encounter quality (2007) Liu et al. (2005) Provider Financial staffing Customer value Lam et al. (2004) Provider Courier service Customer value Downloaded by Universidad Popular Autonoma del Estado de Puebla, AC At 19:10 28 January 2017 (PT) Vickery et al. (2004) Provider Third-party logistics Relational performance Bolton et al. (2003) Provider Telephone Social and economic resources Taylor and Hunter (2003) Provider Electronic customer relationship Trust; value management Russell-Bennett (2007) Purchase decision Telephone directory advertising Category involvement Hsu et al. (2013) Relationship E-commerce Web site characteristics; trust Caceres and Paparoidamis Relationship Advertising agency Technical service quality; functional service quality (2007) Krepapa et al. (2003) Relationship Corporate banking Customer perceptions of market orientation and market orientation gap Paluch and Blut (2013) Service Remote information technology Reliability; process integration; economic benefits; documentation; service options; support service; individualization Schakett et al. (2011) Service Travel Social bonding; economic bonds; structural bond Briggs et al. (2010) Service Third-party logistics Positional performance; velocity performance Jayawardhena (2010) Service Janitorial Perceived value; service quality; service encounter quality Spreng et al. (2009) Service Distribution center Transaction satisfaction; services quality Doorn (2008), Doorn and Service Logistics Lagged service satisfaction; price satisfaction; attribute Verhoef (2008) satisfaction; sales interaction satisfaction; critical incidents Molinari et al. (2008) Service Freight forwarding Positive disconfirmation Bruhn and Frommeyer Service Information technology Service quality; relationship quality (2004) Wiertz et al. (2004) Service Customer interaction center Service quality; image quality same sample (Doorn, 2008; Doorn and Verhoef, 2008) and satisfaction. Consistent with our assertions, Singh and constituted a single entry in the table. The table illustrates that Sirdeshmukh (2000) frame post-encounter trust as dependent the two most common approaches over the past ten years have on satisfaction. The study that considers commitment to be been to assess satisfaction with the service provider (nine antecedent to satisfaction is based on a framework by Selnes studies) or satisfaction with the services delivered (nine (1998) that considers the signaled commitment of the seller to studies). The most common CDBS industries examined in be antecedent to the customers’ satisfaction. This type of our review were transportation/logistics (six studies), commitment is unrelated to our assertions, as we frame information technology/Web services (five studies) and satisfaction as antecedent to customers’ relational outcomes. financial services (four studies). Though we assert that satisfaction is normally a determinant 4. Conceptual framework of relational outcomes such as trust and commitment, some studies included in our review conceptualize trust or 4.1 Satisfaction with CDBS service providers commitment as antecedent to satisfaction (Chenet et al., As noted in the review of the extant B2B services literature 2010; Hsu et al., 2013; Taylor and Hunter, 2003). Deeper (Table I), the antecedents of satisfaction vary widely across investigation reveals that differences in the framing of the studies, and there is even a lack of consensus as to what should constructs led to the apparent inconsistencies. The two studies be the appropriate conceptual focus of satisfaction that consider trust as antecedent to satisfaction both rely on a assessments. Importantly, Giese and Cote (2000), in their framework by Singh and Sirdeshmukh (2000) that review of the customer satisfaction literature, identified three differentiates between consumers’ trust prior to a service components common to any conceptualization of satisfaction: encounter (pre-encounter) and trust after a service encounter 1 the type of response; (post-encounter). The authors frame pre-encounter trust 2 the focus of the response; and (which is not a relational outcome) as antecedent to 3 the time of the response. 114

A framework of satisfaction for continually delivered business services Journal of Business & Industrial Marketing Elten Briggs, Timothy D. Landry and Patricia J. Daugherty Volume 31 · Number 1 · 2016 · 112–122 Specific conceptualizations of the satisfaction formation 4.2 Expectancy disconfirmation and social exchange process should begin by putting forward a concise, yet theories complete, definition of service provider satisfaction – in this Having offered a working definition of CDBS provider case, for CDBS contexts. satisfaction, a general framework for CDBS satisfaction In reference to response type, CDBS satisfaction should be formation can now be considered. The most widely applied considered an evaluation, similar to Fornell’s (1992) theoretical perspective in the customer satisfaction literature is conceptualization. Again, business customers are widely the E/D paradigm (Ilgen, 1971; Oliver, 1980). This regarded as being more rational than consumers (Rossomme, perspective is not, however, without its limitations. In CDBS services contexts, the ongoing nature of service delivery 2003). Considering satisfaction to be an evaluation more diminishes the influence of expectations in the satisfaction clearly reflects the rational processing of business customers. formation process. Affective responses, the other major response type in Social exchange theory (SET) (Blau, 1964; Chang et al., 2012) consumer satisfaction, should matter less to business has the potential to complement expectancy disconfirmation by customers. Our review found that some operationalizations of allowing for acknowledgment that there is a human component, satisfaction in CDBS contexts rely on measures derived from Downloaded by Universidad Popular Autonoma del Estado de Puebla, AC At 19:10 28 January 2017 (PT) indeed often a relational aspect, to business service provision. these more affect-based conceptualizations (Liu et al., 2005; Originating in the psychology literature, the E/D (or Spreng et al., 2009; Jayawardhena, 2010). However, in disconfirmation) paradigm suggests that satisfaction is formed by support of satisfaction-as-evaluation, long-term relationships considering the actual performance of a product or service and are common in CDBS settings, and importantly, cognition the expected performance of a product or service. Alternatively, becomes more significant than affect over time in satisfaction SET, which originated in the sociology literature, suggests that formation (Homburg et al., 2006). satisfaction is influenced primarily by social and economic Next, concerning the focus of the response, the CDBS outcomes and the comparison of these outcomes to alternatives. satisfaction evaluation should be viewed as global and focused In keeping with the idea that satisfaction is largely an evaluative on the service provider. A global perspective of satisfaction is process (rather than an emotional one), a key advantage of the suggested, as there are multiple facets of a service exchange E/D framework is that it considers how satisfaction is formed. beyond just the service provision in B2B services. The Research in this area has carefully examined how individuals customer generally enters into a formalized relationship with compare expectations to performance and under what conditions the service provider, allowing social and economic this comparison process results in increased or decreased levels of considerations to influence the satisfaction evaluation. The satisfaction. A key advantage of SET is that it considers the focus on the service provider is deemed especially appropriate interpersonal variables influencing satisfaction, more effectively for the CDBS context. Different individuals in the identifying what variables influence satisfaction formation. organization may assess differing services or service attributes, Research has identified a number of antecedents that influence the satisfaction of an exchange partner, especially in relational with the service provider being the common thread tying these B2B contexts. Merging these theories together enables us to assessments together. better understand organizational processing and identify the Finally, regarding the response time, CDBS satisfaction relational influences shaping business service satisfaction. should be conceptualized as occurring during consumption of the service. At the time of the satisfaction response, the customer has already experienced prior delivery of service and 4.3 Specific satisfaction assessments generally expects to receive service again in the future. From a theory perspective, conceptualizing CDBS satisfaction Considering these facets of the B2B service experience, we at the global level of analysis recognizes that it is a function of modify Oliver’s (2010) popular conceptualization of multiple aspects of the exchange relationship (Crosby and satisfaction to offer the following definition appropriate Stephens, 1987). As such, the framework for CDBS specifically for the CDBS context: satisfaction formation (Figure 2) takes into account that specific satisfaction assessments influence the formation of the CDBS provider satisfaction is a customer’s global evaluation of the degree to more global satisfaction evaluation. This has managerial which a service firm is providing an appropriate level of fulfillment for its needs. relevance. as a global satisfaction score does not reveal where or how the firm is succeeding or failing. Here, by merging the This definition deviates from Oliver (2010) on the type (i.e. disconfirmation framework with SET, three distinct customer’s global evaluation vs consumer fulfillment satisfaction assessments may now be identified: service response), focus (i.e. service firm vs product/service feature or satisfaction, social satisfaction and economic satisfaction. Each of product/service itself) and timing (is providing vs provided) of these specific satisfaction assessments relate to an important the response. It is also less dependent on affect, in that Oliver’s focal area for business customers. They have differing definition describes a “pleasurable” level of fulfillment, while antecedents which may be evaluated using distinct processes. the present definition describes an “appropriate” level of Research using the disconfirmation framework is especially fulfillment. Finally, an emphasis is placed on the customer applicable to service satisfaction. Oliver’s (2010) definition of “needs” in the present definition. For business customers, performance-based satisfaction, which is grounded in the needs are generally articulated more clearly than in the disconfirmation paradigm, focuses on the actual product or consumer context. Thus, while generally assumed a basis of service provided to the customer. Service satisfaction does not satisfaction (Oliver, 2010), need fulfillment can be more necessarily involve evaluations of the outcomes of the service clearly determined in business contexts. performance. Instead, service satisfaction is based on a 115

A framework of satisfaction for continually delivered business services Journal of Business & Industrial Marketing Elten Briggs, Timothy D. Landry and Patricia J. Daugherty Volume 31 · Number 1 · 2016 · 112–122 Figure 2 A framework for satisfaction formation in continually delivered business services Specific Global Customer Satisfaction Satisfaction Observation Assessments Assessment Derived from Service Consumer Expectancy- Performance Evaluative Service Disconfirmation Processes Satisfaction Theory CDBS Economic Consumer Economic Provider Outcomes Evaluative Satisfaction Satisfaction Derived from Processes Social Downloaded by Universidad Popular Autonoma del Estado de Puebla, AC At 19:10 28 January 2017 (PT) Exchange Theory Social Consumer Outcomes Evaluative Social Satisfaction Processes technical assessment of how a service performs is compared to suggested that each will have a unique effect on global the established criteria of the business customer. The satisfaction with a service provider. Social aspects of following definition is provided for service satisfaction: satisfaction that positively influence global satisfaction evaluations include fairness (Patterson et al., 1997), relational Service satisfaction refers to the business customer’s assessment of the performance of services delivered by a service provider. performance (Stank et al., 1999; Vickery et al., 2004) and Doorn (2008) models satisfaction with service performance as service encounter quality (Jayawardhena, 2010). While review a positive antecedent of a global satisfaction evaluation in the of the CDBS satisfaction literature did uncover studies clearly context of logistics services. This is consistent with earlier assessing the influence of economic satisfaction on global research suggesting that perceptions of a service should be satisfaction, economic outcomes have proven to be transferred to the service provider in relational contexts instrumental in global evaluations of service providers (Briggs (Crosby and Stephens, 1987). Likewise, the satisfaction et al., 2007). This leads to the following proposition: framework developed in this study explicitly differentiates between satisfaction with the service provider and satisfaction P1. Service satisfaction, economic satisfaction and social with the services provision. By disentangling these differing satisfaction are independent and important (specific) satisfaction assessments, research can generate better predictors of (global) CDBS provider satisfaction. understanding of the process of CDBS satisfaction formation. While many studies applying ideas from the disconfirmation 5. Research propositions concerning services paradigm tend to focus on the service being delivered, SET satisfaction focuses on the outcomes of an exchange relationship. The The last section considered complementary theoretical outcomes are both social and economic (Emerson, 1962; Lambe perspectives and developed a general conceptual framework of et al., 2001). Research suggests that customers form satisfaction evaluations of these social and economic outcomes (Geyskens satisfaction in the CDBS context involving three important and Steenkamp, 2000). The following definitions of social specific satisfaction assessments: service satisfaction, economic satisfaction and economic satisfaction are based on the work of satisfaction and social satisfaction. This section offers research Crosby et al. (1990) and Geyskens and Steenkamp (2000): propositions regarding how the most prevalent of these assessments, service satisfaction, should be operationally Social satisfaction refers to the business customer’s assessment of its interaction experiences with a service provider. formulated. Following Oliver (2010), we suggest that service satisfaction is based on various types of evaluative processes. Economic satisfaction is the business customer’s assessment of the economic outcomes that flow from a relationship with its service provider. That is, customers perceive service performance and then process that performance directly or by integrating the Social and economic aspects have both been considered key components of relationship satisfaction (Gassenheimer and observation into a more comprehensive evaluation that Ramsey, 1994; Gassenheimer et al., 1995). However, research ultimately leads to the satisfaction assessment. There is strong has demonstrated that social and economic satisfactions are theoretical and/or empirical support for customers’ use of at distinct constructs (Geyskens et al., 1999; Geyskens and least four distinct evaluative processes in the formation of their Steenkamp, 2000). Research has also demonstrated that service satisfaction assessment: performance-based service satisfaction and outcome-based 1 cumulative disconfirmation; service satisfaction offer unique influences on business 2 velocity performance; outcomes (Stan et al., 2004). Given the theoretical support for 3 service quality; and the existence and distinctiveness of these constructs, it is 4 service value. 116

A framework of satisfaction for continually delivered business services Journal of Business & Industrial Marketing Elten Briggs, Timothy D. Landry and Patricia J. Daugherty Volume 31 · Number 1 · 2016 · 112–122 Propositions related to these evaluative processes are positive direction (velocity) will have distinct influences on discussed in the following sections. satisfaction, though the importance of position and velocity will vary across contexts. Hsee and Abelson (1991) demonstrate in 5.1 Disconfirmation two experiments that velocity performance is positively related to In many business service settings, disconfirmation – the extent individuals’ satisfaction in non-purchasing situations. In B2B to which performance exceeds or falls short of expectations – service contexts, velocity performance can entail the speed with has been found to be a strong determinant of satisfaction which a service provider is able to reach desired performance (Patterson et al., 1997; Patterson, 2000; Hill, 2006; Molinari levels, make needed adjustments for changing customer et al., 2008). However, most of these studies occur in settings preferences and implement service enhancements. Briggs et al. that do not fit with CDBS (i.e. the finished service product (2010) found empirical evidence of a distinct influence of had been delivered to the customer and consumption is not velocity performance on service satisfaction in the third-partly ongoing). For example, Patterson et al. (1997) examines logistics industry. While traditional positional performance satisfaction with a consulting project and Hill (2006) examines perceptions were generally more critical to service satisfaction satisfaction with a delivered advertising creative product. In formation, velocity performance demonstrated increased Downloaded by Universidad Popular Autonoma del Estado de Puebla, AC At 19:10 28 January 2017 (PT) these cases, the consumer can consider expectations prior to importance when business customers operated in environments the services delivery and make comparisons to performance characterized by high levels of competitively intense or market after service delivery. This kind of assessment becomes more turbulence (Jaworski and Kohli, 1993). Considering the complicated when service relationships stretch over several theoretical arguments and empirical evidence from related years, as individuals have difficulty accessing the original literature, it is proposed: expectation levels. In CDBS settings, disconfirmation is not based on one but several instances of service delivery. P3. When evaluating the direct influence of service Cumulative disconfirmation, albeit not a perfect indicator, performance on service satisfaction in CDBS contexts, would better reflect the overall degree that a service has velocity performance should be considered as an exceeded or fallen short of expectations. Cumulative additional explanatory variable, especially when the evaluations are not bounded by a defined period of time and customers operate in industries characterized by high allow the customer to consider multiple experiences with a levels of competitive intensity or market turbulence. service provider (Olsen and Johnson, 2003). Formally: P2. When calling on the expectancy disconfirmation 5.3 Service quality and service value paradigm for modeling CDBS contexts, cumulative Several CDBS studies have evaluated service quality, instead disconfirmation is a more appropriate antecedent than of service performance, as an antecedent to service satisfaction traditional disconfirmation. (Bruhn and Frommeyer, 2004; Wiertz et al., 2004; Spreng et al., 2009; Jayawardhena, 2010; Vize et al., 2013). Oliver 5.2 Velocity performance (2010) describes service quality as “a judgment of In the satisfaction literature, research has overwhelmingly performance excellence”. Service quality has been commonly supported a direct influence of performance on satisfaction in conceptualized as multi-dimensional and based partly on both consumer contexts (Churchill and Surprenant, 1982; observed service performance in both industrial and consumer Szymanski and Henard, 2001) and business services contexts settings (Gounaris, 2005; Parasuraman et al., 1988). These (Patterson et al., 1997; Hill, 2006). Oliver (2010) also conceptualizations imply that service performance perception supports this direct influence of performance on satisfaction, a is integral to the service quality evaluation. Perhaps due to a process he refers to as “unappraised cognition”. For CDBS high degree of conceptual overlap, research studies in B2B contexts, however, performance is observed at multiple points services have not evaluated both service performance and in time, so an alternative approach to conceptualizing the services quality in the same research model. Quality performance¡satisfaction relationship should be considered. judgments may be more appropriate when service One promising approach, based in psychology, is velocity performance is difficult to assess objectively. For example, performance. Psychology research extends thinking on customers of janitorial services may find quality to be an satisfaction by expanding the traditional conceptualization of appropriate metric, whereas customers of logistics services will performance to two dimensions: positional performance and be able to assess service performance in a more objective velocity performance (Hsee and Abelson, 1991; Hsee et al., manner. 1991; Hsee et al., 1994). Positional performance represents In addition to service quality and performance, many the manner in which we ordinarily think about performance. A studies have found value to be an important antecedent of performance level is observed at a certain point in time such satisfaction (Lapierre et al., 1999; Taylor and Hunter, 2003; that the higher the observed level of performance, the higher Lam et al., 2004; Liu et al., 2005; Whittaker et al., 2007; Gil the satisfaction with that performance. Velocity performance et al., 2008; Jayawardhena, 2010; Evanschitzky et al., 2012). describes how performance is changing when observed at While a few researchers conceptualize value as a global multiple points in time. Changes in performance levels are construct with several factors or dimensions (Whittaker et al., jointly considered with elapsed time to determine satisfaction 2007; Gil et al., 2008), value has most commonly been viewed with performance. The faster performance is changing in a as a trade-off between the costs and or time invested by the positive direction, the higher the satisfaction. customer compared to the performance or quality of the Both the current level of service performance (positional) and service received, and even broad global conceptualizations of the rate at which the service performance is improving in a service value consider the quality/value tradeoff to be a key 117

A framework of satisfaction for continually delivered business services Journal of Business & Industrial Marketing Elten Briggs, Timothy D. Landry and Patricia J. Daugherty Volume 31 · Number 1 · 2016 · 112–122 component. Thus, service quality has generally been modeled the corresponding research sample but some generalities can as antecedent to value (Lapierre et al., 1999; Whittaker et al., be offered for CDBS satisfaction. One observation is that 2007; Jayawardhena, 2010). social satisfaction for purchasers of the service (e.g. small Finally, a few research studies have evaluated the influence business owners and procurement specialists) is markedly of both service quality and service value on satisfaction different from the employees consuming the service. In CDBS simultaneously (Lapierre et al., 1999; Whittaker et al., 2007; contexts, social interaction with the service’s sales team, and Jayawardhena, 2010). These studies have generally found the the social capital derived from being associated with relationship between service value and satisfaction to be industry-leading service providers, should be explicitly tapped. stronger than the relationship between service quality and Indeed, it is at higher levels within organization that global satisfaction. Lapierre et al. (1999) argues that B2B service concepts such as service provider satisfaction are likely to be providers should follow a value strategy rather than a quality managerially germane. Stated differently, social interactions at strategy to more effectively position themselves in the the employee level, despite their critical role in the co-creation marketplace. Value takes in the account the bottom line, of services, should matter less in organizational assessments of which should be especially meaningful for business customers. CDBS satisfaction. Moreover, even with continual performance Downloaded by Universidad Popular Autonoma del Estado de Puebla, AC At 19:10 28 January 2017 (PT) These arguments lead to the following proposition: feedback mechanisms, social feedback from employees (e.g. dock workers interacting with a 3PL) is not likely to be P4. When mode0ling CDBS service satisfaction, service regularly reported – making the concept at the “typical” level quality should be considered instead of service of analysis for satisfaction studies (i.e. the service’s consumer) performance when performance is difficult to assess objectively and service value should be modeled in impractical and likely inconsequential. addition to service performance or service quality. Prior research in business services confirms the importance of both economic and social considerations given that business customers seek economic returns from their relationships with 6. Research propositions concerning social and other organizations and desire to have quality interactions economic satisfaction with long-term exchange partners (Bolton et al., 2003; This section discusses the satisfaction assessments derived Schakett et al., 2011). These interactions are dyadic and occur from SET, economic satisfaction and social satisfaction. at both the interpersonal and interorganizational level These satisfaction assessments are distinct from service (Wilson, 1995). Importantly, Geyskens et al. (1999) observe satisfaction because they are formed based on a customer’s that economic satisfaction is likely to have differing evaluations of the social and economic benefits of an exchange antecedents and consequences than noneconomic relationship rather than an evaluation of the actual service satisfaction. Bolton et al. (2003) experimentally manipulated being delivered. Blau (1964, p. 91) defines the concept of social and economic resources, finding that social resources social exchange as “[. . .] voluntary actions of individuals that have a greater influence on the interpersonal form of are motivated by the returns they are expected to bring from satisfaction, while economic resources have a greater influence others”. The returns can be social and/or economic (Emerson, on an interorganizational satisfaction, suggesting the two 1976) and occur at some cost to each party in the exchange primarily operate at differing levels. Thus, while some (Homas, 1958). Over time, these returns produce some level research in SET combines these two aspects of satisfaction of dependency on the exchange relationship (Kelley and together into a single relationship satisfaction construct Thibaut, 1978). The more satisfactory the returns, the more (Gassenheimer and Ramsey, 1994; Ping, 2003), social inclined the party is to remain in the exchange relationship satisfaction and economic satisfaction are conceptualized in (Lambe et al., 2001). However, while service performance has our model as distinct assessments (Figure 2) that operate at commonly been incorporated into CDBS satisfaction studies, differing levels in a service provider–customer relationship economic and social outcomes have received little attention (i.e. interpersonal vs interorganizational. Thus: (Bolton et al., 2003; Schakett et al., 2011). The economic outcomes that a B2B service customer may P5a. In CDBS service contexts, the influence of economic derive from its exchange with a service provider include outcomes on customers’ economic satisfaction is best benefits such as sales growth, enhanced strategic positioning, captured at the interorganizational level. reduced operating costs and improved product offerings. Social outcomes include camaraderie, respect, affirmation and P5b. In CDBS service contexts, the influence of social communication. Social aspects of service encounters tend to outcomes on customers’ social satisfaction is best be a greater determinant of service encounter quality captured at the interpersonal level. perception (Paulin et al., 2000), so service encounter quality may be viewed as a type of social outcome. Intercompany As with service performance, social and economic outcomes relational dynamics may add complexity to the processes are expected to both directly affect their respective satisfaction by which social outcomes influence satisfaction in CDBS assessment and influence satisfaction through a set of contexts where the individual that communicates with the evaluative processes (Figure 2). SET identifies several service provider is not the principle evaluator of the service. evaluative processes that can be utilized by customers to assess Given that social exchange is indeed a separate concept social and economic outcomes, including outcomes given from economic exchange, the question arises, “Which social comparison level, equity and distributive justice (Emerson, aspects of a business relationship should be conceptualized?” 1976). However, in our review of CDBS research, it appears This, of course, depends on the purpose of the research and these approaches have been largely ignored. 118

A framework of satisfaction for continually delivered business services Journal of Business & Industrial Marketing Elten Briggs, Timothy D. Landry and Patricia J. Daugherty Volume 31 · Number 1 · 2016 · 112–122 7. Discussion research in CDBS contexts. Focusing on this specific service category, the overarching model proposition is that service 7.1 Managerial implications satisfaction, economic satisfaction and social satisfaction can To create effective service satisfaction programs (Cina, 1989), be modeled as distinct antecedents to global satisfaction with business practices derived from an understanding of consumer a service provider. While many variations of satisfaction scales transactional contexts must be expanded to incorporate the have been utilized in previous studies, service satisfaction is dynamics of relational exchange with business customers. the most common of the three specific assessments. It is far Given the rational and evaluative nature of these customers, less common for studies to assess social and/or economic services should be designed to provide value not just quality satisfaction (Vize et al., 2013), though the relationship (Lapierre et al., 1999). Continually delivered business service satisfaction may be considered as a combination of the two (CDBS) providers should consider that fully satisfying their (Caceras, 2007; Hsu et al., 2013; Krepapa et al., 2003). customers depends on success on three fronts: Several measures of global satisfaction exist, though many of 1 monitoring and managing delivery performance to the existing measures also include items relating to satisfaction enhance service satisfaction; with aspects of the relationship (Lam et al., 2004; Liu et al., 2 managing customer relationships to enhance social 2005; Vickery et al., 2004), which could be based in social Downloaded by Universidad Popular Autonoma del Estado de Puebla, AC At 19:10 28 January 2017 (PT) satisfaction; and and/or economic rewards. Rigorous scale development on 3 designing service offerings to enhance economic discriminant measures is a clear research opportunity. satisfaction. P2-P4 provide direction for the modeling of service Customer relationship management approaches must be satisfaction. The propositions provide a standardized set of adapted over time as recent customer experiences modify guidelines to researchers regarding variables to model under existing satisfaction levels (Doorn, 2008; Spreng et al., 2009). certain conditions. Researchers following these guidelines for When multiple service deliveries take place over time, satisfaction studies in CDBS contexts can produce studies that expectations at any single point in time become less impactful are more comparable to one another. One key antecedent of and cumulative assessments become critical to customer CDBS service satisfaction discussed in these propositions was satisfaction. velocity performance, which has received only a limited amount Further, velocity performance can become an important of research attention in the business literature (Briggs et al., consideration, especially when service delivery approaches 2010). Variables such as velocity performance that take into continuous levels. Importantly, motives may moderate the account changes in performance over time have become relative weighting individuals assign to the two types of increasingly relevant in the present business environment. performance in satisfaction evaluations (Hsee et al., 1991). P5 relates to economic and social satisfaction. Despite Those customers weighting velocity performance heavily will strong supporting theory from the social exchange literature, not be satisfied by simply receiving adequate levels of service there is scant research involving separate treatment of social performance, but will desire for service levels to improve at an satisfaction and/or economic satisfaction. A key premise is acceptable rate over the duration of the exchange relationship. that social and economic interactions should be investigated at Effective customer satisfaction programs in CDBS industries differing levels, specifically the interpersonal and will include performance metrics that can accurately capture interorganizational levels, respectively, which would help information on velocity performance. future researchers make clearer distinctions between the Managers in CDBS contexts should consider that constructs. Further, there is a need for more research on the customers evaluate social and economic outcomes in a variety evaluative processes that customers apply to social and of ways. Effective customer satisfaction programs will monitor economic outcomes. social and economic satisfaction separately at differing levels of analysis, the interpersonal level for social satisfaction and 8. Conclusion the firm level for economic satisfaction. Distinct outcomes As exchanges in mainstream marketing are becoming more drive each type of satisfaction. To truly maximize social characteristic of the exchanges in B2B service environments, it satisfaction, resources including boundary spanning personnel is important for key constructs in the field to be re-examined must be allocated to cultivate interpersonal relationships, within this context. In this paper, we developed a conceptual which may be an additional cost for a service provider. When model of the satisfaction formation process in B2B service faced with such trade-offs, however, managers should be contexts which integrated key theoretical frameworks: careful about increasing service costs, thereby sacrificing ● the E/D paradigm (prevalent in consumer research); economic satisfaction for the sake of social satisfaction, given ● velocity performance (psychology); and the rational nature of business customer evaluations. An ● SET (prevalent in channels research). important exception would arise in cases where social factors facilitate the co-creation of the core service offering, thereby The conceptual model contributes to current marketing enhancing the economic value of the service offering to the thought by: customer. ● offering a theoretically based conceptualization of satisfaction within the CDBS context; and ● organizing relevant antecedents of satisfaction formation 7.2 Contributions and future research in B2B service contexts from the extant literature. The satisfaction formation model presented in this paper provides a framework for future research studies (Figure 2). These ideas and considerations offer marketing managers a Propositions are developed to guide future satisfaction generalizable framework, as they strive to maintain and 119

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