Factors Affecting Service Acceptance in Organizational Buying of Services: An Empirical Examination

Authors

  •   Dipanjan Kumar Dey Research Scholar – Marketing, IBS Business School, Hyderabad, (ICFAI Foundation for Higher Education (IFHE)), Survey No. 156/157, Dontanapally Village Shankarpally Mandal, R. R. District, Hyderabad - 501 203

DOI:

https://doi.org/10.17010/ijom/2014/v44/i9/80121

Keywords:

Organizational Buying

, Service Acceptance, Quality, Design, Fairness, Specifications, Delivery

Paper Submission Date

, October 15, 2013, Paper sent back for Revision, December 29, Paper Acceptance Date, March 1, 2014.

Abstract

Business-to-business service transactions is a topic that needs extensive research in India. Looking into the fact that services form a major part of India's gross domestic product (GDP), there was a need for research that can contribute towards explaining service transactions. The present study attempted to understand the various factors that may influence the service acceptance factors in all services transactions in a business-to-business context for Indian firms. Information was collected from a random sample of managers across various sectors via survey methodology using a structured questionnaire. Factor analysis and logistic regression analysis were performed for data analysis. The findings showed that the factors of service delivery and service fairness were significantly affecting service acceptance of organizations in a business-to-business setting. Surprisingly, the findings revealed that ubiquitous service quality does not affect service acceptance, thus implying that it has become a bare necessity nowadays. Thus, managers involved in industrial services sales can focus on service fairness and delivery for better differentiation of their services from competition.

Downloads

Download data is not yet available.

Downloads

Published

2014-09-01

How to Cite

Dey, D. K. (2014). Factors Affecting Service Acceptance in Organizational Buying of Services: An Empirical Examination. Indian Journal of Marketing, 44(9), 30–42. https://doi.org/10.17010/ijom/2014/v44/i9/80121

References

Aarikka-Stenroos, L., & Jaakkola, E. (2012). Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process. Industrial Marketing Management, 41(1), 15-26. DOI: 10.1016/j.indmarman.2011.11.008

Andaleeb, S. & Basu, A. K. (1994). Technical complexity and consumer knowledge as moderators of service quality evaluation in the automobile service industry. Journal of Retailing, 70 (4), 376 - 381. DOI: 10.1016/0022-4359(94)90005-1

Azadegan, A., & Ashenbaum, B. (2009). E-procurement in services: The lagging application of innovation. International Journal of Procurement Management, 2 (1), 25- 40. DOI: 10.1504/IJPM.2009.021728

Brady, M., & Cronin Jr., J. J. (2001). Some new thoughts on conceptualizing perceived service quality: A hierarchical approach. Journal of Marketing, 65 (3), 34 - 49.

Caceres, R. C., & Paparoidamis, N. G. (2007). Service quality, relationship satisfaction, trust, commitment and business-to-business loyalty. European Journal of Marketing, 41 (7/8), 836 - 867. DOI: 10.1108/03090560710752429

Cameran, M., Moizer, P., & Pettinicchio, A. (2010). Customer satisfaction, corporate image, and service quality in professional services. The Service Industries Journal, 30 (3), 421- 435. DOI:10.1080/02642060802236111

Carvalho, C., Brito, C., & Cabral, J. S. (2010). Towards a conceptual model for assessing the quality of public services. International Review on Public and Nonprofit Marketing, 7(1), 69 - 86. DOI : 10.1007/s12208-010-0046-5

Cermak, D. S., File, K. M., & Prince, R. A. (2011). Customer participation in service specification and delivery. Journal of Applied Business Research, 10 (2), 90 - 97.

Chen, J.- S., Tsou, H. T., & Huang, A. Y. - H. (2009). Service delivery innovation : Antecedents and impact on firm performance. Journal of Service Research, 12(1), 36 - 55. DOI: 10.1177/1094670509338619

Chenet, P., Dagger, T. S., & O'Sullivan, D. (2010). Service quality, trust, commitment and service differentiation in business relationships. Journal of Services Marketing, 24 (5), 336 - 346. DOI: 10.1108/08876041011060440

Durvasula, S., Lysonski, S., & Mehta, S. C. (1999). Testing the SERVQUAL scale in the business-to-business sector: The case of ocean freight shipping service. Journal of Services Marketing, 13 (2), 132 - 150. DOI: 10.1108/08876049910266040

Feeny, D., Lacity, M., & Willcocks, L. P. (2012). Taking the measure of outsourcing providers. MIT Sloan Management Review. Retrieved from http://sloanreview.mit.edu/article/taking-the-measure-of-outsourcing-providers/

Fitzsimmons, J. A., Noh, J., & Thies, E. (1998). Purchasing business services. Journal of Business & Industrial Marketing, 13(4/5), 370-380. DOI:10.1108/08858629810226672

Goldstein, S. M., Johnston, R., Duffy, J., & Rao, J. (2002). The service concept: The missing link in service design research? Journal of Operations Management, 20 (2), 121-134.

Goo, J., Kishore, R., Rao, H. R., & Nam, K. (2009). The role of service level agreements in relational management of information technology outsourcing: An empirical study. MIS Quarterly, 33(1), 119-145.

Gronroos, C. (2007). Service management and marketing: Customer management in service competition (3rd edition, pp. 433- 434). U.K.: John Wiley & Sons Ltd.

Hair, J., Black W., Babin B., Anderson R., & Tatham, R. (2006). Multivariate data analysis (p. 161). Upper Saddle River, NJ: Pearson Education Inc.

Hallikas, J., Immonen, M., Pynnönen, M., & Mikkonen, K. (2012). Service purchasing and value creation: Towards systemic purchases. International Journal of Production Economics, 147 (A), 53-61. DOI: 10.1016/j.ijpe.2012.10.005

Hartline, M. D., & Jones, K. C. (1996). Employee performance cues in a hotel service environment: Influence on perceived service quality, value, and word-of-mouth intentions. Journal of Business Research, 35 (3), 207-215. DOI: 10.1016/0148-2963(95)00126-3

Holschbach, E., & Hofmann, E. (2011). Exploring quality management for business services from a buyer's perspective using multiple case study evidence. International Journal of Operations & Production Management, 31(6), 648-685. DOI: 10.1108/01443571111131980

Jackson, R. W., Neidell, L. A., & Lunsford, D. A. (1995). An empirical investigation of the differences in goods and services as perceived by organizational buyers. Industrial Marketing Management, 24 (2), 99-108. DOI: 10.1016/0019-8501(94)00037-W

Jambulingam, T., Kathuria, R., & Nevin, J. R. (2011). Fairness-trust-loyalty relationship under varying conditions of supplier-buyer interdependence. The Journal of Marketing Theory and Practice, 19 (1), 39-56.

Jayawardhena, C., Souchon, A. L., Farrell, A. M., & Glanville, K. (2007). Outcomes of service encounter quality in a business-to-business context. Industrial Marketing Management, 36 (5), 575-588.

Kim, N., Pae, J. H., Han, J. K., & Srivastava, R. K. (2010). Utilization of business technologies: Managing relationship-based benefits for buying and supplying firms. Industrial Marketing Management, 39 (3), 473-484. DOI: 10.1016/j.indmarman.2008.11.004

Kimbell, L. (2011). Designing for service as one way of designing services. International Journal of Design, 5 (2), 41-52.

Kindström, D. (2010). Towards a service-based business model: Key aspects for future competitive advantage. European Management Journal, 28 (6), 479-490.

Lee, J.-W. (2010). Online support service quality, online learning acceptance, and student satisfaction. The Internet and Higher Education, 13 (4), 277- 283.

Lee, J., & Rao, H. (2009). Task complexity and different decision criteria for online service acceptance: A comparison of two e-government compliance service domains. Decision Support Systems, 47(4), 424 - 435. DOI: 10.1016/j.dss.2009.04.009

Leigh, T. W., & Rethans, A. J. (1984). A script-theoretic analysis of industrial purchasing behavior. Journal of Marketing, 48 (4), 22-32.

Lemmink, J., & Mattsson, J. (2002). Employee behavior, feelings of warmth and customer perception in service encounters. International Journal of Retail & Distribution Management, 30 (1), 18-33. DOI:10.1108/09590550210415239

Martin, W. C., Ponder, N., & Lueg, J. E. (2009). Price fairness perceptions and customer loyalty in a retail context. Journal of Business Research, 62 (6), 588-593. DOI: 10.1016/j.jbusres.2008.05.017

Mattson, J. (2000). Learning how to manage technology in service internationalization. Service Industries Journal, 20 (1), 22 - 40. DOI:10.1080/02642060000000002

Pampel, F. (2000). Logistic regression - A primer. Paper Series No. 07 -132 (pp. 3-6). Sage Publications, New Delhi.

Parasuraman, A., Zeithaml, V. A. & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49 (4), 41-50.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64 (1), 12 -40.

Paulin, M., Ferguson, R. J., & Payaud, M. (2000). Business effectiveness and professional service personnel Relational or transactional managers? European Journal of Marketing, 34 (3/4), 453 - 472. DOI:10.1108/03090560010311966

Ponsignon, F., Smart, P. A., & Maull, R. S. (2011). Service delivery system design: characteristics and contingencies. International Journal of Operations & Production Management, 31(3), 324-349. DOI: 10.1108/01443571111111946

Rotemberg, J. J. (2011). Fair pricing. Journal of the European Economic Association, 9 (5), 952-981.

Seiders, K., & Berry, L. (1998). Service fairness: What is it and why it matters. Academy of Management Executive, 12 (2), 8-20. DOI: 10.5465/AME.1998.650513

Shostack, G. L. (1982). How to design a service. European Journal of Marketing, 16 (1), 49-63.

Shostack, G. L. (1984). Designing services that deliver. Harvard Business Review, 62 (1), 133-139.

Shostack, G. L. (1985). The service encounter (pp. 243 - 254). MA : Lexington Books.

Smeltzer, L. R., & Ogden, J. A. (2002). Purchasing professionals' perceived differences between purchasing materials and purchasing services. Journal of Supply Chain Management, 38 (4), 54-70.

Solomon, M. R., Surprenant, C., Czepiel, J. A., & Gutman, E. G. (1985). A role theory perspective on dyadic interactions: The service encounter. Journal of Marketing, 49(1), 99-111.

Stock, J. R., & Zinszer, P. H. (1987). The industrial purchase decision for professional services. Journal of Business Research, 15(1), 1-16.

Sundaram, N., & Geetha, S. (2008). Marketing mix strategies adopted by selected Indian business outsources. Indian Journal of Marketing, 38 (4), 22- 37, 55.

Surprenant, C. F., & Solomon, M. R. (1987). Predictability and personalization in the service encounter. The Journal of Marketing, 51 (2), 86-96.

Swan, J. E., Bowers, M. R., & Grover, R. (2002). Customer involvement in the selection of service specifications. Journal of Services Marketing, 16 (1), 88-103. DOI: 10.1108/08876040210419433

Tax, S. S., & Stuart, I. (1997). Designing and implementing new services: The challenges of integrating service systems. Journal of Retailing, 73(1), 105-134.

Tombs, A. G., & McColl-Kennedy, J. R. (2013). Third party customers infecting other customers for better or for worse. Psychology & Marketing, 30 (3), 277-292.

Ulkuniemi, P., & Pekkarinen, S. (2011). Creating value for the business service buyer through modularity. International Journal of Services and Operations Management, 8 (2), 127-141.

van der Valk, W., & Rozemeijer, F. (2009). Buying business services: Towards a structured service purchasing process. Journal of Services Marketing, 23 (1), 3-10. DOI:10.1108/08876040910933048

van der Valk, W., Wynstra, F., & Axelsson, B. (2009). Effective buyer-supplier interaction patterns in ongoing service exchange. International Journal of Operations & Production Management, 29 (8), 807-833. DOI:10.1108/01443570910977706

van der Valk, W., & Wynstra, F. (2012). Buyersupplier interaction in business-to-business services: A typology test using case research. Journal of Purchasing and Supply Management, 18 (3), 137-147. DOI: 10.1016/j.pursup.2012.03.003

van Dun, Z., Bloemer, J., & Henseler, J. (2011). Perceived customer contact centre quality: Conceptual foundation and scale development. Service Industries Journal, 31(8), 1347-1363. DOI: 10.1080/02642060903437584

van Iwaarden, J., & van der Valk, W. (2013). Controlling outsourced service delivery: Managing service quality in business service triads. Total Quality Management & Business Excellence, 24 (9/10), 1046 - 1061. DOI:10.1080/14783363.2013.776766

Van Raaij, W. F., & Pruyn, A. T. H. (1998). Customer control and evaluation of service validity and reliability. Psychology & Marketing, 15 (8), 811-832.

Voss, G. B., Parasuraman, A., & Grewal, D. (1998). The roles of price, performance, and expectations in determining satisfaction in service exchanges. Journal of Marketing, 62 (4), 46-61.

Wilson, A., Zeithaml, V. A., Bitner, M.J., Gremler, D. D. (2011). Services marketing: Integrating customer focus across the firm (pp. 402 - 428). New Delhi : Tata McGraw-Hill.

Xia, L., Kukar-Kinney, M., & Monroe, K. B. (2010). Effects of consumers' efforts on price and promotion fairness perceptions. Journal of Retailing, 86 (1), 1-10. DOI: 10.1016/j.jretai.2009.10.003

Xu, X. (2012). From cloud computing to cloud manufacturing. Robotics and Computer-Integrated Manufacturing, 28 (1), 75 - 86. doi>10.1016/j.rcim.2011.07.002

Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60 (2), 31-46.