IDEAS home Printed from https://ideas.repec.org/a/spr/jbecon/v87y2017i2d10.1007_s11573-016-0817-5.html
   My bibliography  Save this article

Customer acceptance of tradable service contracts

Author

Listed:
  • Ingmar Geiger

    (Freie Universität Berlin
    Aalen university)

  • Manuel Kluckert

    (Deutsche Post AG)

  • Michael Kleinaltenkamp

    (Freie Universität Berlin)

Abstract

Service providers from various industries design and sell, using retail channels, tradable service contracts (TSC). These are vouchers for predetermined services which can be claimed at a later time. TSCs promise to broaden service providers’ reach and increase marketing and sales efficiency—as long as consumers accept this new type of service sales and provision. Based on institutional analysis, new institutional economics, and the service marketing literature this article conceptualizes TSCs, compares them with traditional service sales and provision, and identifies drivers of customer acceptance that link supply and demand sides, making them readily actionable for managers. In a scenario-based quasi-experiment with a sample representative of the German population (n = 621), TSCs cause greater customer perceived uncertainty but fewer transaction costs than traditional service sales and provision. Six determinants of those central barriers to customer acceptance, derived from new institutional economic theory, are tested using structural equation modeling. Multi-group analysis shows that the provider reputation—uncertainty link and the transaction cost—acceptance link are more pronounced for TSCs than for traditional service sales and provision. Increasing service availability through intelligent retail partner choice is the strongest managerial implication for service providers using TSCs.

Suggested Citation

  • Ingmar Geiger & Manuel Kluckert & Michael Kleinaltenkamp, 2017. "Customer acceptance of tradable service contracts," Journal of Business Economics, Springer, vol. 87(2), pages 155-183, February.
    • Handle: RePEc:spr:jbecon:v:87:y:2017:i:2:d:10.1007_s11573-016-0817-5
    DOI: 10.1007/s11573-016-0817-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11573-016-0817-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11573-016-0817-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ronald H. Coase, 2008. "The Institutional Structure of Production," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 2, pages 31-39, Springer.
    2. Gadrey, Jean, 2000. "The Characterization of Goods and Services: An Alternative Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(3), pages 369-387, September.
    3. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    4. Jean Gadrey, 2000. "The Characterization Of Goods And Services: An Alternative Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(3), pages 369-387, September.
    5. Robert M. Hunt & Stephanie M. Wilshusen, 2012. "Consumers’ use of prepaid cards: a transaction-based analysis," Consumer Finance Institute discussion papers 12-02, Federal Reserve Bank of Philadelphia.
    6. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    7. Flie[ss], Sabine & Kleinaltenkamp, Michael, 2004. "Blueprinting the service company: Managing service processes efficiently," Journal of Business Research, Elsevier, vol. 57(4), pages 392-404, April.
    8. Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911.
    9. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    10. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    11. Ross, Stephen A, 1973. "The Economic Theory of Agency: The Principal's Problem," American Economic Review, American Economic Association, vol. 63(2), pages 134-139, May.
    12. Johnson, Devon & Grayson, Kent, 2005. "Cognitive and affective trust in service relationships," Journal of Business Research, Elsevier, vol. 58(4), pages 500-507, April.
    13. Paul R. Messinger & Chakravarthi Narasimhan, 1997. "A Model of Retail Formats Based on Consumers' Economizing on Shopping Time," Marketing Science, INFORMS, vol. 16(1), pages 1-23.
    14. Alchian, Armen A. & Demsetz, Harold, 1973. "The Property Right Paradigm," The Journal of Economic History, Cambridge University Press, vol. 33(1), pages 16-27, March.
    15. Steenkamp, Jan-Benedict E M & Baumgartner, Hans, 1998. "Assessing Measurement Invariance in Cross-National Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(1), pages 78-90, June.
    16. Furubotn, Eirik G & Pejovich, Svetozar, 1972. "Property Rights and Economic Theory: A Survey of Recent Literature," Journal of Economic Literature, American Economic Association, vol. 10(4), pages 1137-1162, December.
    17. Walsh, Gianfranco & Beatty, Sharon E. & Shiu, Edward M.K., 2009. "The customer-based corporate reputation scale: Replication and short form," Journal of Business Research, Elsevier, vol. 62(10), pages 924-930, October.
    18. Victor P. Goldberg, 1976. "Regulation and Administered Contracts," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 426-448, Autumn.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nick Lin-Hi & Marlene Reimer & Katharina Schäfer & Johanna Böttcher, 2023. "Consumer acceptance of cultured meat: an empirical analysis of the role of organizational factors," Journal of Business Economics, Springer, vol. 93(4), pages 707-746, May.
    2. Andreas Falke & Nadine Schröder & Herbert Endres, 2020. "A first fit index on estimation accuracy in structural equation models," Journal of Business Economics, Springer, vol. 90(2), pages 277-302, March.
    3. Karpen, Ingo & Plewa, Carolin, 2020. "From Muso to Academic and Back: A Time and Person-Based Acknowledgement of Michael Kleinaltenkamp," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 4(2-3), pages 75-83.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Sen & Bogle, Tim & van Kooten, G. Cornelis, 2012. "Forestry and the New Institutional Economics," Working Papers 130818, University of Victoria, Resource Economics and Policy.
    2. Elzas, B.D., 1998. "'The Nature of the Firm' after sixty years," Serie Research Memoranda 0032, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    3. Jorge Pinilla & Joaquim Vergés, 2007. "Efectos De La Privatización En La Eficiencia De Iberia Líneas Aéreas De España S.A," Revista Economía y Administración, Facultad de Ciencias Económicas y Administrativas, Universidad de Concepción, vol. 69, pages 7-38, December.
    4. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    5. Haucap, Justus, 2017. "The rule of law and the emergence of market exchange: A new institutional economic perspective," DICE Discussion Papers 276, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    6. Łukasz Hardt, 2006. "Narodziny i ewolucja treści znaczeniowej wyrażenia „koszt transakcyjny”," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 11-12, pages 1-24.
    7. Wandel, Jürgen, 2011. "Integrierte Strukturen im Agrar- und Ernährungssektor Russlands: Entstehungsgründe, Funktionsweise, Entwicklungsperspektiven und volkswirtschaftliche Auswirkungen. Band I und II," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 63, number 63.
    8. Kim, Jongwook & Mahoney, Joseph T., 2005. "Appropriating Economic Rents from Resources: An Integrative Property Rights and Resource-Based Approach," Working Papers 05-0123, University of Illinois at Urbana-Champaign, College of Business.
    9. Horan, Stephen M. & Johnsen, D. Bruce, 2008. "Can third-party payments benefit the principal?: The case of soft dollar brokerage," International Review of Law and Economics, Elsevier, vol. 28(1), pages 56-77, March.
    10. Steven G. Medema, 2020. "The Coase Theorem at Sixty," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 1045-1128, December.
    11. Giorgio Coricelli & Luigi Luini, 1999. "Double Moral Hazard: an Experiment on Warranties," CEEL Working Papers 9901, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    12. Voszka, Éva, 2020. "Állami vagy magántulajdon? Adalékok egy dichotómia értelmezéséhez [Public or private ownership? Some remarks on the interpretation of a dichotomy]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1193-1216.
    13. Jongwook Kim & Joseph T. Mahoney, 2002. "Resource-based and property rights perspectives on value creation: the case of oil field unitization," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(4-5), pages 225-245.
    14. Bartke, Stephan, 2015. "The economic role of valuers in real property markets," UFZ Discussion Papers 13/2015, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    15. Lehn, Kenneth, 2021. "Corporate governance and corporate agility," Journal of Corporate Finance, Elsevier, vol. 66(C).
    16. Ghulam Abid & Binish Khan & Zeeshan Rafiq & Alia Ahmed, 2014. "Theoretical Perspectives of Corporate Governance," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 3(4), pages 166-175, December.
    17. Matyukha, Andriy, 2017. "Business groups in agriculture impact of ownership structures on performance: The case of Russia's agroholdings," Studies on the Agricultural and Food Sector in Transition Economies 254051, Institute of Agricultural Development in Transition Economies (IAMO).
    18. David Gindis, 0. "On the origins, meaning and influence of Jensen and Meckling’s definition of the firm," Oxford Economic Papers, Oxford University Press, vol. 72(4), pages 966-984.
    19. William J. Marshall & Jess B. Yawitz & Edward Greenberg, 1984. "Incentives for Diversification and the Structure of the Conglomerate Firm," NBER Working Papers 1280, National Bureau of Economic Research, Inc.
    20. Youngjung Geum & Moon-Soo Kim & Sungjoo Lee, 2017. "Service Technology: Definition and Characteristics Based on a Patent Database," Service Science, INFORMS, vol. 9(2), pages 147-166, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jbecon:v:87:y:2017:i:2:d:10.1007_s11573-016-0817-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.