Customer acceptance of tradable service contracts
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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 87 (2017)
Issue (Month): 2 (February)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/journal/11573|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Armen A. Alchian & Harold Demsetz, 1971. "Production, Information Costs and Economic Organizations," UCLA Economics Working Papers 10A, UCLA Department of Economics.
- Coase, R H, 1992. "The Institutional Structure of Production," American Economic Review, American Economic Association, vol. 82(4), pages 713-719, September.
- Coase Ronald, 1991. "The Institutional Structure of Production," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 2(4), pages 1-10, December.
- Coase, Ronald H., 1991. "The Institutional Structure of Production," Nobel Prize in Economics documents 1991-1, Nobel Prize Committee.
- 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.
- 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.
- Johnson, Devon & Grayson, Kent, 2005. "Cognitive and affective trust in service relationships," Journal of Business Research, Elsevier, vol. 58(4), pages 500-507, April.
- Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
- 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.
- Stephanie M. Wilshusen & Robert M. Hunt & James van Opstal & Rachel Schneider, 2012. "Consumers’ use of prepaid cards: a transaction-based analysis," Payment Cards Center Discussion Paper 12-02, Federal Reserve Bank of Philadelphia.
- Alchian, Armen A. & Demsetz, Harold, 1973. "The Property Right Paradigm," The Journal of Economic History, Cambridge University Press, vol. 33(01), pages 16-27, March.
- 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.
- Steenkamp, Jan-Benedict E M & Baumgartner, Hans, 1998. " Assessing Measurement Invariance in Cross-National Consumer Research," Journal of Consumer Research, Oxford University Press, vol. 25(1), pages 78-90, June.
- 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.
- 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.
- Victor P. Goldberg, 1976. "Regulation and Administered Contracts," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 426-448, Autumn.
- George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213-213. Full references (including those not matched with items on IDEAS)
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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.