Customer Compliance Models - Literature review Example

Compliance Models: A Review of Several Articles 8 November Introduction Vast developments in information and communication technology have provided several benefits and drawbacks to service providers and their consumers. On the one hand, veering away from costly customer-centric models and depending on databases to manage customer interactions and complaints can reduce operational costs (Kasabov and Warlow, 2009: 34). On the other hand, customer compliance can result to standardised practices that may ignore emerging customer service complaints, which can impact the profitability of customer compliance service models (Kasabov and Warlow, 2010: 715). In the article “Towards a New Model of ‘Customer Compliance’ Service Provision,” Kasabov and Warlow (2010) used secondary sources to determine the similarities and differences between customer-centric business models and the “customer-compliance business model” (CCBM) in service industries. In an earlier article, “Automated Marketing and E-Marketing Practices of ‘Customer Compliance’ Providers,” Kasabov and Warlow (2009) examined the concepts and processes of customer compliance providers. Dellande and Nyer (2007) empirically tested the effect of public commitment on role compliance in “Using Public Commitment to Gain Customer Compliance.” This essay critically evaluates the research designs and methodology strategies of these articles. Critical Evaluation of Methodologies Based on the data collection and analysis processes of Kasabov and Warlow (2010), they conducted a qualitative research, where they used existing studies on their topic to form their conclusions and to conduct their conceptual analysis. This research design is effective for their research because it considers the development of the service management literature on compliance models, and it helps determine research gaps. The constructionist approach that they employed explores the growth and much needed direction for the research on compliance models (Eriksson and Kovalainen, 2008: 80). The weaknesses of their research design are poor validity and reliability in generating conclusions and sampling research issues. They cannot generalise their findings too because of lack of empirical information that can provide tested results on compliance models. Kasabov and Warlow (2010) did not present their research design anymore, such as what systematic reviews normally do, but they did try to adopt numerous studies on customer compliance. Their sampling includes studies conducted from the 1990s to the 2000s, with more studies on the 1990s. This range of references shows extensive consideration to the development of the literature, but more recent articles and studies are necessary to ensure the relevance of their findings. Without further details on their research design, however, it is hard to replicate their methods and to come up with the same conclusions, which reduced the article’s reliability (Wilson, 2010: 116). A careful analysis of the arguments and use of sources is needed to explore the reliability and validity of their claims and conclusions. Kasabov and Warlow (2010) collected information about the CCBM through reviewing related literature. They have enhanced the validity of their research by including the doubts surrounding service provision and complaint management. They avoided the straw man fallacy, which happens when they only respond to weak arguments to their own claims. In order to critically evaluate their article, their main findings must be discussed. Kasabov and Warlow (2010) argued that CCBM cannot apply the same values and norms used in traditional service provisions and complaints management literature. Furthermore, they complained that current studies have not fully explored the importance and extensive applications of CCBM. They asserted that service management scholars often focused on outcomes and disregarded the importance of CCBM’s novel processes. In doing so, these studies were not able to wholly ascertain the responsiveness of CCBM to managing customer needs and complaints. The data analysis that Kasabov and Warlow (2010) conducted uses critical thinking and synthesis concepts, which are effective in comparing and contrasting traditional and CCBM models. They have exhausted the components that can be compared for these models. They successfully pointed out gaps in CCBM literature, as well as misapplications of traditional norms and assumptions on CCBM. Their findings are reliable because they used plentiful articles, but validity has yet to be improved with additional empirical studies on the actual operations of CCBM, including its processes and outcomes. Generalisability is poor because of lack of empirical studies on either a specific group or industry, or entire service industry (Bryman and Bell, 2007: 63). Further empirical studies that have some experimental nature can enhance the validity and generalisability of the studies on CCBM. As for the ethical considerations, the lack of full disclosure of the data collection process and criteria for choosing resources results to thinking of a biased sampling. In another article, Kasabov and Warlow (2009) reviewed literature to determine the growth of CCBM as a theory and practice. They employed qualitative research, where they attempted to exhaust existing literature on customer compliance firms. They included small case studies to enhance the validity of their arguments. For their data analysis, it is appropriate because they used marketing models and theories to make inferences about their sources. Kasabov and Warlow (2009) asserted that the use of databases is not customer-centric, but pointed to a new form of model, the customer compliance model. They described that CCBM businesses unite differentiation and cost leadership, which helped them achieve sustained competitive advantage over traditional businesses. Kasabov and Warlow (2009) claimed that successful CCBMs have attained growth and profitability, while noting that marketing theory is outdated and cannot be effectively used to study the development and effects of CCBM on service relationships and performance. Their findings are reliable when cross-referenced with other empirical articles. Nevertheless, the reliability of their findings is poor without potential replication of the data-collection method, which is undisclosed in the article. Generalisation cannot be attained with limited sampling of references used also, although their propositions can be tested in future empirical studies. The authors responded to the ethical issue of considering numerous references to reduce bias. Dellande and Nyer (2007) used a posttest survey research design to conduct their experiment. Their sampling included an entire class of 102 students enrolled for an online course. Their factorial analysis approach fits the correlative nature of the study. Their study has strong reliability because of the detailed explanation of their data collection and analysis processes (Wilson, 2010: 116). Time error and subject influence error are reduced through the fact that the authors measured actual time spent on reading the lectures and printing them, which were unknown to the subjects. Validity is high due to the inclusion of all subjects and the appropriateness of the research methodology in testing the relationship between public compliance and commitment to services. They also considered a mediating factor, which increased internal validity. Generalisability is low, however, because of the small sampling and limited application to sampling with similar demographics. Dellande and Nyer (2007) considered the confidentiality of the personal information of their subjects, which made their study ethical on this regard. Reflection on Research Objectives/Questions and Methodological Approach Kasabov and Warlow (2010) tackled the research problem of the determination and exploration of the CCBM’s innovations in service management. The research objectives are to study service failure recovery and complaint management behaviours of some CCBM companies and to understand weaknesses in using traditional service concepts and models. They used the review of literature approach to answer their research problem. This approach is effective for their research because it considers the development of studies on compliance models and helps establish gaps and weaknesses in the research. By exploring different studies on diverse industries and companies, they also hoped to have some level of generalisability for their findings. The research problem in Kasabov and Warlow (2009) is that CCBM may not be properly studied and described through traditional marketing theory. Their main research objectives are to understand customer compliance practices and to determine research gaps on this emerging service model. They have used an effective method for their research goals because they combined mini-case studies and use of empirical resources. However, due to the scanty research done on customer compliance processes and outcomes, the validity of their findings is require additional empirical testing. For Dellande and Nyer (2007), their research problem involved increasing customer compliance for customers who are not with their service providers. They used the proper methodological approach by comparing and contrasting the behaviours of three groups. In addition, because of their research question, their assumption is based on actual service encounters, where compliance is required to render effective services. Comparison of Methodological Approaches Kasabov and Warlow (2010) and Kasabov and Warlow (2009) pursued nearly the same methodological approach of using relevant studies to gather data and to support their claims. Kasabov and Warlow (2009) included mini case studies and explored the conceptual framework of CCBM. Though they have similar methodological approaches, they answered different questions regarding CCBM. Kasabov and Warlow (2010) are more concerned of propositions that challenge usual thinking in the areas of service recovery and complaint management, while Kasabov and Warlow (2009) directed their efforts on finding the link between CCBM and traditional marketing theory. Both, nevertheless, used secondary research to support their assumptions and arguments. Dellande and Nyer’s study (2007) is different from these two studies because the former used a quasi-experimental design with its posttest methodology. They answered a different question because they focused on the relationship between increasing customer compliance through public commitment. They also assumed that susceptibility to normative influence (SNI) moderated the impact of public commitment on compliance. Like Kasabov and Warlow (2010) and Kasabov and Warlow (2009), Dellande and Nyer (2007) used secondary research to formulate their hypotheses. From former researches, they assumed that public commitment can affect compliance, which they proved in their study. Conclusion Studies from Kasabov and Warlow (2010), Dellande and Nyer (2007) and Kasabov and Warlow (2009) showed that customer compliance is increasingly becoming a significant and widespread practice for diverse service firms that use the Internet and Intranet to deliver various services to their customers. Kasabov and Warlow (2010) and Kasabov and Warlow (2009) had an underlying theory that marketing research and the mainstream media highlight the weaknesses of CCBM in an unfair manner. They stressed that marketing concepts for traditional service models cannot all be applied to CCBM. Their studies are significant to research because they point out research gaps, which when explored, could improve the validity and reliability of their propositions. Their studies have managerial implications because they indicate the practicality and relevance of CCBM to service firms that are either creating a hybrid model of CCBM and traditional structures, or are slowly shifting to a full customer-compliance model. Kasabov and Warlow (2009) contributed to the research on CCBM by pointing out gaps between rumours and realities about its responsiveness. They improved the conceptual framework for CCBM and pointed out future studies. Dellande and Nyer (2007) added to the correlative studies on customer compliance. Their work will be particularly useful for service firms who need to enhance customer compliance. Further steps can be done to enhance future studies’ research designs through using quantitative measures and triangulation, such as mixing surveys with observation and performance measures. In addition, empirical testing of the propositions of Kasabov and Warlow (2010) can yield more understanding of the conceptual rigor of CCBM as a responsive service model. Reference List Bryman, A. and Bell, E. (2007) Business research methods, 2nd edn, Oxford: Oxford University Press. Dellande, S. and Nyer, P. (2007) ‘Using public commitment to gain customer compliance,’ Advances in Consumer Research, no. 34, pp. 249-55. Eriksson, P. and Kovalainen, A. (2008) Qualitative methods in business research, London: SAGE. Kasabov, E. and Warlow, A. (2012) The compliance businesses and their customers, United Kingdom: Palgrave Macmillan [Kindle ebook]. Kasabov, E. and Warlow, A. (2009) ‘Automated marketing and e-marketing practices of ‘customer compliance’ providers,’ Journal of Direct, Data and Digital Marketing Practice, vol. 11, no. 1, pp. 30-50. Kasabov, E. and Warlow, A. (2010) ‘Towards a new model of ‘customer compliance’ service provision,’ European Journal of Marketing, no. 44, pp.700-29. Wilson, J. (2010) Essentials of business research: A guide to doing your research project, London: SAGE. Read More