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The Benefits and Measurement of Service Firms’ Performance Transparency: How and When Does Performance Transparency Pay Off?

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dc.contributor.authorLiu, Yeyi
dc.contributor.authorEisingerich, Andreas B.
dc.contributor.authorAuh, Seigyoung
dc.contributor.authorMerlo, Omar
dc.contributor.authorChun, HaeEun Helen
dc.date.accessioned2020-09-12T21:02:40Z
dc.date.available2020-09-12T21:02:40Z
dc.date.issued2015-11-01
dc.description.abstractCalls for increased transparency and reduced information asymmetry between service firms and their customers are getting louder in the marketplace. Yet, it remains unclear what exactly constitutes transparency in the eyes of customers and how, if at all, service firms benefit from it. This research contributes to extant knowledge by articulating the key properties of service firms’ performance transparency and by developing and validating a parsimonious scale to measure it. We show that through a reduction in customer uncertainty, the provision of accessible and objective information about a firm’s service offering is positively associated with customers’ intention to purchase and willingness to pay a price premium for its service. Furthermore, we find that the positive effect of performance transparency is influenced by customers’ perceptions of a firm’s ability to deliver on its service promise. An important managerial implication of the current research is that performance transparency benefits customers by lowering uncertainty, and hence service firms should proactively consider it as a critical measure that helps differentiate their services from competitive offerings, even when customer perceptions of a service firm’s ability are low.
dc.description.legacydownloadsChun9_The_benefits_and_measurement.pdf: 687 downloads, before Aug. 1, 2020.
dc.identifier.other7960780
dc.identifier.urihttps://hdl.handle.net/1813/71387
dc.language.isoen_US
dc.relation.doihttps://doi.org/10.1177/1094670515584331
dc.rightsRequired Publisher Statement: © SAGE . Final version published as: Liu, Y., Eisingerich, A. B., Auh, S., Merlo, O., & Chun, H. H. (2015). Service firm performance transparency: How, when, and why does it pay off? Journal of Service Research, 18(4), 451-467. doi:10.1177/1094670515584331 Reprinted with permission. All rights reserved.
dc.subjecttransparency
dc.subjectcustomer reviews
dc.subjectuncertainty
dc.subjectcustomer relationships
dc.subjectprice premium
dc.titleThe Benefits and Measurement of Service Firms’ Performance Transparency: How and When Does Performance Transparency Pay Off?
dc.typearticle
local.authorAffiliationLiu, Yeyi: University of Leeds
local.authorAffiliationEisingerich, Andreas B.: Imperial College London
local.authorAffiliationAuh, Seigyoung: Thunderbird School of Global Management
local.authorAffiliationMerlo, Omar: Imperial College London
local.authorAffiliationChun, HaeEun Helen: hc633@cornell.edu Cornell University School of Hotel Administration

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