Business and Management INK

How Do Customers and Companies Benefit from Service Firm Transparency?

November 3, 2015 850

JSR Cover[We’re pleased to welcome Andreas B. Eisengerich, who collaborated with Omar Merlo, Seigyoung Auh, and Hae Eun Helen Chun on their paper “Service Firm Performance Transparency: How, When and Why Does It Pay Off?” from the May issue of Journal of Service Research.]

Calls for greater business transparency have become louder in recent years and transparency has risen to the top of the agenda of many organizations. Businesses in a wide range of industries have started to embrace transparency, as their managers swear by the benefits of providing accessible and objective information to customers. Yet, many firms remain wary of the benefits of transparency and are unsure about how to implement it. How does transparency impact customers’ relationships with a firm? Is being transparent worth the risk? In our research, we focus on one particular aspect of firm transparency, which we deem particularly important to customers and firms. We term it performance transparency, and it reflects the extent to which customers view the information provided by businesses about their service performance as accessible and objective. We find that performance transparency benefits both customers and the firm. Customers benefit because when service quality is difficult to evaluate prior to a purchase, transparency can enable customers to minimize uncertainty by “seeing through” the firm and its offerings. Companies benefit because in a context where it is increasingly more difficult to conceal negative information about a firm’s performance, transparency can actually be used as a source of competitive advantage that increases a customer’s purchase intention and reduces price sensitivity. Surprisingly, we also find that being transparent best impacts companies that tend perhaps to be the most afraid of transparency.

You can read “Service Firm Performance Transparency: How, When and Why Does It Pay Off?” from Journal of Service Research by clicking here. Want to know about all the latest news and research from Journal of Service Research? Just click here to sign up for e-alerts!


Yeyi Liu is an Assistant Professor at Leeds Business School. He holds a BSc in Industrial Engineering and MSc in Management Science and Engineering from Xi’an Jiaotong University, China. He also holds a PhD from Imperial College London. Prior to joining Leeds University Business School, he worked as research associate at Strathclyde University Business School.

Andreas Eisingerich

Andreas B. Eisingerich is an Associate Professor of marketing at Imperial College Business School, Imperial College London. He earned his PhD at the University of Cambridge and worked at the Center for Global Innovation at the University of Southern California, Marshall School of Business. He has published on customer-brand relationships, customer engagement, and service management in the Journal of Consumer Psychology, Journal of Marketing, Journal of Service Research, Journal of Business Research, Harvard Business Review, and MIT Sloan Management Review, among others.

Seigyoung Auh

Seigyoung Auh is an Associate Professor of global marketing at Thunderbird School of Global Management. He earned his MBA and PhD from The Ross Business School, University of Michigan. He is also a research fellow at the Center for Marketing and Public Policy Research, Villanova University. His research interests are in knowledge sharing in sales teams, effect of leadership on extra-role behavior of frontline service employees, and customer orientation diversity. He has published articles in various outlets, including Journal of Service Research, Journal of the Academy of Marketing Science, Journal of Consumer Psychology, International Journal of Research in Marketing, Journal of Retailing, Journal of Product Innovation Management, Marketing Letters, Journal of Personal Selling & Sales Management, Journal of Business Research, and Industrial Marketing Management, among others.

Omar Merlo

Omar Merlo is an Assistant Professor of marketing at Imperial College Business School, Imperial College London. He earned his PhD from University of Melbourne, Australia. As a consultant and executive educator, he works with numerous service organizations around the world. His main research interests are in strategic marketing, marketing’s role within the firm, firm orientations, and service management. His research has appeared in journals such as Journal of Service Research, Industrial Marketing Management, Marketing Letters, Journal of Business Research, European Journal of Marketing, MIT Sloan Management Review, and Marketing Theory, among others.

Hae Eun Helen Chun

Hae Eun Helen Chun is an Assistant Professor of marketing at Cornell School of Hotel Administration. Helen earned her PhD in business administration (marketing) from the Marshall School of Business at University of Southern California. Her research interests include consumer experience management in the service context, with a focus on the role of consumer emotions, anticipation, memory, and sensory marketing. Her research has appeared in journals such as Journal of Consumer Psychology, Sensory Marketing, and Foundations and Trends in Marketing, among others.

Business and Management INK puts the spotlight on research published in our more than 100 management and business journals. We feature an inside view of the research that’s being published in top-tier SAGE journals by the authors themselves.

View all posts by Business & Management INK

Related Articles

Keeping Qualitative Research Weird!
Business and Management INK
May 23, 2024

Keeping Qualitative Research Weird!

Read Now
Sometimes, We Do Need a Narcissist
Business and Management INK
May 21, 2024

Sometimes, We Do Need a Narcissist

Read Now
From Collision to Collaboration: Bridging University and Industry Relationships
Business and Management INK
May 17, 2024

From Collision to Collaboration: Bridging University and Industry Relationships

Read Now
Motivation of Young Project Professionals: Their Needs for Autonomy, Competence, Relatedness, and Purpose
Business and Management INK
May 14, 2024

Motivation of Young Project Professionals: Their Needs for Autonomy, Competence, Relatedness, and Purpose

Read Now
A Complexity Framework for Project Management Strategies

A Complexity Framework for Project Management Strategies

Contemporary projects frequently pose complexities that cannot be adequately tackled by the classical project management tradition. This article offers a diagnostic tool to help identify the type of complexity of a project and determine the most suitable strategy for addressing it.

Read Now
Bringing Theories into Conversation to Strategize for a Better World

Bringing Theories into Conversation to Strategize for a Better World

In this article, Ann Langley, Rikkie Albertsen, Shahzad (Shaz) Ansari, Katrin Heucher, Marc Krautzberger, Pauline Reinecke, Natalie Slawinski, and Eero Vaara reflect on the inspiration behind their research article, “Strategizing Together for a Better World: Institutional, Paradox and Practice Theories in Conversation,” found in the Journal of Management Inquiry.

Read Now
Exploring Discrimination Faced by Asian Nationals in the U.S. Labor Market

Exploring Discrimination Faced by Asian Nationals in the U.S. Labor Market

Amit Kramer, Kwon Hee Han, Yun Kyoung Kim, and Yun Kyoung Kim reflect on the hypotheses and observations that led to their article, “Inefficiencies and bias in first job placement: the case of professional Asian nationals in the United States.”

Read Now
0 0 votes
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Inline Feedbacks
View all comments