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Abstract
Purpose – The aim of this paper is to present a new framework for the evaluation of satisfaction in continually delivered business services (CDBS)
contexts based on applicable theoretical perspectives and extant empirical research.
Design/methodology/approach – The paper first describes and justifies the importance of the CDBS context. Then, a literature review of CDBS
satisfaction research over the past ten years is presented and utilized in conjunction with theoretical insights from expectancy disconfirmation theory
and social exchange theory to develop conceptual definitions, a general conceptual framework, and research propositions.
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Findings – The resulting conceptual framework focuses on global CDBS provider satisfaction as the outcome of three more specific satisfaction
assessments: service satisfaction (driven by the actual performance of the service), economic satisfaction (driven by the customers’ economic
outcomes from the exchange relationship) and social satisfaction (driven by the customers’ social outcomes and interactions in the exchange
relationship).
Originality/value – The study is the first to develop a framework of satisfaction for the CDBS context and presents propositions to guide future
satisfaction research. The conceptual framework leverages insights from two existing models of satisfaction formation: expectancy disconfirmation
(which provides deeper insight on service satisfaction) and social exchange theory (which provides deeper insights on social and economic
satisfaction). The integration of these two models results in a more comprehensive view of satisfaction formation in the CDBS context than by using
either model separately.
Keywords Social exchange theory, Disconfirmation, Economic satisfaction, Satisfaction formation, Service satisfaction, Social satisfaction
Paper type Conceptual paper
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Elten Briggs, Timothy D. Landry and Patricia J. Daugherty Volume 31 · Number 1 · 2016 · 112–122
offerings and manage relationships to an extent that heretofore primary exchanges in services contexts often do not involve a
had only been feasible when serving business customers. transfer in ownership of a tangible commodity, customers
Satisfaction theory has not kept pace with these developments. often make use of cues external to the service provision as
A specific framework for satisfaction formation in continually information signals when forming satisfaction responses
delivered business services (CDBS) can more effectively (Crosby and Stephens, 1987; Arnold et al., 2007). Germane to
account for issues pertaining to the central role of service in theory development for CDBS, service personnel influence
the exchange, co-creation and ongoing business relationships. satisfaction, even those not directly involved in the provision
To that end, this paper develops a general framework for of the core service (Doorn, 2008; Doorn and Verhoef, 2008;
satisfaction formation in CDBS contexts with contributions to Jayawardhena, 2010). The service provider and related
both theory and practice. Propositions are further offered for contact personnel should be explicitly considered in models
conducting satisfaction research in this context. addressing CDBS satisfaction formation.
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same sample (Doorn, 2008; Doorn and Verhoef, 2008) and satisfaction. Consistent with our assertions, Singh and
constituted a single entry in the table. The table illustrates that Sirdeshmukh (2000) frame post-encounter trust as dependent
the two most common approaches over the past ten years have on satisfaction. The study that considers commitment to be
been to assess satisfaction with the service provider (nine antecedent to satisfaction is based on a framework by Selnes
studies) or satisfaction with the services delivered (nine (1998) that considers the signaled commitment of the seller to
studies). The most common CDBS industries examined in be antecedent to the customers’ satisfaction. This type of
our review were transportation/logistics (six studies), commitment is unrelated to our assertions, as we frame
information technology/Web services (five studies) and satisfaction as antecedent to customers’ relational outcomes.
financial services (four studies).
Though we assert that satisfaction is normally a determinant
4. Conceptual framework
of relational outcomes such as trust and commitment, some
studies included in our review conceptualize trust or 4.1 Satisfaction with CDBS service providers
commitment as antecedent to satisfaction (Chenet et al., As noted in the review of the extant B2B services literature
2010; Hsu et al., 2013; Taylor and Hunter, 2003). Deeper (Table I), the antecedents of satisfaction vary widely across
investigation reveals that differences in the framing of the studies, and there is even a lack of consensus as to what should
constructs led to the apparent inconsistencies. The two studies be the appropriate conceptual focus of satisfaction
that consider trust as antecedent to satisfaction both rely on a assessments. Importantly, Giese and Cote (2000), in their
framework by Singh and Sirdeshmukh (2000) that review of the customer satisfaction literature, identified three
differentiates between consumers’ trust prior to a service components common to any conceptualization of satisfaction:
encounter (pre-encounter) and trust after a service encounter 1 the type of response;
(post-encounter). The authors frame pre-encounter trust 2 the focus of the response; and
(which is not a relational outcome) as antecedent to 3 the time of the response.
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Specific conceptualizations of the satisfaction formation 4.2 Expectancy disconfirmation and social exchange
process should begin by putting forward a concise, yet theories
complete, definition of service provider satisfaction – in this Having offered a working definition of CDBS provider
case, for CDBS contexts. satisfaction, a general framework for CDBS satisfaction
In reference to response type, CDBS satisfaction should be formation can now be considered. The most widely applied
considered an evaluation, similar to Fornell’s (1992) theoretical perspective in the customer satisfaction literature is
conceptualization. Again, business customers are widely the E/D paradigm (Ilgen, 1971; Oliver, 1980). This
regarded as being more rational than consumers (Rossomme, perspective is not, however, without its limitations. In CDBS
2003). Considering satisfaction to be an evaluation more services contexts, the ongoing nature of service delivery
clearly reflects the rational processing of business customers. diminishes the influence of expectations in the satisfaction
formation process.
Affective responses, the other major response type in
Social exchange theory (SET) (Blau, 1964; Chang et al., 2012)
consumer satisfaction, should matter less to business
has the potential to complement expectancy disconfirmation by
customers. Our review found that some operationalizations of
allowing for acknowledgment that there is a human component,
satisfaction in CDBS contexts rely on measures derived from
indeed often a relational aspect, to business service provision.
these more affect-based conceptualizations (Liu et al., 2005; Originating in the psychology literature, the E/D (or
Spreng et al., 2009; Jayawardhena, 2010). However, in disconfirmation) paradigm suggests that satisfaction is formed by
support of satisfaction-as-evaluation, long-term relationships considering the actual performance of a product or service and
are common in CDBS settings, and importantly, cognition the expected performance of a product or service. Alternatively,
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becomes more significant than affect over time in satisfaction SET, which originated in the sociology literature, suggests that
formation (Homburg et al., 2006). satisfaction is influenced primarily by social and economic
Next, concerning the focus of the response, the CDBS outcomes and the comparison of these outcomes to alternatives.
satisfaction evaluation should be viewed as global and focused In keeping with the idea that satisfaction is largely an evaluative
on the service provider. A global perspective of satisfaction is process (rather than an emotional one), a key advantage of the
suggested, as there are multiple facets of a service exchange E/D framework is that it considers how satisfaction is formed.
beyond just the service provision in B2B services. The Research in this area has carefully examined how individuals
customer generally enters into a formalized relationship with compare expectations to performance and under what conditions
the service provider, allowing social and economic this comparison process results in increased or decreased levels of
considerations to influence the satisfaction evaluation. The satisfaction. A key advantage of SET is that it considers the
focus on the service provider is deemed especially appropriate interpersonal variables influencing satisfaction, more effectively
for the CDBS context. Different individuals in the identifying what variables influence satisfaction formation.
organization may assess differing services or service attributes, Research has identified a number of antecedents that influence
with the service provider being the common thread tying these the satisfaction of an exchange partner, especially in relational
assessments together. B2B contexts. Merging these theories together enables us to
better understand organizational processing and identify the
Finally, regarding the response time, CDBS satisfaction
relational influences shaping business service satisfaction.
should be conceptualized as occurring during consumption of
the service. At the time of the satisfaction response, the
customer has already experienced prior delivery of service and 4.3 Specific satisfaction assessments
generally expects to receive service again in the future. From a theory perspective, conceptualizing CDBS satisfaction
Considering these facets of the B2B service experience, we at the global level of analysis recognizes that it is a function of
modify Oliver’s (2010) popular conceptualization of multiple aspects of the exchange relationship (Crosby and
satisfaction to offer the following definition appropriate Stephens, 1987). As such, the framework for CDBS
specifically for the CDBS context: satisfaction formation (Figure 2) takes into account that
specific satisfaction assessments influence the formation of the
CDBS provider satisfaction is a customer’s global evaluation of the degree to
which a service firm is providing an appropriate level of fulfillment for its
more global satisfaction evaluation. This has managerial
needs. relevance. as a global satisfaction score does not reveal where
or how the firm is succeeding or failing. Here, by merging the
This definition deviates from Oliver (2010) on the type (i.e.
disconfirmation framework with SET, three distinct
customer’s global evaluation vs consumer fulfillment
satisfaction assessments may now be identified: service
response), focus (i.e. service firm vs product/service feature or
satisfaction, social satisfaction and economic satisfaction. Each of
product/service itself) and timing (is providing vs provided) of these specific satisfaction assessments relate to an important
the response. It is also less dependent on affect, in that Oliver’s focal area for business customers. They have differing
definition describes a “pleasurable” level of fulfillment, while antecedents which may be evaluated using distinct processes.
the present definition describes an “appropriate” level of Research using the disconfirmation framework is especially
fulfillment. Finally, an emphasis is placed on the customer applicable to service satisfaction. Oliver’s (2010) definition of
“needs” in the present definition. For business customers, performance-based satisfaction, which is grounded in the
needs are generally articulated more clearly than in the disconfirmation paradigm, focuses on the actual product or
consumer context. Thus, while generally assumed a basis of service provided to the customer. Service satisfaction does not
satisfaction (Oliver, 2010), need fulfillment can be more necessarily involve evaluations of the outcomes of the service
clearly determined in business contexts. performance. Instead, service satisfaction is based on a
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Specific Global
Customer Satisfaction Satisfaction
Observation Assessments Assessment
CDBS
Economic Consumer Economic Provider
Outcomes Evaluative
Satisfaction Satisfaction
Derived from Processes
Social
Exchange
Theory
Social Consumer
Outcomes Social
Evaluative
Satisfaction
Processes
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technical assessment of how a service performs is compared to suggested that each will have a unique effect on global
the established criteria of the business customer. The satisfaction with a service provider. Social aspects of
following definition is provided for service satisfaction: satisfaction that positively influence global satisfaction
Service satisfaction refers to the business customer’s assessment of the evaluations include fairness (Patterson et al., 1997), relational
performance of services delivered by a service provider. performance (Stank et al., 1999; Vickery et al., 2004) and
Doorn (2008) models satisfaction with service performance as service encounter quality (Jayawardhena, 2010). While review
a positive antecedent of a global satisfaction evaluation in the of the CDBS satisfaction literature did uncover studies clearly
context of logistics services. This is consistent with earlier assessing the influence of economic satisfaction on global
research suggesting that perceptions of a service should be satisfaction, economic outcomes have proven to be
transferred to the service provider in relational contexts instrumental in global evaluations of service providers (Briggs
(Crosby and Stephens, 1987). Likewise, the satisfaction et al., 2007). This leads to the following proposition:
framework developed in this study explicitly differentiates
between satisfaction with the service provider and satisfaction P1. Service satisfaction, economic satisfaction and social
with the services provision. By disentangling these differing satisfaction are independent and important (specific)
satisfaction assessments, research can generate better predictors of (global) CDBS provider satisfaction.
understanding of the process of CDBS satisfaction formation.
While many studies applying ideas from the disconfirmation 5. Research propositions concerning services
paradigm tend to focus on the service being delivered, SET satisfaction
focuses on the outcomes of an exchange relationship. The
outcomes are both social and economic (Emerson, 1962; Lambe The last section considered complementary theoretical
et al., 2001). Research suggests that customers form satisfaction perspectives and developed a general conceptual framework of
evaluations of these social and economic outcomes (Geyskens satisfaction in the CDBS context involving three important
and Steenkamp, 2000). The following definitions of social specific satisfaction assessments: service satisfaction, economic
satisfaction and economic satisfaction are based on the work of satisfaction and social satisfaction. This section offers research
Crosby et al. (1990) and Geyskens and Steenkamp (2000): propositions regarding how the most prevalent of these
assessments, service satisfaction, should be operationally
Social satisfaction refers to the business customer’s assessment of its
interaction experiences with a service provider. formulated. Following Oliver (2010), we suggest that service
Economic satisfaction is the business customer’s assessment of the economic
satisfaction is based on various types of evaluative processes.
outcomes that flow from a relationship with its service provider. That is, customers perceive service performance and then
Social and economic aspects have both been considered key process that performance directly or by integrating the
components of relationship satisfaction (Gassenheimer and observation into a more comprehensive evaluation that
Ramsey, 1994; Gassenheimer et al., 1995). However, research ultimately leads to the satisfaction assessment. There is strong
has demonstrated that social and economic satisfactions are theoretical and/or empirical support for customers’ use of at
distinct constructs (Geyskens et al., 1999; Geyskens and least four distinct evaluative processes in the formation of their
Steenkamp, 2000). Research has also demonstrated that service satisfaction assessment:
performance-based service satisfaction and outcome-based 1 cumulative disconfirmation;
service satisfaction offer unique influences on business 2 velocity performance;
outcomes (Stan et al., 2004). Given the theoretical support for 3 service quality; and
the existence and distinctiveness of these constructs, it is 4 service value.
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Propositions related to these evaluative processes are positive direction (velocity) will have distinct influences on
discussed in the following sections. satisfaction, though the importance of position and velocity will
vary across contexts. Hsee and Abelson (1991) demonstrate in
5.1 Disconfirmation two experiments that velocity performance is positively related to
In many business service settings, disconfirmation – the extent individuals’ satisfaction in non-purchasing situations. In B2B
to which performance exceeds or falls short of expectations – service contexts, velocity performance can entail the speed with
has been found to be a strong determinant of satisfaction which a service provider is able to reach desired performance
(Patterson et al., 1997; Patterson, 2000; Hill, 2006; Molinari levels, make needed adjustments for changing customer
et al., 2008). However, most of these studies occur in settings preferences and implement service enhancements. Briggs et al.
that do not fit with CDBS (i.e. the finished service product (2010) found empirical evidence of a distinct influence of
had been delivered to the customer and consumption is not velocity performance on service satisfaction in the third-partly
ongoing). For example, Patterson et al. (1997) examines logistics industry. While traditional positional performance
satisfaction with a consulting project and Hill (2006) examines perceptions were generally more critical to service satisfaction
satisfaction with a delivered advertising creative product. In formation, velocity performance demonstrated increased
these cases, the consumer can consider expectations prior to importance when business customers operated in environments
the services delivery and make comparisons to performance characterized by high levels of competitively intense or market
after service delivery. This kind of assessment becomes more turbulence (Jaworski and Kohli, 1993). Considering the
complicated when service relationships stretch over several theoretical arguments and empirical evidence from related
years, as individuals have difficulty accessing the original literature, it is proposed:
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P2. When calling on the expectancy disconfirmation 5.3 Service quality and service value
paradigm for modeling CDBS contexts, cumulative Several CDBS studies have evaluated service quality, instead
disconfirmation is a more appropriate antecedent than of service performance, as an antecedent to service satisfaction
traditional disconfirmation. (Bruhn and Frommeyer, 2004; Wiertz et al., 2004; Spreng
et al., 2009; Jayawardhena, 2010; Vize et al., 2013). Oliver
5.2 Velocity performance (2010) describes service quality as “a judgment of
In the satisfaction literature, research has overwhelmingly performance excellence”. Service quality has been commonly
supported a direct influence of performance on satisfaction in conceptualized as multi-dimensional and based partly on
both consumer contexts (Churchill and Surprenant, 1982; observed service performance in both industrial and consumer
Szymanski and Henard, 2001) and business services contexts settings (Gounaris, 2005; Parasuraman et al., 1988). These
(Patterson et al., 1997; Hill, 2006). Oliver (2010) also conceptualizations imply that service performance perception
supports this direct influence of performance on satisfaction, a is integral to the service quality evaluation. Perhaps due to a
process he refers to as “unappraised cognition”. For CDBS high degree of conceptual overlap, research studies in B2B
contexts, however, performance is observed at multiple points services have not evaluated both service performance and
in time, so an alternative approach to conceptualizing the services quality in the same research model. Quality
performance¡satisfaction relationship should be considered. judgments may be more appropriate when service
One promising approach, based in psychology, is velocity performance is difficult to assess objectively. For example,
performance. Psychology research extends thinking on customers of janitorial services may find quality to be an
satisfaction by expanding the traditional conceptualization of appropriate metric, whereas customers of logistics services will
performance to two dimensions: positional performance and be able to assess service performance in a more objective
velocity performance (Hsee and Abelson, 1991; Hsee et al., manner.
1991; Hsee et al., 1994). Positional performance represents In addition to service quality and performance, many
the manner in which we ordinarily think about performance. A studies have found value to be an important antecedent of
performance level is observed at a certain point in time such satisfaction (Lapierre et al., 1999; Taylor and Hunter, 2003;
that the higher the observed level of performance, the higher Lam et al., 2004; Liu et al., 2005; Whittaker et al., 2007; Gil
the satisfaction with that performance. Velocity performance et al., 2008; Jayawardhena, 2010; Evanschitzky et al., 2012).
describes how performance is changing when observed at While a few researchers conceptualize value as a global
multiple points in time. Changes in performance levels are construct with several factors or dimensions (Whittaker et al.,
jointly considered with elapsed time to determine satisfaction 2007; Gil et al., 2008), value has most commonly been viewed
with performance. The faster performance is changing in a as a trade-off between the costs and or time invested by the
positive direction, the higher the satisfaction. customer compared to the performance or quality of the
Both the current level of service performance (positional) and service received, and even broad global conceptualizations of
the rate at which the service performance is improving in a service value consider the quality/value tradeoff to be a key
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A framework of satisfaction for continually delivered business services Journal of Business & Industrial Marketing
Elten Briggs, Timothy D. Landry and Patricia J. Daugherty Volume 31 · Number 1 · 2016 · 112–122
component. Thus, service quality has generally been modeled the corresponding research sample but some generalities can
as antecedent to value (Lapierre et al., 1999; Whittaker et al., be offered for CDBS satisfaction. One observation is that
2007; Jayawardhena, 2010). social satisfaction for purchasers of the service (e.g. small
Finally, a few research studies have evaluated the influence business owners and procurement specialists) is markedly
of both service quality and service value on satisfaction different from the employees consuming the service. In CDBS
simultaneously (Lapierre et al., 1999; Whittaker et al., 2007; contexts, social interaction with the service’s sales team, and
Jayawardhena, 2010). These studies have generally found the the social capital derived from being associated with
relationship between service value and satisfaction to be industry-leading service providers, should be explicitly tapped.
stronger than the relationship between service quality and Indeed, it is at higher levels within organization that global
satisfaction. Lapierre et al. (1999) argues that B2B service concepts such as service provider satisfaction are likely to be
providers should follow a value strategy rather than a quality managerially germane. Stated differently, social interactions at
strategy to more effectively position themselves in the the employee level, despite their critical role in the co-creation
marketplace. Value takes in the account the bottom line, of services, should matter less in organizational assessments of
which should be especially meaningful for business customers. CDBS satisfaction. Moreover, even with continual performance
These arguments lead to the following proposition: feedback mechanisms, social feedback from employees (e.g.
P4. When mode0ling CDBS service satisfaction, service dock workers interacting with a 3PL) is not likely to be
quality should be considered instead of service regularly reported – making the concept at the “typical” level
performance when performance is difficult to assess of analysis for satisfaction studies (i.e. the service’s consumer)
impractical and likely inconsequential.
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adapted over time as recent customer experiences modify guidelines to researchers regarding variables to model under
existing satisfaction levels (Doorn, 2008; Spreng et al., 2009). certain conditions. Researchers following these guidelines for
When multiple service deliveries take place over time, satisfaction studies in CDBS contexts can produce studies that
expectations at any single point in time become less impactful are more comparable to one another. One key antecedent of
and cumulative assessments become critical to customer CDBS service satisfaction discussed in these propositions was
satisfaction. velocity performance, which has received only a limited amount
Further, velocity performance can become an important of research attention in the business literature (Briggs et al.,
consideration, especially when service delivery approaches 2010). Variables such as velocity performance that take into
continuous levels. Importantly, motives may moderate the account changes in performance over time have become
relative weighting individuals assign to the two types of increasingly relevant in the present business environment.
performance in satisfaction evaluations (Hsee et al., 1991). P5 relates to economic and social satisfaction. Despite
Those customers weighting velocity performance heavily will strong supporting theory from the social exchange literature,
not be satisfied by simply receiving adequate levels of service there is scant research involving separate treatment of social
performance, but will desire for service levels to improve at an satisfaction and/or economic satisfaction. A key premise is
acceptable rate over the duration of the exchange relationship. that social and economic interactions should be investigated at
Effective customer satisfaction programs in CDBS industries differing levels, specifically the interpersonal and
will include performance metrics that can accurately capture interorganizational levels, respectively, which would help
information on velocity performance. future researchers make clearer distinctions between the
Managers in CDBS contexts should consider that constructs. Further, there is a need for more research on the
customers evaluate social and economic outcomes in a variety evaluative processes that customers apply to social and
of ways. Effective customer satisfaction programs will monitor economic outcomes.
social and economic satisfaction separately at differing levels
of analysis, the interpersonal level for social satisfaction and 8. Conclusion
the firm level for economic satisfaction. Distinct outcomes As exchanges in mainstream marketing are becoming more
drive each type of satisfaction. To truly maximize social characteristic of the exchanges in B2B service environments, it
satisfaction, resources including boundary spanning personnel is important for key constructs in the field to be re-examined
must be allocated to cultivate interpersonal relationships, within this context. In this paper, we developed a conceptual
which may be an additional cost for a service provider. When model of the satisfaction formation process in B2B service
faced with such trade-offs, however, managers should be contexts which integrated key theoretical frameworks:
careful about increasing service costs, thereby sacrificing ● the E/D paradigm (prevalent in consumer research);
economic satisfaction for the sake of social satisfaction, given ● velocity performance (psychology); and
the rational nature of business customer evaluations. An ● SET (prevalent in channels research).
important exception would arise in cases where social factors
facilitate the co-creation of the core service offering, thereby The conceptual model contributes to current marketing
enhancing the economic value of the service offering to the thought by:
customer. ● offering a theoretically based conceptualization of
satisfaction within the CDBS context; and
● organizing relevant antecedents of satisfaction formation
7.2 Contributions and future research
in B2B service contexts from the extant literature.
The satisfaction formation model presented in this paper
provides a framework for future research studies (Figure 2). These ideas and considerations offer marketing managers a
Propositions are developed to guide future satisfaction generalizable framework, as they strive to maintain and
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A framework of satisfaction for continually delivered business services Journal of Business & Industrial Marketing
Elten Briggs, Timothy D. Landry and Patricia J. Daugherty Volume 31 · Number 1 · 2016 · 112–122
improve customer satisfaction levels in an ever-evolving in the life insurance industry”, Journal of Marketing
marketplace and provide satisfaction researchers with Research, Vol. 24 No. 4, pp. 404-411.
challenging new directions. Doorn, J.V. (2008), “Is there a halo effect in satisfaction
formation in business-to-business services?”, Journal of
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