Blinded by the light? Analyzing sustainability authenticity, customer service perceptions, and halo effects

Pages117-139
DOIhttps://doi.org/10.1108/IJLM-12-2017-0344
Published date11 February 2019
Date11 February 2019
AuthorClinton Amos,Sebastian Brockhaus,Amydee M. Fawcett,Stanley E. Fawcett,A. Michael Knemeyer
Subject MatterManagement science & operations,Logistics
Blinded by the light? Analyzing
sustainability authenticity,
customer service perceptions, and
halo effects
Clinton Amos
Department of Business Administration and Marketing,
Goddard School of Business and Economics,
Weber State University, Ogden, Utah, USA
Sebastian Brockhaus
Department of Management, Marketing, and Supply Chain,
Boler College of Business, John Carroll University, University Heights, Ohio, USA
Amydee M. Fawcett and Stanley E. Fawcett
Department of Management and Marketing,
Goddard School of Business and Economics,
Weber State University, Ogden, Utah, USA, and
A. Michael Knemeyer
Department of Marketing and Logistics, Fisher College of Business,
Ohio State University, Columbus, Ohio, USA
Abstract
Purpose The purpose of thispaper is to evaluate how serviceperceptions influence customerviews of the
authenticityof corporate sustainability claims. The goal of this paper is to help supply chain decision-makers
betterunderstand boundaryconditions in order todesign more enduring andimpactful sustainabilityprograms.
Design/methodology/approach The authorsemploy behavioral experiments,subjecting two theoretically
derived hypothesesto verification across five diverse industries and two distinct sustainability vignettes.
Findings Customer service perceptions emerge as a significant boundary condition to the perceived
authenticity of sustainability effo rts. Subjects attributed significant ly higher authenticity toward
sustainability efforts in above average vs below average service quality contexts. Further, respondents
attributed deceptive motivations to sustainability efforts at companies with below average service.
Research limitations/implications The authors confirm the underlying tenet of social judgment theory,
which suggests that a priori perceptions create a zone of acceptability or rejection. Ultimately, investing in
sustainability can lead to counterproductive cynicism.
Practical implications The authors infer that customerswillingness to give companies credit for
sustainability initiatives extends beyond service issues to any practice that influences a priori perceptions.
Supply chain managers must rethink their role in designing both customer service and sustainability systems
to achieve positive returns from sustainability investments.
Originality/value The authors challenge the assumption that customers universally positively view
sustainability efforts. If customers hold a priori negative service perceptions, otherwise well-designed
sustainability programs may invoke cynical reactions. Thus, sustainability programs may not inoculate firm
reputations from adverse incidents. Given they touch both service and sustainability systems, supply chain
managers are positioned to holistically influence their design for competitive advantage.
Keywords Sustainability, Survey, North America, Customer service, Supply chain competences
Paper type Research paper
Introduction
In a competitive and resource-constrained decision-making environment, the question arises,
Under what circumstances do sustainability initiatives provide a positive return on
investment?This question is particularly relevant once sustainabilitys low-hanging fruit has
The International Journal of
Logistics Management
Vol. 30 No. 1, 2019
pp. 117-139
© Emerald PublishingLimited
0957-4093
DOI 10.1108/IJLM-12-2017-0344
Received 22 December 2017
Revised 10 April 2018
12 June 2018
5 July 2018
Accepted 16 July 2018
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0957-4093.htm
117
Blinded by
the light?
been picked. To a large extent, the answer depends on how customers respond to a companys
sustainability claims. For instance, UPS (2017) proclaims that it is recognized for making a
difference.Do customers believe this claim, perceiving it to be genuine? Or, do they discount the
claim as corporate propaganda? Discerning how customers process corporate sustainability
claims is critical to the effective design and execution of sustainability programs.
We propose that customers base their initial assessment of the authenticity of
sustainability efforts on past encounters with that firm. Specifically, customers often have
contact with companies via their service experiences a process for which supply chain
managers share responsibility for designing and delivering (Fawcett and Waller, 2012).
Due to consumer demands, sustainability-oriented value propositions are a result of
organizations redefining their role in society as entities that are more than just profit
machines (Morioka et al., 2017). However, these value propositions may be more or less
effective depending on customer service experiences. Take for instance, UPS’“we make a
differencevalue proposition. Despite extensive investments in customer service, UPS has
yet to eradicate service failures. Some customers may thus view UPSclaim from the
perspective of a recent service failure. What if the delivery was not just several days late but
also damaged. Worse, maybe the driver was unapologetic and could not offer a convincing
explanation. These customers may wonder, how can UPS be genuine about sustainability if
it cant even deliver a package on time and in good condition?Thus, we explore possible
connections between customer perceptions of service quality and customer views of a
companys sustainability authenticity.
Corporate sustainability has become a mandatory talking point among developed world
companies (e.g. Esty and Winston, 2009; Kremer and Viot, 2012; Gupta and Kumar, 2013; Choi
and Moon, 2016). The literature argues that sustainability has the potential to create a
competitive advantage and improve financial returns (e.g. Brønn and Vidaver-Cohen, 2008;
Peloza et al., 2012; Lins et al., 2017). That is, sustainability programs are believed to enhance
customer perceptions of a firms reputation, influencing customer purchase behavior
(Ko et al., 2013). In particular, firms are benefiting from sustainability efforts that are based
on operational excellence (e.g. Mollenkopf et al., 2010; Lam and Dai, 2015). On a related note,
Ailawadi et al. (2014) found that corporate social responsibility (CSR) initiatives can enhance
customer loyalty if firms tailor their approach to specific customer segments. Sustainability
initiativeshavethusbecomecommonplaceacrossaspectrumoffirmsfrommanufacturing
companies (e.g. Dangelico et al., 2017; Yang et al., 2017) to service firms (e.g. Allais et al., 2017;
Mousavi et al., 2017). Indeed, the Retail Industry Leaders Association announced a large-scale
initiative to improve the reputation of retailers via sustainability programs (Siegel, 2016).
Importantly, because sourcing, operations, and logistics account for the majority of a firms
carbon footprint, the responsibility for delivering sustainability results often falls to a companys
supply chain organization (Pagell and Gobeli, 2009; Lam and Dai, 2015; Shin et al., 2017).
However, our understanding of boundary conditions regarding sustainabilitys positive
impact on financial returns and competitive advantage remains meager and incomplete.
Although research has established that sustainability initiatives only improve corporate
image and customer loyalty if they are perceived to be authentic (Ménard and Brunet, 2011;
van Rekom et al., 2014), the factors that constitute and contribute to this authenticity are
poorly understood (Brockhaus et al., 2017). Understanding such factors is critical since
consumers have exerted greater pressure on companies to demonstrate sustainability in
both upstream and downstream aspects of the supply chain (Kovács, 2008). At the same
time, greater demands are placed on supply chain managers to improve customer service
operational indicators (e.g. Flynn et al., 2010; Lusch, 2011). Hence, supply chain managers
must implement and are held accountable for both sustainability and customer service
initiatives. Augmenting the understanding of the relationship between perceived service
quality and the authenticity of sustainability efforts is, therefore relevant and timely.
118
IJLM
30,1

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